Saturday, November 5, 2011

Everyone in a Trailer Isn't Trash

“Why the South Lost the Civil War,” by Richard Beringer, Herman Hattaway, Archer Jones and William Still, 1986

This is an example of my reading a book so you don’t have to. This tome, written by four professors, attempts to answer a question that doesn’t seem to be one, but actually is. Many students of the Civil War – and other wars – assume it was the superior manpower and industrial strength of the northern states that lead to Appomattox, and, incidentally, the ending of slavery. Even modern-day Confederates want to believe this. The ‘revisionist’ view in this book – which is also hinted at in “The People’s History of the Civil War” (available at May Day) and other books – is that internal weaknesses within the southern people led to the defeat. As the Vietnamese and other guerrilla wars prove, mere dominance in numbers or ordinance or technology does not create victory.

What was the fatal flaw of the Confederate cause? Asked in this way, the answer is pretty obvious. But for die-hard Confederates, who imagine God on their side, Bobby Lee and Nathan Bedford Forrest in the saddle, and a ‘War of Northern Aggression,” it is still confusing. Even unionists of that day who rejected the Emancipation Proclamation – like the Democrats lead by McClellan and other Copperheads – thought it was only the power of the original Union that triumphed.

The authors trace the defeat to a failure of ‘Southern Nationalism.’ They point out that the south was similar in culture to the north, except for its overwhelmingly agricultural roots, and especially those roots in slavery and the plantation system. So the real and only basis of ‘southern nationalism,’ at bottom, was the slave system, and the existence upon slavery of a planter class. And this was, as Marx pointed out, a historically regressive system, which is why he supported the north in the Civil War. This should not come as news to most modern people. The twist however – and I put this in the face of bourgeois northern bigots who talk about’ rednecks,’ ‘crackers’ and ‘trailer trash’ as especially a southern phenomena – is that it means the majority of poor southerners ultimately wanted slavery to end in order to end the war. Their ‘southern nationalism’ was skin-deep.

A geographical map of the south will show the areas of most resistance to the war. Mountain areas and wood zones show the regions where few slaves were held, and most southerners were poor white farmers eking out a living. East Tennessee and Kentucky, western Mississippi, wooded northern Alabama, the mountain areas of western Virginia (which became West Virginia because of the Civil War), western North and South Carolina and northern Georgia, and the swamps of southern Louisiana and northwest Florida were all outside both the cities and the large farms and plantation zones. The “State of Jones” (reviewed below) was in the piney woods of western Mississippi. “Cold Mountain” is in western North Carolina. None of these people had an immediate financial stake in slavery. Their farms were either too small or unproductive to support slaves, or they could not afford slaves or – as in the case of Newton Knight, their religious and political beliefs prohibited slavery. Painting all southerners as supporters of the Confederacy is a foolish mistake. In fact, as most historians now recognize, if secession had been put to a popular vote, it would have failed in many southern states.

The conflict at Fort Sumter and Lincoln’s call for soldiers turned many southern Unionists into reluctant supporters of their ‘state.’ Robert E Lee was only the most well-known one. These authors show how, as the war progressed, support for the ‘southern’ cause diminished, desertion from the armies increased, protests against hunger grew and non-compliance with the draft and Confederate army property requisitions increased. Peace societies became more public in the South after 1863 and the defeats at Vicksburg and Gettysburg. Old pro-unionist politicians (who still supported the war) won a majority in North Carolina in the 1863 election. By the end of the war, the majority of the southern population preferred re-union over continued warfare. And this, the authors contend, is the real reason the south lost.

They go into many of the conventional arguments about its failure in some detail. Some think that an excessive concentration on ‘states rights’ did not allow the south to win. The authors clearly show that in the main two states whose governors conflicted with Jeff Davis – Georgia and North Carolina – both states sent more men and goods to the Confederate armies than states that did not conflict with Davis. One North Carolina politician, William Holden, famously said that “It was a rich man’s war and a poor man’s fight.” This echoed the thoughts of Newton Knight, who objected to the Confederate rule that planters with 10 slaves were exempt from service, and was one of the reasons why the "Knights' turned against the Confederacy.

The authors show figures that indicate the Union blockade of southern ports was very porous. They describe how southern military organization was superior to the Union’s in that it recruited people from the same locales to join existing units, instead of creating new, green units of unaffiliated people, as the Federals did. As to the issue of industry, the south was able to quickly create a large metal-working, armaments and clothing industry under central control of the Confederate government. While I do not agree with their assertion that Confederate soldiers were as well supplied as Union soldiers – many sources conflict with this – they consider this not to be the decisive question. They do show how there were always guns, bullets and cannons at least.

The main contribution of the authors is to compare the thoughts of classic military strategists who studied Napoleon and Frederick the Great – Clausewitz and Jomini – against actual military events during the war. They contend that the south actually had a military advantage through its huge territory, interior lines and mainly defensive strategy, citing both Clausewitz or Jomini. So, again, why did they lose except through extra-military issues? And here they point out that Davis and the Confederate government put all its emphasis on military victories and none on ‘propaganda’ or morale-building or paying attention to the condition and opinions of the civilian population. As we know from Vietnam and other wars like Iraq, the opinions of the U.S. population play a role in the withdrawal of troops. However, when the war is actually in the territory of the population (unlike Vietnam or Iraq) this can be decisive.

Another contribution of this book centers on its coverage of how religion impacted both northern and southern peoples’ morale. As might be expected, both sides thought ‘God’ supported their cause. Almost every church in the U.S. split into a pro-slavery southern wing and a pro-union (and maybe anti-slavery) northern wing, even the Catholic Church. Many religious preachers joined the armies, the most famous being Leonidas Polk, a Tennessee planter and a bishop in the Episcopal Church, who found his way to the Confederate army. Polk was later blown in half at Pine Mountain near Marietta, Georgia, by a shell from one of Sherman’s batteries. So I guess God really ‘did’ support the North. And this odd idea – odd to an atheist at least – began to creep into Confederate thinking. If ‘God’ allowed the ‘Yankees’ to win, then either he was ‘testing’ southerners in their faith, or else he was ‘chastising’ them for imagined failings. As time went on, some southerners even decided that God wanted the north to win because perhaps slavery ‘was’ a sin. And there goes your morale and your morals – at least for a believer.

The most unusual point they make is that they delineate how the Confederate government created a centralist state and economy during the war. This should terrify the present southern Republicans and Libertarians. The South actually initiated a draft a year before the north. Writs of habeas corpus were suspended at the same time, and martial law declared. Impressment of goods by government soldiers was legalized, though they were supposed to pay a ‘reasonable amount.’

Basing themselves on the 1978 work of Raimondo Luraghi’s “Rise and Fall of the Plantation South,” the authors describe how the Confederate government took over 39 iron furnaces, ‘nationalizing the whole productive power of existing manufacturers” for war production. The government provided 50% loans to create new industry, limited profits, fixed prices, built publicly-owned mills like the giant Augusta, Georgia, Powder Works.  It became the largest nationally-owned factory system in the world at that time. Shipyards were put under government control, and new ones built under government ownership. This forced industrialization changed Richmond, Augusta, Columbus, Atlanta, Macon and Selma into industrial centers. They, however, only later passed laws limiting planters from producing cotton, as cotton brought in higher profits than food. Many blockade runners were carrying cotton, and not getting food back, but only luxury goods for the upper class. As such, centralization did not fully extend to the planter class and their plantations. Since the Confederate government was based on the planters, that made sense.

My main issue with these authors is the idea of ‘victory,’ which is the bulk of the book. They do point this out tangentially, but not in a direct way. If victory means the end of direct slave labor, than the Civil War can be considered a complete victory. But if ending slavery also meant equal democratic rights for Black people, equal property rights for Black people, the provision of land and an end to sharecropping and the plantation system (especially in the Mississippi Delta) than the Civil War was not a victory. The violent defeat of Reconstruction through guerrilla warfare by ex-Confederates and the ex-planter class showed that they – now private farmers and businessmen – actually won the longer war for white supremacy. In place of slavery, black people got the KKK, Jim Crow segregation, share-cropping and the poll tax. It was the northern capitalist class that sat by and watched and essentially collaborated with the southern capitalists on this issue. So that is perhaps why the South 'lost' the Civil War - they saw it as only a series of battles in a longer war.

It was only after 90 years that the Civil Rights Movement punctured segregation and gained some democratic rights like voting for Black people. And even now, those voting rights are under attack, as was shown in Florida in 2000. Black people are still the poorest and most exploited southerners, and still discriminated against, segregated and disdained. The “civil war” still continues and will not be finished until the modern capitalist reincarnation of the planter class and their allies are removed.  Perhaps a socialist Sherman?

And I bought it at a garage sale in Athens, Georgia
Red Frog – November 5, 2011

Wednesday, October 26, 2011

Bad Boys, Bad Boys, Whatcha Gonna Do?

The Meta-Meaning of Ridiculous Cop Shows

I watch cop shows. I admit it. Not sure what it is. The out-side normal characters? Knowing the enemy? The bad guys getting collared or shot? Because of course the real ‘bad guys’ of the world always have high-priced attorneys. Gritty attempts at realism? The science of forensic everything? A cornucopia of large handguns? Corpses getting Y-shaped stitches? Or just the proximity of real hard death.

Whatever it is, cop shows have replaced cowboy shows in the pantheon. ‘Law and Order’ is the granddaddy of them all, although now its shrunken to just “Special Victims Unit.’ They specialize in prosecuting sexual abuse using cynical or troubled but self-righteous cop characters. At one time it played on ‘ripped from the headlines’ story lines, which actually seemed political sometimes. Now they barely go there – evidently having run out of headlines. It also frequently avoided the standard ‘black/Latino/white weirdo/Mafia’ targets, but instead pilloried affluent assholes. So that you might cheer when they got nailed. However, on L&O, you could also count on them threatening some guy with a gun or a punch or an occasional water-boarding – just to get them to talk. Always justified. Or telling some scared schlub that if they didn’t hand over the information – why, they’d get a subpoena! ‘Not that,’ exclaims the frightened frog, ‘ANYTHING but that!’ L&O proved that rappers could be cops - see “Ice-T” - and that cynical actors and former comedians like Richard Belzer can make money anyway.

Then there was the ‘tall bending guy’ on 'L&O - Criminal Intent' – Vincent D’Onofrio, who set the stage for a whole new group of cops – the magic ones. He would be able to get the Stone Reaper to confess in a few minutes. More on that later. It was no accident, however, that everyone behind the scenes hated this guy. After all, who can put up with a pompous mind-reader?

The most ridiculous show in the cop parade is ‘CSI-Miami.’ Not a show passes without a dressed-up CSI in a plunging neckline and high heels bending over a dead body. The CSI lab is a Pixar fantasy of high-resolution graphics, colorful lighting, reflected glass and uber-computers. Every database in the world seems to be instantaneously connected to the CSI lab in Miami, including the ‘paint chip’ world master database. And of course, who can forget the Hemingway of Cops, David Caruso. This one man single-handedly drives his giant gas-guzzling black Hummer up to the camera, slides on the shades, gazes into the sun and says, “Crime doesn’t pay – it only pays me.”

CSI-Miami spawned CSI-Vegas (of course!) and CSI-NY (inevitable). You can get your fill of forensic science trivia and dead bodies from no finer sources.

Then there are the shows I call the ‘flack jacket fantasies.’ You know, where you watch storm-troopers in heavy protective gear, large handguns and assault rifles, storm into houses, warehouses and burrito joints on every show. “Criminal Minds’ is one of these, along with NCIS-LA and NCIS itself (the father-ship). Criminal Minds has a bunch of FBI ‘profilers’ who suss out the ‘un-sub’ (short for unknown subject) in groupthink sessions, aided by a curly-headed nerd genius that they hope young hip people can identify with. Buff ex-military guys, surf guy and a beautiful female cop adorn the NCIS-LA set, which is ‘set’ in a fucking large historic mansion, run by a tiny woman with glasses who they are all scared of. There are no ugly women in cop shows, remember this – except this one old lady. Oh, and one show features a tubby nerd-computer genius who gets them all their computer info – she’s the only other exception. Of course, most of the corpses are beautiful young white women too. Even though most murder victims are minorities.

LL Cool J, another rapper, found a home on NCIS-LA as a buff cop who could outrun getaway cars. NCIS itself features Mark Harmon as Jethro Gibbs, gruffly getting info from his scamp-like staff and a good-looking tattooed-pierced lab-rat girl sucking down 64-ounce shit sodas. How cool is that?

There are a few ‘missing persons’ shows too, like “Without a Trace” – not sure what demographic this appeals to – nervous mothers with children? Every show usually has an 'older' person anchoring the crews. The most obvious is "Blue Bloods" where Tom Selleck has graduated to elder statesman. This show attempts to return the cop show to the 'Irish family' angle, as if being a cop was just a noble family profession and nothing else. Of course, when the whole familiy sits around the table eating, while Papa rules the roost, I'm not sure if I'm not seeing the Corleone family instead.

My favorite, and symptomatic of the ‘trend’ started by Law & Order’s D’Onofrio – is “The Mentalist.” The lead, Patrick Jane (‘Jane’ for short – how’s that for not macho?) drives a Citroen, does not carry a gun, and lounges around the police station on a couch until the real cops need him. He’s just an advisor, you see. While they go off looking for facts like dumb cops, he intuitively understands the criminal and goes off on a completely different psychological tangent – bringing the cops into the picture at the end. Jane is handsome, wears a sports-jacket and vest and hates psychics, religious phonies and self-help gurus. The show sets up frequent clashes between Jane and the latest ‘mystic.’ He stands up the to police brass and also boldly exposes the bad guys or the rich assholes in public, which is something we’ve all wanted to do, but somehow never got around to. So you gotta like this guy. Except he works for the cops.

The magic angle has spawned shows like ‘Unforgettable” (at least I think that is what it is called) about a woman cop who never forgets anything. And the “Ghost Whisperer” about a woman that can visualize the dead and how they got that way. (This show must have been named after the ‘dog’ whisperer and the ‘horse’ whisperer. I can see the story pitch in Hollywood now…) Visualizations of bullets going through bodies or knives through thighs abound in all these shows, as the cops ‘figure out’ what happened – in their heads.

The worst enemy of the police in show after show is ... dum, de dum dum ... 'Internal Affairs,' who are always depicted as evil, manipulative trouble-makers who are never right.

So what are the meta-messages? Cops are fucking geniuses – even psychic. Cops are hip and really good looking. Cops have lots of guns, but we knew that. Cops have all the information at their finger-tips. Cops need to break the rules frequently. TV, in fact, is one big advertisement for the hipster police state.

Now we have to compare the TV cops and FBI with the actual ones we meet every day. The ones who shoot black guys because they’re nervous. Who enjoy evicting people from their houses. Who volunteer for overtime in order to thump anti-Republican demonstrators. Or FBI agents who collar anti-war activists and socialists. Or 'blue-blood' cops who invite the CIA onto domestic turf to spy on ethnic groups. Or DEA cops who raid pot farms and burn thousands of plants. Or cops who escort scabs through picket-lines. Or FBI agents that couldn’t get a terrorist unless they set up a terrorist plot themselves. Or BATF agents who sell guns to the Mexican cartels. Or county deputies who makes sure anti-Wall Street demonstrators don’t put a stick under their tarps. Or if they are in Oakland, CA, practice using 'bang' grenades and rubber bullets on unarmed sleepers. Or cops who arrest farmers for having Monsanto corn blow onto their property. You get the picture. Almost none of us have met a TV cop in real life. But they sure crowd the airwaves.

Why isn’t there an ‘anti-cop’ show on TV? Other than “Reno 911” perhaps? You know the answer.

Red Frog
October 26, 2011

Thursday, October 20, 2011

Occupy Wall Street, then Expropriate It

The Big Short, by Michael Lewis, 2010

Michael Lewis wrote “Liar’s Poker” (reviewed below) about the financial crash of the late 1980s, based on junk bonds, insider trading and the S&L industry. Lewis is pro-capitalist, but an honest observer and reporter, and that is a valuable thing. “The Big Short” is the best look at what was going on inside Wall Street in the period leading up to the crash of 2008. Like Kevin Phillips book, “Bad Money” (also reviewed below) it focuses on the period before 2007, culminating in the implosion of the sub-prime derivatives market in 2007 with the forced sale of Bear Stearns. Lewis reminds us that this Wall Street circus has actually been going on since the 1980s, when many derivative products were first ‘invented.’ As Lewis puts it, “the bonus pool remained undisturbed” since then.

The key characters of this ‘mystery’ are those who saw that the mortgage industry and the investment banks had created a colossal Frankenstein, which nearly brought down capitalism, and has still deeply wounded it. They themselves went from a cynical view of what Wall Street represented to a social view. As Steve Eisman put it, lecturing Bill Miller, a hot-shot investor in Bear Stearns: “The upper classes of this country raped this country. You fucked people. You built a castle to rip people off. Not once in all these years have I come across a person inside a big Wall Street firm who was having a crisis of conscience. Nobody ever said, “This is wrong.” And no one ever gave a shit about what I had to say.

To this day, nothing has changed. And we can thank not just the big media whores, who have created a myth about a mere ‘crisis of confidence,’ or the ostensible ‘protectors of the public’ like the SEC or Fed, but also the Democratic and Republican parties, who are for the most part the political arms of Wall Street. Lewis himself does not go into how deeply these forces reinforce Wall Street. That is for others to do. But as he puts it, “…pretty much all the important people on both sides of the gamble left the table rich.”

What Eisman, Michael Burry, Greg Lippman, John Paulson and a few other hedge fund managers did (including White Box, located here in Minneapolis) was actually understand what was factually going on. Lewis carefully explains the structure of Collateralized Debt Obligations (CDOs) and the specific errors of the ratings agencies. He shows how a “one-eyed money manager with Asperger’s syndrome” like Michael Burry (the first money-manager to understand the coming collapse of the mortgage market, and by extension, its ‘asset-backed cousin’ the CDO and the CMO in 2004) could, just by reading the prospectuses (which no one but the lawyers who write them ever do...) and studying a website of details on mortgage loans, figure out what CDO’s were going to fail first.

No one – not even the rating agencies – actually had the intimate facts on what mortgages had been bundled into what derivative. Nor did the rating agencies ever carefully vet the details of each ‘product’ – they skipped that part too. Instead, they accepted the assumptions of the Wall Street firms. There is even a statement that the models used by the ratings agencies did not include a possibility of a drop in housing prices. The rating agencies were more interested in just getting paid by Wall Street firms. Lewis calls them, “Nobodies … in blue JC Penny suits.”


Burry and analysts like Eisman looked at both specific and more general statistics on home loans, like what states the CDOs originated out of, or how many mortgage loans were ‘without paper’ or ‘second loans’ or balloons or for high amounts. They found the errors in the ‘FICO’ scores and the “Black-Scholes” option pricing models used by traditional Wall Street analysts. The funniest part of the book is Eisman insulting each and every financial and Wall Street CEO he ever met by telling them exactly what he thought – that their optimistic views and hazy understanding was bullshit. Hilarious, to the point, and absolutely unbelievable. In a way, the whole Street and industry had agreed that only 5% of house loans would go bad, and house prices would always rise. That was their faith, their 'party line.' As Eisman pointed out, all it took was a 7% failure rate for a CDO to default. The rates eventually reached 40% in some pools of loans.

Some of these guys started out as ‘value investors” like Warren Buffet. What these money managers did, once they understood the inflating capitalist mortgage and derivative bubbles, was to buy credit default swaps (CDS) on various CDO’s. CDS’s are like insurance on the failure of a certain investment, but cheaper than buying options. So in a way they were ‘shorting’ the whole U.S. mortgage machine, which had become the largest part of Wall Street’s ‘products.’ A 'short' means you wager money that the price of a product will decline. Hence the name of Lewis’ book. Once they did this, they took out traditional short options on the stock value of various financial institutions, mortgage companies and hedge funds backing mortgage-‘securities,’ just to rub it in. They knew their prices would decline when the bubbles popped.

At a certain point, as the CDO market began crashing in mid-2007, they sold the CDS’s to frantic Wall Street firms, because they knew that some of the CDS’s were guaranteed by AIG or Bear Stearns – both firms they realized could fail. And they did. Eisman, Burry, Lippman and others made millions while Wall Street/The City/The Bourse/Frankfurt capital markets firms lost billions of dollars, and ultimately, the U.S. government, and the U.S. taxpayer, had to step in with trillions to prop up what were now legally called ‘banks.’ Bernie Sanders now puts the number at $16T, not just $800B in TARP funds.

Some people will read this book in order to understand how to make money on Wall Street. Marxists and revolutionaries read it in order to understand financialization, which seems to be a terminal disease of world capitalism. Lewis considers the pebble that started this avalanche of financialization to be the moment that his original target in ‘Liar’s Poker’ – John Gutfreund – turned Salomon Brothers from a partnership to a corporation, thus transferring the risk from the partners to the shareholders. There is some truth in this contention, but it seems another small pebble in the overall pattern of financialization – which really got started when the derivatives market in currencies developed after Nixon ended Bretton-Woods in 1971.

As Christopher Ketcham recently put it: “The One Percenter seeks only exchange value, as opposed to real value. Thus foreign exchange currency gambling has skyrocketed to seventy-three times the actual goods and services of the planet, up from eleven times in 1980. Thus the “value” of oil futures has risen from 20 percent of actual physical production in 1980 to 1,000 percent today. Thus interest rate derivatives have gone from nil in 1980 to $390 trillion in 2009. The trading schemes float disembodied above the real economy, related to it only because without the real economy there would be nothing to exploit.”

Lewis is wrong because the risk has not just shifted from the partner to the shareholder – the risk has now been transferred to the public at large. And the ‘public at large’ is now the guarantor. Derivatives themselves are empty suits, they were not just invented by empty suits. You will hear the rhetorical homilies about how commodity futures are "farmers guaranteeing their product price in the future.” Since commodity speculators have taken over the trading pits, as Ketcham points out, these ‘honest farmers’ are less than 3% of the commodity futures market. The problem is far deeper than one single legal change.

Unfortunately, Ketcham is wrong too. The 'real' economy includes Wall Street. The real problem is ‘the system’ – one which cannot survive at this point without the debt casino of Wall Street. This constant narrative of left-liberals that the 'bad' financial capitalists are ruining everything - and we should just 'regulate' them more - is belied by financial capital's empirical support for the expansion of monopoly 'manufacturing' capital all over the globe, and by its falling profit rates. The present state of global monopoly corporations would not have been possible otherwise. Financialization is not a ‘growth’ upon capitalism, but its logical conclusion.

And I bought it at Jackson Street Books, Athens Georgia
Red Frog, October 20, 2011

Thursday, October 13, 2011

Topeka Says “JUST LEGALIZE IT!!”

In a move sure to get Charlie Sheen and Chris Brown looking to take up residence in the Ward-Meade Mansion, The City Council of Topeka, Kansas voted 7-3 on Tuesday night to save money by decriminalizing…. wait for it…. domestic violence!



Over 30 domestic violence cases (18 since September) have been dropped in the area because no one will prosecute. The Shawnee County District Attorney responded to cuts to his (note the shocking pronoun) budget by delegating misdemeanor cases to the City. The cuts haven’t gone into effect and won’t until next year, but best to be proactive, I guess. The City responded in the only responsible way by making misdemeanor domestic violence not illegal under State Law. Hey, 423 such cases were prosecuted last year. All that court time, counseling, therapy, and infrastructure to support victims ain’t cheap.



The City Council is banking on the decriminalization forcing the hand of the DA’s office since domestic violence remains a crime under State Law (for now.) The idea is basically “hey, if we can’t prosecute at the City level because there is no City Law violation then the County has to pick up the tab, Right?



Wrong. DA offices all over the country prioritize some cases over others. Misdemeanor charges are dropped for any number of reasons all the time. Nothing says that has to change. Domestic abuse cases are tragically under-prosecuted as it is. This pissing match between the City and the DA’s office has only managed to send a public message that women are second-class citizens and if anybody wants to slap one in Topeka he probably won’t get punished.



This is just one more example of the seemingly never-ending shift to the right in “mainstream” politics. Slash every budget and encourage people to just get stronger and richer if they don’t want to be victimized.



But at least the National press has gotten behind this, right? Christ, after I was told about this repeal being considered I had to read about it in Forbes. Fuck everybody.

Tuesday, October 11, 2011

American Fiction Writers - Follow-up to a Smack-down

No Nobels

Alexander Nazaryan had an interesting article in a recent Salon.com on why American writers have not recently won the Nobel Prize for literature. He also appeared on NPR talking about this issue. Nazaryan says that recent "American' fiction is still dominated by the style of the 'great white male narcissists.' (Phillip Roth, Saul Bellow, John Updike ...cough cough...). In this, he is following David Foster Wallace, who accused them of that in 1998. After you stop laughing, I think unfortunately this extends to many U.S. female writers too. The white guys get the awards, but the women bring up the rear in the self-same department. Self-involvement is the heart of middle-class fiction, after all. This is not to say that all literature does not borrow from a person's life - the question is, how much?

Toni Morrison, a black woman, was the last U.S. citizen to win a Nobel in 1993, probably for "Beloved" - which was a great book, but not about Toni Morrison. Take heed.

Nazaryan and others locate one of the promoters of this small-bore navel-gazing preoccupation in the MFA programs at our esteemed universities, which counsel - 'write what you know.' And this truism disguises the fact that what many people know is ... not much! Female writers are urged at the local Loft writing center and other centers to write 'memoirs' - even if nothing in their life is memorable. We are treated to endless stories of addiction and dysfunction, as if literature was purely therapy. In this culture, middle-class writers shy away from large social issues in order to fit in politically and culturally. They would rather write about personal issues like infidelity or adultery than unemployment - which they probably haven't experienced anyway.  Or crank out another detective story. It is all disguised, sometimes, as 'art for art's sake' when they are feeling especially peckish.  Politics and the working class are verboten.

So the comparison I did between "Prague" and "Petrol Bombs" is typical of the real problem. There are no more John Steinbecks or Upton Sinclairs.  At least not on the NY Times bestseller lists.

Red Frog, 10/11/2011

Monday, October 3, 2011

Middle Class v Working Class FICTION SMACKDOWN!:

“Prague, a Novel” by Arthur Phillips, 2002 / “Peace, Love and Petrol Bombs” by D.D. Johnson, 2011

The Americans who eat in Budapest cafes: The Scots who work in burger joints:

In my continuing interest in fiction, I chose these two books accidentally. The first book seemed relevant because I wanted to read something about central Europe. And of course the joke is, while the book is titled ‘Prague,’ that city of the Czech Republic, its really about Prague’s somewhat less glamorous cousin, Budapest, Hungary. The supposition is that all the trendy American tourists who want to go to Prague may pick it up and read it. Ha ha. The second book fits in with the ‘anarchist’ theme, so I got that too.

‘Prague, a Novel’ was a ‘national bestseller,’ got kudos from the New York Times and the Los Angeles Times, and many other newspaper credits. It even has a somewhat cute ‘readers circle’ question section at the back, so you can take it to your book club. Phillips hails from Minneapolis, went to Harvard and seems to be an all-around young and handsome genius. He is squarely in the upscale hipster writers camp.

The book centers on a group of young expatriates sitting around the bars and cafes of Budapest right after the Soviet Army pulled-out of Hungary in 1989. This lead to the collapse of the deformed workers state there, and the slow restoration of capitalism. Johnny on the spot, these Americans now smell an opportunity, or ‘something different.’ The group includes: Emily, a bland cheerleader whose job is being a go-fer for the American ambassador; Charles, a suave and arrogant American/Hungarian investment banker looking for investment opportunities in the ‘new’ Hungary; Mark, a gay post-PHD researching a book on nostalgia; Scott, the inevitable English-as-a-Second-Language teacher and blond athlete, and also an angry and sarcastic young man; and John, his brother, who has just followed big brother Scott to Budapest and seems to be looking for love, or something.

So the first question any reader asks themselves is: Do I even want to sit at a table with these people? Thought about it? OK, don’t answer that. It doesn’t help much that it starts with a beer-laden ‘can you tell the truth?’ party game.

This is not so much a story of the ‘ugly’ American as it is a story of the useless American. Some of the book touches on humor – John’s infatuation with the doltish Emily being a long thread. Or John’s infatuation with his brother, a rude loser underneath. Mark has a hilarious desire to re-create and live in the past, catching it just at the corner of his eye while the rest of us remain oblivious. The book details the group’s contacts with the alternatively impressive, poor, sad or crude Hungarians. The plot of the book centers around Charles attempt to invest in a famous and heroic Hungarian publishing company, the “Horvath Press.” Since this is not so much a cliffhanger as an inevitability, the book really centers around drinks, dances, meals at restaurants, cafes, bars and nightclubs, with a some sex, meals and drinks in apartments thrown in. Charles succeeds in bringing back the Horvath Press to Budapest from Vienna. Emily continues to walk in and out of the embassy. Mark gives up on nostalgia and leaves. Scott marries a Hungarian girl and moves to Transylvania. And John, who seems to be the most sensitive, finds love with the women he didn’t expect, and still yearns after the woman he did expect.

It is called a ‘novel of ideas’ but I failed to locate any. It is charged with being a ‘caustic satire,’ but the fun is actually quite gentle. It is called ‘elegant and entertaining.’ For some it must be. I eventually started turning the pages quickly, as gradually, nothing happens. Of course, no one in the book gets to Prague. Other than name-dropping parts of Budapest – the Gellert baths, Adrassy Utca, the Gerbeaud restaurant, the Buda hills, the Castle and various squares – the book was not about Budapest, nor the Hungarian people, let alone Prague. It was about some young, vaguely interesting, Americans. So even in a foreign country – the real topic of any good American – is themselves.

“Peace, Love & Petrol Bombs”

So imagine you are sitting at another set of tables – this time in a burger joint in Dundule, Scotland in 1998 called “Benny’s Burgers.” No wine, no table cloths, no serviettes, just paper napkins and lots of beef. The action is not happening at the tables. It is in the back room and the kitchen, where a large set of disgruntled Scottish lads and lassies are so pissed about their menial lives that one of them forms “Benny’s Revolutionary Army” and several become anarchists or revolutionaries.

The book opens during a smoky confrontation with police at the 2000 World Bank summit in Prague, somewhere around Wencelas Square. Unlike the deadbeats from Budapest, these folks actually get to Prague, and find the revolutionary worm has turned. It follows a love-sick burger-flipper, the invisible Wayne, who travels across Europe after the 1999 Seattle protests – to Prague in 2000, Mayday in Parliament Square in 2000, Thessaloniki’s riots in 2003, to Paris, back to London and again, Dundule. It is not just the ‘struggle’ but various revolutionary or plain sexy girlfriends that lead him on. The scenes are set in the bars and Benny’s of Dundule, and its “Breast Mountain’ of garbage, to a London squat, then Greek dorms overrunning with thousands of leftists, to various parent’s homes and back to Scotland. Petrol bombs explode in Greece, the black bloc moves from street to street, pathetic protests fail to make a dent in Paris, and Benny’s Burgers gets well-defaced several times around the world.

Johnson’s use of Scottish brogue is great, as is his description of the gang of political working-class ner-do-wells and the officious tripe they encounter. Time jumps around in the novel, first ahead, then behind, but eventually it makes sense. There is a hilarious conservative Indian wedding where the groom, a sub-manager at Benny’s, sounds more like Kumar from “Harold & Kumar” than a Punjabi prince. Johnston also gets in some fierce digs at the British Socialist Workers Party, and later, various anarchists types, including the declining stages of the “Anarchist Book Fair.” Another scene where he robs his exes apartment using a cab is pure slapstick. His comment about one of his exes? “She still kissed like a Labrador.” “Petrol Bombs” is funnier than “Prague” by a long-shot. Of course, you have to appreciate crude, straight-forward humor.

Eventually Wayne tires of anarchism (after being dumped by his French anarchist girlfriend, Manette) and goes home, stealing valuable antiques from another ex-girlfriend’s female partner on the way – the cab story. He finally ends up in Manchester. The only similar link between these books is that both central characters look for love in all the wrong places. Which seems to be the only place to look.

The winner of the Smackdown? “Peace, Love and Petrol Bombs” by a TKO for humor, dialect, politics and action.

And I bought it at Mayday Books!
Red Frog, October 3, 2011

Sunday, September 25, 2011

From the Anarchist Book Fair:

“Anarchism and its Aspirations” – by Cindy Milstein, 2010

This short book has been described as a good introduction to modern anarchism. I’ve reviewed several books in the anarchist tradition or close to it: “The Coming Insurrection,” “Non-Violence Protects the State” and “Facing Reality,” the work of CLR James (however, a council communist), and the Situationist ‘Society of the Spectacle,” (all reviewed below.) However, this book is different in that it tries to layout the politics of anarchism in 122 pages.


I expected much more. In fact I was somewhat shocked by how naïve this book seemed. Of course, there are various brands of anarchism, and not all of them can be judged by these writings. Milstein points out that anarchism is primarily an 'ethics.' And the ethic leads to the destruction of capitalism, any state and hierarchy – and this all in one time period, simultaneously. In other words, communism now. And it is to be done by free and happy people who will reach the true, the good and the beautiful. Milstein centralizes the role of ‘ethics’ in anarchism – as if anarchism was kind of a hyper-humanism or hyper-liberalism. She uses the term ‘substantive humanism’ and ‘libertarian socialism’ to describe it. The phrases “class consciousness’ and ‘class struggle’ are nowhere to be read. The working class makes no appearance. Milstein does endorse much of Marx’s analysis of capitalism, but not his view of the state. Milstein considers the state to be a separate entity from capital, representing a third force in society, not the expression of the ruling class, as Marxists understand it. However, what economic class this ‘state’ represents is unclear. She brings forth no factual basis for the existence of this ‘third force’ or economy, but her intent here is not factual or scientific analysis.

Hatred of an abstract 'state' is also popular on the libertarian right, which some say is the anarchism of small capital. And it is, of course, the main target of the Republican Party - or at least those parts of the state that don't benefit them. So the left anarchist attack on the 'state' finds echoes in the broader culture, on the right and far right. And this may explain the ease with which some youth accept anarchism.

Milstein insists that modern capitalism can exist without corporations – and indeed that is a truism. But monopoly indicates what form is really in control now – and it is not shoe-store owners. She praises anarchist attempts to build counter-institutions, and I have no problem with this. Of course, a counter-culture is not the product of anarchism alone – populism, Marxism and simple cooperation among people lead to various co-operative endeavors being constructed. You have only to look at the grain co-ops from the 30s or the food co-ops of the 1960s to see this. However, a ‘counter-culture’ was tried in the 60s and failed to overwhelm the capitalist system – because you cannot ignore the system away. Capital, as it did to the former workers’ states, will attempt to destroy or undermine anything that does not conform to it.

This leads to another thing missing from Milstein’s book – the idea of a revolution to overthrow the state. Milstein ignores the question of force, as if the capitalists will just disappear when their oil wells, car factories, steel mills and wealth are taken from them. The implication is actually that you can just ‘work around’ the state, and ignore it. She praises what could only be called ‘charity’ and self-help efforts by anarchists in this regard. Yet, as even churches understand, the scale of misery in the society cannot be ameliorated by charity alone. Much as Republicans theorize otherwise, and evidently, some anarchists too. Without Welfare/WIC, unemployment insurance or social security/Medicare, etc., the working classes in this society would be even more destitute.

Milstein’s argument against Marxism is a somewhat inaccurate one – that a ‘classless yet statist society’ is undesirable. (p. 81) Well of course it is. Because it is impossible. States do not need to exist if classes disappear. Milstein evidently does not agree that a state exists because classes exist. It is not really clear why she thinks states exist except perhaps that ‘mean people’ organize them! People do not set up a bureaucracy, system of laws protecting private property, and back them up with many armed bodies of men if there is no significant economic privilege to maintain. In a way, Milstein also disappears economics, replacing it with a hostility to ‘hierarchy’ in any form. Of course, what is actually behind her criticism is the very real experience of Stalinism and bureaucracy in the workers states, and the congealing of the Leninist party into an anti-democratic bureaucratic organization. However, anarchism is not the only political force in the world that noticed this.

Milstein believes in direct democracy (although she makes some nods to the practical necessity of electing delegates at times) but, along with the other invisibilities, never mentions elections or voting. Anarchists believe on principle in not engaging in the political arena, I suspect, and that is the reason.

Milstein is not totally sanguine about anarchism. She seems to be aware of some of its limitations – even calling the anarchist founders ‘naïve’ over their endorsement of the essential ‘goodness’ of human nature. She also says that some ‘street actions translate into nothing more than counter-cultural version of interest group lobbying…” And her take on small-group actions (perhaps the ‘black bloc’…)? “There is ultimately something slightly authoritarian in small groups taking matters into their own hands …

What Marxists, democratic socialists and anarchists can agree on, I think, is that society should eventually be run by workplace and geographic councils. Of course, the whole issue right now is just getting there. And there's the rub.

And I bought it at the Anarchist Book Fair from Mayday Books!
Red Frog, September 25, 2011

Tuesday, September 13, 2011

Last Battle of the Civil War?

James-Younger Gang Attempt to Rob Northfield Bank – 1876; Reenactment in Northfield, September 11, 2011

I stopped by Northfield this weekend to check out the reenactment of the James-Younger gang's bank raid on Northfield back in 1876. The town has been putting this show on since 1948. The bank and hardware store are preserved as a historical site and museum. Dark black circles surround certain large holes in the old bricks of the hardware store, where old bullets are reputed to have struck.

The bridge to Bridge Square, near the bank.
I call it the last battle of the Civil War, although we might reflect that the civil war is still going on. Unlike old histories, such as George Huntington’s 1896 “Robber and Hero,” which does not mention the issue; or the 1972 film the “Great Northfield, Minnesota Bank Raid,” full of idiotic historical fantasies as big as the 'mountains' looming over the town, neither focuses on the strong Civil War connection.

The raiders did not come to the town because it had ‘the most money’ west of the Mississippi, although it was one of several banks targeted in southern Minnesota. To get sympathy from ex-Confederates, Cole Younger mentioned to the press that Benjamin Butler, an abolitionist union general, had money in the Northfield Bank, as did Adelbert Ames, former Reconstruction governor of Mississippi. (See Ames mentioned in the review of the ‘The State of Jones,’ below.) In doing this, he implied that this was one of the reasons they chose this bank to rob. However, Younger was wrong, as it was J.T. Ames, the brother of Adelbert Ames, who sat on the board of directors of the bank. Butler’s daughter had married Adelbert Ames, so there was indeed a family connection at the bank - a Union connection.

There is an argument as to whether Adelbert Ames was in Northfield on that day - the re-enactors say he was. Or whether one of the Ames brothers was addressed as ‘guvnuh’ by a southern voice as he crossed the bridge to the Ames mill (now owned by Malt-O-Meal), which caused Ames to glance at the riders and see pistols under their linen dusters - also claimed by the re-enactors. This alerted Ames and supposedly lead him to follow the riders back into town. However, it is no secret that Joseph Heywood, the bank teller killed by Frank James, and others in the street in Northfield shooting back, were former Union soldiers. Heywood fought at Chickasaw Bayou, Champion’s Hill and finally at Vicksburg under Sherman and Grant, after which he got sick. Anselm Manning, who killed raider Bill Stiles/Chadwell, had been a Union soldier. The Younger brothers – Cole, Bob & Jim - fought with Quantrill and the James brothers – Frank & Jesse - had ridden with Bloody Bill Anderson’s blood-thirsty guerrillas. They were fighting for the South as irregulars in the Confederate Army.

Raiders Clell Miller and Chadwell/Stiles were killed by the armed citizens of Northfield that day. Cole and Bob Younger were injured. During the manhunt, lead by Union veteran William Murphy and also organized by J.T. Ames, the Missourians fled towards Madelia, Minnesota. There Charlie Pitts was killed and the three Younger brothers shot up and captured. The three were later sentenced to Stillwater Prison, where Cole Younger started the prison newspaper. Only the James brothers escaped, though, typical of this history, there is a bit of doubt whether one or the other was in Northfield. It was admitted to by several of the band, but Cole Younger tried to deny their presence, which is something any smart 'pard' would do. Six of eight of the gang were killed or captured (though some claim there was a ninth gang member on the edge of town), and this ended the exploits of the gang. The re-enactors take great pains to point out that the James/Younger gang was no bunch of “Robin Hoods’ but were instead interested only in buying good liquor, prostitutes and high-quality horses and guns. They gave their money to no one but themselves.

The roots of this raid in the Civil War are unmistakable. The James brothers participated in the Centralia massacre, where more than a 100 unarmed Union soldiers were killed and mutilated. These Missouri bushwhackers, who were part of a movement that had also burned down Lawrence, Kansas and killed dozens in cold blood there, lived up to their name, again, even in 1876. Both Heywood and a Swedish immigrant, Gustafson, died that day. Killing unarmed tellers and conductors was the gang's habit. But the ex-Confederate raiders met the same fate at the hands of Minnesota farmers and unionists in Northfield as the Confederate Army met in the battles of Vicksburg, Gettysburg, Missionary Ridge and Nashville, all battles where Minnesota units distinguished themselves.

Lessons? There’s only one way to deal with a slaver… and their modern equivalent, a fascist, if they ever show up again.

And I saw it in southern Minnesota!
Red Frog, September 12, 2011

Saturday, September 10, 2011

Obama Wakes from his Beauty Sleep

The American Jobs Bill Speech, Thursday, September 8.

Since the Simpson-Bowles Commission released its findings in December 2010, the bi-partisan discussion among both Democrats and Republicans has been about deficits. The basic question was how much to destroy the ‘safety net’ for the working class, and how much to hand money up to the wealthy and the corporations. Like any clever bill, a few good ideas nestled next to many reactionary ideas. Of course, they all had an equal chance of passing, didn’t they? In a sense, there was a complete continuum between the Tea Party and the Democratic Party leadership about the paramount importance of deficits, going on for 9 months now. Snzzzzzzzzzzzzz.

All of a sudden, as the stock market starts falling again, and the threat of another ‘official’ recession advances (as if the real recession isn’t still going on…) Obama has suddenly woken up and realized he has to get elected. Of course, to the short-term deficit geniuses of the U.S. government, this was all unexpected! In order to be re-elected, Obama had to attempt some kind of a successful deal with the Republican Party on ‘jobs.’ Hence the September 8 speech.

This speech was given directly to the Republicans, and no one else. Yes, The Mustache – Richard Trumka - sat in the audience and thrilled once again to hear about how construction workers and teachers might be getting jobs. Or that rich people should pay their ‘fair’ share. Yes, the Alliance for American Manufacturing, also affiliated to the AFL-CIO, might hold their nose, but they were also generally enthusiastic. Yet nothing in this proposed bill hasn’t been tried before or agreed to before by some or all members of the Republican Party. Bloomberg even called it borrowing from an ‘old playbook.’ The AFL-CIO probably appreciated that the topic now was on jobs, and not the ‘deficit’ – but if you look carefully at this plan, it is also a sleight of hand – using the jobs ‘emergency’ to further the capitalist agenda. The chatter after the speech was all about how it didn’t have a chance of passing, and so was a political move by Obama to finally show he cared about jobs – again.

The real question is – what if all or some of these suggestions DO get passed into law? Because this reveals what the Democratic Party leadership is really all about. Let’s look into them in a bit of detail.

First off, Obama said, “it’s all going to be paid for.” How? The “Super-Committee”! This body of Democrats and Republicans is tasked with adding the $447B price-tag for this bill to their deliberations. If you’ve heard them talking, they thunder about not listening to ‘special interest’ groups, which presumably also means their constituents. We’ve seen this before. A member of Congress is elected, and then does what he is supposed to do by the unwritten rules of the ruling elements in the society, not what he was elected to do. Which shows every day that the bourgeois democratic system in the U.S. doesn’t work. What this means, if you read between the lines, is they will do what is best for the ‘country.’ And what is best for the country they understand is what is best for the capitalist economy. Which means, to hell with my constituents, I will cut spending like a muthafucka as I'm being told.

So how is this a stimulus if they are going to cut $447B down the road? The only difference is timing. As one friend put it, they are ‘buying time.’ It might ‘dent’ another recession just enough to get the election over with. Overall, however, there will be insufficient Keynesian impact to this bill, even if passed, but many nasty effects that will last longer.

So what are the elements?

1. The biggest part of the bill is another tax cut – 3.1%. It is a payroll tax cut for businesses and workers, the money coming from Social Security taxes. The theory is that demand will increase, and pay Social Security back. However, as with most tax cuts, they actually have very little ‘stimulative’ effect. Most people use them to pay off debts, or stick the money in the bank – as corporations have been doing for years now. Very few jobs will be created and very little will be bought. If you look at the ‘Cash for Clunkers' program and the credit for purchasing a house - both were far more direct attempts to channel money into the economy – and their effects wore off almost immediately, a quick high. What this proposal will really do is further deplete the Social Security fund, which has been robbed by bourgeois politicians for years to pay for other programs. This is another blow to Social Security. This tax cut is part of the $250B in new tax incentives, now added to the ones passed during the deficit ‘emergency.’

2. More tax breaks with shaky effects: Tax holiday for new hires for one year. Bloomberg pointed out that businesses hire people for longer than one year, so the only people that might use this are seasonal or low-end service/retail businesses. This will not create long-term decent jobs. And again, fewer taxes paid by businesses means less tax money to fund municipal/state and federal jobs. Can you say 110,000 layoffs at the Post Office? Obama also proposed a fifty percent reduction of the tax rates businesses pay on the first $5 million in payroll; and a $4,000 tax credit for employers who hire long-term unemployed workers. But do they have to keep them? No.

3. A plan, now being used by Georgia Republicans, to make unemployed workers work for free for businessmen, which Clinton initiated many years ago under the “Workfare” label. I.E. taxpayers are directly subsidizing businessmen to hire people. More corporate welfare. What will stop them from not hiring people they intended to hire and instead hire ‘free’ labor? Nothing. Perhaps the next step will be lending out prison labor from our federal lockups to needy businessmen. Oh, wait, we do that already. Will they prevent this practice or stop the fake B1 Visa program to create jobs? No. That would piss off the corporations, you see.

4. Obama again brought up the ‘free trade’ bills for South Korea, Columbia and Panama – three of our direct client states – as a way to ‘create’ jobs. This plan has been floated since 2010. Identical to the debate over NAFTA, (as chronicled in the book on Wal-Mart, “God & Walmart,” reviewed below) Obama waived the ‘vision’ of American cars being sold in South Korea. Of course, under NAFTA, the exact opposite happened, and Mexican goods appeared in American Wal-Marts. And now, of course, Chinese goods are in Mexican and American Wal-Marts. The Obama administration has already put a rider to these bills concerning ‘possible’ American job losses and ‘retraining’ – so even they know what it will lead to. The AFL-CIO sees through this scam, of course, but John Boehner clapped! So the Republicans are on board. The “Jobs Council” Obama mentioned in the speech is made up of businessmen from different industries – which is sort of like putting the foxes in charge of preparing the chickens.

5. The best parts of the bill is some amount between $105B//$125B/$175B (estimates are all over the place) for aid to states for education and spending on infrastructure, which might prevent some teacher or municipal/state worker layoffs in the near future, and hire some construction workers. This is similar to the ‘shovel ready’ part of the 2009 stimulus bill. However, again, the money is being taken out on the back end by the ‘Super-Committee’, so this is really a ‘take from Peter to pay Paul’ scheme. Again, buying time. As the Keynesians are pointing out, even in the short term, too little to make a difference - similar to the first Obama medicine.

6. Infrastructure Bank – seems to be some kind of publicly-run hedge fund that will pay interest to private parties who invest in infrastructure projects. Is this a wedge to get private investment owning 'public' property?

7. $62B (per Bloomberg) will be to extend unemployment benefits for a year. If you noticed, the deficit bill passed by the Democrats and Republicans a few months ago after Naomi Klein's “U.S. deficit ceiling emergency” (see below – the ‘Accident on the Potomac’) actually got rid of extended unemployment benefits, so Obama is now trying to slip this back in. At this point, so many people have been out of work for so long that it is unprecedented in recent labor history. And these extensions have never been needed before. However, this, again, does not create jobs or aggregate demand.

8. Another tax break for businesses to be able to write-off investments quicker. Again, nothing to do with jobs. This was also in prior bills.

9. Help with refinancing underwater homes at 4% through FNMA/FMC. Again, not directly connected to jobs, but it would put more money in people’s pockets. However, will they spend that money on new purchases? The odds are no – what gets people to spend is a real job. Obama’s prior mortgage program basically did almost nothing to stem foreclosures. Also part of this is a plan to fix up neglected foreclosed homes. However, private parties seem to be already doing this, so this could be part of another subsidy to businessmen.

10. And quite noticeably, Medicare had a big red target publicly painted on it by this ‘Democratic” President. Obama vowed that Medicare, ‘with an aging population and rising health-care costs, is spending too fast to sustain the program.” This repeats in public Obama’s private proposal in the ‘grand bargain’ with Republican Paul Ryan to cut Medicare. And who is raising health-care costs? Hmmm? Big Pharma? HMOs?

11. There was no proposal to ‘tax the rich’ or the corporations, only rhetoric. Richard Trumka, sit down at the children's table.

Right now, this is a ‘mini-stimulus’ bill that undermines Social Security and Medicare, will not result in long-term job growth and in some respects, undermines long term job growth through tax cuts and mini-NAFTAs. It continues the redistribution of wealth up the ladder through tax cuts. Even on its own terms – as a jobs stimulus – it is insufficient – and will not create enough jobs. It does not mention the elephant in the room – military spending – perhaps because the U.S. will never seriously drop military spending due to its key role in absorbing surpluses and policing the world for corporations.

This bill continues to pay bi-partisan credit to the myth that small businessmen are the ‘job creators.’ Given their failure since fall 2007 to create jobs, I’d say continuing to buy into this myth is merely throwing good money after bad. Of the 33 million corporations, partnerships and sole proprietorships in the U.S. only 200 corporations generate a 3rd of the profits and income. You do the math.

Capital in the U.S. is lurching from political paralysis to fighting the deficit to short-term stop-gaps. This bill is a last attempt to again come to terms with a situation that has been going on for 4 full years. They are betting the U.S. population will once again be satisfied with a small carrot, rather than the long stick. Their paramount purpose is to prevent any kind of mass mobilization outside the bourgeois parties – strikes, demonstrations, political activity, occupations, bombings etc. And so far, their bet that a Democratic president could control the mass movement better, in a time of economic and military failure, has been successful. Anti-war organizations like Move-On showed their real colors and shut up. The AFL-CIO is making 'noises' and tiny moves, but still ultimately buys the folderol. The 'left' of the Democratic Party has created no primary opponent to Obama. Not one single large organization has seen through the con-job, except perhaps parts of the Latino movement.

The real question is, is being afraid of Rick Perry enough to convince people that a 'soft' Rick Perry is a viable option?

Red Frog
September 10, 2011

Tuesday, September 6, 2011

Short Attention Span Theatre

“Politics Noir – Thirteen Dark Tales from the Corridors of Power” – Various Authors, 2011

Fiction provides a window into the ‘memes’ floating through the culture. This collection registers immense cynicism about the ‘democratic’ system in the U.S., while still not going for the jugular. American politics is shown in this collection, in the words of Paul Baran & Paul Sweezy, as ‘how political parties evolved into vote-gathering and patronage-dispensing machines without program or discipline.’ Plus blood.

This volume is another in the series of short-story modern noir (‘Native Noir’ reviewed below). Murder is the central event of most American TV, and this volume does not shy away from many, many political murders. Of course, we know ‘noir’ doesn’t always have to involve death – sometimes living while maimed or humiliated can be worse. Perhaps the most ‘noirish’ of all is when the powerful and rich get away with massive political crimes, perhaps without killing a soul. In that case, our whole brightly-colored culture hides noir day-in and day-out.

While most killings written here are shabby professional hits, the most high-profile is an assassination planned in 2008 by a female Democratic Party politician of her half-black rival for the presidency. Another features several black professionals being ‘penalized’ for falling in love with Condi Rice. Mike Davis dips back into history for a story of Dick Nixon administering fellatio to long-time director of the CIA, J Edgar Hoover, and the rampant chances for black-mail that affords. A Minnesota local, Pete Hautman, gives us a somewhat unbelievable tale of political killings in the metro-area by a small-time politician. There’s even a story of how New York hip-hop can make and ‘break’ politicians. One story actually involves no murders – just the attempted hi-jacking of a NY borough election by bogus robo-calls, fliers and illegal removal off the voter roles – shades of Florida 2000, Ohio 2004 or Election 2012. Only one gun is drawn.

Some of the stories do not directly reflect on politics – at least not in the narrow sense. One narrates the struggle of a Mexican kid learning to surf, and the problems he runs into in all-white and all-blond Palos Verdes, California. Another details the ‘happy-ending’ of a fundamentalist Muslim Iman in Pakistan being stoned to death for breaking his own Sharia laws – because of watching porn. Another portrays de-mobilized IRA soldiers taking on their former leaders, who now drive BMWs and live in mansions. And it proves that, indeed, Irish English is another language.

The series features plenty of power-hungry women who will stop at nothing to be elected or get their candidate elected. (Where does this come from?) And who’d have known politicians know so many hit-men? But when I say pulls its punches, it is because good noir should be believable. And many of these stories are humorous but overdrawn to make a point. And the point is that the political system is rotten to the core. However, you don’t really need to exaggerate much. Just look at the headlines

My dream noir story is about Dick Cheney ordering the assassination of Paul Wellstone. I think that would be very revealing – and not ‘noir’ at all. More like a documentary. Or the CIA smuggling drugs into south-central Los Angeles. Or the captivity of Bradley Manning. Or the situation in the maximum security isolation prisons of California. Or the 2000 election in Florida. Or Guantanamo/ Bagram Air Force Base/ Abu Grahib. The CIA even sent people to Libya for ‘rendition’ - how’s that for noir? Or the killings of Joe Hill, Huey Long, UAW leader Walter Reuther, the U.S. Phoenix program in Vietnam, Lumumba, Malcolm X, the Chicago Black Panthers, the Kennedys, Salvador Allende and his aide, Orlando Letelier, South African radical Steven Biko, Harold Washington and every other convenient political death.

There’s noir for you.

And I bought it at Mayday Books!
Red Frog, September 3, 2011

Sunday, August 28, 2011

Sorry! Once more on economics:

“Monopoly Capital” by Baran & Sweezy, 1966

This classic of American Marxism, written in a clear, somewhat dull style unlike the sometimes convoluted meanderings of Zizek, or the algebraic chapters of Amin, remains relevant today regarding present economic debates. It was written in the mid-sixties, when the ‘exceptional period’ of American corporate capital was in full swing. It claims to be an examination of monopoly capitalism in its highest form, similar to what Marx himself did to early British capitalism in “Capital.” This was prior to the full development of the corporation.

Like people who drive cars or live in homes and understand almost nothing of what makes them ‘tick’ – so too, Americans live in an economy in which many understand little about how it ‘ticks.’ And the result is, just as you will eventually pay a lot to some ‘professional’ to ‘fix’ your home or car, so too will you pay a lot when the ‘professionals’ of economics – monetarist or Keynesian - try their ‘fixes.’ However, unlike automobile or house repair, which can involve unneeded costs but is still a relatively straight-forward mechanical process, the economy is ‘political’ in the deepest sense; not merely a machine but more like several living organisms.

I am going to bullet-point Baran & Sweezy’s (B&S) most salient points. They quote and use the statistical work of various authors – Thorstein Veblen, Vance Packard, Kalecki, Schumpteter, etc. throughout their book:

1. The first point, and one largely accepted now by everyone but monetarists, Libertarians and Tea Party rhetoricians, is that corporations control the U.S. (and world) economy. As a result B&S think that ‘competition’ is now largely a fiction. Within those corporations, or the “oligarchy’ as the authors call it, prices are controlled informally between the giant combines. Small business, entrepreneurship and individually-owned ‘mogul’ businesses are no longer the dominant paradigm of capital, and as such, the ‘competitive’ system is no longer truly competitive.  Of course, this theory denies the reality of war and continuing economic competition between firms.

2. For me, and others I imagine, the main theoretical problem is addressed on page 72 of the Monthly Review edition, in the chapter “The Tendency of the Surplus to Rise.” The authors here make the point that monopoly capital has mostly overcome the problem of the falling rate of profit. Instead, the problem to be addressed under oligarchy is the inability to get rid of surpluses, and without getting rid of them, a resulting stagnation. Certainly, excess ‘surpluses’ explain part of the frequent financial and manufacturing bubbles / busts, the massive amount of waste in the system and even military spending. Ideologically, on the surface though, a system that has ‘too many surpluses’ seems a pleasant problem to have! Their analysis does not explain why oligarchic / monopolist manufacturing concerns needed to go to the U.S. south, to Mexico and overseas if their profit rate was adequate. A good Marxist argument has been made that capital earns super-profits by receiving ‘imperialist rent’ from the financial colonies, as Amin puts it. Nor do they explain exactly why Marx’s analysis of fixed capital has so changed. I think these two factors are actually operating side-by-side, even under ‘monopoly’ - because it is not a perfect monopoly due to its current world-wide character.

3. Back to the authors’ arguments: Surpluses under monopoly capital can then be: A, invested; B, consumed or C, wasted. Baran/Sweezy discuss the various means whereby the system attempts to get rid of its surplus – foreign investment, R&D, technological innovation, capitalist consumption, sales efforts, military spending, etc. They do not, however, dwell on the issue of 'waste' except tangentially. On the issue of why there is always ‘too much’ under monopoly capital:
“If he is a worker, the ubiquitous fact of unemployment teaches him that the supply of labor is always greater than the demand. If he is a farmer, he struggles to stay afloat in a sea of crop surpluses. If he is a businessman, his sales persistently fall short of what he could profitably produce. Always too much, never too little.

4. Baran/Sweezy point out that under monopoly capital, sales issues come to even dominate production. They look at the car industry in the 50s and conclude that 25% of every car was needless changes for marketing purposes only. They show studies that indicate cars used more gas and contained more unneeded changes in 1956 than the 1949 model car, so the issue of ‘progress’ was actually backwards. They also estimate that a rationally-built car would cost 75% less than one made by GM. Following this, it doesn't take much to understand that the present constant software and hardware changes in phones, computers, games etc. are mostly cosmetic, generating sales - making prior products unusable, thus a big part of the whole process of planned obsolescence.

5. They note that the FIRE sector (Finance, insurance and real estate) reached 10.2% of the nation’s aggregate economy in 1960, large for its time. They call it an almost entirely parasitic sector. However, they make no case in this book for ‘financialization.’

6. Baran & Sweezy go on to talk about how the government can attempt to absorb surpluses in 3 main ways – defense, transfer payments and non-defense benefits. B&S back-up Keynes’ understanding that government spending, even deficit government spending, has a ‘multiplier’ effect that goes beyond the simple amount of money spent by the government. Government spending can make idle capacity come alive, which leads to higher private profits. Of course, this analysis hurts monetarist / libertarian theories of the dangers of deficits. However, they also point out that the oligarchy will only put up with so much 'deficit spending' - thus a Keynesian solution can never really be tried.

This logic should still apply, at least up to some point where debt service to the banks and rich, of course drags down the original stimulus. Baran & Sweezy wrote this when government deficits were small. I am not aware of any Marxist analysis of the level of corporate and government debt now, however, and whether this Keynesian point still holds. I myself do not think it holds to the enth degree.

Corporate taxes during the '50s and early '60s were high due to rises in the war years, yet corporate profits continued at the same rate. Corporations raised prices or cut benefits to workers to pay the taxes. As another foot-noted writer said, “the government simply used the corporations as tax collectors.” Another lesson about high corporate taxes.

7. B&S have a great description of the U.S. governmental system that runs a few pages, but essentially captures the hollow notion that this is an actual democracy. The Pith? The system is ‘democratic in form and plutocratic in content.’ In this context, Baran & Sweezy note that the greatest government spending increase in 1957 since before the Depression was a 66% increase in defense spending. They call this ‘the key fact of post-war American economic history.’ They contend that if that spending was taken away, the economy would have fallen back into recession or depression, as 9% of the labor force was involved in military production. And here we come to the crux of the matter. Well-meaning calls by anti-war activists and pacifists for a reduction of the military budget and a switch to civilian production is actually impossible under capitalism, as it is a key source for the absorption of surplus. But, according to B&S, a continually increasing military budget, to avoid stagnation, is not a reality either. They cite reductions in military spending in the early 60s to indicate that it cannot grow endlessly.

8. In short, B&S conclude, there is no fail-safe way to avoid stagnation over the long term. However two things do counteract the effect of overly-large surpluses, which then lead to lack of production, unemployment and empty factories, and end in stagnation. They are technological innovations and war. They track U.S. capitalist history since the 1870s, when monopoly became dominant in capitalist economics. B&S look at the economic effect of steam power, railroads and the automobile, all which lead to periods of actual growth. Then they track the obvious effect of the wars – WWI and WWII – and show the same thing. Notably, they diagnose a period before WWI – between the effects of railroad expansion ending in 1907 and war spending in 1915, which showed a period of high unemployment, low capacity utilization and stagnation. If you were to apply this logic today, you would look at the ‘computer’ revolution, which fits their definition of ‘overturning’ prior methods, and should be able to find growth based on this new technological paradigm. And of course, war is now almost a constant. But you should also be able to find the economic end of this paradigm.

9. B&S take up the black question and show that black liberation is not possible under capitalism. They raise the well-known history of prior immigrant groups – the Irish, the Italians, etc., and how they rose out of poverty and marginalization to become ‘accepted’ members of society. And yet black people – to their day, certainly, and to THIS day, have not moved beyond being at the bottom of U.S. society. In the 60s, Lyndon Johnson’s decision to back programs creating a black petit-bourgeoisie was part of a global struggle against the USSR, and was also a way to remove talented leaders from the black masses. Johnson had to prevent the development of a mass ’fifth column’ with no allegiance to capital. However, without leaving the South as sharecroppers and becoming employed in the army and later, government jobs on the municipal, state and federal level, black people would have never been able to increase their economic level. They also benefited from the automobile revolution, but that has now run its course. At present, black people are the main target of reductions in government workforces. This crucial attack may lead to a revival of the radical black movement, who’ve finally seen through the tokenism of Barack Obama.

10. B&S look at the imperial strategy of the U.S. during this period, which boiled down to ‘defending profits’ anywhere in the world. Ultimately, this resulted simply in opposing the U.S.S.R. and its surrogates, and any independent political movements in the world. While their economic scope is not international, B&S mention that all U.S. policy was driven by anti-communism after WWII ended. And that was because any encroachments by nationalists or socialists on private property had to be resisted for the corporations sake. Thus the long, bloody history of the post-war period. It should be noted that the decay and the collapse of the USSR and eastern Europe in the late 1980s (and the long-time abandonment by China of any revolutionary intentions) was not inconsequential to the ‘triumph’ of neo-liberalism domestically and across the globe. I.E., there was a ‘global class war’ – not just one inside the U.S. - and one side won, at least for now.

11. The last section deals with the quality of capitalist culture – education, housing, poverty, human relations and artistic endeavors. In ways, this is an odd section, but attempts to reflect the bourgeois economic effect on human life here in this country. B&S first take on U.S. education, pointing out that it was far inferior to Soviet education. In 1960, U.S. outlay on education was 5.5% of national income; in the USSR it was 10-15%. In third grade, the American child was supposed to be familiar with 1,500 words while the Soviet child was supposed to be familiar with 8,000 words. In fourth grade, the American child was supposed to know 2,032 words, while the Soviet child was supposed to know 10,000 words. These discontinuities continue up into the upper levels of college. Anyone who knows graduates of schools in the USSR or eastern Europe can easily acknowledge the difference. They rake “IQ” tests over the coals as merely showing the likelihood of success at U.S academics and nothing else – certainly not indicators of actual intelligence. They point out that teaching schools in the U.S. were academic jokes. This was all because, under it all, the real intent was that only a small proportion of the upper-class students were to be educated.

B&S point out that poor-people’s housing programs were done in such a way as to fail. In anticipation of the writings of James Kunstler, B&S examine the deformed suburban lifestyle based on the automobile. They jump around on their opinion of divorce, sounding sometimes like stuffy right-wingers, and sometimes not. They make the correct references to Michael Harrington’s study of poverty, Paul Goodman’s “Growing Up Absurd”, Freud and Wilhelm Reich; poke fun at sports conversations at work; seemingly knock Henry Miller, Tennessee Williams and Edward Albee as ‘abandoning the language of art;’ (!) criticize people who collect records or books as phonies; and in one crotchety comment:
“so-called beatniks looking for emotional fulfillment through renunciation of the ‘square’ way of life with its comforts and amenities, and through the adoption instead of a way of life characterized by eccentricity, promiscuity and narcotics."

OK, well, anyway, pass the weed, professors.  These chapters are still soaked – though unknowingly - in the coming civil rights, anti-war and cultural movements that were to define the second part of the sixties. Quite clearly, the early sixties were not a period of quiescence. At one point they make the claim that the war in Vietnam could be a turning point for U.S. capital – a prescient thought. This book is required reading for those seeking more modern Marxist viewpoints than the classics.  But beware the revisions!

And I bought it in the used section at May Day Books for $4.00.

Redfrog
August 28, 2011

Thursday, August 11, 2011

Free! Two Reviews for the Price of One:

“The Law of Worldwide Value,” Samir Amin, 1978/2010
And
“Bad Money: Reckless Finance, Failed Politics and the Global Crisis of American Capitalism,” Kevin Phillips, 2008.

Both of these books analyze capitalism from two different perspectives. Amin is a modern Marxist connected to the Monthly Review 'school,' intent on updating the Marxist analysis of value on a worldwide scale, something Marx had planned to do in the 6th volume of Capital, but died before accomplishing. Phillips has developed his own idiosyncratic brand of analysis that combines historical analogy, regulatory reformism and a cultural critique to create an independent view of events. He is not a partisan of either party, and this gives him the ability to be intellectually honest… unlike those shills of the Democratic Party we know so well.

AMIN
Amin’s book suffers a bit from being originally written in 1978, thus missing the capitalist rise in certain 2nd and 3rd world nations. And this mars its somewhat muddy conclusion – exactly ‘who’ in the nations of the ‘periphery’ will rise above imperialist under-development. Amin seems to be a former member of the Communist Party of Egypt, and hence that might be where some of the confusion comes from.

Several chapters in this thin book devolve around economic algebraic equations – and for those, dear reader, I had to skip to the conclusions. Real economists might find them interesting. Amin’s central thesis is that ‘surplus value’ - which he calls ‘value’ – can be extended as an analysis beyond the borders of the central capitalist countries to include, not just unequal exchange of trade or import/export substitution, but the increased value culled from dependent nations he calls ‘imperialist rent’ – resulting in what he calls “globalized value.’ He looks at the relation between the imperial center and the financial ‘colonies,’ taking into account the ever-popular extraction of minerals (‘extractive’ or ‘mining’ rent), the exploitation of the natural resources of the imperial colonies (like water) and the extreme differential in wages for labor power – and combines them as a concept. Amin gets this concept of ‘imperialist rent’ from Marx’s ‘ground rent.’ He shows how alliances with colonies allow the imperialists to lower prices or wages in their ‘home’ countries. Imperialist rent is mostly invisible – ‘a transfer hidden behind the observed wage and price system.’ Amin maintains this asymmetry has been maintained and deepened by capital – hence the popular understanding of how capital ‘under-develops’ the rest of the world. As he puts it, the way capital functions will not allow the rest of the world to every fully ‘catch up.’ Amin calls his theory, the “shoreless Marx. He is not interested in just regurgitating Marx, but advancing Marxist analysis into the modern day, and that means a full grasp of the global profit system.

On the way, Amin makes a stab at Joseph Stiglitz, the sainted hero of the Keynesians. Amin says that at the UN General Assembly in 2009 Stiglitz proposed ‘an auction of the world’s resources (fishing rights, license to pollute, etc.)” This statement makes Stiglitz just another imperial barbarian waiting to buy the water from under Tanzania.

Amin endorses the Monthly Review position that, added to Marx’s ‘two departments’ (capital and labor) there is a 3rd economic department – the ‘state’ – which plays a role in absorbing surpluses. He also agrees with Monthly Review on the absolute centrality of the environment in any analysis of the economy and capital’s ruthless (and unavoidable) exploitation of it.

Amin maintains that there can be ‘no economic theory of the world economy,’ only an analysis of the elastic struggle between various factors and classes:

“Vulgar economics is obsessed with the false concept of ‘true prices,’ whether for ordinary commodities, for labor, for money, for time, or for natural resources. There are no ‘true prices’ to be ‘revealed’ by the genius of the ‘market.’ Prices are the combined products of rates of exploitation of labor (rates of surplus-value), of competition among fragmented capitals and the deduction levied in the form of ‘oligopoly rents,’ and of the political and social conditions that govern the division of surplus-value among profits, interest, ground rents and extractive rents.”

Until recently, of course, underdevelopment was the only pattern. However, we know, for instance in Brazil, that a booming local capitalist economy has been made possible by a partial liberation of the Brazilian nation under Lula’s “Worker’s Party,” which succeeded a long line of subservient (to imperialism) military and liberal comprador governments. However, all of Brazil is not part of this – not the landless peasants, not the indigenous peoples of the Amazon, and not the favela’s. While conditions have improved for the working classes, the rich and middle classes are the biggest gainers. And that is because Brazil is still under indirect imperial control. As Brazil shows, a simple endorsement of the struggle of ‘southern’ or ‘periphery’ countries against imperialism, as Amin hints at, is simply not possible as a tactic in the struggle against capitalism itself.

PHILLIPS

I have reviewed one other Phillips book, “American Theocracy,” (see review below) which is a better introduction to his thought. This book, “Bad Money,” is centered around the August 2007 events which lead to the deepening of the crash in 2008, and being written in 2008, smacks of some ‘haste’ to publish while the iron was hot. Even authors must make money. As such, he misses many events, but these would probably not change his views.

Phillips’ thesis is that mercantilist and fully capitalist societies which aspire to ‘empire’ are brought down by four things: finance/debt, religious rigidity, the failure of their particular brand of physical power, and war. It doesn’t take much time to show that the U.S. role as an empire is threatened by all four. Financialization and debt, according to Phillips, brought down the U.S. economy in 2007. (He repeatedly emphasizes, unlike the twin parties of government, that PRIVATE debt is far more of a threat than public debt. And indeed, corporate debt is the largest worldwide.) Fundamentalist Christian religiosity in the U.S. has captured at least one party, and part of another. Oil, the power source of the American imperium, is running ‘out’ due to peak oil. And war, the war economy, and the costs of war have become endemic to American capitalism.

However, Phillips should ask himself why all 4 seem to show up in Spain, Holland, Britain and now the United States. What underlying dynamic unites these nations? I would say it has to be the development of capital in each. Let’s just look at one of his arguments. Phillips spends pages thundering against financialization. He claims no one but Minsky (“the Minsky moment”) and perhaps the Austrians (!) caught the deep problems with it – except the …“Marxists, mostly given to repeating ideological doctrine.” (BM, p. 40) As we know, in America, Marxism is verboten. Yet much scientific and historical materialist work was done years ago, initially being included in Baran/Sweezey's "Monopoly Capital." Starting in 1972, again by the Monthly Review school, they picked up on the development of financialization (and debt) in the U.S. Dismissed, though. Invisible men, as they say. Even when you’re right, you’re wrong.

And what is Phillips solution to the financialization dilemma of modern capitalism (or the former capitalisms)? Re-regulation. A return to the ‘real economy.’ The return of manufacturing to the U.S. Themes echoed by Krugman, Stiglitz and other reformists, including trade union economists. Now it is not to say that these are not laudable goals. The destruction of the Glass-Steagal Act in 1999 by the neo-liberals under Clinton and the Republicans was a historic loss, leaving us open to more market-driven financial instability. Earlier revisions of financial law in the 80s under Reagan lead to the massive S&L crisis. However, it is happening for a reason.

Phillips himself mentions that many manufacturing companies (GE, Ford, General Motors) have immense financial arms. GE, Obama’s poster child, even gains most of its profits from operations abroad now, and a big chunk of that is financial. While Phillips tries to ‘separate’ finance and manufacturing capital, the actuality is that they are combined, two arms of the same thing. It was precisely the dropping of profits in manufacturing in the United States that led corporations to send manufacturing south, then to Mexico, then to China and everywhere else. And at the same time, those same firms turned to ‘paper’ to make more money, because manufacturing was looking for an outlet for their profits outside manufacturing. Manufacturing capital now needs the profits from Wall Street in order to fund their manufacturing operations - of course if they ever do so. That is the basis of M&As, IPOs, stock offerings, stock splits, derivatives, options, futures and every other arcane financial transaction undertaken by manufacturing capital. In essence, capital can no longer make money only ‘the old fashioned way.’ They have to have Wall Street, like athletes need steroids or junkies need a fix, to dispose of surpluses and, oddly enough, to make super-profits. Unlike the golden age of the 50s and 60s, manufacturing capital seems no longer to be able to fund itself from internal surplus value, gained off of labor, and must find other outlets. It must turn to derivatives and the casino to generate profits and/or get rid of surpluses.

So, re-regulation will actually not return the U.S. to the ‘good old days’ because those days are actually gone – the product of a short historical hiccup. Financialization is now the ‘real’ economy too. Manufacturing will only return to the U.S. if it can exploit the American worker at the same level as the Chinese worker. Or if oil becomes so expensive that shipping becomes less cost effective. Even Keynesian solutions will not be pursued by the American ruling class – not without class struggle. It is not an ‘intellectual’ question – it is truly a question of force. Krugman can talk all he wants about a jobs program – but until the American working classes put some kind of a political and strike gun to the government’s and the businessmens’ heads – there will be no jobs program. Nobel laureates do not win class wars. Classes do.

As to Phillips position on peak oil – he ignores global warming. Fighting peak oil with more coal will accelerate global warming. Or his idea that the U.S. can limit war making – it ignores the very real bind that capital is in. War necessarily absorbs and destroys profit surpluses, while providing part of the economy with a constant “Keynesianism” stability. Human society, not just capital, is in quite a bind, and capital, presently, has no way out.

I bought Amin at Mayday Books.
I bought Phillips at Chapman Street Books, Ely MN

Red Frog
August 11, 2011