The Neoliberal Neocon Lovechild

There I was on Sunday skimming the latest from the New York Times when my eyes alighted upon the headline Poland Steels for Battle, Seeing Echoes of Cold War in Ukraine Crisis accompanied by, what else, a picture of camouflaged women crawling on what appeared to be a soccer field. Curiosity about what my hitherto believed to be apathetic hosts were up to naturally drew me in. Now, living in Poland has accustomed me to western exaggeration about my adopted country along with the natives inability to think rationally any time the word Russia is mentioned. History has scarred the land and imagination every bit as badly as religion and in fact created what the Times once called the Smolensk Religion which propagates the belief that the Russians assassinated Polish President Kaczyński along with 96 others on their way to mark the anniversary of the Katyń massacre. Anyway, the article had me chortling at its transparent cheerleading for war, just another Times propaganda piece pushing for armed conflict a la Iraq 2003, when my snickering was stifled by the sobering reality of this passage:

On Tuesday, Prime Minister Ewa Kopacz changed the law on who can be called up for service in case of “military maneuvers.” Previously, the armed forces could summon only current and former reservists, those with actual military training. Now, if necessary, they can call on almost any man in the country.

Wait. What? We've got a female prime minister? Ok, I knew that, but I didn't know she could call me up tomorrow to go running around the forest with a bunch of wannabe Rambos. Clearly the Anne Applebaums, Tom Friedmans and whoever the Polish version of a pro-war journalist is have pushed us too far, frogmarching us into another conflict. I've been reticent to comment on the situation in Ukraine for many reasons. First and foremost is how difficult it seems to get any reliable information, regardless of where you are. While back in Canada last summer I was treated to a constant Ukrainian-voter friendly barrage of tough talking politicians pandering to the public's bloodlust and the resultant steady stream of questions from friends and relatives concerned about my safety. Strangely, proximity to the happenings doesn't seem to help and in fact may hinder the truth from surfacing. While there's not a Russian or 'western' source I trust, the situation here in Poland is even worse. Despite Poles geographical contiguity to the festivities, there's nary a soul I've spoken to over the past year here with any idea of what's going on beyond the knee-jerk Putin is bad reaction. That's not to say that I've got it all sussed out, but let's just say I've reserved judgement on putting the good guy/bad guy labels anywhere.

Wait, check that, I do have a clue where to start at least, and as is so often the case, the clue comes from a headline from last week that's just a little bit off:

Ukraine to receive $17.5bn from IMF to save economy

Um, yeah, right. Here, let me try:

Ukraine to receive $17.5bn from IMF to enslave economy

There, fixed it. Just three letters short of the truth, a lot better than normal at least. It's amazing that even complex stories can be simplified if you just follow the money. If the press just spent a fraction of the time focusing on who stands to gain and lose financially as they do speculating about just how demonic/autistic/autocratic/narcissistic Vladimir Putin is, they'd begin to fulfil their role as a check on power. Of course if they did that they might also have to remind their flock why things kicked off in Kiev almost 16 months ago which might lead to uncomfortable questions taking shape in people's minds, so best to nip that in the bud.

"The struggle of man against power is the struggle of memory against forgetting"
- Milan Kundera The Book of Laughter and Forgetting

November 21, 2013, then Ukrainian president Viktor Yanukovych's cabinet announced they wouldn't be signing an EU association agreement the following week in Lithuania. That's about the last fact that we know; pretty much everything else, from the reasons for the decision to the repercussions of it, are subject to debate. That being the case, wouldn't it seem natural to want to know something about the agreement? Yet, little was said beyond that not signing represented a move away from Europe towards Russia; true to a point, but misleading in more ways than one. Most obviously, the agreement didn't mean EU ascension, but instead a vague future possibility and came with a number of strings attached ranging from the release of Julia Tymoshenko to a slew of austerity demands such as budget cuts and a 40% increase in natural gas bills. It also tied Ukraine to accepting, wait for it, an IMF loan worth $17 billion that didn't look quite as alluring to Yanukovych, probably both personally and for the nation, as a $15 billion gift from Russia that came with a 33% discount on natural gas. Yes, we in the west spend billions bailing out banks and then lending money to indebted countries to keep up their interest payments to those same banks, but can't lend a hand to start a real democracy. Just as debt peonage works to enslave students entering adulthood so it does for nations in that it manufactures consent by engendering conformity and enforcing compliance.

(Un)fortunately, one of the first moves of the newly installed government following the unconstitutional coup last February was the signing of the once rejected deal allowing us a closer look at what else was inside the loan agreement. Despite decades of debacles, and dozens of disasters, the IMF prescription for reform demanded in exchange for loans remains the dreaded structural adjustment program. A few highlights of the neoliberal nightmare visited upon Ukraine: raising excise and property taxes, reducing social income support expenditures for retirees and public employees, freezing minimum wage, and cutting public-sector wages; increasing natural gas and heating tariffs for consumers by 56 percent and 40 percent in 2014, respectively, and by 20 to 40 percent annually from 2015 to 2017 while cutting gas subsidies over two years. At the same time, as gas prices increase sharply, gas subsidies to end users will be completely ended over the next two year at a time when Russia was ceasing gas supplies as a result of a payment dispute; oh, and implementing a floating exchange rate for its national currency, the hryvnia, making it increasingly difficult to serve their dollar-denominated loans.

(Un)surprisingly, everything has gone according to script. A world of pain for the poor and elderly has paid for a bonanza for the oligarchs and western puppeteers. The currency has tanked (the hryvnia lost half its value in February alone), inflation has reached 272% while the economy has sharply contracted (down 15.2% year on year) at a time when war expenses are further draining the coffers. Less than a year on from the original loan, a new one was needed and approved last Wednesday but even IMF official admit it's not for Ukraine but the banks, as the bulk of the money is heading out the door to foreign lenders fast: $5 billion likely by the end of this week and another $5 billion in coming months. The Ukrainian oligarch-controlled banks will also syphon off about $4 billion so they can keep financing the war in the east. Even more contumelious, the IMF's own statutes prohibit lending to countries that don't have the ability to repay as that would be, you know, evil. One can only admire the audacity to pull of such a stunt, especially with Greece fresh in our minds, seems evil really is as evil does, again and again and again. Worse, they're also prohibited from giving money to nations at war. Makes sense, seems you wouldn't want to be remembered by history as having financed a government unleashing Nazi storm troopers on a European population, right? Nevertheless, once again the economic hitmen have done there job:

"The substitution of the unconscious action of crowds for the conscious activity of individuals is one of the principal characteristics of the present age."
- Gustave Le Bon The Crowd: A Study of the Popular Mind

While everyone was arguing about who was responsible for the sniper fire in Kiev that turned Maiden into a masacre, who shot down Flight MH17, whether or not Russia was justified in annexing Crimea and who killed Nemtsov, Ukraine gave up its sovereignty. We can debate how much of a role US Secretary of State for European and Eurasian Affairs Victoria 'Fuck the EU' Nuland (neocon wife of neocon Robert Kagan) and her $5 billion played in fomenting the Maiden protests enabling her to put her man Yats (Arseniy Yatsenyuk) in the prime minister's office, or how much money George "give Ukraine $50 billion so I can have some" Soros and Pierre Omidyar pumped into USAID to help bring about regime change. Or, instead we could just notice how quickly the vice-president of the United States' son, Hunter Biden, was named to the board of Ukraine's largest private gas producer, Burisma Holdings, following the inauguration of the chocolate king, Petro Poroshenko, as Ukraine's president (weren't we supposed to disempower the oligarchs?). As long as there's shale gas to be fracked, you know the people's water table will be poisoned to profit American corporate interests.

We could spend our time arguing about how much of a role neo-nazis had in last year's coup, or better yet framing the openly white supremacist Ukrainian Azov battalion's use of the Wolfsangel symbol on their banner as "romantic" as the Washington Post does. That might explain away the Odessa massacre in which dozens of anti-Kiev protesters were burnt alive in a building set on fire by nationalists or clubbed to death when they jumped from windows. We could even wonder why former US presidential candidate and current senator John McCain met and stood alongside an openly pro-Nazi politician in December 2013. It's easier though to simply evaluate how well the new government has cleaned up the corruption that plagued the pro-Russian regime. President Poroshenko appointed former ING Bank Ukraine deputy head Valeriya Gontareva the National Bank (NBU) chief last June. As a respected member of the banking community, it was said she would inspire the confidence of the private sector and work closely with the IMF. Yet, according to charges brought against her in December, by August she was robbing the state by manipulating the currency. Ihor Bilous, another banker given the post of chief of the State Fiscal Service by the new government dove headlong into money laundering, bribery and corruption schemes from the get go. None if this makes for as good TV as corrupt presidential palaces though. Pity about all that Ukrainian gold.

Hypothesizing about why Prime Minister Arseniy Yatsenyuk would tell a German TV station that it was in fact the Soviet Union that invaded Germany in 1941 won't get us anywhere. Questioning Poland's deputy foreign minister, Grzegorz Schetyna's grasp on reality after crediting Ukrainians for liberating Auschwitz thus forgetting they only made up a part of the multinational Red Army history credits with the feat seems petty really. Poking the Russian bear is a spectator sport in these parts every bit as much as popular as ignoring the geopolitical reality that Frontline Ukraine author Richard Sakwa rightly calls a "fateful geographical paradox: that NATO exists to manage the risks created by its existence". Whether or not Bush the Elder promised Gorbachev that NATO wouldn't expand eastward following the dissolution of the USSR is irrelevant.

Actions speak louder than words and watching NATO swallow up 12 Eastern European countries in three rounds of enlargement would make any Russian leader nervous. Though portrayed as Putin's lapdog, Yanukovych extorted $45 billion from Russia to lease the Black Sea fleet bas in April 2010 causing Putin to exclaim "I would be willing to eat Yanukovych and his prime minister for that sort of money". Putin didn't even deign to meet him when he fled the Maiden protesters for Russia. It is in fact the Russian speaking public who voted for Yanukovych in 2010 in the contested east that Putin claims need protection, and many sources allege are the target of ethnic cleansing in order to guarantee a pro-western candidate wins the eventual next election in Ukraine. For those will to look beyond the tabloids and memes, much of the speculation surrounding Putin's 10-day public disappearing act concerned the powerful voices in the Kremlin who would like to see Russia take an active military role in Ukraine. Perhaps they're more sensitive to the sting of humiliation the west has heaped on the nation over the last 25 years, from the "shock therapy" pillaging of the economy to missile shields and NATO's promise of eventual membership to Ukraine in 2008. Yeah exactly what Russia fears about Ukraine's western pivot. Given the prospect of nuclear war, the old adage better the devil you know than the devil you don't seems more relevant than ever.

Stop me if you've heard this one, an American, a Lithuanian and a Georgian walk into a bar... No, it might sound like the set up for a joke, but it wouldn't be so funny if it were your country that had fast-tracked citizenship for the three in a bizarre ceremony making it legal to name them your Finance, Economy and Health ministers respectively just a few minutes later. The American, Natalie Jaresko, is a former US State Department official and investment banker with no experience with the convoluted Ukraine budget. Aivaras Abromavičius also unsurprisingly comes via the banking world with no previous experience while at least Aleksander Kvatashvili served in the same post in Tblisi, but unfortunately doesn't speak Ukrainian forcing meetings to be held in Russian, embarrassing given the first thing the new government did was to target the language by repealing the minority languages law. If this didn't give anyone pause, maybe when Abromavičius immediately named former Estonian Jaanika Merilo as his advisor on foreign investments did. No? Well, how about knowing the first thing she did in her new post was to tweet the pics you see above to the right?

At least Abromavičius was forthright about his country being bankrupt, declaring about the budget "[t]o expect that we are going to produce real as opposed to declarative incentive programs is unrealistic." Translation: the new Ukrainian budget is nothing but a piece of paper with the numbers wanted from the IMF in order to qualify for the loan. Again, Greece anyone? Seems to me that it's a bit counterproductive to incentivize corruption while claiming that the regime change was necessary to root it out. Oh, by law dual citizenship is not permitted for Ukrainian government officials, except when it is for, say the aforementioned trio or the oligarch governor of the Dnepropetrovsk region, Ihor Kolomoyskyi, who has three. Suppose that's what make him such a great banker, or more likely it's the fact that his bank, PrivatBank, that will be the biggest beneficiary of the IMF loan so he can continue to fund his private army fighting in eastern Ukraine. Throw in a few former warlords turned MPs such as Yuri Beryoza, Andrei Levus, assault rifle wielding Igor Mosiychuk (here he is shooting at Chechen leader Ramzan Kadyrov's picture) and Dmytro Yarosh, who admitted to fondling a real hand grenade in his pocket while inside the Rada, and you might question if pulling Ukraine out of the Russian orbit has sure brought sunshine to the land.

Still no? Well, tell you what. We can ignore everything else except one word in one subsection of a single article in that EU agreement. Here's Article 404 (c);

promoting modern and sustainable agricultural production, respectful of the environment and of animal welfare, including extension of the use of organic production methods and the use of biotechnologies, inter alia through the implementation of best practices in those fields;

Yeah, I made it easy for you. Oh, c'mon, you can't think this whole mess was concocted just to plunder an economy that's soon to be half the size of the state of Indiana. Sure, a long term, low level war in eastern Ukraine is a bonanza for the military contractors' bottom lines on sales not just to the combatants but also the rest of the west who need to prepare for the sure to be coming Russian invasion, but it sure is hell isn't worth risking a nuclear confrontation. The wealth of Ukraine is in that rich black soil ideal for growing grains which has made it the world's third-largest exporter of cotton and the fifth-largest exporter of wheat, and according to a 2013 USDA forecast it is forecast to jump to the second biggest exporter in the world after the US having shipped over 30 million tonnes of grain out of the country last year.

Still, you might ask what's so nefarious about the word 'biotechnologies', after all, Ukraine, as the rest of the Europe, prohibits genetically modified crops. Selling the lie that GMO is the only answer to food security to a Rada full of parliamentarians inclined to listen to corporate interests shouldn't prove any more difficult than it was to convince them to open up selling land to foreign agribusinesses. Yes, that's right, as part of previous structural adjustment programs agreed to in exchange for debt, since 2002 over 1.6 million hectares of land have been snatched up by multinational companies since 2002. This includes over 405,000 hectares to a company listed in Luxembourg, 444,800 hectares to Cyprus-registered investors, 120,000 hectares to a French corporation, and 250,000 hectares to a Russian company. A now disputed deal brokered between China and Yanukovych prior to the political crisis granted Beijing control over some three million hectares of prime farmland in the east, an area about the size of Belgium or about five percent of Ukraine’s arable land. Something tells me something will overturn the deal and they'll be a willing American buyer waiting in the wings. I wonder who would be interested?

Though Monsanto's $140 million Ukrainian investment in 2013 was ostensibly for conventional seeds only, later that year six large Ukrainian agriculture associations happened to be pushing draft amendments for "creating, testing, transportation and use of GMOs" and the president of the Ukrainian Grain Association, Volodymyr Klymenko stated that "[w]e...have signed two letters to change the law on biosecurity, in which we proposed the legalization of the use of GM seeds". Strangely, both amendments mirrored the wording in the EU Association Agreement. Still not convinced a change is coming? Well, take a gander at this recent investor report regarding our old friend Monsanto which includes "The IMF and World Bank included a clause in their loan package to Ukraine to force the country to use GMOs as part of its loan package" as part of its recommendation to be long in Monsanto stocks. Oh, and I suppose that it was just a coincidence that Ukraine's US ambassador Olexander Motysk met with Brett D. Beggemann, Monsanto's President and COO on March 4th.

"There are only two peoples now. Russia is still barbarous, but it is great. The other young nation is America. The future is there between these two great worlds. Someday they will collide, and then we will see struggles of which the past can give no idea."
- Alexis de Tocqueville

While the neocons' rockets, missiles and bombs get all the headlines, it's the tender ministrations of the neoliberals that deserve the regime change accolades and therefore blame for the deformed offspring of the confluence of the two in Ukraine. Warmongers from Australia to Canada have taken the opportunity to portray themselves as tough guys, witness Prime Ministers Abbott and Harper's shirtfronting and confronting antics at last November's APEC meeting. In another reality they'd be called Abbott and Costello, playing both the court jesters and jousters to divert the public's attention from the goings on behind the curtain. The weapon of choice in this war is economic as round after round of sanctions against Russia prove. Yet, even here the true intent is murky as they serve the dual purpose of strangling both the Russian and European economies. For these latter 28 states, faced with the cost of breaking ties with an important trading partner, the Transatlantic Trade and Investment Partnership (TTIP) suddenly looks more appealing despite its decidedly anti-democratic nature. Meanwhile, the Russians have redoubled their push to implement and expand the Eurasian Economic Union in places like Egypt and even India.

So while the western and Russian propaganda machines have been working overtime to produce visceral fear to shut down our critical thinking, ironically usually involving casting the other as modern day Nazis. Putin's Crimea gambit to protect ethnic Russians is compared to that of Hitler's justification for annexing the Sudentland while the New York Times hides the fact that a few Ukrainian battalions, er, actually are on a crusade against what they see as the Semite-led Untermenschen. Yeah, that's right, I did it, I compared apples to oranges, but unless enough people wake up to the reality of what's happening 1,500 km to my east, the neoliberals could accidentally lead the neocons into a war that I'll have to take part in. Hopefully cooler heads will prevail to save my tail, either by imagining a Cuban Missile Crisis in reverse or remembering how many times we've been hoodwinked into war, but what of the Ukrainians caught in a geoeconopolitical tug of war? Strangely, banging the war drum so fervently last week, this time for war on Iran, the neocons themselves may have offered a ray of hope for Ukraine as they reminded the world that no deal is ever etched in stone.

The Hazardous Morals of Bankers

Warning: You must forgive the writer for the exceptional length of this piece as a combination of rust that accumulated over months away from writing, a little too much time on his hands and what is feared to be the initial stages of ambiguphobia all contributed to the problem. 
- ed.

US federal debt will be more than $16 trillion by the time you read this. Student loan debt in the land of the free surpassed both credit card debt and the $trillion mark earlier this year. Greece teeters on the brink of bankruptcy while the other PIIGS wait their turn in the slaughterhouse. Three cities in California declared bankruptcy within a month this summer while nations have given up their sovereignty in order to avoid the same fate. Tens of millions have been thrown out of their homes in the past four years while even the Catholic Church battles to remain solvent. All of this was kicked off with the collapse of Lehmann Brothers four years ago triggering a crisis which forced governments and central banks around the world to pour trillions of dollars of bailouts into the financial system in order to stave off financial collapse and the threatened panic, chaos and disaster sure to follow. So, why are we here four years later staring over the US fiscal cliff, waiting for the eurozone to collapse and watching local sheriffs play the muscle for the mafioso banks repossessing all our neighbours possessions? The same reason the crisis seems perpetual. Debt and it's collector, moral hazard.

“You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.”
 - George Bernard Shaw

Like all good yarns, that of debt goes way back in time, before money, before barter, beginning with the Sumerians in Mesopotamia over 5000 years ago in fact, but we don't need to go back that far. No, forty-one years is enough for our purposes, when Richard Nixon ended the post war Bretton Woods International Monetary system by suspending the convertibility of the dollar into gold (then $35 to the ounce, today around $1600) on August 15th, 1971, effectively creating the current floating currency regimes: fiat money. No longer would the US dollar be convertible to gold; no longer would money creation and thus finance be constrained. Not only was the US fighting a war in Vietnam that had to be paid for but they were battling "international money speculators" as Tricky Dick dubbed them. Heck watch for yourself:



So it was that the casino known as the financialization of capital was built, in order to protect the average worker "because they [financial speculators] thrive on crisis, they help to create them". By no means was this the first time the world had used virtual money with nothing guaranteeing its value but our faith. According to David Graeber, there have been two such previous periods in the history of money and debt: The Age of the First Agrarian Empires (3500–800 BCE) and The Middle Ages (600 CE — 1500 CE). The key difference with today was that both those eras saw strong institutions and traditions which placed controls on the potentially catastrophic social consequences of debt from Mosaic jubilees (debt forgiveness every 50 years) to Christian and Muslim prohibitions on usury. Fast forward in time to go backward as the current era has seen protection turned on its head creating the first effective planetary debt enforcement system, operating through the IMF, World Bank, governments, corporations and other financial institutions. In the past we protected debtors; today we protect the interest(s) of creditors. Spot the doublethink involved here as the danger posed by financial speculators led to a policy which in turn empowered the threat leading to it's perpetuation becoming a necessity to maintain the status quo. The battle against the money speculators has been fought just like the war on terror.

Nixon's move had predictable results, a series of crises as wave after wave of speculation, manipulation and deregulation smashed against the economy. Predictably, with no physical limit to fiscal and monetary expansion, government debts ballooned leading to inflation which needed 22% interest rates to tame causing economic malaise that necessitated tax cuts (mostly for corporations and the rich) and deregulation to get the economy going again. The balance of power between rentiers and workers was shifted by slashing capital gains and opening investment loopholes so that in less than a generation the very group we had been warned about had been handed the keys to the Porsche and proceeded to drive us all over the edge. The process seemed almost planned, conspiratorial, but it was our own hubris that allowed it.

"There are compelling reasons for paying attention to this potential for catastrophe as, every debt crisis in history since Solon of Athens has ended in inflation, bankruptcy or war, and there is no cause to believe we’ve solved this one, even if it has been postponed." - Susan George; Fate Worse Than Debt, p. 196

The Cliff's Notes to the crisis reads like a tragedy. Steady erosion of the competitive advantage enjoyed by the US after WWII and the west as a whole to the east leads to policies which ensured wage stagnation for those working in industries losing employment and skyrocketing renumeration for the CEO's outsourcing those jobs and the financial industry which facilitates it. This creates a feedback loop in which those at the top enjoy more influence on legislation thanks to their enhanced financial position. Those at the bottom, seeing themselves falling further behind turn to debt in order to maintain the illusion of keeping up with the Joneses. Check out this interactive chart to see the machine in action. Meanwhile, the flood of money to the top leads to fewer and fewer available investment alternatives necessitating looser regulation on credit to lend to less and less credit worthy clients through the creation of creative, near magical, financial instruments. All the while, the growing inequality brought about by transferring wealth to the top slowly strangles the consumer driven economy (about 70%) as those who would spend have less while those who invest, at home or abroad, have more. A little more doublethink courtesy of trickle-down economics.

On the government side, though Reagan talked a fiscally conservative game, he walked a public spending splurge as debt tripled under his watch. Bush the elder didn't do much better and though Clinton managed to run a couple of surpluses late in his second term, Dubya and Congress managed to pass two successive $trillion plus tax cuts while fighting two separate $trillion plus wars along with passing a $trillion plus prescription drug plan. The Anglo-Saxon affinity saw the UK walking in near lockstep; just replace Reagan with Thatcher and Clinton with Blair at the head of the parade through the Corporation of the City of London instead of Wall Street. The financial sectors share of domestic US profits skyrocketed from below 16% to 41% making bankers more important than ever. The partial repeal of Glass Steagall, allowing banks to gamble grandma's pension with the Gramm-Leach-Bliley Act (also known as the Financial Services Modernization Act) and the Commodity Futures Modernization Act which ensured that the credit default swaps and collateralised debt obligations at the heart of the 2007/8 crisis wouldn't be regulated were the finishing touches as the banksters had merged with government and rigged the economy for explosion.

The story that unfolded in continental Europe was somewhat different but had the same result. Overnight, countries such as Ireland, Greece, Spain, Portugal and Italy were expected to transform into Germany. Shockingly, it didn't happen and without their own currencies to debase in order to regain competitiveness, the peripheral, low-capital investment economies were crippled while German producers were given a boost. Not only did prices go up - in Spain a loaf of bread doubled in four years - but salaries stayed about the same, rising 14% in the ten years from the introduction of the euro January 1st, 2002 to the end of 2011. Throw in the additional enticement of suddenly being deemed nearly as credit worthy as their northern partners and you've got yourself the perfect debt bomb recipe. The explosion of Benzes, Beemers and Audis on the streets of Madrid and Dublin created a surplus that found its way back to German banks who had to lend this money to someone and were happy to find eurozone approved customers from Porto to Thessaloniki to buy more German cars or real estate developers to build beach resorts to take vacations in. Each country took their own path to purgatory, in Spain and Ireland it was more private bank debt while in Greece and Portugal it was more public (and Italy, well, they've always had too much debt).

As we know, our story doesn't end well, in fact, there doesn't seem to be an end as it's starting to feel like the neverending story. The total cost is incalculable  in dollars, euros or pounds, but it's the human cost that should remind us that economies are meant to serve people and not the other way around. When the crisis hit, we were told we had to bailout the banks or the world would end, so we did. Ever since it became clear that Greece wasn't going to be able to maintain its debt, the troika always manages to get the money to Athens on time. When the Irish banks couldn't keep afloat, their government threw them a lifeline and guaranteed their debt. Spanish banks were going under so once again the troika (IMF/ECB/European Commission) saved the day. Trillions of paper dollars, pounds and euros all to ensure the debt obligations continue to be paid, trillions the people will have to pay back. For what? The sums will never be paid off, everything has been done to keep interest payments flowing to the banks and to give them enough time to get their capital out. The price of paying off failed bankster bets is not only the sweat of our brows but becomes ever more demanding, framed in the Orwellian language of fiscal austerity/consolidation, structural adjustment/reform, labour flexibility, competitiveness, and growth.

In the 70's and 80's the IMF/World Bank became despised figures in the developing world. As global capital sought higher returns than could be found in the developed west, their sites settled on the poorer resource-rich nations of the south and east where they found dictators, anti-commie generals and corrupt legislators willing to sign over their people's futures in exchange for ready cash to build vanity projects, fund coups, suppress insurrections or simply pad their Swiss bank accounts. When the people of their nations found they couldn't pay, the men in black would arrive, preaching the 'free market' mantra of globalization, structural adjustment programs, which always had the effect of worsening life for the people while benefiting the foreign corporations. Eventually, the anti-globalization movement and debt cancellation voices became loud enough and democracy returned to many places and debt was in some cases even forgiven. The first part of the story is now playing itself out in the 'developed' world except this time the countries aren't even getting a hydroelectric dam, bombs or a statue in return. Debt is granted only to maintain existing debt in exchange for lowering spending on those things that help the people, shredding the social safety net, firing workers, lowering tariffs and taxes and eliminating workers rights in a duplicitous attempt to make the economy more competitive in order to grow and pay off the increased debt load. Unfortunately it has never worked, isn't working and never will. The only winner, for awhile at least, are the banks to whom the interest keeps flowing.

Ironically, many accept this punishment as atonement, self-flagellation to purify the soul. Debts are contracts that must be paid off, more than an obligation, as the threat of moral hazard would not only destroy our financial system but lead to anarchy (gasp!). Yet bank bailouts are a perfect example of moral hazard as the banksters have now learned that they will not pay the costs of their losses; their gains remain privatized while their losses are socialized. Morality should be the last thing they want to talk about as their lascivious behaviour has been highlighted this summer with a series of scandals that illustrate they have no intention of ever doing the right thing whenever there's a whiff of profit to be had. If they don't get caught, great, if they do, well, there will be newspaper headlines, an investigation and finally, at worst, a fine to pay, usually a fraction of what the illegal behaviour gained. Somehow, even though both Mitt Romney and the US Supreme Court have defined corporations as people, not only are the big banks Too Big To Fail, they've become Too Big To Jail (TBTF/J).

"Though the principles of the banking trade may appear somewhat abstruse, the practice is capable of being reduced to strict rules. To depart upon any occasion from these rules, in consequence of some flattering speculation of extraordinary gain, is almost always extremely dangerous, and frequently fatal to the banking company which attempts it." Adam Smith; The Wealth of Nations, Book V, Chapter I, Part III, p.820

This summer has put the lie to Adam's words once and for all. Most recently it was Britain's Standard Chartered, who NY state regulators accused of hiding $250 billion of transactions with Iran despite sanctions. A person would be charged with terrorism and sent to Guantanamo, a bank simply pays a $340 million fine; it's up to the families of those killed in terrorist attacks facilitated by StanChar to sue the bank. The reaction of the British government was particularly instructive; when a British bank is threatened with the loss of its New York banking license, officials, from the mayor of London to the Bank of England governor to the Chancellor of the Exchequer rush to its defense. This, from the same country that would and has done everything in its power to get Julian Assange extradited to the US for torture and possible execution and done nothing to prevent its own citizen, Gary MacKinnon, who suffers from Asperger's syndrome, from being extradited to the US for exposing weaknesses in the defense department's computer security systems.

Just a few week before that came the revelations of the LIBOR rigging scandal. A story that is 'too complicated' to understand by the public was therefore ignored by the media. Besides, there was that whole Batman shooting and then the Olympics to worry about. Denver theater body counts and jingoistic medal counts are far more interesting than a bunch of bankers sending each other emails, right? Well, no, not really when mass shootings seem to have become monthly occurrences in the US (surprise! another one today), the Olympic medal count can be predicted based on population, per capita GDP, past performance, and host status while the bankster collusion earned them hundreds of billions (trillions?) in profits while costing the public an impossible to figure, er, figure. Wait, sounds a bit like the Olympics. Anyway, as usual it's not all that complicated.

LIBOR stands for the London Inter Bank Offered Rates and it's used in the setting of most other kinds of interest in the world, from credit cards, student loans and mortgages to the cost of government bonds. Seeing as we live in a 'free market', up until the scandal we all assumed this rate was set by the 'laws' of supply and demand but, as usual, our naivety cost us and profited them. Instead, the most important rate in the world is determined every morning by representatives of the 18 largest western banks who report on what they expect to pay to borrow funds from each other (Inter Bank) in the future. Under LIBOR rules, the four highest and four lowest estimates are eliminated, and the average of the rest becomes the official rate. Well, shockingly, banksters used this opportunity to artificially set rates everyday a bit higher or lower in order to profit from the positions they held in their portfolios. Barclays had their boss Bob Diamond resign and was fined ￡290 million by British authorities, who were involved in the racket, while seven banks including Barclays have been subpoenaed in the States. A few Italian families get together and we call them the mafia and charge them with racketeering but when banks do it we call it cooperation. It will take years of litigation to sort it all out but you can be assured, a few banks will have to pay a fraction of the profits earned in the scam.

Speaking of the mafia, seeing as interest rates aren't spicy enough to make headlines, the other summer scandal involved just that, Mexican drug lords who line headless bodies on highways. Once again the contrast between the justice meted out to the flesh and blood people and the corporate people is illuminating. A real person gets caught selling dime bags on the street corner trying to raise money to go to college, we go to jail for life; they get caught laundering the money from the profits earned on those bags, they say they're sorry and get a slap on the wrist. Europe's largest bank, HSBC, not only transported billions of dollars of cash in armoured vehicles, cleared suspicious travellers' cheques worth billions, and allowed Mexican drug lords to buy planes with money laundered through Cayman Islands accounts, they also moved money from Iran, Syria and other countries on US sanctions lists, helped a Saudi bank linked to al-Qaida shift money to the US and even cleared $290 million in "obviously suspicious travelers cheques" that benefitted Russians "who claimed to be in the used car business." Lucky we only have to worry about Iranian-American used car salesmen hiring Mexican drug lords to assassinate the Saudi ambassador or this might sound like a conspiracy theory. Yep, all this was part of a report by a US senate committee which revealed HSBC failed to monitor $60 trillion in wire transfer and account activity, had a backlog of 17,000 unreviewed account alerts regarding potentially suspicious activity, and failed to conduct anti-money laundering due diligence before opening accounts for HSBC affiliates.

Each time new revelations come to light, bank executives line up to testify in front of an important sounding committee and explain how they are "horrified" by what has happened, that they couldn't have foreseen events, that measures have been put in place, that it was bad luck or a black swan or a rogue trader. Then it happens again. Just this spring, the last remaining 'good banker', Jamie Dimon had his bank JP Morgan victimized by one of those rogues as "the London whale" lost a bet on a position that could cost his bank $9 billion. Just the kind of gamble we were promised these banks would no longer make in exchange for bailing them out just four years ago. Just the kind that lost UBS $2 billion last September, Societe Generale $6 billion in January 2008, or Barings Bank $1.3 billion in 1995. Our always vigilant press is always sure to name them rogues, despite being the norm, performing unauthorized trades and justice is swiftly served on these lone scoundrels while pensioners and savers pay the price and the banks continue to promote the culture of short term profits in which psychopaths thrive, to inflate their quarterly earnings. Had enough yet? There's always the fattening of the PIIGS, the Magnetar trade, the Sentinel fraud, any of these, or ...

If these were people, as corporations such as banks have supposedly become, we'd execute, jail or banish them from our communities so how do you explain the social pressure to repay criminal enterprises that are slowly sucking the life from our economic system? In order to succeed in society, few would disagree that a university or college education is a prerequisite. Such a degree costs tens of thousands of dollars or pounds obliging many to take out student loans which become payable upon completion of their studies. In America, if you decide to head to Vegas and max out your credit card on hookers, blow and roulette only to find yourself unable to pay, one option is to declare bankruptcy, ruining your chances to obtain credit but clearing the debt off the books just as the hangover clears after a good, greasy breakfast. If you find yourself without a job (or only part-time or unpaid internship) once you finish school and unable to pay back a student loan, you don't have the bankruptcy option, it can't be cleared and will be with you until death or its paid. Heaven forbid if you're among the 25% of Americans without health coverage and you or a family member fall ill, the cost of which forces many into a debt spiral. This is nothing if not slavery. Even if you're a good client and you pay your debts, or the debts of your nation through your taxes, you are forced to work in order to earn the income. What else is forced labour but slavery?

Funny that we (or at least the Sumerians) had this all figured out 5000 years ago. Even then they recognized the need to protect those forced into debt from unforeseeable circumstances or the avaricious. Interest rates also seem to have first appeared in Sumer where most transactions were conducted on credit. Years with bad harvests resulted in peasants hopelessly indebted to the rich, forced to surrender their farms and, ultimately, family members, in debt bondage. Inevitably this would lead to a social crisis in which the masses were enslaved to the few. It soon became traditional for each new ruler to wipe the slate clean, cancel all debts, and declare a general amnesty or 'freedom', so that all bonded labourers could return to their families. Significantly, the first word for 'freedom' known in any human language, the Sumerian amarga, literally means 'return to mother' while in Sanskrit, Hebrew and Aramaic, debt, guilt, and sin are actually the same word. Julius Caesar became the hero of the Plebs, and was ultimately killed by the nobles, for introducing debt forgiveness schemes after he took power from the corrupt patrician oligarchy. Solon laid the foundation for Athenian democracy by "shaking off the burdens" of enslaving debt. Biblical prophets instituted a similar custom, the Jubilee, whereby after seven years all debts were similarly cancelled, the direct ancestor of the New Testament notion of ‘redemption’. Through some historical error, we inherited the institutions of lending at interest without the original checks and balances.

Instead, we live in a world where banks are bailed out while people are sold out. In which lenders making up details on credit applications became such a common practice it became known as liar loans but debtors get sent to jail for 30 years for lying on the same forms. It was after all many of those liar loans that were slapped together, sliced, diced and bundled into the CDO's that helped cause the crisis, but no one needs to be jailed for that. It's only those uncivilized countries that obviously need a good bombing where bankers are actually punished for fraud. Tax evasion is only for the rich and corporation kind of people not the 99%. It's jail for you or me if you screw the IRS but if you're HSBC or Credit Suisse, you just cut a deal in which you hand over email and telephone records of your staff to the US Department of Justice. Stealing from your clients is frowned upon unless your MF Global, an investment company run by the former governor of New Jersey Jon Corzine, then of course it's okay. It's usually fraud if I sell you something that I know is going to blow up, but if you're Goldman Sachs, where your clients are referred to as muppets, well, it's fine to sell your clients investment products that your bank is offloading as fast as possible on the open market because you know they're about to explode, even when there's emails to prove it.

It doesn't seem like banks have morals and they definitely don't learn their lesson from the punishments they receive. Bank of America’s securities unit has agreed four times since 2005 not to violate a major antifraud statute, and another four times not to violate a separate law. Merrill Lynch, which Bank of America acquired in 2008, has separately agreed not to violate the same two statutes seven times since 1999. They're just doing cost-benefit analysis, where their benefits are our costs as when Morgan Stanley entered into a complex swap agreement with the New York electricity provider KeySpan in 2006 that gave it a stake in the profits of a competitor enabling the two companies to push up the price of electricity. Price fixing is illegal, so Morgan Stanley had to pay a fine of $4.8 million for enabling it, but they got to keep the $21.6 million they made for handling the swap and didn't have to admit any wrongdoing. The cost to New Yorkers in higher utility bills? $300 million. Bear Stearns, Lehman Brothers, Goldman Sachs and JP Morgan Chase came out smelling like roses converting human shit into billions of dollars in profits by financing a new sewer treatment plant for the people of Jefferson County. The people didn't come out smelling so pretty though as the financing cost forced them into the biggest municipality bankruptcy in US history. The same thinking probably went into Wells Fargo's alleged decision to fire an employee three days before his daughter was scheduled for surgery in order to avoid paying the bill. No cash, no cure for cancer as the hospital cancelled the surgery and the child was left to die.

What of finances role of market maker and facilitating transactions for investors and consumers, surely we owe them something for that? Well, thanks to the deregulation of the agricultural commodity market in 2000 Goldman Sachs earned £600m from food speculation in 2009 alone. While the bank's profits were boosted, the numbers dependent on food banks and aid were exacerbated thanks in part to the banksters. No one disagrees that their gambling pushes up prices, the only question is how much relative to other factors such as biofuels, changing consumption patterns and drought. The poor are disproportionately affected by a rise in food prices as they spend a higher percentage of their income for the basics, just as they do for debt. If you use anything made of plastic, drive a car or heat your home, you should know oil speculation adds $23.39 to the price of a barrel (around a quarter) which translates to about an 83-cent-per-gallon of gas premium and costing an average American family $82/month. And people we're angry when Bank of America introduced a $5/month debit card fee!?! Seems these financial behemoths need the cash though as they need to keep up with their competitors in the new world of flash trading. By spending billions on faster cables they can shave microseconds off the latency, or trading execution time, thus allowing themselves to peek at the orders of other traders before they're made. Not only does this destroy the idea of investing, especially by us flesh and blooders, but it opens up the markets to one of the newest perils, the flash crash. Hooray, more risk!

Perusing the comments under any number of stories of payday loan companies charging four to 5000% interest, distraught families being tossed on the street or students in the streets protesting their debt enslavement, one can always be sure to find defenders of the faith of finance. These moralizers are quick to point out that no one forces people to sign on the dotted line but never take into account the asymmetry of information and power between the parties or the corrupting influence of living in a society built on sating our short term desires no matter the cost. The tired refrain of taxation and representation is trotted out to rationalize paying the debts of our governments but loses all meaning when put in the context of the options faced by voters today: Bad or Worse, Red or Blue, vote wrong and it's a redo, either/or results in another IOU as the need for money to get elected forces politicians to prostate themselves before the FIRE (finance, insurance and real estate, one for all and all for one thanks to deregulation). Insisting people today make rational economic decisions seems ludicrous while our educational system is being sold off to the lowest bidder and converted into a propaganda factory where standardized test scores are more important than critical thinking. Arguing we have a choice when the information we receive is nothing but a toxic mix of cognition clogging updates in our Twitooglebook universe alongside stories from a media controlled by six corporations (down from 50 in 1983) offering 2,000 channels with the same message while selling an illusion of choice barraging us with a constant stream of crisis reports, crisis summits and near-crisis averted but never connecting the dots.

"When national debts have once been accumulated to a certain degree, there is scarce, I believe, a single instance of their having been fairly and completely paid. The liberation of the public revenue, if it has ever been brought about at all, has always been brought about by bankruptcy; sometimes by an avowed one, but always by a real one, though frequently by a pretend payment." - Adam Smith; The Wealth of Nations, Book V, Chapter III, Part V, p. 481

To review. Forty years ago we entered a new era of fiat currency which untethered money and thus debt from any constraints in order to protect ourselves from "money speculators". The US in particular experienced a long economic boom for the wealthy with stagnation and even decline for the rest as taxes for the rich and corporations were cut, unions were gutted and jobs were outsourced. In the past 30 years, 96% of the growth of average incomes have gone to the richest 10% and in the past 10 years, the incomes of the other 90% have declined. In Europe, a new currency was introduced with supposed magical powers to turn the likes of Greece into Germany but only had the effect of causing them to diverge. On both sides of the Atlantic, the shortfall of the poor, the middle class and their governments was made up by increased borrowing. The "money speculators", whose ingenuity was unleashed by the deregulation that regulatory capture bought them, were more than happy to find more and more creative ways to eliminate risk and earn huge rewards. When the ponzi scheme faltered, we were told there was no alternative to saving the banks, transferring trillions from public hands to private with no consequences and next to no oversight. With nothing fixed and no lesson having been learned, the banks emerged bigger and more powerful than ever with the knowledge they can act with impunity while the public from Madrid to Manchester to Miami are forced to accept ever more stringent austerity measures in exchange for ever larger bailouts which continue right under our noses.

Oh, it continues. TARP was just the beginning of bank bailouts as the program has continued in stealth and shows no sign of being abandoned therefore changing the game is the new moral imperative and sustaining it a sin. Language is their most effective ruse, twisting meanings and changing expressions. Quantitative easing in the US and UK is nothing more than printing money electronically and using it to overpay banks for their financial assets or by lending to them on the cheap, minimizing their borrowing costs and lowering their reserve requirements in the hopes they will lend that money on to the real economy. Of course they don't, they just buy more bonds (gilts in the UK) to earn a risk free return (as long as the merry-go-round continues) and wait for the next round of easing (QE3 is rumored for a fall sailing). All this goes to pad the bottom line which they need to perpetually improve to keep increasing CEO salaries, keep the stock market happy and of course, give idiots like this something to babble about incoherently.



European sensibilities were a bit too sensitive for such blatant Zimbabwe/Weimar Republic-like behavior (at least until recently when they just up and gave Spanish banks €100 billion that the people will have to pay back), so the ECB basically did the same thing but called it LTRO, Long Term Refinancing Operation. Prohibited from giving money directly to countries, the ECB printing press is used to give money to banks ostensibly to buy bonds from countries having problems selling them (ie. Greece et al). More free money for the banks if the game continues as they can either put the cash into the riskier bonds at higher rates or play it safe and deposit it back at the ECB. Other Newspeak candidates include 'Growth friendly' policies, those which hand more power to foreign corporation and banks to continue their plunder while David Cameron's 'expansionary austerity' is more Orwellian than his Big Society and has driven the UK into a 'surprise' double-dip recession. Confused? Yep, you're meant to be, otherwise you'd wonder why they don't just give the money directly to the people instead of banks while artificially maintaining low interest rates in order to force the elderly to eat cat food or starve.

"And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves" - Matthew 21:12

Just this past week US VP Joe Biden got in a little hot water for telling a half-truth:

People (well, right-wingnuts) went, well, nuts, as they tried to turn his words into an insensitive race play. The mistake he made though is that we're already in chains, slaves to greedy, immoral (amoral?), psychopathic bankers. It wouldn't be so bad if we at least we're being driven for a monumental purpose, I dunno, like building pyramids, the US capitol or White House instead of facilitating the worship of the Golden Calf. Up til now we've been complicit in their shakedown where debt is a sacred obligation only if it is owed by the poor and vulnerable to the rich and powerful who have used their gains to purchase political power or hidden them away in the Caymans. Yet debt is always negotiable or can even be written off when it's the other way around ensuring the wealth keeps flowing upwards. The growth in inequality seen before the crisis has been put on steroids since the bailout with more than 90% of the gains going exclusively to the richest 1% causing the middle class to slowly disappear and poverty to explode while Paul Ryan argues to cut their support. Regardless, much of the rabble will rally to the Romney/Ryan call to extend the Bush tax cuts and further cut taxes on the rich while making the rest pay for it. We used to ask "What's the Matter With Kansas?" but we need to ask "what's the matter with us?" today for doing nothing as the air raid sirens are sounding the next attack.



Alone, none of us can destroy the false idol of greed, there's no Moses amongst us, the only way is if enough people act together. Think and buy locally, plant a garden, ride your bike, vote for alternative parties and take your money out of the TBTF/J  banks (US, UK, Facebook) and put it in a credit union that puts profits back into communities are all simple ways to start. The more ambitious can talk to and teach others, join a protest, or even try to get out of the fiat economy altogether by investing in physical gold, silver or other metals. Of course if you're worried about all that extra weight in your pockets try using the alternative, electronic, secure Bitcoin currency. Finally, we have to shed the holier-than-thou shackles placed on us by those that would call people who walk away from underwater homes deadbeats, graduates unable to make their student loan payments slackers and governments tricked into a debt trap unable to meet their debt obligations lazy while bailed out banks behave beligerently, 'good' governments gut the promised social welfare state and corporations renege on obligations and commitments made to provide health care, pensions and other benefits to workers. The parasites may seem to have the power, they may have won the previous battles, but we, as flesh and blood people, have the real power, it's time to Strike Debt, stop paying what is no longer morally owed, a debt strike to stop the bankster shock doctrine takeover.

Democrazy

"Choosing between AIDS and cancer"

So maybe not every democratic election is as bad as that in Peru. According to Mario Vargas Llosa, these were the alternatives facing Peruvians as they decided where to mark their ballot in last Sunday's presidential election. Yet, a closer look at the state of democracy around the world reveals an unsettling picture. Not only do most voters usually face a choice between bad and worse but those who we select seem to be wielding ever decreasing power. While disenfranchised peoples across much of the Middle East are dying for the opportunity that we take for granted, many of us are waking up to the realization that we really don't have any choice either. As elected politicians lose power to our unelected corporate masters, democracy is more and more resembling the pancurium bromide anesthetic in the lethal injection which paralyzes the condemned inmate before the potassium chloride of debt slavery stops the heart of the hitherto free people of the world.

Perhaps we should save a little room at our Peruvian pity party for the poor Portuguese. At least the voters in Peru had a choice, albeit a rather unappetizing one, between a fascist and Chavista (they went for the Chavista); the voters in Portugal on Sunday could vote for the incumbent PS, the "socialist" party to implement the austerity measures commanded by the troika, or the Social Democrat Party to, um, implement the austerity measures ordered by the troika. In case you missed it, the troika isn't a new Russian vodka, but the frontmen for the sovereign debt holders, the European Commission, European Central Bank and International Monetary Fund. They dictate the terms of the austerity reforms that the overly-indebted nations must abide by in order to qualify them for more debt. Yep, the program that's working so well in Greece and Ireland has come to Portugal. Half a million people marching the streets to protest the program in March were ignored much like the millions who screamed their disapproval of the Iraq war in 2003. Our voices no longer matter as much as the bomb makers or the bond holders.

Portugal's Geração à rasca (or "generation of junk") proved no more effective in getting their message out and attaining their goals than Spain's Indignados last month. Real Democracia Ya! demanded political reform that would break the two-party rule and convinced much of the youth to withhold their vote in May's regional elections, votes that normally would have gone to the "socialist" PSOE party, to show they don't support the austerity program being installed there. Over 20% unemployment (43% for those aged 18-25) should be the priority of a government that calls itself socialist. The result? A near clean sweep for the PP, or Partido Populaire, the descendants of Franco's fascist regime. Fittingly, the righwing Social Democrat Party won in Portugal as well. It's the slow creep towards complete loss of autonomy that has lulled the majority to sleep. One step at a time, one country after another, eventually we will all wake up to a reality in which our future has been monetized and securitized in order to keep the interest payments flowing to the banks who own us. Organize and the government will declare it illegal. Protest and the state's security apparatus will be deployed against you.



Choice? When the Harper regime was forced to call a national election in Canada last month after being found in contempt of parliament, many Canadians decided to try to break the Conservative-Liberal duopoly by voting for the NDP or Greens. The result? While the hardcore rightwing voters remained faithful to the Conservatives, the leftwing vote was scattered which allowed the Conservatives to claim a majority 52% of seats with just 39% of the vote. The hocus pocus of the first to the post voting system stuck it to the UK just as bad last year. Many voters, fed up with more than a decade of Labour rule but unable in good conscience to vote Conservative, opted for the Liberal Democrats. The result? A Cameron Conservative minority government which asked Nick Clegg's Lib Dems to join a coalition, and presto change'o' - ConDem'ned to a failing austerity future. Woohoo, at least Vodafone and the banks are happy!



But it's that great bastion of liberty and freedom that is proving once and for all what a failure democracy can be. Anyone who didn't become disillusioned by the Barack Obama hope and change candidate turned corporate war monger president just isn't paying attention. Branded as a man of and for the people, few noticed that his biggest campaign donors were in fact Goldman Sachs et al who have got more than they paid for. What happened to single payer/public option health care? Remember financial reform, foreclosure protection, bank bailouts, and jobs-jobs-jobs? Remember Guantanamo, the Patriot Act, civil liberties, ? Remember global warming, offshore drilling, clean coal, and nuclear energy? Remember immigration reform, the Pentagon budget, repair of the infrastructure, military commissions, the suppressed torture photos, education reform, the US-enabled coup in Honduras, the continuing Cold War sanctions on Cuba, the Palestinian situation and the Obama wars, wars, wars? Remember restrictions on abortion, the Employee Free Choice Act, the Bush-Obama millionaire tax cuts? Me too. Well, after all, he was the lesser of two evils, right?

It gets worse as no longer will children want to grow up to be firemen or teachers as their unions will be broken and their professions downgraded to rent-a-cop status. No, they'll dream of being corporations when they grow up. After all, corporations are people, so why can't people be corporations? The Supreme Court's Citizen United decision was the final nail in the coffin for electoral fairness as the floodgates were opened wide to corporate sponsorship of candidates. We've made fun of the farce that is the Republicrat-Demopublican duopoly that is the American coin toss in the past but it's sure to get worse. The race for the White House in 2012 should more appropriately be called the race to a billion. As in, who can raise a billion dollars first, Obama or whichever monkey the Republicans manage to pick. Seriously, it seems the party of Lincoln is throwing out clowns like Bachman, Santorum and Gingrich in a vain attempt to make Sarah Palin look electable. Good luck with that America.

There's much to like about democracy in theory but we have to wake up the fact that it needs an overhaul or at least a tuneup as the cons begin to outweigh the pros. A misinformed electorate, abstruse voting systems designed to confuse and favor the incumbent alongside a devolution of powers to unelected bodies to name but a few. More dangerously, in many people’s eyes, certain government functionaries may legitimately take actions that would be condemned as criminal if anyone else were to take them. If I were to send a private Predator drone to Pakistan to fire explosive missiles into villages, killing women, children, and other innocents, I would be seen as a monstrous mass murderer. How did Barack Obama come by the right to kill innocent people? By democratic election to the presidency of the United States, of course. "When the president does it," Richard Nixon insisted, "that means that it is not illegal." Most people actually believe, and act on the belief, that mere election to a political office can endow a person with standing to disregard the moral requirements applicable to people in general. And not only the elected official, but all those officials beneath him in the chain of command, nobody demands that the technician who sits comfortably in the United States and directs the lethal drone be brought to justice; he, as the saying goes, is "only following orders."



As much of the west heads for the austerity inspired double dip recession, spin control will go into overdrive. This time will be worse than 2008 as government debt loads have exploded everywhere leaving little fiscal policy maneuvering room, so in order to keep the bond holders happy and the interest payments flowing, more cuts will be demanded, leading to further slowing of the economy leading to, more cuts and, well, you get the picture. The corporate controlled media will dutifully report deceptive economic statistics about green shoots or some such nonsense all the while ignoring the one way out - actually asking the people what to do like they did in Iceland. Yep, home of Bjork and unpronounceable volcanoes that erupt whenever Obama comes to Europe, was also the first country to guarantee its banks debts back in October of 2008. Virtually unheard of in the west thanks to a media blackout, the Kitchenware Revolution, so-called because of the pots and pans used by protestors, forced the fall of the government.

Then Iceland did the unthinkable and asked her people if they really wanted to spend the next 15 years paying back $3.5 billion at 5.5% to British and Dutch banks thanks to the gambling losses of a few bankers. In American and the UK they turned on the printing presses, in Iceland they had not one, but two referendums in which they voted not to force every man, woman and child to pay back over $10,000 each. Instead, they voted in a new government, now led by the first openly gay Prime Minister, (Saint Jóhanna Sigurðardóttir), convened a constitutional assembly made up of non-politicians to draft a new constitution and most importantly, began arresting the banksters who caused the crisis.

Democracy gives a free pass to those who rape and pillage African, Asian, South American and now European nations, in fact we call them socialists and wait until they rape hotel maids until we finally decide to prosecute them for their crimes. Until being caught with his pants down DSK, Dominique Strauss-Kahn, was the leading candidate to run for the presidency of France under the socialist banner. When democracy offers the choice between a neoliberal right winger in favor of cutting corporate taxes, services, pensions and regulations to support the gilded class and their banking buddies or, well, the same but with a different name, like socialist, no wonder much of the world is in fact turning away from democracy. Yep, the last five years has seen the world become less democratic. It's not hard to see why. While those who have languished under authoritarian regimes for decades fight for what they think will be a brake on unbridled greed and power, democracy in fact is fulfilling the iron law of oligarchs and doing the opposite. As Robert Michels stated, all organizations, no matter how democratic or autocratic inevitably develop into oligarchies, in the case of western democracies, one formed by the corporate class, the corpocracy, controlled by a sociopathic elite.

The best argument against democracy is a five minute conversation with the average voter.
-Winston Churchill

Meanwhile, so sure of the superiority of our democratic values we've spent much of the past decade (ok, maybe a little more) justifying bombing and killing brown people by claiming the moral high ground of spreading democracy. It's a useful fiction as many are duped into believing that somehow their quadrennial ballot box charade lends consent of the governed and thus legitimizes government when in fact it is the corporate overlords and their lobbies who write the laws for the governed. Strategic voting along with voter apathy, stupidity and cupidity are minor problems when compared with the damage done by those given the moral pass to commit the crimes they do once elected. Sadly, democracy, "rule of the people" has become "ruling the sheeple". I wonder if we were warned this would happen?