Posts Tagged ‘Representation’
Barring some disaster, Hillary Clinton will win the US presidential election in November. That poses an interesting question for the US Left, because the defensive support for her offered by Sanders supporters and other progressives in the face of the Trump alternative can only be considered to be more than a short-term tactical ploy if her administration adopts progressive policies. Otherwise it is, as many have accused, continuation of politics as usual or Obama 2.0. This is, of course, at the heart of the negotiations between the Sanders camp and Clinton’s people at the DNC policy platform meetings, and it remains to be seen if the Clintonites will make good on their promises.
That brings up the perennial problem for political activists: how to turn a moment into a movement. US commentators are already using the phrase with regard to the Sanders primary run and the impact it will have on a future Clinton presidency. Some think that he has run his course, that status quo Democratic policies will prevail, and that the forces that his campaign galvanised will either go mainstream or dissipate into another pool of apathy and disenchantment. Others believe that to the contrary, the Sanders campaign has stirred new life into the American Left and that his campaign legacy will have an impact on how Clinton approaches the Oval Office.
It is a tough one to call. It is clear that Clinton needs to cater to Sander’s supporters in order to win the election. She cannot dismiss them before November 8 but could in theory do so afterwards, especially if the Democrats regain control of the Senate (they only need to win four seats) and make inroads into the Republican House majority (the Democrats would need a turnover of more than thirty seats to regain control of the lower chamber). The situation is made worse for progressives if Clinton wins by a landslide (anything over seven points) because she can point to a “mandate” that does not include them. That will be also be the case if political nihilists on the Left opt to “blow up the system” by voting for Trump or minor party candidates in large numbers. The latter will tighten the race unnecessarily (in Clinton’s eyes) and will, should she win, see her turn her back on the post-modern New Left wing of her party (I use the term “New Left” not in the sense of the 1960s Left but in the sense that post-modern progressives in the US are not in their majority affiliated with unions or other traditional organisational sources of Democratic electoral power). After all, she can say that they turned on her and she still won because the US political centre preferred her over Trump. She can feel justified in believing that she does not need the New Left to govern and therefore should not push policy initiatives at their behest.
Assuming a Clinton victory, the ideal situation for US progressives is twofold: most of Sanders’ supporters and others on the Left opt to vote for Clinton and she wins by a relatively close margin (say, between 3-5 points); and vote for Democratic candidates in key congressional districts knowing that a progressive presidential agenda needs congressional support in order to become law. That requires voter education (on the whys and hows of linking down-ballot choices to the presidential race and how executive-legislative relations can impact decisions with long-term consequences such as Supreme Court nominations) as well as mobilisation in favour of the progressive policies adopted by the DNC at the platform negotiations (and perhaps more).
In that preferred scenario, because Clinton will understand that she absolutely required a groundswell of New Left voters to win a close race, it will be harder to abandon them once victory is achieved. Even more so, it will be virtually impossible to renege on the progressive agenda if key wins by Democrats in Congressional races were owed to the participation of New Left voters.
So the Bernie “moment” in the primaries also has to become a dual proposition in the general election and post-election phases of the campaign if it is to become a movement. The New Left need to continue to mobilise in support of Clinton during the weeks leading up to November 8 and they need to continue to pressure her administration, both directly and through the elected Congressional candidates who needed their support to win, after she assumes the presidency and the 115th US Congress is convened in January 2017.
In other words, the transformation of the Sanders moment into a New Left movement requires one other “M:” momentum. That momentum has to be sustained through November and into the next administration and congressional term if the moment is to become a movement.
That is where some dark clouds arise on the Clinton electoral horizon, and they are not caused by Trump. In the purported interest of “balance” (regardless of the outright campaigning on his behalf by conservative media outlets), mainstream news organisations are delving into her emails while Secretary of State, into her relationship with Clinton Foundation donors while in office, into why she does not hold press conferences (which is patently self-serving on the news agencies part) and even into spurious conspiracy theories about her health. These investigative efforts go beyond reporting on official FBI investigations of Clinton’s use of a private email server during her tenure as SecState and in spite of the fact that none of her activities while in office have been linked to any policy decision or personal favour offered on her part. For reasons known only to Julian Assange and his comrades, Wikileaks has targeted her communications and those of the DNC, both independently as well as in cooperation with Russian-based hackers, while neglecting to do so with those of Trump and the RNC.
Any one of these lines of inquiry have the potential to divert attention and resources away from her policy agenda and could even derail her campaign if found to contain seriously negative substance (nothing of which has been found so far in spite of the best efforts of the Trump campaign and its media lackeys). So the onus is on Clinton to re-energise her support base in the face of these dishonest and scurrilous attacks and to re-focus on the policies that she will bring to the Oval Office and share with her Congressional colleagues. That is where the New Left vote is vitally important. Just as Trump has his core base in middle aged white working class lower educated people, Clinton has a core base in urban professionals. But both of them need to expand their appeal outside of those cores, and it is the New Left that Clinton needs to court most assiduously. That gives the New Left leverage on her and they need to know how to judiciously take advantage of it.
To be sure, the GOP is working to separate the New Left from Clinton. It may not get the attention that trying to divorce Trump from down-ballot GOP candidates has received from the RNC, but Republicans clearly want the Sanders crowd to alienate from Clinton whether or not they vote for another candidate like Jill Stein (Green). For the GOP, getting the New Left to stay at home rather than vote is just as important as getting them to adopt the nihilist approach of voting for spoilers.
This is made interesting by the fact that Libertarian presidential candidate Gary Johnson is polling at around 10-12 percent and has received financial backing from erstwhile big GOP donors, while Jill Stein is polling around 5 percent. Usually third party candidates barely receive 10 percent of the vote in a US general election, so the fact that these candidates could receive 15 percent or more changes the dynamics of the presidential race quite dramatically. That reinforces the need for Clinton to get out the New Left vote on her behalf in significant numbers, something that will allow her to build momentum in the run up to election day and which in turn means that she must accept the fact that the Bernie moment has become a progressive movement. This will annoy her backers on Wall Street and corporate America, but they also can see the dangers of having a populist demagogue with Tea Bagger tendencies occupying the White House. For them as well as many on the New Left, she is the lesser evil.
It will be interesting to see how things play out over the next 9 weeks. Two things are certain: every vote will count this time around and what is now a moment of opportunity can only be transformed into a sustainable movement if the New Left puts, however reluctantly or sceptically, its collective weight behind the Clinton campaign in order to build the momentum of progressive change beyond election day.
Let’s hope that I am not wishful thinking.
Posted on 15:46, June 1st, 2016 by Pablo
I was invited to speak at a forum in Wellington on the “Privacy Security Dilemma.” It included a variety of people from government, the private sector, academia and public interest groups. The discussion basically revolved around the issue of whether the quest for security in the current era is increasingly infringing on the right to privacy. There were about 150 people present, a mixture of government servants, students, retirees, academics, foreign officials and a few intelligence officers.
There were some interesting points made, including the view that in order to be free we must be secure in our daily lives (Professor Robert Ayson), that Anglo-Saxon notions of personal identity and privacy do not account for the collective nature of identity and privacy amongst Maori (Professor Karen Coutts), that notions of privacy are contextual rather than universal (Professor Miriam Lips), that in the information age we may know more but are no wiser for it (Professor Ayson), that mass intrusions of privacy in targeted minority groups in the name of security leads to alienation, disaffection and resentment in those groups (Anjum Rahman), and that in the contemporary era physical borders are no impediment to nefarious activities carried out by a variety of state and non-state actors (various).
We also heard from Michael Cullen and Chris Finlayson. Cullen chaired the recent Intelligence Review and Finlayson is the current Minister of Security and Intelligence. Cullen summarised the main points of the recommendations in the Review and was kind enough to stay for questions after his panel. Finlayson arrived two hours late, failed to acknowledge any of the speakers other than Privacy Commissioner John Edwards (who gave an encouraging talk), read a standard stump speech from notes, and bolted from the room as soon as as he stopped speaking.
Thomas Beagle gave a strong presentation that was almost Nicky Hageresque in its denouncement of government powers of surveillance and control. His most important point, and one that I found compelling, was that the issue is not about the tradeoff between security and privacy but between security and power. He noted that expanded government security authority was more about wielding power over subjects than about simply infringing on privacy. If I understand him correctly, privacy is a commodity in a larger ethical game.
Note that I say commodity rather than prize. “Prize” is largely construed as a reward, gain, victory or the achievement of some other coveted objective, especially in the face of underhanded, dishonest, unscrupulous and often murderous opposition. However, here privacy is used as a pawn in a larger struggle between the state and its subjects. Although I disagree with his assessment that corporations do not wield power over clients when they amass data on them, his point that the government can and does wield (often retaliatory) power over people through the (mis) use of data collection is sobering at the very least.
When I agreed to join the forum I was not sure exactly what was expected from me. I decided to go for some food for thought about three basic phrases used in the information gathering business, and how the notion of consent is applied to them.
The first phrase is “bulk collection.” Bulk collection is the wholesale acquisition and storage of data for the purposes of subsequent trawling and mining in pursuit of more specific “nuggets” of actionable information. Although signals intelligence agencies such as the GCSB are known for doing this, many private entities such as social media platforms and internet service providers also do so. Whereas signals intelligence agencies may be looking for terrorists and spies in their use of filters such as PRISM and XKEYSCORE, private entities use data mining algorithms for marketing purposes (hence the targeted advertisements on social media).
“Mass surveillance” is the ongoing and undifferentiated monitoring of collective behaviour for the purposes of identifying, targeting and analysing the behaviour of specific individuals or groups. It is not the same thing as bulk collection, if for no other reason than it has a more immediate, real-time application. Mass surveillance is done by a host of public agencies, be it the Police via CCTV coverage of public spaces, transportation authorities’ coverage of roadways, railroads and airports, local council coverage of recreational facilities and areas, district health board monitoring of hospitals, etc. It is not only public agencies that engage in mass surveillance. Private retail outlets, shopping centres and malls, carparks, stadiums, entertainment venues, clubs, pubs, firms and gated communities all use mass surveillance. We know why they do so, just as we know why public agencies do so (crime prevention being the most common reason), but the salient fact is that they all do it.
“Targeted spying” is the covert or surreptitious observation and monitoring of targeted individuals and groups in order to identify specific activities and behaviours. It can be physical or electronic (i.e. via direct human observation or video/computer/telephone intercepts). Most of this is done by the Police and government intelligence agencies such as the SIS, and most often it is done under warrant (although the restrictions on warrantless spying have been loosened in the post 9/11 era). Yet, it is not only government security and intelligence agencies that undertake targeted spying. Private investigators, credit card agencies, debt collectors, background checking firms and others all use this as a tool of their trades.
What is evident on the face of things is that all of the information gathering activities mentioned here violate not only the right to privacy but also the presumption of innocence, particularly the first two. Information is gathered on a mass scale regardless of whether people are violating the law or, in the case of targeted spying, on the suspicion that they are.
The way governments have addressed concerns about this basic violation of democratic principles is through the warrant system. But what about wholesale data-gathering by private as well as public entities? Who gives them permission to do so, and how?
That is where informed consent comes in. Informed consent of the electorate is considered to be a hallmark of robust or mature democracies. The voting public are aware of and have institutional channels of expression and decision-making influence when it comes to the laws and regulations that govern their communal relations.
But how is that given? As it turns out, in the private sphere it is given by the phrase “terms and conditions.” Be it when we sign up to a social media platform or internet service, or when we park our cars, or when we enter a mall and engage in some retail therapy, or when we take a cab, ride the bus or board a train, there are public notices governing the terms and conditions of use of these services that include giving up the right to privacy in that particular context. It may be hidden in the fine print of an internet provider service agreement, or on a small sticker in the corner of a mall or shop entry, or on the back of a ticket, but in this day and age the use of a service comes attached with it the forfeiture of at least some degree of privacy. As soon as we tick on a box agreeing to the terms or make use of a given service, we consent to that exchange.
One can rightly argue that many people do not read the terms or conditions of service contracts. But that is the point: just as ignorance is no excuse for violation of the law, ignorance of the terms of service does not mean that consent has not been given. But here again, the question is how can this be informed consent? Well, it is not.
That takes us to the public sphere and issues of governance. The reality is that many people are not informed and do not even think that their consent is required for governments to go about their business. This brings up the issue of “implicit,” “implied” or inferred” consent. In Latin American societies the view is that if you do not say no then you implicitly mean yes. In Anglophone cultures the reverse is true: if you do not explicitly say yes than you mean no. But in contemporary Aotearoa, it seems that the Latin view prevails, as the electorate is often uninformed, disinterested, ignorant of and certainly not explicitly consenting to many government policy initiatives, including those in the security field and with regards to basic civil liberties such as the right to privacy and presumption of innocence.
One can argue that in representative democracy consent is given indirectly via electoral processes whereby politicians are elected to exercise the will of the people. Politicians make the laws that govern us all and the people can challenge them in neutral courts. Consent is given indirectly and is contingent on the courts upholding the legality if not legitimacy of policy decisions.
But is that really informed contingent consent? Do we abdicate any say about discrete policy decisions and legislative changes once we elect a government? Or do we broadly do so at regular intervals, say every three years, and then just forget about having another say until the next election cycle? I would think and hope not. And yet, that appears to be the practice in New Zealand.
Therein lies the rub. When it comes to consenting to intrusions on our privacy be they in the private or public sphere, we are more often doing so in implicit rather than informed fashion. Moreover, we tend to give broad consent to governments of the day rather than offer it on a discrete, case by case, policy by policy, law by law basis. And because we do so, both public authorities and private agencies can collect, store, manipulate and exchange our private information at their discretion rather than ours.
Things are getting interesting on the Democratic side of the US presidential primaries. Although Hillary Clinton is on pace to win the nomination, Bernie Sanders continues to dog her steps with wins that keep him, if not within striking distance of securing the nomination himself, close enough in delegate count and popular support to narrow the gap between them to the point that she cannot claim a decisive mandate as the nominee. That is important because if the trend continues, and especially if he can stay close or win in California in early June, he can arrive at the convention armed with demands that will have to be met if he is to throw his support behind her in the general election. There is already talk of him running as an independent (which is what he was until he entered the Democratic primary). That would prove disastrous for the Clinton campaign and could turn the presidential race into a mirror image of two divided major parties having candidates from within their ranks running as spoilers against their convention nominees.
Let us be very clear on one thing: Bernie is right when he says that the Democratic nomination process is stacked against him. Between interest group super delegates whose loyalty is pledged to Clinton regardless of primary results to the closed primary process itself, there has been concerted effort by Democratic party bosses to keep his numbers down by denying independents the right to vote and counter-balancing the popular vote with super delegate selections. He has, quite frankly, been cheated on more than one occasion and that does not even take into account the more underhanded tactics used against him by the Democratic National Committee.
This spilled over recently in the Nevada Democratic convention, where a pro-Clinton state party chairperson overruled Sanders supporter’s motions and sat Clinton delegates rather than those pledged to Bernie. The convention descended into chaos and the chairperson, a woman, was inundated with vicious misogynistic physical threats mainly from the so-called “Bernie Bros,” presumably angry young men. Although Sanders issued a one line sentence condemning violence in a three paragraph statement about that convention, the bulk of it was dedicated to highlighting the underhanded moves made by the chairperson and her minions. He followed that with a victory speech after the Oregon primary (which he won handily) in which he remained defiant, belligerent and determined to take his campaign to the convention. He does not appear to be in the mood for reconciliation with Ms. Clinton.
Needless to say, Democratic Party leaders, Clinton supporters and many liberals are freaking out over this. They see Sanders as a sore loser given that he knew what he was getting into when he joined the party last year in order to run for the nomination. They see his candidacy as interfering with the streamlined selection process that was supposed to result in a unified consensus backing Clinton. More importantly, they see his intransigence and talk of a third party run as handing the keys to the Oval Office to Donald Trump, especially given that some Republican Party luminaries are lining up behind the Orange Crush as a matter of partisan duty regardless of what the consequences may be should he become president. In fact, however reluctantly, the Clinton haters within the GOP and their media surrogates appear to be coalescing behind Trump at the same time that the fractures within the Democratic Party are getting more pronounced. No wonder Democrats are freaking.
I am less concerned than my liberal US friends about this because I think that Sanders is playing his cards correctly. The reason is because I think that what he is playing is a variant of the “moderate-militant” strategy. A moderate-militant strategy is one where a militant objective is announced as a first negotiating point and pursued until an opposing actor makes moderate concessions to the militant. Rather than the militant goals, the real intent is to secure moderate gains. The militant starting point is just a negotiating ploy designed to force the opposing side to move towards it in the hope of securing an agreement.
In the Sanders version, the strategy is to run his campaign on “socialist” principles all the way to the convention. By playing hardball and not wavering before it, he forces the Clinton camp to accept the fact that without him they cannot win and with his supporters opposed they will certainly lose the general election. If Sanders arrives at the convention armed with a strong contingent of delegates in spite of all the manoeuvres against him, he can threaten to tell his supporters to either not vote or cast their ballots against her in the general election. In that case it is very likely that Clinton will concede on important issues and incorporate them into her policy platform before she is declared the nominee. This decision will be made easier by the GOP partisan consolidation around Trump, which brings closer to reality the heretofore unimaginable prospect of his presidency. Given her own negatives, she can no longer rely on loathing of Trump as a guarantee of a defensive vote turnout against him. She needs Bernie more than he needs her, and his playing tough all the way to the convention is a way of underscoring that point.
The worst thing that Sanders can do is concede or pull out of the race before the convention. Were he to do so he would lose any bargaining position he might have had at the convention because for the militant-moderate strategy to work it must be held steadfast until the other side makes a conciliatory move. Given their differences, including opposing views on whether to embrace corporate reform and accept special interest political financing among many other things (such as the US position on Israel-Palestine), it would be a waste of all the time, resources and effort he and his supporters have put into his campaign to abandon it before they have a chance to make their case at the common gathering. Instead, the best bet for his voice being heard strongly at the convention is to press on all the way to it, and then some.
Under no circumstances should Sanders accept Clinton’s assurances on key policy issues in return for his quitting the race and throwing his support to her. I would not trust the DNC and Clinton camp as far as I could throw them. Instead, he must make a condition of his support that the party write in the concessions to his policy demands into the presidential campaign platform adopted at the convention. It may not make for an airtight guarantee once she is elected but it will be much better than relying on her good faith that what was promised will be delivered come January 2017.
If the Clinton camp is smart they will realise that Sanders has brought something new into the party, which given the polarisation of the country and who they are running against, can be a key to their success in November. They must understand how he is playing the game and why he is doing so. They must understand that offering him a position in a Clinton administration is not what he is after and would not suffice to mollify his supporters in any event. They must study their positions in advance and see where they can concede readily and where negotiations on substantive issues will be harder. But what they must understand most is that the chances of a Clinton victory in November rest as much on gaining his support as they do on her own qualifications and experience.
If that is understood, the remaining primaries can be contested vigorously (if not honestly) with a mind towards clearly demonstrating the policy-based platforms of the Democratic candidates versus the empty rhetoric, simple-minded prescriptions and opportunistic bombast coming from the other side. Once that is done, the convention can become not only an arena of contestation between contending ideas about how to take the country forward, but also an opportunity to exchange concessions in order to present a unified front to the voting public. Therein lies the recipe for success in November.
One proven strategy for campaigns that have little substantive by the way of policy to offer and which are trailing in the polls is to drop any pretence of having a grounded policy platform and instead turn to populist demagoguery while casting slings and arrows at opponents. The most common is the “sky is falling” approach, whereby the social and political backdrop to the campaign is cast as one of doom and gloom, with armageddon-like results if the opposition wins. Those undertaking this strategy depict the struggle as a fight between good and evil, as a last chance to roll back the hounds of hell bent on devouring what is left of the good ole days and the traditional way of doing things. The key to the strategy is to divert public attention from core policy issues and towards incidental yet highly emotive areas of social exchange where purchase can be made of difference, uncertainty and fear.
In the current US election campaign, that is precisely what the GOP candidates, Donald Trump in particular, have been doing. They frame the contest as if the US was staring at the abyss as a result of the Obama administration, with Hillary Clinton as the lead horsewoman of the apocalypse. This is designed to tap into American’s deep sense of insecurity and pessimism even if the reality of the US condition suggests that many of these concerns–which are held mostly but not exclusively by conservatives–are both exaggerated and unfounded.
The GOP version of the sky is falling approach has twist in that it invokes so-called “culture wars.” The notion that the US is in the midst of “culture wars” started out as an anti-political correctness theme among conservative politicians and media commentators. It has now morphed into an all-encompassing attack on so-called progressive and “secular humanist” socio-economic reform and social changes that may or may not have been pushed by political actors. It is resurrected by the media and political Right every election year. For example, conservatives today rail against the outsourcing of US jobs done supposedly in order to curry favour with foreign trading partners even though in the past they have no issue with the dynamics of globalized production. And yet it is has been advances in robotic technologies rather than politicians that have displaced blue collar shop floor jobs in the US, and the US is not the only place where this has happened. For this crowd abortion is not an individual choice but state-sanctioned murder, and scientific research that uses fetal tissue is part of a vast death machine targeted mainly at (potential) white christians. The so-called “War on Christmas” is really an attack on Christianity and the Judeo-Christian foundations of the Republic. In this appeal, the siren call is that it is time to make a stand and confront the usurpers of the traditional faith, however illusory they may be.
The same folk have reacted viscerally to the Black Lives Matter movement, reviving some unhappy ghosts of the past in doing so, by seeing it as a group of self-entitled freeloaders, enablers, opportunists (yes, Al Sharpton is there), plus assorted and occasionally organised thugs who seek to divert responsibility from their collective lack of values as well as the actions of people of colour who have brought lethal police attention upon themselves (in spite of the compelling evidence of epidemic-level police shootings of unarmed black men). They see in Muslims an insidious fifth column bent on imposing Sharia law and usurping the American dream from within. They consider gay marriage as an assault on the sanctity of straight marriage (in a country with a divorce rate of over 50 percent of straight marriages) and the incorporation of openly gay members in the military as a sign of its deliberate weakening. They see universal health care as the imposition of “socialism” and yet another assault on individual freedom of choice. The see attempts at tighter gun control as the antecedent to federal imposition of martial law. The see feminism as the beginning of the end for the traditional family. They take refuge in xenophobia and bigotry as bulwarks against “progressivism” and the inevitable national decline that they believe that it entails.
And, to put it mildly, many of these people see the current US president as representative of all of these maladies. His upcoming trip to Hiroshima encapsulates the view: despite the White House issuing a public statement saying that the president will not apologise for the nuclear attack on the city and will lay a wreath to pay his respects for the innocent civilian dead, conservatives are using this as further evidence of his plan to destroy America while invoking Pearl Harbour as a reason his apology is treasonous (ignoring the fact that senior Japanese government officials have laid wreaths at the Pearl Harbor memorial in the past).
These commentators see progressive brainwashing everywhere, from the “liberal” (yet somehow corporate) media to every level of the educational system. They see indolence and disrespect amongst their youth and expressions of non-Caucasian ethnic pride as the divisive product of political correctness. They basically see the US going to hell in a hand basket.
The entire premise of the sky is falling/cultural wars strategy is defensive. It is designed to prey on people’s fears of losing what they have and their insecurities about keeping or improving on what they have in an uncertain future marked by rapid demographic and social change in an age of global flux. It makes a dark possibility seem like an imminent reality. It is a push-back reaction rather than a forward-looking progression. It plays, ultimately, on ignorance, and in the US there is plenty of ignorance to go around.
The resort to such a strategy would be laughable except for one thing: it works. It diverts people’s attention away from difficult matters of national policy and on to things that have deeply personal resonance and which touch on primitive instincts and desires. Its appeal is unthinking and visceral rather than cerebral and critical. The more raw and emotional the appeal, the more likely the target audience will react spasmodically to it. In doing so, those who invoke that response are able to counter the policy prescriptions of their opponents without really engaging with them.
That is why I am puzzled by the Obama’s decision to push legal action to facilitate transgender use of toilet facilities based on self-identity, not physical traits. Actually, it is not the legal recognition of transgender rights that bothers me but the timing of the push for them. Why could this not have waited until the next presidential term, especially since Hillary looks to win and even Trump is not opposed to the move? Or is that why the initiative is being made now, as it can be seen as further dividing the GOP base from its presumptive presidential candidate?
If so, I think that it is an unnecessary and counterproductive ploy. By pushing for transgender rights at the particular time the White House has thrown a lifeline to the troglodyte Right, who in turn can pressure the GOP elite and Trump to wage war on such a cultural abomination. Already we hear the clamour about perverts lurking in little girl’s toilets, and The Donald’s penchant for flip flopping on issues is well known, so why on earth start up this particular culture war when a year from now passage of transgender rights legislation would have less electoral impact?
If I was a Democratic strategist I would urge the Party and its candidates to not be baited into culture war debates. That will only trap them in a no-win circular shouting match about science and daily practice grounded in “common” versus “good” sense based on different ideas about ethics and morality–but not intellectually honest or informed people but with aggregations of the mental equivalent of Trump’s Mexican built Wall.
Instead, I would urge them to laugh at sky is falling arguments and refute them with the facts. The country is getting more colour in its demographic, has become more tolerant of non-traditional lifestyles, has robust religious diversity, has innovative production and entrepreneurship and remains, regardless of what the GOP doomsayers claim, economically strong and relatively secure in spite (rather than because) of its foreign military adventures. It may not be utopia or even the mythological house on the hill, but it sure ain’t a bloated carcass of decadence floating towards oblivion (unless you are referring to the GOP itself, in which case the analogy applies).
The Democrats should focus on what Gramsci referred to as “touching the essential,” that is, the real state of the economy and national affairs, addressing the real problems of average people in proper perspective (and there are plenty to consider), and offer practical (and practicable) solutions to specific policy issues. That will leave the GOP to bark into the wind about girly men, safe spaces and serial adulterers. Because when the dust has settled on November 8, the sky will still be there and the cultural wars of the Right will have been lost yet again.
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.
Posted on 15:25, March 8th, 2016 by Pablo
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.
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.
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.
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!
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.