Posts Tagged ‘Representation’

The destruction of brand Trump.

datePosted on 11:37, March 13th, 2016 by Pablo

As readers may be aware I am delighted by the Trump candidacy because it is destroying the Republican Party and will pave the way for an epic defeat in the November general elections. Not only will the GOP lose the presidential race because none of its candidates will be able to muster the votes needed to overcome the Democratic advantage (be it Hillary or Bernie who lead the ticket). It could well lose control of Congress on the negative coattails of the presidential race (the entire House and 1/3 of the Senate are up for grabs, with the Democrats needing to win 4-5 current Republican seats in order to gain control of the Senate). It does not matter if Trump is the GOP presidential candidate or if he or another Republican go independent in the wake of the convention, which itself promises to be a bloodbath. The vast majority of swing voters and independents, who tend to vote on the Left in any event, will be galvanised to vote against whatever the Republicans have to offer, Trump in particular. For all his bluster about bringing out new voters on the Republican side, what he really has done is bring out new voters on both sides–most of whom are against him. As a result, the GOP is doomed and could well split into Tea bagger/populist and “moderate” right parties in the wake of what is looming as an electoral  catastrophe of historical proportions.

A tipping point has been reached this week with the escalation of protests against Trump at his rallies and the retaliatory violence of his supporters and campaign staff and security against those who dare confront him on his xenophobic bigotry and inflammatory rhetoric (and one has to ask why local law enforcement and the Secret Service act as his praetorian guard when removing peaceful protesters at his behest. After all, they are not in his employ and are not legally authorised to detain, handcuff and arrest people exercising their right to protest in public spaces just because he wants them forcibly removed).

The cancellation of a Chicago rally because of protests will only encourage more of them, and they will be increasingly large and organised in nature. That in turn will enrage Trump, who does not have the good sense (or even basic ability) to moderate his venom, which will bring out the full nut case element in his support base (which has already started to appear more and more frequently). Unfortunately, it is now a very real possibility that someone will be killed or seriously injured at a Trump rally, and the perpetrators will be his supporters, not his opponents.

When that happens, the wheels will come off the Trump political cart.

By then the damage to the GOP “brand” will have been irretrievably done. But what I find just as wonderful is that Brand Trump itself is now irreversibly damaged as well. However illusory, it used to represent luxury, opulence, quality, style and the excess that comes with success. It had global recognition. It was synonymous with capitalist high rolling, only in part because of his obsession with casinos.

In the wake of this presidential campaign, that image has been replaced by something less illusory and much darker. “Trump” is now synonymous with racism, xenophobia, buffoonery, demagoguery, narcism, sociopathy, chauvinism, misogyny, war-mongering, bullying, cheating, lying, senseless violence, stupidity–the list goes on. Whatever people may have done by way of word association with the name Trump in the past, my bet is that the first thing that now comes to mind when his name is mentioned is some of the negative terms mentioned above.  In fact, the word Trump may well become an adjective or verb, as in “that old white dude went all Trump on me when I said that Obama was not a Kenyan,” or “that reactionary fool is just plain Trumped in the head.” It could even be used as a noun, for example, as in “Trumpster:” n.: an idiot, fool, dolt, ignoramus, numbskull, someone who is gullible, slow on the uptake, blindly naive or prejudiced in the extreme.

His tarnished brand may survive in the US, perhaps in red neck resort destinations like the Florida panhandle and the coastal Deep South and/or parts of Appalachia. But many Americans, and not just “ethnic” Americans or Democrats, will shun his products, services and anything with his name on it. There may be boycotts and protests organised against them. And with the possible exception of Putin’s Russia (given the mutual admiration society he runs with Trump), as a global brand it is finished. Think of the Arabs, Latin Americans, Asians and even Europeans that Trump has scapegoated and insulted. Any current or potential Trump business partner or investor now has to wonder if they will be tainted by association with him and whether their business will suffer as a result. Given daily revelations of his less than salubrious past business dealings, profound dishonesty and myriad failures that have ruined others much more than it has hurt him,what foreign governments other than those of tinpot dictators are going to want a bar of him as an investment partner? Even better, increased scrutiny of his business dealings may well result in criminal charges being laid against him, which will only add to the tarnish on the brand.

The hard fact is that the Trump campaign will prove deleterious for Trump business holdings, which explains why his managerial minions, “the best people” in his words,  are currently in the process of putting legal and PR distance on him. The trouble for them, however, remains embedded in that ubiquitous name.

This is the silver lining in the Trump cloud. Not only has he exposed the ugly side of US politics. He has exposed himself and his illusory brand in doing so. He is taking the GOP down along with him, and neither it or his brand will survive the fall intact.

That is truly a good thing.

I was invited by the nice folk at sustainnews.co.nz to contribute a short essay related to sustainable economics from my perspective as a geopolitical and strategic analysis consultant. The essay wound up  making the connection between political risk and sustainable enterprise, and more importantly, the relationship between sustainable enterprise and democracy. You are welcome to view it here.

Seditious stupidity.

datePosted on 07:58, February 23rd, 2016 by Pablo

To state the obvious, things have gotten pretty crazy in the US this election year. The GOP presidential campaign is a clown car driven by Donald Trump that has a trunk full of gun worshiping liars, opportunists, neophytes, xenophobes, war mongerers, ignoramuses and bigots (except, perhaps, Kasich). The GOP Senate majority are threatening to not even hold hearings on the replacement for the recently deceased and unlamented Antonin Scalia, he of the view that corporations are citizens and contraception is bad because sperm is precious. But to get a real sense of how bonkers the right side of the US political table has become one need go no further than this. I urge readers to peruse the comment thread and other posts on that site in order to get a full idea of the lunacy at play. My favourite comment from that particular thread is that Obama has removed US flags from the White House and replaced them with “Muslim Curtains” (presumably to match the prayer rugs he has installed), but there is much more in that vein. More recently I watched an interview with a white middle aged woman at a confederate flag rally in South Carolina the day before the GOP primary held there. Her answer as to why she was voting for Trump is mint: She is voting for him, she said, “because he is a self-made man and he says why I think.”  Ah, to be a fly on the wall at her dinner table conversations…the stupid must be very strong there.

Views such as those espoused by that woman and on that reactionary thread would be laughable except for the fact that a) about 15-20 percent of US citizens apparently hold them; and b) the GOP controls both chambers in Congress and believes that catering to the lunatic base can win them the presidential election. After all, as Trump himself has said in the past, Republican voters tend to be stupid so that is the party to affiliate with if one wants to hold elective office. The fear and paranoia of the stupid and deranged is palpable–and politically bankable.

The real trouble, though, is that not only is this voting minority stupid or crazy, but they are also seditious, as are their representatives in Congress.

Longer term readers may recall my writing in 2009 about the disloyal opposition in the US. The bottom line is that disloyal oppositions in democracies are those that focus on thwarting anything the government does in order to bring about its collapse. This is what happened to  Allende in Chile and if Senate Leader Mitch McConnell (R-KY) had his way, this would have been the fate of Obama during his first four years in office (McConnell famously said after Obama’s election that it was his duty to see that Obama become a one term president). From then until today, both Senate and House Republicans have engaged in a pattern of systematic “obstructionism” (as the Democrats quaintly call it) in an effort to stymie every policy initiative advanced by the White House. Fortunately, they have largely failed, although the cost in terms of political gridlock, brinkmanship and federal government closures has been high.

The stupid is also strong in the Republican National Committee, which got suckered into allowing Trump to run for president under the GOP banner even though he had only recently joined the party (in 2009) and had a history of non-conservative views on matters of social policy such as abortion (he was openly pro-choice until 2011). The RNC thought that it could bring Trump to heel and instead what they now have is a rogue candidate who has pulled the entire campaign into tea bagger land and who can win the nomination outright or force a brokered convention in which his ideas on matter of policy will become part of the nominee’s platform even if he is not that person. Worse yet, his candidacy could well irretrievably fracture the GOP into establishment and tea bagger camps, leading to either a split and emergence of a third rightwing party or the destruction of the GOP as a viable political organisation for years to come.

So not only are a significant minority of US voters patently stupid or crazy, but a fair bunch of the GOP representatives are as well if we accept that the definition of stupidity or insanity is doing the same unsuccessful or desperate thing over and over again. But there is something more sinister at play as well, and that is the seditious nature of the disloyal opposition mustered by the GOP, its media accomplices and the variegated assortment of nut cases who are the target of their appeals.

Broadly defined, sedition is any act that encourages rebellion or undermines the lawful authority of a State. That includes any action that foments discontent, disorder or which incites resistance, revolt or subversion against duly constituted authority or government. Although the concept is broad and has been the subject to a number of interpretations (the general rule being that it is more broadly defined in authoritarian states and more narrowly defined in democratic states), in the US sedition is  rather narrowly defined (as “seditious conspiracy’) and sits with treason and subversive actives in 18 US Code Chapter 115.

The reason why the actions of the rightwing disloyal media and GOP opposition are seditious is that they actively encourage resistance to the lawful authority of the Obama administration and federal agencies charged with enforcing laws under it, and actively conspire to undermine the Obama administration at every opportunity. This can range from acts such as the occupation of an Oregon national bird sanctuary by armed militiamen (covered explicitly in 18 US section 2384 on seditious conspiracy, which includes “by force to seize, take, or possess any property of the United States contrary to the authority thereof,” punishable by jail terms of 10-20 years), to refusing to hold Senate hearings on judicial nominees in a timely fashion as the Constitution prescribes.

The gamut between the two poles runs wide, as evidenced in the lunatic thread linked above, but the intention of those engaged in all of these acts of disloyal opposition are clearly seditious in nature. Add to that the regular interpretative abuse of the 2nd amendment by the NRA, gun manufacturers and gun fetishists, and the tilt towards armed defiance is near complete (and in some cases has been completed, as the Oregon standoff and conclusion demonstrates). No wonder that the federal government has moved carefully when dealing with armed rightwing groups since Waco and Ruby Ridge, less the seditious narrative become a self-fulfilling prophecy.

For all the insanity now on display, the real craziness will begin after November’s election. If Hillary or The Bern wins, it is very possible that rightwing seditious speech will turn into actual seditious conspiracy, aided and abetted by conservative media and politicians. The threat of violence cannot be discounted. On the other hand, if Trump or Cruz win, there is the real possibility of protests, demonstrations and even riots in many areas in which those targeted and scapegoated by these candidates are located. They may not be the fully auto, full metal jacket resistance of the right-wingers, but these protests are bound to be (low level if wide scale) violent as well. So the real action will begin after the election, barring the possibility that Kasich or Rubio win the nomination and presidency (in which case most Democratic supporters are likely to adopt a “wait and see” attitude). My hunch is that things will get ugly come Inauguration Day.

Whatever the outcome I am glad for one thing: better than I watch events unfold from here rather than there.

Too Clever.

datePosted on 15:59, February 11th, 2016 by Pablo

The TPPA signing came and went, as did the nation-wide protests against it. I did not think that the government was going to be swayed from publicly commemorating what it considers to be the crown jewel of its trade-dominated foreign policy, but I had hoped that the numbers turning out to protest would add up to more than 100,000. At least that way the government could be put on notice that a sizeable portion of the electorate were unhappy about the surrender of sovereignty to corporate interests enshrined in the 6000 page text. Alas, the numbers assembled came nowhere close.

One interesting sidebar was the decision to stage a parallel protest at the Sky City complex  rather than join with the larger protest march down Queen Street. The specific objective of the Sky City protest was ostensibly to use so-called non-violent direct action (NVDA) and other acts of civil disobedience to block the streets surrounding the gambling complex. In the build up to signing (and protest) day the leaders of the two rival demonstrations publicly debated and largely disagreed on the merits of each. The Queen Street march organisers were concerned that any pushing and shoving at Sky City would feed into the government’s narrative that the matter was a law and order issue (following reports that the police had conducted riot control refresher training and door knocked activists warning them about the consequences of unruly acts). The leaders of the Sky City blockade argued that peaceful marches were simply ineffectual and were ignored by policy-makers. As it turns out, both were right.

The Sky City protesters, some of whom showed up in helmets and assorted face coverings, were forcibly prevented by the Police from effectively shutting down access to and from the venue and surrounding areas. The activists responded by engaging in a series of rolling blockades of major intersections, including the Cook Street on-ramp leading to the Harbour Bridge and Northern Motorway. This continued well after the signing ceremony was over and while the Queen Street march was still in progress. That had the effect of causing gridlock in the Auckland CBD.

Coincidentally or not, there was a bus strike that day. Although Auckland Council allowed its employees to work from home, many other entities did not. That meant that people who normally used buses to get to work had to use alternative transportation, including cars. That added to the number of cars on Auckland inner city roads at the time of the rolling blockades. Needless to say, motorists were not happy with the seemingly random temporary road closures in and around the CBD.

That is why things got too clever. As a tactical response to the police thwarting of the initial action, the move to rolling blockades was ingenious. But that bit of tactical ingenuity superseded the strategic objective, which was to draw attention to the extent of TPPA opposition. In fact, it appeared that the Sky City activists were trying to outdo each other in their attempts to make a point, but in doing so lost sight of the original point they were trying to make. After all, blocking people from leaving the city after the signing ceremony was over was not going to win over hearts and minds when it comes to opposing the TPPA. Plus, it displayed a callous disregard for the motorists affected. What if someone was rushing to a hospital to be with their badly injured child or terminally ill parent? What about those who needed to get to work on time so as to not be docked pay? What about cabbies and delivery people who earn their livings from their vehicles? None of this seems to have factored into the blockader’s minds. Instead, they seemed intent on proving to each other how committed they were to causing disruption regardless of consequence to others.

I have seen this before in other places, most recently in Greece, where anarchists and Trotskyites (in particular but not exclusively) infiltrate peaceful protests and engage in acts of violence in order to provoke what are known as “police riots” (a situation where isolated assaults on individual police officers eventually causes them to collectively lash out indiscriminately at protesters). Fortunately, NZ does not have the type of violent activist whose interest is in causing a police riot. Unfortunately, it has activists who seemingly are more interested in establishing and maintaining their street credentials as “radicals” or “militants” than using protest and civil disobedience as an effective counter-hegemonic tool. So what ended up happening was that the Sky City protestors were portrayed by the corporate media and authorities as anti-social misfits with no regard for others while the Queen Street march was briefly acknowledged, then forgotten.

On a more positive note, Jane Kelsey has to be congratulated for almost single-handedly re-defnining the terms of the debate about TPPA and keeping it in the public eye. As someone who walks the walk as well as talk the talk, she was one of the leaders of the Queen Street march and has comported herself with grace and dignity in the face of vicious smears by government officials and right wing pundits lacking half the integrity she has. I disagree about the concerns she and others have raised about secrecy during the negotiations, in part because I know from my reading and practical experience while working for the US government that all diplomatic negotiations, especially those that are complex and multi-state in nature, are conducted privately and only revealed (if at all) to the public upon completion of negotiations (if and when they are).

For example, the NZ public did not get to see the terms of the Wellington and Washington Agreements restoring NZ as a first-tier security partner of the US until after they were signed, and even today most of their content has been ignored by the press and no protests have occurred over the fact that such sensitive binding security arrangements were decided without public consultation. More specifically with regards to the TPPA, no public consultations were held in any of the 12 signatory states, and in the non-democratic regimes governing some of those states the full details have still not been released. Even so, I do think that it was a good opposition ploy to harp about “secrecy” as it simply does not smell right to those not versed in inter-state negotiations. In any event, what Ms. Kelsey did was exactly what public intellectuals should be doing more often–informing and influencing public opinion for the common good rather than in pursuit of financial or political favour.

I would suggest that opponents of the TPPA focus their attention on the Maori Party and its MPs. The Green Party’s opposition to TPPA is principled, NZ First’s opposition is in line with its economic nationalism and the Labour Party’s opposition is clearly tactical and opportunistic (at least among some of its leaders). So the question is how to wrestle votes away from the government side of the aisle when it comes to ratification. Peter Dunne and David Seymour are not going to be swayed to change sides, but the Maori Party are in a bit of an electoral predicament if they chose to once again side with the economic neo-colonialists in the National government.

For all the sitting down in the middle of public roadways, it may turn out that old fashioned hardball politicking may be the key to successfully stymying ratification of the TPPA in its present form.

Now THAT would be clever.

 

Go The Donald!

datePosted on 15:25, September 1st, 2015 by Pablo

I am lucky to be able to vote in the US as well as NZ, and very much relish the opportunity in both countries. In the US I am registered as a voter in Florida, which is a closed primary state. “Closed” primary states are those in which a voter has to declare a party preference prior to the primaries in order to vote in them. For years before and after I established a residence in Florida I listed my political affiliation as “Independent,” something that allowed me to choose a primary to vote in the “open” primary states where voting preferences did not have to be declared prior to primary season (they only have to be declared and ticked off on the day at the balloting station). In 2008 I decided to switch my declared affiliation to Democrat so that I could vote in the Florida Democratic Party primary given that not only were Obama and Hillary running for president, but there were races for the US House, Senate and local seats that needed to see Republicans defeated.

This year I am going to switch affiliation to Republican. Why? Because that way I can vote for Donald Trump in the Republican primary in the hope that he makes it to the GOP National Convention next July. It has been a very long time since either major party has had a brokered convention where several candidates are in the running for the presidential nomination, and should The Donald survive until then the craziness will be well and truly on. Since he is totally unqualified to be dog catcher much less president and unelectable in the general election, it is my sincere hope that he hangs in all the way to the convention and either becomes the GOP candidate, determines who is, or runs a third party candidacy after losing out in the convention to one of the others. The only thing better would be for Kanye to join that gaggle of fools and trolls but, alas, he is going to wait until 2020 to run.

Already The Donald has become to the GOP what Miley Cyrus is to pop muzak: a wrecking ball. The Republican National Committee must be choking on their Cohibas (illegal until the recent diplomatic reopening with Cuba) and dying a slow death every time he speaks or when they read the polls. Because let us be clear: Trump appeals to the stupidest, xenophobic, economically illiterate, racist, bigoted, misogynist, white cultural supremacist elements in US society. He follows in a long line of populist demagogues that extends back through Ross Perot to Pat Buchanan, George Wallace and Huey Long.  He may purport to speak unvarnished truth but in fact what he says is most often non-sensical rubbish that fails to address reality much less the intricacies of democratic governance with a division of powers: he is going to “do the deal” with whomever; most Mexicans are rapists and drug dealers; he will “build a wall and make Mexico pay for it” (along 1,900 miles of topographically challenging terrain that includes numerous sensitive ecological zones and wildlife corridors); he will deport “illegals ” and their “anchor babies,”  (all 14 million of them); he will simultaneously confront China, Iran and Russia; he will make the US military “great” again so that no one will “mess” with it (forgetting that the US spends more on defense than the next seven countries combined–US$610 billion or 20 percent of US federal spending and 3.7 percent of GDP–and still has people “messing” with it); he will provide better women’s health care in spite of gutting Planned Parenthood and removing health care for “alien” women because he “cherishes” women in general (ignoring the fact that two of his wives were not citizens when he married them). Everyone in politics but him are incompetent or idiots. His speeches are endless repeats of these and other inane mantras interspersed with self-congratulatory self-praise and personal insults directed at his rivals, all other politicians and anyone who disagrees with him.

The truth is that he has no plan, has no policy agenda, has no friggin’ clue what it is like to deal with the complex issues that confront the US. And that is why the rednecks and dimwits like him. He makes the hard seem easy.

What is great about this is that he is forcing the other GOP candidates to respond to him, and they have stepped up to the plate in predictable style. Among other gems, Ben Carson (the neurosurgeon) says homosexuality is a choice because men go to prison straight and come out gay; Scott Walker just suggested that building a 3,987 mile wall on the Canadian border is worth looking into; Jeb Bush wants to abolish Planned Parenthood and believes that the invasion of Iraq “turned out well;” Ted Cruz and Marco Rubio want walls and deportations even though they are children of recent immigrants who were legally documented after, not before their arrivals. They all claim that the US military and its veterans have been crippled by Obama even though it was Bush 43 who ordered them into two simultaneous wars while cutting back veterans benefits as well as the budget for post-combat trauma rehabilitation. They all claim that ISIS is an Obama invention even though it was Dubya’s purge of Saddam’s army that provided the leadership material for what became ISIS’s fighting forces. They all oppose gun control and climate change science and all support hacking, fracking, drilling and spilling regardless of environmental consequence. They all oppose abortion and gay marriage even if some of their past records indicate otherwise. The list of idiocy goes on but should not surprising given that Rick Perry, Rich Santorum, Mike Huckabee and several snivelling weasels remain in contention.

As things stand now, the GOP primary is a circus. There may not be any juggling or animal acts, but there sure are a lot of clowns, and The Donald is the ringmaster. Even if the number of viable candidates drops to 2 or 3 by the time of the GOP convention, it will be Trump who sets the Right’s narrative for the general election. Yippee!

It looks like the US media has decided to sit back and watch the circus unfold. Fox News tried to undermine him in the first debate that it aired, but his nasty personal attacks on the female panelist only strengthened his support among the troglodyte crowd and has forced Fox to backtrack and give him coverage as the Party favourite. All other outlets are content to watch the train wreck proceed while offering the mediocre tedium that passes for informed analysis by the usual spectrum of pundits. As a result, the GOP favourite, Jeb Bush (or “Mr. Low Energy,” as The Donald calls him) has seen his coverage slip to the sidelines along with the other yokels. Likewise, for all of the Fox News chest beating, Hillary Clinton is getting a general pass by the press because her sins are run of the mill when it comes to DC politics and her campaign is about practicable policy, not theatrics.

The key to the outcome will be seen in January when the first GOP primaries are held. If The Donald does well in them he will be hard to stop. So the RNC has to find a way to do him in either before then or to go all out nuclear on him should he prevail in Iowa or New Hampshire. That is when the questions about his draft dodging, drug use, association with organised crime, commercial racism, trust fund baby status, adultery, academic record embellishment and a host of other peccadilloes and not-so-small sins will find their way into the mainstream media. But even then he may be too big a juggernaut to derail in time for the GOP to coalesce around another candidate who may stand a chance in the general election.

I cannot begin to express how delighted I am to watch this unfold. The Donald may well force the GOP to split into two, with the Tea Baggers on one side and the corporate sponsors on the other.

Either way, he is single-handedly killing the US Right as a unified political force.

For that I have one thing to say: Go The Donald!

Loansharking Greece and odious debt.

datePosted on 10:57, July 7th, 2015 by Pablo

I do not purport to be an economist nor would I ever want to be. Theirs is a world of implicit assumptions and pseudoscience that only a brave few have challenged from within. However, theirs is also a discipline that in theory and practice can shape the fate of millions, which is why I pay more than casual attention to them. Thus it is that I came to ponder the financial situation in Greece, a place that I lived in in 2010 at the start of its downward slope towards the current moment (my wife has researched and written on matters of Greek political economy and I have an interest in Greek civil-military relations, so our stay was mutually beneficial). Here is my non-expert view of things.

When lenders charge interest on principal loaned, they prefer to have the interest paid rather than the principal. This loan repayment rationale, which is true for states, firms and individuals, keeps the debtor beholden to the lender so long as the principal remains unpaid. Over time, the interest accrued can well exceed the amount lent, which is perfectly fine from the lenders point of view but keeps the debtor permanently saddled in a cycle of interest payment unless the debtor earns additional income (revenue) that can be directed towards paying down the principal. Short of a lottery win, a pay raise or new sources of revenue, debtors on relatively fixed incomes are locked into the cycle of debt.

Greece is in that situation. Until 2008 it was servicing the interest payments on its debt to international lenders (mostly the European Central Bank, various national banks and private investors). Then the international financial crisis of 2008-09 hit, which had nothing to do with Greece per se but which drove up interest rates. With a stagnant economy and flat tax revenues, Greece quickly found itself unable to make interest payments and, in a dramatic revelation, announced in 2010 that it had been systematically underestimating its fiscal deficit in order to maintain interest payments on its debt at a sustainable rate. At that point many private investors dumped their Greek debt holdings and the IMF assumed a significant portion of them as well as some of that accrued by European public banks.

The Greeks were subsequently offered two “bailout” loans that allowed them to continue to pay the interest on their debt, which together with the principal now amounts to nearly 250 billion Euros. With interest set at approximately 4 percent annually, the figure is set to reach the half trillion euro mark in a few years. Even if interest rates were capped at zero, it is estimated that it would take Greece 81 years to repay the amount currently owed.

There are several questions arising from the Greek debt. Why, since the interest paid is now more than the principal borrowed, does not the ECB and IMF put a cap on the debt? Why did investors continue to offer loans to Greece when it turned out that the Greeks were fiddling the books, and that neither the principal or the repayment loans ever trickled down to the general public in terms of public goods and services? Why does it expect the Greek population to pay via austerity for the risky borrowing of Greek elites and the even riskier lending of European banks?

Asking the Greek people to shoulder the burden of austerity–in a country with 30 percent general unemployment and 50 percent unemployment for those under 30, with a massive brain drain of educated professionals, porous borders and deep cuts to public sector salaries, pensions and basic services–is akin to forcing the children of crack addicts to starve and swab floors in order to pay for the rehab treatment of their parents. And the outcome is just as uncertain.

Let’s look at it this way. Capitalism is about assuming risk for higher reward. In the financial world, the riskier the investment the higher the interest paid on it. And just like quick finance and pawn shops are located in poor rather than rich neighbourhoods, high interest bonds are issued on “risky” countries with poor credit ratings and histories of financial instability. For “courageous” investors riding the line between high interest and junk bonds, the rewards for so-called bailouts are great. But the downside of a default is that they will have to wear losses, just as many ill-advised investors have to.

Greece is one such high risk place and those who lent to it knew this from the beginning.

With that in mind is is easy to see that the behaviour of the “troika” (the European Commission, European Central Bank and IMF) can be (and has been) likened to loansharking and needs to be treated as such. When people seek debt relief from loansharks, banks or credit card providers, they arrange to repay a capped sum and a payment schedule is established. The alternative is bankruptcy, which leaves the creditor with nothing. Although suboptimal from the lender’s point of view, the capped payment alternative is better than nothing.

When it comes to states, the decision to cap debt is a political decision, not a financial one. That is because the stability of states is more important than the returns on risky investment, especially when ample returns have already been received, many creditors are no longer at risk and demands for future returns put state stability at peril. In the case of Greece there is a twist, in that the referendum on whether to accept austerity was the first political iteration in a multi-step process. Now that the Greeks have refused more austerity, it is the turn of the EC to make a political decision of its own.

Let’s be clear: this is not a Greek crisis; it is a crisis of European finance capital. The demand for more Greek austerity is not about servicing the debt but about humiliation, punishment and deterrence of others who might dare to do the same.

The people who should seek answers are those who invested in the agencies that undertook the high risk lending strategies that have brought us to this moment. The people who are responsible for the crisis are not average Greeks but suits sitting in fancy offices in Athens, Brussels, Frankfurt and London. They are the ones who took the risk on Greece and they are the ones who need to be held to account.

This does not absolve Greeks from their own mistakes. Certainly the culture of entitlement and the pervasive corruption in Greek society needs to be addressed. But here again, this was well known to foreign creditors at the time they lent money to Greece, and for all the everyday petty corruption in Greece involving phantom war veterans and people faking disabilities, it is the Greek political-economic elite who elevated institutional corruption to an art form. Syriza proposes to confront them as well as the lower-level scams but in order to do so it must show that it can negotiate a debt payment agreement that puts the interests of average Greeks first.

There is a way out of the imbroglio that can leave Greece in the EU without undergoing more austerity punishment. In international law there is a concept known as “odious debt.” Odious debts are those that are incurred by governments that do not go to their stated purposes or are ill-gotten from the onset. Under international law, odious debts are the responsibility of the incurring parties and are not the responsibility of their successors. As such, they do not have to be serviced by others if the responsible parties cannot be made to pay.

One can argue that the debt incurred by pre-Syriza governments from 1999-2008 fall into the odious debt category and should be forgiven as such. If anything the political parties in government during the time the debts were incurred can be sued for repayment (these being the Panhellenic Socialist Party (PASOK) and New Democracy (ND)). Whatever happens, it is clear that Greece has not seen the purported benefits of the loans incurred by previous governments (to include the now abandoned or derelict Olympic facilities) but it has paid more than its fair share of interest on them. By any reasonable measure the remaining debt is now odious.

In the end this is a cautionary tale with minor and major sub-plots. The minor plot is about sustainable debt and the limits of debt relief. The major plot is about the perils of political union. The EU needs to understand that how it addresses the minor plot will determine the conclusion of the major one.

Bonus read: Although I do not agree with some of his observations, Brian Easton has a nice short piece on the Greek situation here.

 

A derelict on duty.

datePosted on 12:47, March 28th, 2015 by Pablo

John Key clearly loves his sports and hates funerals. In 2012 he opted to attend his son’s high school baseball tournament in the US (and spend a week in New York) rather than attend the funerals of the soldiers killed in combat in Afghanistan that year. In the following year he did attend Nelson Mandela’s funeral (in spite of his sketchy recollection of where he stood on the Springbok tour and the general issue of apartheid while it still was in force) but skipped that of Hugo Chavez (I cannot say I am surprised). Last year he declined to attend the funeral of Saudi King Abdullah (departed regent of a country that is a major trade partner and which sends a sizeable compliment of students to NZ each year). This week he declared that rather than attend the funeral of Lee Kuan Yew, considered to be the greatest Asian statesman of his time and a leader who forged close diplomatic and security ties with NZ, he is off to the see the Cricket World Cup final in Melbourne so that he can “support he boys.”

In his place will go Governor-General Sir Jerry Mateparae, who has done the drill before.

Mr. Key’s priorities seem a bit out of kilter. First he disrespects the fallen warriors in order to watch an inconsequential sporting event and visit his well heeled pals in NYC. Now he skips a major opportunity to cement ties in SE Asia and reaffirm NZ’s respect for a seminal world figure in order to watch a game of interest only to the Antipodean neighbours and die-hard followers of that particular sport. In fact, Mr Key appears to prefer combining sport and holidays with affairs of state, as his Hawaiian golfing foray with Barak Obama attests. But funerals over sport? Nah.

There is a difference between being a politician, a political leader, and a statesperson. A politician serves as a representative and legislator and acts most immediately according to personal ambition framed by partisan logics. A political leader provides direction and vision to his party and the nation at large, sometimes sacrificing immediate personal or partisan gain in pursuit of the national interest. A statesperson subordinates personal and partisan interest to that of the nation and the larger global community.  S/he looks at the big picture first and foremost and orders his/her priorities accordingly. At his or her best and as much as practicable, a statesperson sacrifices personal and political self-interest in pursuit of the common good, both national and global.

John Key may be an avid sports fan (after all, he has appeared on the sports radio show of that paragon of domestic virtue, Tony Veitch). But one thing is even more certain: he is no statesman.

So much for intelligence community reform.

datePosted on 18:36, February 17th, 2015 by Pablo

It turns out that nearly 5 months after getting re-elected, the government has decided on the composition of the Intelligence and Security Committee (ISC). Besides himself as Chair of the ISC, the Prime Minister gets to select two members from the government parties and the Opposition Leader gets to select one member from opposition parties.  In both cases the respective Leaders are expected under Section 7 (1) (c,d) of the 1996 Intelligence and Security Committee Act to consult with the other parties on their side of the aisle before selecting the remaining members of the committee. The language of the Act is quite specific: “c) 2 members of the House of Representatives nominated for the purpose by the Prime Minister following consultation with the leader of each party in Government: (d) 1 member of the House of Representatives nominated for the purpose by the Leader of the Opposition, with the agreement of the Prime Minister, following consultation with the leader of each party that is not in Government or in coalition with a Government party.” (1996 ISCA, pp. 6-7).

Not surprisingly the government has nominated two National MPs, Attorney General Chris Finlayson and Justice Minister Amy Adams, for membership on the ISC. It is not clear if ACT, the Maori Party and United Future were consulted before their selection. What is more surprising is that Andrew Little nominated David Shearer and did not consult with opposition parties before making his selection. While Shearer is a person with considerable international experience and has been a consumer of intelligence (as opposed to a practitioner) during his career, Mr. Little has been neither. In fact, it can be argued that Mr. Little has the least experience of all the proposed members when it comes to issues of intelligence and security, which means that he will have to lean very heavily on Mr. Shearer if he is not not be overmatched within the ISC.

Moreover, in past years Russell Norman, Peter Dunne and Winston Peters have been on the ISC, so the move to re-centralise parliamentary oversight in the two major parties represents a regression away from the democratisation of representation in that oversight role. Since these two parties have been in government during some of the more egregious acts of recent intelligence agency misbehaviour (for example, the Zaoui case, where intelligence was manipulated by the SIS to build a case against him at the behest of or in collusion with the 5th Labour government, and the case of the illegal surveillance of Kim Dotcom and his associates by the GCSB in collusion or at the behest of the US government under National, to say nothing of the ongoing data mining obtained via mass electronic trawling under both governments), this does not portend well for the upcoming review of the New Zealand intelligence community that this ISC is charged with undertaking.

The Greens have expressed their disgust at being excluded and have, righty in my opinion, pointed out that they are the only past members of the ISC that have taken a critical look at the way intelligence is obtained, analysed and used in New Zealand. But that appears to be exactly why they were excluded. According to John Key,  Labour’s decision was “the right call” and he “totally supports it.” More tellingly, Mr. Key said the following: “A range of opposition voices from the minor parties could railroad the process. I don’t think the committee was terribly constructive over the last few years, I think it was used less as a way of constructing the right outcomes for legislation, and more as a sort of political battleground” (my emphasis added).

In other words, Russell Norman took his membership on the ISC seriously and did not just follow along and play ball when it came to expanding state powers of search and surveillance under the Search and Surveillance Act of 2012 and GCSB Act of 2014.

That is a very big concern. Mr. Key believes that the “right” outcomes (which have had the effect of expanding state espionage powers while limiting its accountability or the institutional checks imposed on it) need to be produced by the ISC when it comes to the legal framework governing the intelligence community. Those who would oppose such outcomes are not suitable for membership, a view with which Andrew Little seems to agree.

This is so profoundly an undemocratic view on how intelligence oversight should work that I am at a loss for words to  explain how it could come from the mouth of a Prime Minister in a liberal democracy and be tacitly seconded by the Leader of the Opposition–unless they have genuine contempt for democracy. That is a trait that W. Bush, Tony Blair and John Howard shared as well, but what does that say about the state of New Zealand democracy?

Mr. Little has given his reason to exclude Metiria Turei of the Greens from ISC membership as being due to the fact the Mr. Norman is stepping down in May and Mr. Little wanted “skills, understanding and experience” in that ISC position. Besides insulting Ms. Turei (who has been in parliament for a fair while and co-Leader of the Greens for 5 years), he also gave the flick to Mr. Peters, presumably because that old dog does not heel too well. As for Mr. Dunne, well, loose lips have sunk his ship when it comes to such matters.

The bottom line is that Mr. Little supports Mr. Key’s undemocratic approach to intelligence oversight. Worse yet, it is these two men who will lead the review of the NZ intelligence community and propose reform to it, presumably in light of the debacles of the last few years and the eventual revelations about NZ espionage derived from the Snowden files.

As I said last year in the built-up to the vote on the GCSB Amendment Act,  I doubted very much that for all its rhetorical calls for an honest and thorough review process that led to significant reform, Labour would in fact do very little to change the system as given because when it is in government it pretty much acts very similar to National when it comes to intelligence and security. If anything, the differences between the two parties in this field are more stylistic than substantive.

What I could not have foreseen was that Labour would drop all pretence of bringing a critical mindset to the review and instead join National in a move to limit the amount of internal debate allowable within the ISC at a time when it finally had an important task to undertake (in the form of the intelligence community review).

As a result, no matter how many public submissions are made, or how many experts, interest groups and laypeople appear before the ISC hearings, and how much media coverage is given to them, I fear that the end result will be more of the same: some cosmetic changes along the margins, some organisational shuffles and regroupings in the name of streamlining information flows, reducing waste and eliminating duplication of functions in order to promote bureaucratic efficiency, and very little in the way of real change in the NZ intelligence community, especially in the areas of oversight and accountability.

From now on it is all about going through the motions and giving the appearance of undertaking a serious review within the ISC. For lack of a better word, let’s call this the PRISM approach to intelligence community reform.

LINK: The Intelligence and Security Committee Act 1996.

This week I attended a talk by Kiwi journalist Yasmine Ryan, currently based in Tunis. Yasmine previously worked for al-Jazeera and now freelances from her Tunisian base. Her talk was about the state of affairs in the Arab world, and more specifically, North Africa.

She had many interesting things to say but I garnered three main points from her talk. First, the the so-called Arab Spring has failed to open Arab politics in any meaningful way. Second, levels of corruption in the Arab world are so high and so pervasive that reform is virtually impossible, especially when foreign interests back the entrenched power elites. Third, state capacity (measured by public infrastructural development, enforcement of norms beyond simple repression and provision of goods and services) is woefully lacking throughout the region, something that contributes to pervasive discontent amongst disempowered groups.

Her bottom line was that although Tunisia is touted as an Arab Spring success story, it is in fact not and yet is the best of a sorry lot of post-dictatorial regimes now governing in North Africa.

As Yasmine spoke, I found myself pondering her use of words. She referred to the Tunisian “revolution” and to the “democratisation” of Arab politics. Her use of these terms reflects standard journalistic practice although she knows well that nothing of the sort has happened in North Africa. Let me explain why.

“Revolutions” properly conceived are popular uprisings that lead to the armed overthrow of the state and the imposition of a paradigmatic change on society under a new political regime in the wake of the overthrow. The first key to revolutionary success is victory over the repressive apparatus, either as a result of combat or because the repressive apparatus switches its allegiances to the new sovereign contenders. The second key to revolutionary success is the scope of paradigmatic change covering political society, civil society and the economic structure of the nation-state. Needless to say, none of this happened as a result of the so-called Arab Spring.

So what did happen? Well, if revolution does not eventuate and democracy does not obtain, then other outcomes are possible. The regime being challenged can use its repressive superiority to reassert its authority and crack down on dissent, thereby quashing the seeds of popular uprising. This occurred in Bahrain, although it took Saudi Arabian troops to help repress the mostly Shiia uprising against the Sunni elite in that country. To a lesser extent it occurred in the 2009-10 election protests and the 2011-12 Arab Spring-inspired “Day of Rage” protests in Iran.

Another alternative outcome is a civil war where the challenged regime is forced into an armed struggle with rebel groups or in which the old regime is overthrown but new power contenders fight each other in order to establish their claim to being the new sovereign. The former is happening in Syria and the latter is happening in Libya.  Iraq is a variation on this, with foreign intervention rather than popular unrest being the gateway (if not cause) for post-authoritarian internecine violence marshalled along sectarian lines.

A third option is for the authoritarian regime being challenged to engage in what is known as a “passive revolution.” “Passive revolution” is where the regime elite adopts cosmetic changes and engages in reform-mongering to appease popular discontent but does not fundamentally alter the power elite or the institutional bases of their power.  One of the cosmetic changes is electioneering rather than democratisation (which involves more than elections and encompasses institutional, social and economic life). This, sadly, is what has happened in Tunisia after the fall of Zine El Abidine Ben Ali and in Egypt after the respective ousters of Hosni Mubarak and Mohamed Morsi. In both cases the power elite underpinning the ousted authoritarian leaders regrouped under an electoral facade that allowed them to cloak their rule in a mantle of “democratic” legitimacy. In Egypt’s case the scenario had a twist in that Morsi was allowed to become the first freely elected president in Egyptian history, but when his Muslim Brotherhood government pushed its Islamicist-backed constitutional project and Morsi granted himself unlimited executive powers not subject to judicial or parliamentary review, they were deposed in a military coup. The leader of the coup and then head of the Egyptian military, Abdel Fattah el-Sisi, is now president of Egypt.

However, for a passive revolution to work it must, along with continuing to selectively repress dissent, deliver goods otherwise not obtained by the discontented masses. Be it as a short term or longer term strategy, the passive revolutionary approach is more than political window dressing because it hinges on giving the appearance of progressive change by providing public goods and services, and material benefits, that previously were unavailable. Yet, in Egypt as well as Tunisia, none of that has occurred because of rampant corruption, lack of state capacity, and an absence of economic opportunity under the power elites that ruled before the regime changes and who continue to rule today. What has occurred is the resumption of repression of those who wish to push for a further and more substantive political opening.

This means that the root causes of popular discontent remain unaddressed, which makes the passive revolutionary approach inherently weak. It is akin to putting a sticking plaster on an arterial bleed–it may staunch some short term dissent but it cannot contain the surge of discontent over the long term.

But there is a twist to the story. It turns out that Tunisia has supplied the largest contingent of foreign fighters to the Islamic State. Egypt also has proved to be a fertile recruiting ground for jihadists, and Libya is overrun with them fighting to overthrow the central government in Tripoli. Why would alienated individuals in Tunisia and Egypt opt to join a foreign war rather than continue to fight for progressive political change at home?

I believe the answer is that those who choose to leave to fight for IS or al-Qaeda see the results of the Arab Spring for what they really are: a reassertion of the traditional status quo under different guise. Understanding the impossibility of affecting significant political, social and economic change at home, these disaffected fighters migrate to foreign conflicts in which the enemy is clear (be it the West, Israel, Iran or Shiia Islam in general) and in which their skills in the management of organised violence can be honed for future use at home should they survive combat. Should they not, they will have died for what they believe to be a good cause.

That is the crux of the “returning jihadi” problem. They pose no existential threat to the West or even stable authoritarian regimes (barring an overreaction by the state and society that makes it appear as if there is in fact a “war” between Islam as a whole and the non-Islamic world). They do not pose an existential threat to stable Muslim dominant societies such as Indonesia and Malaysia. But they do pose a potential existential threat to the passive revolutionary regimes in North Africa as well as in failing or failed states such as Yemen, Somalia and/or those in which civil war is occurring (to include Nigeria even if Boko Harum is comprised of indigenous fighters who for the most part have not traveled abroad).

That is why I see al-Qaeda  and the Islamic State as regional rather than global problems–they may have a world wide impact given the decentralised nature of terrorist tactics outside of the Middle East, but their real strategic impact stems from the existential threat they pose to the Middle East itself. After all, even if they use the US, the West, Israel and/or Iran as foils for their violent ambitions, al-Qaeda and IS have their eyes focused squarely on the Gulf petrolarchies as much if not more than they do on any other territorial and political objective.

In the end, it has been the failure of the Arab Spring to deliver on its theoretical promise and popular expectations for real change that has led to the rise of IS and the spreading wave of violent unrest throughout the Arab world. After a moment that promised a thawing of old political structures and the germination of new ideas about the relationship between state and society, the region has proven yet again to be barren ground for peaceful, progressive and lasting social change.

PS: Here is something I wrote in 2011 about Tunisia and other Middle Eastern transitions. Although I do not claim any particular expertise on the Middle East or Arab world, I think that by and large my observations of four years ago have stood the test of time.

Whither the class line?

datePosted on 10:58, November 20th, 2014 by Pablo

In 1995 I published a book that explored the interaction between the state, organised labor and capital in the transitions to democracy in Argentina, Brazil, and Uruguay. The book was theoretically rooted in neo-or post-Gramscian thought as well as the vast literature on collective action and the politics of the case studies. In it I explained how democratic transitions were facilitated by class compromises between labour and capital brokered by the state, which acted as an institutional mediator/arbitrator in resolving conflicts between the two sides of the labour process. I noted the importance of neo-corporatist, tripartite concentrative vehicles for the achievement of a durable class compromise in which current wage restraint was traded for increased productivity in pursuit of future wage gains under restrained rates of profit-taking, all within state-enforced workplace, health, safety and retirement frameworks negotiated between the principles. That way the relations in and of production were peaceably maintained.

One of the things I discovered is that labour or working class-based parties were served best when they had union representation in the leadership. That is because, unlike career politicians, union leaders were closest to the rank and file when it came to issues pertinent to those relations in and of production. As a result, they translated the needs of the rank and file into political imperatives that determined working class political praxis under democratic (read non-revolutionary) conditions.

In contrast,Left politicians tended to be drawn from the intelligentsia and were prone to compromise on matters of principle in pursuit of strategic or tactical gain. Many did not have working class backgrounds, and some spent their entire careers, if not adult lives, currying favour in the pursuit of office and the power that comes with it. More than a few have never held a job outside of the political sphere, which led them to hold an insular view of how working class politics should be conducted. As a result, they were often disinclined to put the material or political interests of the working classes first, preferring instead to pursue incremental gains around the margins of the social division of labour within the system as given.

For those reasons, I found that working class interests were best represented when the union movement dominated the working class party, not the other way around.

But there was a caveat to this discovery: unionists only served as legitimate and honest agents of working class interests if they adhered to a class line. In other words, they had to be genuine Marxists or socialists who put the working class interest first when it came to the pursuit of politics in competition with the political agents of capital. “Class line” was broadly interpreted to include all wage labour–blue and white collar, temporary and permanent, unionised or not. That made them honest interlocutors of the people they represented (the ultimate producers of wealth), since otherwise they would be conceding the primacy of capital and business interests (the appropriators of surplus) in the first instance.

Since the system is already stacked in favour of capital in liberal democracies, it was imperative that the agents of the working class in post-auhoritarian contexts wholeheartedly and honestly embraced ideologies that a minimum rejected the unquestioning acceptance of market directives as a given, much less the idea that capitalism as a social construct was the best means by which societal resources were organised and distributed. The post-transitional moment was an opportune time to press the critique of capitalism, as the authoritarian experiments had demonstrated quite vividly the connection between political oppression and economic exploitation. It was a moment in time (the mid to late 1980s) when unions could impose working class preferences on the political parties that purported to represent the rank and file, and where working class parties could genuinely speak truth to power.

As it turns out, the record in the Southern Cone was mixed. Where there was a Marxist-dominated national labour confederation that dominated Left political representation (Uruguay), the political Left prospered and the working class benefitted the most. In fact, after two decades of failed pro-business government by the centre-right Colorado Party, the union-backed Frente Amplio coalition has now ruled for over a decade with great success and Uruguay remains Latin America’s strongest democracy.

On the other hand, where the union movement was controlled by sold-out opportunists and co-opted bureaucrats (Argentina), who in turn dominated the majority Left political party (the Peronists), corruption and concession were the norm and the working classes benefited the least. In fact, in a twist on the New Zealand story, it was a corrupt, sold-out and union-backed Peronist president, Carlos Menem, who used the coercively-imposed market driven economic reforms of the military dictatorship as the basis for the neoliberal agenda he implemented, by executive decree, in Argentina in accordance with the so-called “Washington Consensus.”

In Brazil the union movement was divided at the time of the transition between a Marxist-dominated militant confederation (the CUT), led by Luis Inganicio da Silva or “Lula”as he was better known,  and a cooped confederation (the CGT) that had emerged during the military dictatorship and which was favoured by business elites as the employee agent of choice. The CUT dominated the politics of the Workers Party (PT), whereas the CGT was subordinated to the logics of the political leadership of the right-center PMDB.

As things turned out, although the PMDB won control of the national government in the first two post-authoritarian elections, and the subsequent governments of social democrat Fernando Henrique Cardoso began a number of social welfare projects designed to reduce income inequality and enforce basic human rights, working class interests did not fully proposer until the PT under Lula’s leadership was elected in 2002 (the PT just won re-election for the fourth consecutive time under the presidency of Lula’s successor Dilma Rouseff).  In the PT Marxist unionists have dominant positions. In the PMDB and Cardoso’s PSDB, the sold-out unionists did not.

That brings me to the the election of Andrew Little as Labour Party Leader. Leaving aside the different context of contemporary New Zealand relative to the subject of my book and the question as to whether the union movement truly dominates the Labour Party, consider his union credentials. His background is with the EPMU, arguably the most conservative and sold-out union federation in the country. In fact, he has no record of “militancy” to speak of, and certainly is not a Marxist. Instead, his record is that of a co-opted union bureaucrat who likes to work with the Man rather than against Him. The fact that business leaders–the same people who work incessantly to strip workers of collective and individual rights under the  guise of employment “flexibilization”– find him “reasonable” and “thoughtful” attests not only to his powers of persuasion but also to the extent of his co-optation.

But maybe that was just what he had to do in order to achieve his true calling and show his true self as a politician. So what about his credentials as a politician? If winning elections is a measure to go by, Mr. Little is not much of one, having never won an election outside his unions. Nor has his tenure as a list MP in parliament been a highlight reel of championing working class causes and promoting their interests. As others have said, he smacks of grey.

Which brings me to the bottom line. Does he have a class line?

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