Showing posts with label austerity. Show all posts
Showing posts with label austerity. Show all posts

Thursday, February 26, 2015

The Memory Hole Devouring Greece

A suffocating debt load, unable to raise money in the market and an economy in a death spiral on the verge of collapse. Sure, an apt description of the situation in Greece but one that would also apply to West Germany in 1953. February 27th of that year saw the signing of the London Agreement on German External Debts which forgave half of the German foreign debt and stretched the repayment of the remaining IOUs over 30 years. What's more, the agreement gave creditor nations an incentive to import German goods by stipulating that repayments were only due while West Germany ran a trade surplus and were limited to 3% of export earnings.

Fast forward almost 62 years and we found the new Syriza government led by Alexis Tsipras, elected on an anti-austerity platform by the Greek people January 15th, going hat in hand seeking a similar reprieve from her creditors. After five years of Troika (the ECB, IMF and European Commission) mandated austerity imposed in exchange for bailouts, the Greek economy is in ruins. Dictated spending cuts have led a plummeting economy, skyrocketing unemployment, services being cut and have ultimately cost lives. GDP has contracted 25% and unemployment is currently over 25% with youth unemployment above 50%. Experts have opined that is no coincidence that the cuts to health care, emergency services and benefits have accompanied a 200% increase in HIV infection rates, a 60% suicide rise and a plethora of other social ills.

Rarely mentioned in the press, much of Greece's pre-crisis debt was fraudulently obtained in order to qualify the country for the euro. Adding insult to injury, despite it being clear that the country was bankrupt in 2010, it was forced to add to the outstanding debt by accepting bailout money. Worse, this money didn't go to the people; instead it went directly to private Swiss, French and German banks thus effectively transferring the credit risk onto the public shoulders of the ECB and IMF. Many argue against debt forgiveness as it increases moral hazard, when risk is undertaken knowing that others will incur the costs, forgetting that private lenders undertook the original risk of lending without paying any price.

So the table was set for a showdown between unelected technocrats and the democratic will of the people. The new government had about a month to figure out how to avoid insolvency which would have occurred the day after the aforementioned 62nd anniversary while renegotiating a deal its people had repudiated. It was apropos that the protagonists in this confrontation were character yanked from the stage of a morality play as the two sides in the negotiations both attempted to claim the moral high ground; the debtor pleading for mercy and the lender stressing the dangers of moral hazard. Yanis Varoufakis, the new Greek finance minister, the leather clad Marxist economist arriving astride his motorbike versus Wolfgang Schäuble, the German finance minister, a conservative member of a conservative party whose sartorial selection was surely less S&M and more M&S.

Just as the doctor's whites convince the patient to trust him, the suits have

persuaded us that if the patient only took its austerity medicine they would be sure to recover. Yet, a quick glance tells us that no European country has done more to 'reform' its economy than Greece. It is in fact the medicine that is killing the patient. The quackery of men such as Schäuble would be more apparent if we were told of their past misdeeds. See, despite his adamant denials at the time, Schäuble, as second in command to Helmut Kohl in the 90's illegally accepted millions of marks of illegal contributions from arms dealers. As public prosecutors in Germany are not independent, but take orders from the government, of course all charges against Schäuble were dropped.

Public perception you see is far more important than the particulars. Never mind that the Greeks themselves never saw a penny of the debt they are now paying off as every cent went to pay back the banks who originally took on too much risk; the media's role is to perpetuate the myth of thrifty Germans supporting reckless Greeks. The public, already inured to the devious methods used to hoist private debt onto public shoulders, from government guarantees of bank debt in Ireland to the outright bank bailouts in the US and elsewhere, were primed to perceive the Greeks as undeserving. Instead of placing the blame on the very institutions responsible for the mess, thanks to lazy media coverage most point the finger at the shiftless Greek people. It would do us good to realize that according to the OECD, the average employed Greek works more hours than anywhere else in Europe, a measure which places Germans second from the bottom.

One couldn't help but be constantly reminded of who the Greeks owe in the past month's coverage. An example from the BBC:

Graphic showing how much Greece owes to whom

Strangely, um, not, no one seems to mention that little 1% number next to foreign banks as the reason it is so small (and those Eurozone, IMF and ECB) numbers are so big has gone down the memory hole. Of the €226.7 billion disbursed to Greece, only 27 billion has made its way into Greece with the rest going into the pockets of the banks, mostly French, Swiss and German. In this way, a bank problem was transformed into a public problem making the Greeks an easy target for demagoguery.

Ah, but still, you say, where did all this debt come from? Those lazy ouzo drinking, early retiring slackers were able to high on the hog thanks to the original loans. Oh contraire, oh contraire. Not that the public sector has ever been particularly thrifty, but much of the fault can, as usual be laid at the feet of the banks who helped swap, sweep and mortgage Greece into the euro in the first place.

Once in the club, the Greeks behaved like any other country but forgot they no longer controlled the levers of monetary policy having forfeited them to Brussels and Frankfurt helping make the Germans the unquestioned winners of the eurozone. Don't just take my word for the benefits Germany reaped being able to sell Mercedes Benzes on cheap credit from Lisbon to Athens, take a look at this. The reason Germany has become number two only to China in trade surplus is the straightjacket called the euro. While its record €217 billion surplus is perceived as growth driver, it is in fact an anchor, dragging down the rest of Europe.

One needn't be David Ricardo to figure out that comparative not absolute advantage is the basis for optimal trade policies and the running of a surplus entails financing someone else's deficit, just ask China and the US. German savings needed to go somewhere and they chose to invest in paper IOUs that might never be repaid. Monetary policy would normally correct the imbalance, but the euro has taken away this tool from national central banks in the eurozone. Instead, austerity led to a collapse in domestic (European) demand, necessitating devaluing the currency (for example through printing money, last months quantitative easing) which in turn forces the world to borrow more in an endless cycle.

It may seem facile, but it's hard not to compare the situation to the 3 1/2 year German occupation of Greece in WWII. Not only did the host have the bear the cost of occupation but the Third Reich forced the Greek National Bank to lend Hitler's Germany 476 million reichsmarks interest-free. All told, it's estimated that German occupation cost the Greeks €162 billion. While the hindsight afforded by the repercussions of forcing Germany to pay war debt following WWI makes it difficult to argue that it wasn't a good idea to forgive its debt following WWII, it's equally difficult to be blind to the hypocrisy of the German position today.

Adding insult to injury, the Germans smugly point to their success of having achieved their first balanced budget last year since 1969 while not only ignoring the direct contribution of Greeks buying BMWs but the indirect help as well. One need look no further than the cost of defence. Again, it's hard to argue in favor of, um, you know, Germany increasing military spending, but the fact is they have been able to get away with only spending 1.4% of their budget on defence (versus NATO's suggested 2%) in part because of the safety provided by Greece picking up the slack by spending 4.3% to protect the southern flank of the continent. Oh, and one should also keep in mind that though they may not buy many tanks, as evidenced by their woeful state of military preparedness, the Germans certainly do benefit by producing them; Germany is the third largest military exporter in the world. Early in the austerity shell game, Greece had to cut public spending, but they were not allowed to cancel tank deliveries from Germany.

The only way to find any kind of silver lining to last week's Greek capitulation to the Troika is to imagine that at least a portion of the public has woken up to the contradiction that is the European Union. Ostensibly a vehicle to promote cohesion, democracy and peace, it has morphed into an untenable union which ignores democratic values thus enabling warfare of a modern variety. The two key pieces of the platform that got Syriza elected, debt renegotiation and remaining in the eurozone, proved mutually exclusive. Sadly, the more likely outcome of the Greek concessions will be the empowerment of parties on the other end of the spectrum from Syriza, from the Golden Dawn in Greece to Marine Le Pen's National Front in France.

Saturday, July 13, 2013

The Year of Leaking Dangerously

Yossarian was cold, too, and shivering uncontrollably. He felt goose pimples clacking all over him as he gazed down despondently at the grim secret Snowden had spilled all over the messy floor. It was easy to read the message in his entrails. Man was matter, that was Snowden’s secret. Drop him out a window and he’ll fall. Set fire to him and he’ll burn. Bury him and he’ll rot, like other kinds of garbage. The spirit gone, man is garbage. That was Snowden’s secret. Ripeness was all. - Joseph Heller; Catch-22
Edward Snowden didn't tell us anything most of us didn't already sorta-kinda know, but instead just confirmed our creepy totalitarian state surveillance nightmares. Wait, no, actually he made them a bit scarier by exposing the corporate complicity giving the whole thing a fascist twist. Similarly, the character of Yosarian lying in the hospital bed at the outset of Catch-22 had already experienced holding another Snowden in his arms. This one spilled his guts too, literally onto the floor forcing Yossarian to confront his own mortality and the realization that death can, and will, take any of us, at any time, anywhere, and that survival is made all the harder by the catch-22s thrown up to block and muddy our path.

Both Snowdens just passed on information which is meaningless in itself yet has value; in fact it is the most valuable thing in the world to governments, corporations and us because of what we can do with it. However, our brains, as our bodies, are all different and subject to manipulation due to freezes, failures and farts. Vituperative voices will try to convince us everything's okay as it's only metadata their gathering about us, there's only a few thousand pedophiles with top-level security clearance to your kids' Facebook feed, everyone's doing it and you know, it was only Iran they launched the cyber weapon Stuxnet against. Turn off your TV, disconnect your internet and lobotomize your smartphone cause you won't find the true meaning of Edward Snowden's revelations to the world on any propaganda screen. All you've got to do is open a book, or just talk to an old lady, to figure out Catch-22 says they have a right to do anything we can't stop them from doing. What? Don't have the time or the attention span? Who's this 'they'? No worries as in this case it's so simple all you'll need is the Cliff's notes version of the major themes of Catch-22: the concept of Catch-22, the distortion of justice, the influence of greed, and the issue of personal integrity.
"All my options are bad" - Edward Snowden
Edward Snowden's caught in a sorta catch-22 though it's starting to look more like a no-win situation after watching the US order their western European 'partners' to close their airspace to Evo Morales' presidential jet after receiving some, um, bad information that Snowden was on board. He may have been granted asylum in quite a few of the countries he applied to but he had to be in the granting country for them to consider his request which is difficult, er, impossible if you're stuck in passportless limbo in transit at an airport in Moscow. In the book, Yossarian is introduced to the concept of catch-22 by Doc Daneeka who explains the problem, or catch, involved in requesting a psych evaluation which Yossarian hoped would find them unfit to fly dangerous missions:
"You mean there's a catch?"
"Sure there's a catch", Doc Daneeka replied. "Catch-22. Anyone who wants to get out of combat duty isn't really crazy.
They've had each of us by the balls like this at some point, trapped in a bureaucratic black hole, looping around a Möbius strip application process or stymied by the slave labour internship motto: you can’t get hired unless you have experience; but you can’t get experience unless you’re hired.  Now we're all supposedly caught in one, er make that two or three, in which we seem to be damned if we do and damned if we don't: the new security versus liberty balance that needs to be struck thanks to the Information, the global war on terror (I know, it's not called that anymore and that it has become the global war on you), and economic austerity. All three are examples that governments and their corporate cronies are presenting as catch-22s that their wisdom will guide us through but are nothing but false choices forcing us into vicious circles.
"Most people prefer to believe that their leaders are just and fair, even in the face of evidence to the contrary, because once a citizen acknowledges that the government under which he lives is lying and corrupt, the citizen has to choose what he or she will do about it. To take action in the face of corrupt government entails risks of harm to life and loved ones. To choose to do nothing is to surrender one's self-image of standing for principles. Most people do not have the courage to face that choice. Hence, most propaganda is not designed to fool the critical thinker but only to give moral cowards an excuse not to think at all." - Michael Rivero
You can watch then-senator Biden debate president Obama on government surveillance but it's probably more illustrative to watch the the present double good duckspeaker in chief debate his candidate self from 2007 regarding the security versus liberty balancing act:


Thanks O, you almost convinced me that I didn't have to haul out the old Ben Franklin "[t]hey who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety", but not quite. Still, if you're an Obamabot or a terrorism fearmongerer, cognitive dissonance won't allow you to see the danger the slide from freedom to security, ever accelerating post 9/11, poses to us. They don't seem to have a problem with giving General Keith Alexander, who seems to have mistaken 1984 for an instruction manual instead of a warning, near complete control over their information lives and Strangelovian powers to wage cyberwarfare. Americans celebrate the Fourth of July without a Fourth (or Fifth) Amendment, air travellers the world over submit themselves to ever greater humiliations, home school advocates are classified as potential domestic terrorists by the DHS and now we know that everything we say, type and text is being gobbled up for analysis in the hope of finding the next Paul Revere, er, I mean terrorist.

Oh, speaking of traitorous heroes, Obama sure loves using the 1917 Espionage Act, a measure intended to prevent anti-war speech during WWI by treating it as sedition (note to Pelosi, Boehner et al. the word you're looking for is there in the act, sedition, not treason). Edward Snowden became the eighth to be charged under the act under Obama, double the number of times it was used by all his predecessors. Defenders of surveillance overreach invariably trot out the "if you've got nothing to hide, you've got nothing to worry about" canard. If you, as an individual, non-threatening person, have nothing to hide then, yes, they’re probably right, until they're wrong, you personally may have nothing to fear. But those people who do put their heads above the parapet on your behalf, they will be the ones that feel the heat…It’s not about your personal privacy, it’s about the privacy of those who would stand up and fight for you.
"It has been the one song of those who thirst after absolute power that the interest of the state requires that its affairs should be conducted in secret… But the more such arguments disguise themselves under the mask of public welfare, the more oppressive is the slavery to which they will lead… Better that right counsels be known to enemies than that the evil secrets of tyrants should be concealed from the citizens. They who can treat secretly the affairs of a nation have it absolutely under their authority; and as they plot against the enemy in time of war, so do they against the citizens in time of peace." - Benedict de Spinoza, Tractatus Politicus
Ah, where would America be without the global war on terror now approaching it's twelfth anniversary. Without it they'd never be able to justify the imbalance of having an economy that produces about 20% of the world's GDP while their bloated defense budget forces them to maintain a 40-50% of global military spending. Yeah, they spend more on defense than the next 13 nations combined. The non-stop invocation of the word terrorist has not only brewed up an alphabet stew of new freedom protecting acronyms but also given us a whole new dictionary to interpret the altered bearings of our moral compass: wars of choice, extraordinary rendition, enhanced interrogation, indefinite detention, disposition matrix, black sites, signature strikes, they all sound nearly benign. It's all forced on us, a catch-22: we love our freedom, they hate our freedoms and will do anything to take them away, so we allow our freedoms and theirs to be taken away to wage a war to stop them from taking away what we've already given away. Or something like that. Yet the very policies of aggression and militarism justified in the name of combatting terrorism are creating the terrorists those policies are designed to combat. It is not their hatred but ours, US policy and aggression in the Muslim world, that creates terrorists as shown in the American government's own 2004 report. Indeed, the American government has been providing arms, money and logistical support to Al Qaeda in Syria, Libya, Mali, Bosnia and related Muslim terrorists in Chechnya, Iran, and many other countries. What's that you say? It goes back even further, like this:
Did you hear the one about the Harvard economics professors whose research found a close correlation between high levels of public debt and slow economic growth? No? Oh, boy, it's a doozy of a joke. How does it go, um, let's see, ok, so Rogoff and Reinhart do their research, economic research that is, and then wrote a paper, an economics paper you know, and governments around the world used their findings, economic findings believe it or not, to lend the cover of  intellectual rigor to justify their policies, yep, economic policies, which have caused untold, immeasurable damage to lives around the world leaving millions worse off, or you know, deader than they needed to be thanks to class war weapons of austerity such as the sequester in the US, the fantastical belief in a magical creature known as the confidence fairy or even an oxymoron as blatant as the UK's expansionary fiscal contraction. What? You don't get it? Well, let me explain. First, economics is a joke, a fraudulent pseudoscience dreamed up to justify class warfare, a war in which the punchline is a catch-22 designed to keep the rich, rich and the poor, well, poorer.

How did it work? Easy. You see, though the whole kerfuffle is being sold as a simple Excel spreadsheet error, the truth is it isn't a bug but a feature. It works a little like the whole WMD thing in Iraq: you dream up a plan that seems suspiciously like a modern day Crusade and then come up with a whole bunch of reasons to put it into action, throw them at the wall by having your media stooges, er, Judith Millers, pound the drums of war and see which ones stick. You remember, right? Niger uranium forgeries courtesy of the Italian military intelligence SISMI (another oxymoron?), aluminum tubes for enrichment and a dosier sexed up by a lap dog ally to fit Americas claims which all lead to 16 words and a million or so casualties. The same playbook was used for austerity. In both cases we're seemingly left in a catch-22, one designed to find scapegoat for a manufactured crisis to enrich those at the top and control, crush or kill those down below. Ah, sweet confirmation bias, what havoc will you wreak next?
We can never forget that everything Hitler did in Germany was "legal" and everything the Hungarian freedom fighters did in Hungary was "illegal." - Martin Luther King Jr., Letter From a Birmingham Jail
One of the most amusing aspects of the Edward Snowden saga was the reaction, indignation and mocked the irony and hypocrisy of seeking help from countries known more for their repressive regimes than civil liberty protections. Secretary of State John Kerry wondered "if Snowden chose Russia or China for assistance because they are such bastions of Internet freedom?", Dick Cheney was "deeply suspicious obviously because he went to China" while freedom fries TV taunted him with "I don’t remember Martin Luther King Jr. and Rosa Parks running off to China". Unless your deaf you should be able to pick up the echoes of the McArthyite red baiting techniques described in Heller's Catch-22 and understand why our modern Snowden chose to get out of Dodge before the sheriff showed up.
consternation to the fact that he chose to flee the idyllic paradise of Hawaii and protection of American law for first Hong Kong and then Moscow. They

The perfect foil to our Snowden is Heller's Clevinger, who trained with Yossarian at cadet school. A gangling, scholarship prize-winning, petition signing, discussion group attending, committee organizing Harvard undergraduate certain to go far in the academic world: "In short, Clevinger was one of those people with lots of intelligence and no brains...In short he was a dope". In describing Snowden, our fourth estate, those who should serve as a check on power but instead are subservient to them, having found they couldn't refute the message have gone after the messenger just as they did with Daniel Ellsberg, Julian Assange, Bradley Manning and everyone else the public needs to know are guilty. Anyway, thanks to our distract-at-any-cost press we know Snowden seems handsome to both the Chinese public and Russian spies, is obviously weird as well as a grandiose narcissist, wasn't very neighbourly, didn't visit his mother enough and was a high school dropout who couldn't even make it through community college. Oh where would the world be without the infinite wisdom of the likes of Megan McArdle, Jeffrey Toobin and David Brooks? That's right, maybe debating the legitimacy of surveillance programs, their creepy government/corporate ties and the secrecy surrounding them instead of playing at armchair psychologist in order to incriminate a man before he's even had a trial.

In our catch-22 world, Snowden, like Clevinger, is guilty, otherwise he wouldn't be accused, of what it doesn't matter. Both men pointed out problems hoping for improvement, but Clevinger didn't understand that tripping while marching to class would bring accusations of "breaking ranks while in formation, felonious assault, indiscriminate behavior, mopery, high treason, provoking, being a smart guy, listening to classical music, and so on" while Snowden knew the price of exposing his superiors errors. Bradley Manning, found guilty by his president before his trial, waited over a thousand days  for his trial, nine months of which he was forced to withstand torture in order to break his will. Clevinger faced a trial in which his accuser, Lieutenant Scheisskopf, was not only prosecutor, defender and one of the judges but also earned a promotion to colonel during the proceedings. Manning's is little different. Make no mistake, Snowden's civilian status wouldn't make a difference, neither would have alerting his authorities through the 'proper channels', one need look no further than the example of another NSA whistleblower, Thomas Drake and the persecution he has endured.

Finally, the key word has been whispered, whistleblower. There will never be a concensus opinion as to whether or not the term applies to Snowden, in fact there will never be an agreement on what constitutes a whistleblower. To my mind it is someone who releases materials or information that is of greater value to the public than the value of keeping it secret while the definition in the law refers to someone who "reasonably believes" he or she is disclosing a violation of law or rule or gross mismanagement, gross waste or abuse of authority. Snowden pulled the curtain back on the panopticon surveillance methods that contravene the protections of the Fourth Amendment which affirms "[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Thanks to a judicially created exception to the ammendment in 1989 and the necessities of perpetual war, the definition of what is reasonable has been lost forever.

However, it is a moot point. In America, legal justifications can be invented to start wars, torture, kidnap and kill at will in order to keep war criminals walking the streets, laws and court ruling are made to protect corporations from charges of fraud, mislabeling, side effects, accidental death, destroying the food chain or blowing up the financial world, or failing that, those same corporations can just pay a fine and deny responsibility for defrauding millions while earning billions or aiding drug lords and terrorists. However, if you're an intelligence worker you were left out of the fig leaf of protection proffered by last year’s Whistleblower’s Protection Enhancement Act. Likewise, intelligence workers were excluded from whistle blower protections offered to military contract employees under the most recent National Defense Authorization Act (NDAA). Meanwhile, So, faced with the information he had, Snowden was left with the choice of saying nothing or reporting the abuses to his superior at Booz Allen and crossing his fingers he wouldn't get fired. Kinda sounds like a catch-22 again, doesn't it?

The noose is tightening around the neck of freedom yet its incremental nature has us all playing the part of boiling frogs (I think that's what you call a mixed metaphor). Even as the heat has been turned up recently with new revelations coming daily of IRS targeting of special groups, reporters being hounded, Americans being monitored and now even the whole world, most seem happy slowly cooking to death blissfully unaware of what is happening. If the US government wants to spy on someone they must ask permission from the court set up by the Foreign Intelligence Surveillance Act, a court made up of 11 judges appointed by one man without oversight or confirmation. When that man is an ideologue such as John Roberts, well, you get a kangaroo court with a rubber stamp as the only possible check on the Panopticon denies a whopping .03% of requests, 11 of over 33,900. Here we'd do well to remember poor Clevinger as once you're a suspect, well, they'll find something, "[t]he case against Clevinger was open and shut. The only thing missing was something to charge him with."

Sure, the majority of even Americans see Snowden as a whistleblower, the world is more informed thanks to his bravery but unless you're a pro-Israeli lobbyist, the security state will punish you to send a clear message that government codes of conduct supercede those quaint moral ones. When trillions of new pages are classified each year and millions have security clearance (about 4.8 million potential Snowdens) under an administration intent on waging another war, this one on leakers (notice the parallel creepiness of Obama's the Insider Threats program and Captain Black’s "Glorious Loyalty Oath Crusade" in Catch-22), you have a recipe for confrontation. Whether it leads to a world heralded by today's mainstream media in which even journalism becomes a punishable crime or we wake up to the threat and heed the words of a real journalism, Edward R. Murrow, "[w]e must not confuse dissent with disloyalty" is shaping up to be the ideological battle of our time.
"When I look up, I see people cashing in. I don't see heaven or saints or angels. I see people cashing in on every decent impulse and every human tragedy." - Yossarian
It's the cancerous influence of greed that makes the whole thing tick and so once again we not only need to look at the avarice displayed in Catch-22 to get a better idea of what's going on but the disease of esurience plaguing modern society. Marx called them rentier capitalists which sounds a bit too French so modern economists call them rent-seekers but are more easily understood by the monikers given to them by Adam Smith: indolent maggots, moocher-elites and parasites. The Wall Street code word would be extractionists but no matter the label, their rise to dominance clearly marked the transition from industrial capitalism in which production was reliant on extracting profit from labour to financial capitalism which is entirely reliant on squeezing profit out of existing assets. Heller's Milo Minderbender, the embodiment of modern business with no allegiance to any country, person or principle unless it pays him, represents the extreme out of control nature of capitalism in a catch-22 world where profit trumps ideology. The other characters' acceptance of and support for his M & M Enterprises mirrors modern society's moral complacency regarding sustaining power and gaining profit at the expense of the individual.

Much as the main function of the war on terror is to produce more terrorists to justify more war, the security state has become a self-perpetuating machine to substantiate the need for ever greater surveillance with the end result of both being less freedoms for most and greater profits for the few. What else can they do with all the data but hire more people to analyze it and discover the data set is broad but shallow which will necessitate gathering even more data. Why do you think they're building a facility able to store 20 terabytes a minute and capable of storing 5 zettabytes, about 5 years of global Internet traffic. A near forgotten element of the Snowden affair is the exposure of the links between the public and private sphere. Sure, we've known of the dangers of the military industrial complex since at least 1961, the same year Catch-22 was published, thanks to Eisenhower's prescient warning but have sat back and watched the privatization of war reach ever more dangerous extremes in Iraq and Afghanistan. Still, we should be shocked at the close and still growing relationship between the NSA and Silicon Valley, a relationship that sees the same information, our information, feed the two-headed monster for government surveillance purposes and private business so as to stimulate desires and sell goods and services. The military industrial complex has morphed into the corporate military technological complex.

Thus far we've turned a blind eye to private mercenaries such as Blackwater, or should I say Xe, no wait, I think it's Academi now I think (it's so complicated avoiding prosecution!), Halliburton and DynCorp gorge from the public trough afforded by perpetual war as it's only about killing brown people in faraway lands. Now we know that we are in the sites of companies like Booz Allen just one of hundreds of private contractors employing over half a million people with the same access as Snowden. Oh, each of them are making six figure salaries to spy on you at your cost. In the fiscal year ended in March 2013, Booz Allen Hamilton, majority-owned by the nefarious private equity Carlyle Group (even the neoliberal apologist Economist agrees!), reported $5.76 billion in revenue, 99% of which came from government contracts. In fact, along with companies such as Science Applications International Corp, CACI and BAE Systems, private contractors suck up about 70% of the $75 billion US intelligence budget, a budget that has ballooned since 9/11, growing 250% between 2000 and 2010. Oh, and just like every other sector of the economy, that money isn't trickling down to you and me but to those who get to ride the revolving door. Again Booz Allen is the perfect example as the former director of US national intelligence John "Mike McConnell is now a Booz Allen vice-president while his successor in the director's chair is James Clapper, a former Booz Allen executive. Just like the banking, energy, agriculture, you name it sector, the same story can be told over and over again.

Just as we at first cheered Milo Minderbender's seemingly harmless profiteering at the expense of the ridiculous bureaucracy that perpetuates war, many would (and probably still do) defend such privatization as beneficial, perhaps even paraphrasing Milo's catchphrase claim that "everyone has a share" with something along the lines of "a rising tide lifts all boats". Much as the one time president of General Motors when asked if he could make a decision that would adversely affect his former company during the confirmation hearings for his nomination as Secretary of Defense answered affirmatively but added he could not conceive of such a situation "because for years I thought what was good for our country was good for General Motors, and vice versa", Milo believed "[w]hat's good for M & M Enterprises is good for the country". While this may have had a grain of truth in the productive phase of capitalism, the casino style financialization of the economy destroys wealth for all but the few and eventually begins to cannibalize itself. A cash-strapped Milo winds up contracting the Germans to bomb his own squadron resulting in the death and wounding of many men; a cash-strapped financial sector blew up the economy and blackmailed the public to bail them out, exploding national deficits which was then used as an excuse for austerity programs resulting in the death and suffering of many.

Um, where was I? Right, Snowden. Well, those who hadn't noticed that our wealth is being bled for the benefit of the few in a bottom-up transfusion before Edward shone his spotlight are more likely than not still in the dark. As Yossarian watched Catch-22's Snowden bleed to death he could do little more that say "there, there" as the morphine supply in the bomber's first-aid kit had been absconded by Milo for sale on the black market. Milo sold the squadrons parachutes and we sacrifice our social safety net. Even after Milo seemed to have gone too far, with American newspapers and congressmen denouncing the German bombing, all he had to do was open his books and show what a wonderful profit he made. Just as bankers and other members of today's elite, he gets away scot-free, keeps his ill-gotten gains and all is forgiven.
"Saints should always be judged guilty until they are proved innocent, but the tests that have to be applied to them are not, of course, the same in all cases."- George Orwell; Reflections on Gandhi
Finally we get around to the final issue of personal integrity. Throughout most of the novel, (spoiler alert, go read the damn thing already!), before we have redefined Snowden's secret through Yossarian's conversion, self-preservation at all costs seems to be his paramount concern. Just as he knows the number of missions he'll need to complete will always be increased by his superior Colonel Cathcart until he winds up dead, we also know our freedoms will be diminished one by one until they are all gone. Yossarian's increasingly damaging acts of sabotage and disobedience make it clear to Cathcart he won't be promoted as long as Yossarian is around, and worse, the more he gets away with, the more hope he gives to the less powerful: "Say, if they do let you (Yossarian) get away with it (not flying missions), they'll have to let the rest of us get away with it, won't they?...I hope you do get away with it". Likewise, our Ellsbergs, Mannings, Schwartzes and Snowdens commit acts on our behalf that not only expose the wrongdoings of our leaders but also raise our hopes.
 
Ultimately, Yossarian is offered a choice between saving himself but having to lie about his experiences of war and saving his squadron by facing a court martial. His concern for others creates a new catch-22 as the secret hidden in the entrails of Snowden finally becomes clear: life is not worth living without a moral concern for others, but this moral concern endangers one's own life. In a way, Edward Snowden has helped show us that as a society we are being offered a similar choice: to continue on our path accepting (or, as ever, denying) a life of diminished freedoms in exchange for safety or to risk our comforts in search of something better. Every day that we accept what is being done to us we choose to save ourselves while leaving everyone else out to dry. Yossarian's choice of a third option, desertion, makes him an anti-hero, but his intent is made clear when he says "I'm not running away from my responsibilities. I'm running to them. There's nothing negative about running away to save my life".

We never learn if Yossarian ever makes it to Sweden but he left the army a free man. Our Snowden may never make it to Venezuela and has been stuck in a Russian airport for weeks but at least he's a free man. There comes a moment in Catch-22 when both the reader and Yossarian come to feel shame for our amused tolerance of the evil characters and indifference to what is occurring, first laughing at the absurdities then looking back in horror at what we laughed at. Patriots are those who protect us from governments which only feel the need to be "the least untruthful". If the very definition of treason and/or espionage involves the participants interaction with an enemy, then just who is the enemy with whom Snowden interacted? In this case it is everyone that is being spied on. We are the official enemy of the Corporate Controlled Government. Catch-22 says they have a right to do anything we can't stop them from doing. It is this simple, and this terrible. Catch-22 means whatever they want it to mean and it's no longer a laughing matter.

H/T to my wife for remembering random snippets of reality!

And a few more random quotes:
"The important thing is to keep them pledging," he explained to his cohorts. "It doesn't matter whether they mean it or not. That's why they make little kids pledge allegiance even before they know what 'pledge' and 'allegiance' mean." - Joseph Heller; Catch-22
 "The duty of a patriot is to protect his country from its government." - Thomas Paine
"This is the truth. You should decide whether we need to be doing this." - Edward Snowden

"Remember this, take it to heart, live by it, die for it if necessary: that our patriotism is medieval, outworn, obsolete; that the modern patriotism, the true patriotism, the only rational patriotism, is loyalty to the Nation All the time, loyalty to the Government when it deserves it" - Mark Twain; The Czar's Soliloquy, 1905.

"I believe people have a right to know what governments and corporations are doing behind closed doors," - Jeremy Hammond

"The notion that a radical is one who hates his country is naïve and usually idiotic. He is, more likely, one who likes his country more than the rest of us, and is thus more disturbed than the rest of us when he sees it debauched. He is not a bad citizen turning to crime; he is a good citizen driven to despair." - H.L. Mencken

"We need to take information, wherever it is stored, make our copies and share them with the world." - Aaron Swartz

"In every age it has been the tyrant, the oppressor and the exploiter who has wrapped himself in the cloak of patriotism, or religion, or both to deceive and overawe the People." - Eugene Debs; Voices of a People's History of the United States

"I want people to see the truth, because without information you cannot make informed decisions as a public." - Bradley Manning

"Catch-22 did not exist, he was positive of that, but it made no difference. What did matter was that everyone thought it existed, and that was much worse, for there was no object or text to ridicule or refute, to accuse, criticize, attack, amend, hate, revile, spit at, rip to shreds, trample upon or burn up." - Joseph Heller; Catch-22

Thursday, May 2, 2013

Thatcher's Poland

My mistake was not waiting to light my cigarette until after I'd passed the pawn shop. The lombard, as they call them here, opened only a few months ago but it's quickly become a favorite hangout for young and old alike. Bizarrely, you're just as likely to see a group of old fogies as a gang of kids ogling the phones in the window, dreaming of the day when they can afford to light up the screens with the slide of a fingertip to signal to the those around them they are worthy while sending and receiving signals from around the world.

As I hit the corner of the main drag, I suddenly remembered I needed cash. Lucky every other building is now a bank while the majority of those in between are oft-time ironically named cheque cashing joints like Happy Credit, mortgage brokers and aptly named kantors (foreign exchange) such as Joker Kantor, so cash was flowing free and easy. Well, apparently not for buddy who was on me like a fly on shit as I waited for the bank machine.

- "Daj mi papierosa" (Give me a cigarette) Came the predictable plea.
- "Jest moj ostatni" (It's my last) I tried to parry.
- "Give me cigarette"
Fuck. Something about my amazing (!?) accent had given me away making me both a prey and a mark.
- "Cigarette!" He barked.
My smoke was now the focus of both our attentions as I raised it to my lips and dropped it to my side. A couple of quick drags and I hand him the butt but he still doesn't budge.
- "One, two beer. How much?" Guess he's thirsty, too. After all it's almost noon.
- "I dunno, depends which" I answer, giving him a shoulder slap to his right shoulder while dodging to my right and slide into the bank machine as the previous customer walks out.

Cash in hand, smoke accoster nowhere in sight, I continued my walk towards first the train and then my work station beyond. As the flow of traffic peppered with the odd late model Porsche and communist era Polski Fiat 126p whizzed by I pass the Golden Arches just in time to see a herd of diabetic fat kids stream out the door, miraculously avoiding the two drunks splayed on the pavement leaning against each other for support as they dream of their next drink. Next up is the wheelchair beggar at his post just past the rail yard and in front of the trade center on the corner where I turn toward the university. Fortunately I'm shielded from his view as I pass by a gaggle of home decor/gardening/fashion enthusiasts clutching their conference bags filled with soon-to-be landfill waste and don't have to respond to his plea for the zloty (cash) he'd need to survive the next 24 hours.

Turning onto the bridge I walked past the newly completed portion of the train station, already covered in grime thanks to the pollution along with the road work and construction of the monstrous mall and even more ginormous parking garage that will be attached to the new Poznan train terminal. Wired gates control traffic at the end the bridge where the roadworks are most intense. Cars jockey for position from all sides as I emerged onto the zebra crossing with my usual contempt for motorized traffic. My second confrontation of the day comes when a car creeps up to my knee and we lock eyes, I point to the crossing and he starts yelling through his windscreen. Flipping him the bird I've already had two opportunities to fight and I haven't been out of the flat for 20 minutes.

That's when I found out Margaret Thatcher had died. I didn't have to wait to read about it in the obituaries or the newspaper, the words accompanied the beep that lit up my cellphone (fortunately I'm still holding onto my decade old Nokia brick and haven't yet needed to join the gawkers in front of the lombard).

"Ding dong, the witch is dead!"

Having come from a British friend that's all that was needed to convey the news. The fraction of a second it took for the impulse to smile to travel from my brain was long enough to allow the guilt for having such a feeling to arrest the curl of my lips before they'd even crinkled. I had to stop and look around. Here I was in Poland about to walk into university to teach a group of students whose parents most likely believe the Iron Lady was at least in part to thank for causing Communist USSR to crumble. The knowledge was more likely than not passed to their offspring subconsciously, like the information transmission of DNA, the kids probably don't even know what they, well, know. The terms Thatcher's Britain and Thatcher's child took no time to enter the lexicon and then the OED, and now standing on the corner with a Beyonce for H&M billboard to my left commanding women to buy her swimsuit or suffer social ostracism, if one's different, one's bound to be lonely, and a Szybcy i Wsciekli 6 (Fast & the Furious 6) billboard to my right reminding me of Thatcher's possibly apocryphal quote "[a] man who, beyond the age of 26, finds himself on a bus can count himself as a failure", I couldn't help wonder how much this was Thatcher's Poland.

"Who controls the past controls the future: who controls the present controls the past"
- Orwell, 1984

Upon noticing a book carried by one of my first Polish private students with Ronald Reagan on the cover, I was informed that Saint Ronnie along with John Paul II and Margaret Thatcher were his heroes: the holy trinity of freedom, a triptych of Maggie, Ronnie and JP2 on the mantelpiece of every good home. It's one of those things everyone here just knows just as I knew at that moment that Thatcher's passing wasn't going to go quietly; an information war every bit as deadly as the shooting kind she loved so much was already under way to remake her legacy, reframe the perspective and retard the rest of us.

Had she been a man, Margaret Thatcher could easily have been called Iron Balls as she had conviction in her beliefs if she had anything. Instead, thanks to her power to make most shrink around her, she was ironically given the nickname she came to love by the system she loathed. Accusing her of trying to revive the cold war, the Soviet Army newspaper Krasnaja Zvezda (Red Star) dubbed the then leader of the opposition železnaja dama (the Iron Lady) in January of 1976.

Seems as with everything else about Lady Thatcher, measuring the impact of her role in the fall of the Soviet Union is too subjective to measure, a hagiographic effort at best. Sure, after meeting Mikhail Gorbachev in 1984 she declared "We can do business together" and shortly thereafter the official party policy of glasnost was adopted in the USSR. However a near identical phrase "I think they can do business together" had been uttered in February of the same year by the American Senate Majority Leader Howard H Baker Jr. in reference to Reagan's potential meeting with the then Soviet leader Konstantin Chernenko.

Her bold assertions that there was no alternative nor any such thing as society, delivered in a tone both boring and boring, made her seem so decisive and divisive but when examined in context become wishy-washy and banal. Should we celebrate the life or death of a lady who may have had a hand in bringing about a Brave New World order by bringing down the (iron) curtain on our 1984 future? How does one shed a tear for a woman who had no qualms about ordering the death of hundreds of 'Argies' sailing away from a fight, not only allowed the US to station nuclear tipped cruise missiles on British soil to up the Cold War ante but also to use British bases for bombing raids on Libya, and above all, taught us to be selfish and that the pain of others isn't our problem?

But did she help save the Poles and the rest from communism? Unanswerable and doubtful but Poland's neoliberal lackey foreign minister Radek Sikorski eulogized her as a "fearless champion of liberty". We can guess how the Argentinians feel about how she saved the Malvinas. Barack Obama trotted out the obligatory praise saying she was "one of the great champions of freedom and liberty". Why don't we ask a Chilean if she helped or hurt their struggle against her buddy Pinochet by thanking him for "bringing democracy to Chile" by murdering the people's elected representative. I'm sure the tens of thousands murdered, hundreds of thousands tortured and million plus forced to flee Chile under his dictatorship would disagree.

The Economist magazine, bringing the tru to Minitru and where 2+2=5, eulogized "[t]he essence of Thatcherism was to oppose the status quo and bet on freedom", thus doing their part to ensure her support of the South African apartheid regime is lost down the memory hole. Not only did she once refer to Nelson Mandela's ANC as a "typical terrorist organization" while her spokesman said it was "cloud-cuckoo land for anyone to believe" they could run the country, she somehow worked the doublethink trick of projecting opposition to the racist regime while befriending then Premier P.W. Botha. She celebrated her friendship with Indonesia's General Suharto calling hime "one of our very best and most valuable friends" for having killed 500,000 suspected Communists in Indonesia before moving on to invade East Timor in 1975 to massacre around 250,000 men, women and children on the island. Her government helped arm Saddam Hussein, lent a hand to Pol Pot and hailed General Mohammed Zia ul-Haq's work in Pakistan that laid the groundwork for the Islamic radicalization of a whole generation.

Perhaps the greatest paradox of the woman was just that, she was a woman. In 1970, a week after becoming Secretary of State for Education and Science, she was asked if she would she like to become the first woman Prime Minister. "No," she answered emphatically, "there will not be a woman Prime Minister in my lifetime—the male population is too prejudiced." Of the movement and activists which possibly did more to change the 20th century than any other and opened the door to 10 Downing to her, she reportedly told an adviser, "[t]he feminists hate me, don’t they? And I don’t blame them. For I hate feminism. It is poison." In 1982 she said "The battle for women's rights has largely been won" which explains why she never felt the need to speak out against domestic violence, rape, sexual abuse or harassment or how women earned about 60 cents to the dollar of men's wages. She gave the appearance of smashing the glass ceiling while in fact pulling up the ladder, famously promoting only a single woman to a cabinet position preferring instead to surround herself with vegetables. Is it sexist of me to wonder how a mother of two could also become Maggie Thatcher the milk-snatcher by taking away kids' milk? Despite her portrayal as a greengrocer's daughter who had to fight to the top, she seems to have been a daddy's girl who married well which allowed her the luxury to study and hire a nanny.

Apologists rose to Thatcher's defense to claim her actions were a product of the times, the ends justified the means and of course, war is peace. Her sales pitch to a roomful of Saudis, "I'll have one of those!" while stroking a gleaming missile, to seal the $80 billion Al Yamamah arms deal wasn't meant for public consumption as 'batting for Britain' really involved billions in black money to bribe Saudi princes and add to the bottom line of BAE. Poles have learned Thatcher's buddy system well, er, well, the politicians at least, lining up to sacrifice lives and zloty to the alter of American military hegemony. Polish may have recently become England's second language but Polish politicians speak Anglo-Saxon ass-kissing as good as any lapdog. Most Poles are oblivious to the fact they ranked number four on the 'coalition of the willing' casualty countdown and just last month saw their 39th soldier killed in Afghanistan, while four more stand trial for war crimes committed there. Meanwhile the billions to be spent on a useless missile shield that the majority of the people don't want will piss off the Russians and definitely won't end up in the pockets of the locals.

"Non-stop distractions of the most fascinating nature...are deliberately used as instruments of policy, for the purpose of preventing people from paying too much attention to the realities of the social and political situation."
- Aldous Huxley, Brave New World

Thanks to doublethink, the lady wasn't for turning and probably believed in what she was doing but the real trick was to convince not just the people but her own party of the myth that Thatcherism was good for 'ordinary' people and would emancipate the working classes. Attila the Hen found an ally in Rupert Murdoch; she helped him consolidate his media power while he helped her spread the gospel and get reelected twice. The two protestant 'outsiders' who attended Oxford railed against the establishment which they became a part of by helping each other; he by having his tabloid the Sun shift its traditional support for Labour to Thatcher's Tories with a front page editorial arguing Thatcher’s election would be better for the working classes, she by allowing his acquisition of The Times and Sunday Times to avoid scrutiny by the competition authorities thanks to a deal struck during lunch at Chequers. While Thatcherism was tearing the heart out of the industrial heartland and looting the commons to hand it over to a tiny elite of 'wealth creators' who would free up the market and rain wealth on the land, Murdoch helped make sure there would be astonishingly little protest or consciousness by blaming the poor, promoting war and of course giving the people want they really wanted, more football.

The strength of ignorance is both easily built and desperately needed here in Poland. Caught so often on the wrong side of history and geography, convincing the Poles that there is no alternative to the current course has been an easy sell. Football, vodka and the Catholic Church allow the people to imagine they'll get to a better place as long as they keep their head down and work hard. Sure, they have the right complain and the array of choices seems as diverse as anywhere but the media landscape ensures the discourse never strays far off course. German companies like Axel Springer AG spew IngSoc, er, tabloid trash and EU propaganda with their version of the Sun, Fakt, alongside Dziennik and Newsweek Polska, American movies continually revise the past while TV portrays seemingly  possible present from the west or a poor simulation thereof and Radio Maryja spews xenophobic hate cloaked in the hope of redemption. The closest Poland comes to Murdoch is Adam Michnik, editor of the ofttimes leading national daily Gazeta Wyborca who somehow managed the trick of undergoing a conversion from a fearless dissident into a hack propagandist heralding the evils of Islamofascism and convincing women to go shopping on cobblestone streets wearing high heels (er, a forced reference to his paper's women's magazine Wysokie Obcasy - High Heels)

Maggie may or may not have been instrumental in delivering Poland and Eastern Europe from the Soviet Union but it was her amazing electoral success along with that of fellow cold war warrior Rotten Ronnie on the other side of the pond that sped the demise of democracy as we knew it. Yes, the unions they broke had too much influence on Labour and Democrat policy and no, it wasn't her or Raygun's fault those parties ran into the arms of Big Finance but there you are. Poland et al had the misfortune of gaining freedom just as the end of history arrived and democracy became nothing but a choice between  more or less measures of neocon and neoliberal, a lesser of two evil song and dance, a recipe repeated around the world from Ottawa to Warsaw. When asked about her greatest achievement, Thatcher simply replied, "New Labour" and Tony Blair. In Poland the answer would be the ruling Platforma Obywatelska (Civic Platform) and the likes of Oxford educated, husband of Washington Post hack Anne Applebaum, current foreign minister Radek Sikorski (not only did he write this drivel after Thather's death he called for a statue to be erected here in her honour, maybe right next to Reagan's in Warsaw!). Politics have become subordinate to markets and labour to capital, society now serves the economy instead of the other way around.

"All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind."
- Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations

It's this last point which is probably the most important connection between Thatcher and life here in Poland, freedom is slavery. Sparked by the Powell Memo in 1971 and lent an aura of intellectual legitimacy by the Chicago Boys, a new economic ideology was propagated through institutional sponsorship: America has the Heritage Foundation, the Cato Institute and the American Enterprise Institute while the UK's versions include the Adam Smith Institute, the Institute of Economic Affairs and the Centre for Policy Studies founded in 1974 by Thatcher's mentor, Keith Joseph. Despite their benign sounding names, these are radical think tanks with almost nothing to do with the likes of Adam Smith who understood something about Moral Sentiments and the dangers of private monopolies and everything to do with Hayek, Friedman and Rand and their belief in extreme individualism or social Darwinism. Nigel Lawsen, Thatcher's Chancellor of the Exchequer from '83 to '89 summarized their economic philosophy, "Economic planning was both impossible and unnecessary. . . . The price mechanism . . . was a much more efficient means of transmitting consumer wants and needs than the vast bureaucracies of Whitehall and the nationalized industries." Selfishness along with ostentation of power and status was in. Culture was ruled over by money, and the idea that those who win by making more of it do so because they are better was not just permitted but ordained.

Profit and capitalism were good while planning, government and taxes were bad. Conveniently this all worked together as in order to lower taxes, public spending had to be lowered which scaled back government by reducing public services, privatizing whatever was possible and deregulating the rest. Inconveniently most voters viewed the government as subsidizing essential public services, ensuring economic security and helping families in need. The trick therefore was to create a backlash against government waste, resentment against public subsidies to those who were less hard working than themselves and place the blame for inflation on greedy unions. Notice the success as the issue of benefit fraud, which costs the UK about £1.2 billion yearly is a far more emotive topic than tax avoidance, which costs about £70 billion a year. Voters also needed to be convinced that what was taken from the state was being given to them thus enhancing individual economic freedom and unshackling the wealth creators, allowing the wealth to trickle down on everyone. The only valid idealism was to destroy the state by, as Lawson continued, "elevating private actions above public direction and dismissing ‘social justice’ as both vague and arbitrary." Finding bad reasons for what one believes for other bad reasons - that's philosophy.

Thatcher was swept into power on a perfect storm of global inflation emanating from the US pushing up world prices, IMF imposed austerity in exchange for loans to support the value of sterling after Britain's 1976 foreign exchange crisis which made it impossible to finance the modernization of public industries as it would increase the PSBR (Public Sector Borrowing Requirement), and finally, well, strikes and weather, otherwise known as Britain's Winter of Discontent. Yes, a public sector strike during an unusually cold winter ground the country to a halt, literally, as roads went unsalted, hospital patients were denied treatment and garbage piled up in the streets. Labour, who had tied themselves to those striking unions, found themselves with their hands also tied behind their back. Thatcher picked and chose her battles with labour wisely and pursued a step-by-step program of trade union reform before ultimately crushing them in the '84-'85 coal miners' strike. There was indeed no alternative to the monetarist Thatcherism which created an employers' market by imposing chronic under-employment and shifting enterprise out of the unionized public sector to newly privatized, non-unionized enterprises; Marks and Spencer had triumphed over Marx and Engels.

Ironically, or perhaps just calculatingly mercenary, while destroying unions and solidarity at home she was lionized by Solidarność (Solidarity) in Poland, actually being mobbed by dockworkers in Gdynia when she visited in 1988. If you've gotten this far in reading it hopefully means you realize I understand there was a difference between unions in the UK and Poland, after all, in Poland the military used to shoot striking miners dead. Given the trade unions' role in the democratization of Poland it is curious that Poland today has among the lowest unionization rates in Europe as from 1982 until 2005 membership fell from 80% to below 14% (only  2.4% for employees under the age of 25). There are myriad of factors at play here, from the many mistakes made by the unions themselves, a massive shift of the workforce from traditional industries and sectors such as mining and steel, and the privatization of many formerly public, union dominated industries, but it was the pernicious effects of Thatcherism on human psychology that seem the greatest factors. The transformation of the full-employment ideals of post-WWII society to an economic system based on chronic un- and underemployment has made many afraid of forming or joining a union along with the societal appeal to the narrowest self-interest of individuals having gained the upper hand over the feeling of brotherhood and the desire to work for the collective good.

Thatcherism also slowly shifted the balance of power from labour to capital through tax and monetary policy, privatization and deregulation. She managed to destroy more than 2 million jobs in two years, an astonishing figure considering unemployment only breached 1 million in 1978 before reaching 3.5 million by 1983. Her monetarism lowered everyone's taxes a bit and 'simplified' the fiscal system by regressively shifting taxes away from wealth onto consumers via sales taxes, excise taxes and the value-added tax. With public institutions being starved by austerity, privatization was the only way to modernize. "Popular capitalism", spreading ownership as widely as possible, would serve the double purpose of making it difficult to re-nationalize in the future plus giving the public skin in the game, giving workers a stake in preserving the value of the shares they held in these enterprises. The discipline of the market would make British industry more competitive but its effect along with deregulation of the financial industry, the 'Right to Buy' scheme of 1980 and the 'Big Bang' of 1986 simply handed over complete control of the British economy to the square mile in the heart of London, the City.

Privatization, which started tentatively in her first term with British Aerospace and Cable & Wireless, had reached fever pitch by her second reelection: Jaguar, British Telecom, Britoil, British Gas, British Steel, British Petroleum, Rolls Royce, British Airways. Her fourth term (well, John Major's first) saw British Rail hit the auction block. By the time the Conservatives were voted out of office in 1997 by one of the largest margins in history it had become clear to the public that there were some side-effects to the medicine they were being forced to take. Prices hadn't declined along with productivity gains in some areas while they had jumped for essential services like water whose systems were breaking down or shifted against residential consumers in favor of large industrial users in the case of electricity. Services had been cut back, privatized companies were engaging in monopoly practices and to add insult to injury economic inequality had widened with the shrinkage in the industrial labor force and stagnating real wages while profits soared for the privatized companies and the City fleeced the government for underwriting fees and began gambling in earnest thanks to the newfound market freedom. Thatchers reply? "Let us glory in our inequality."

"Democracy is the theory that the common people know what they want, and deserve to get it good and hard."
- H.L. Mencken, A Little Book in C Major

Pity the Poles for having gained their freedom at the height of Thatcherism, imagine how different the future would look had it been in, say, 1968? As it was, having been tried and tested by Thatcher's buddy Pinochet in Chile, the Chicago Boys idea of "Shock Therapy" came to Poland in the person of Leszek Balcerowicz in 1989 under the guidance of Harvard's Jeffery Sachs backed by the muscle of the IMF. Doubtless, drastic measures were called for to make the huge transition that was complicated by the fact Poland was an economic basket case, with debt of $40 billion and inflation running at 600%. Also doubtless, the Balcerowicz plan was a success when compared to the results achieved in some other Eastern bloc nations. Forgotten though is the doublethink trick achieved of forcing a now 'free' democratic nation to trade off part of the debts incurred by a totalitarian regime it had never voted for in return for selling off state assets at discount prices for the benefit of foreigners and those highly place communists who were quick enough to convert to the new religion. Who cares if it was completely undemocratic, Balcerowicz termed it "extraordinary politics" while Michnik warned that the common people or "rank and file...irrational hotheads [were] incapable of recognizing the limits and realities of the real world". Those in position to do so stripped all the assets they could, a $1 billion stabilization loan (aren't numbers from the olden days quaint?) was arranged, large blocks of shares of privatized assets were placed in the hands of banks and Poland was absorbed into the global slavery debt trap.

The only goal of the IMF/Sachs/Balcerowicz policies was to ensure payments continued to flow west on the $40 billion in illegitimate foreign hard currency debt (what would be called odious debt today). Much of that debt had been incurred in 1979 when rates in London and New York increased 300% under the policies of, you guessed it, Margaret Thatcher and US Fed Chairman Paul Volcker. By the end of '91, Polish unemployment had reached 2 million, industrial production was 66% of the '89 level at the end of '92 and as 1993 closed 2.8 million were unemployed and 50% of families with 3 or more children were living below the poverty line. Little wonder that elections held in September of 1993 saw the the pro-IMF government of Hanna Suchocka replaced by a raft of coalition parties with direct ties to the communist regime. Predictably, as inequality elsewhere surpasses levels unseen since the roaring '20s, the new grand bourgeoisie that has emerged here has combined old bureaucrats, new managers and a burgeoning entrepreneurial class; a situation reminiscent of Poland in the 1920s. Perhaps the best symbols of what Poland got in return for the misery, organized crime, and debt-based slavery brought by the 'reforms' are Galeria Mokotów (Mokotów Mall) in Warsaw and Stary Browar (Old Brewery). The former, a shopping center built in place of a demolished semiconductor factory, cuz, you know, who needs those in a modern economy when you can create another black hole to suck wealth out of the local economy, and the latter a mall built on bribery (Polish link) and murder involving the richest man in Poland.

"The law, in its majestic equality, forbids the rich and the poor alike to sleep under bridges, to beg in the streets, and to steal bread."
- Anatole France, Le Lys Rouge (The Red Lilly)

Ah yes, the riches and glory promised to Poland are coming but as in the rest of the world more and more disproportionately to those at the top of the income scale. It would take a figure  stronger than Thatcher to convince Poles they are on the wrong course though as they are pumped through the indoctrination centers that are the education system. They emerge believing they have free will and as unquestioning of the free-market god as their forefathers were in the Catholic one unaware that one believes things because one has been conditioned to believe them; soma is simply Christianity without tears. The trains are slow, late and chaotic not because they're being sold off piecemeal on EU orders which is creating the disarray, but because it's not fully privatized like the UK's, who cares about their disastrous experience. The long waits at NFZ have nothing to do with it being underfunded, the public health care system isn't a blessing but a curse as promoting preventative medicine instead of the Americanized version of health for profit resulting in worse health outcomes and higher costs must be better as it's the path the Cameron government is choosing as they privatize the NHS by stealth. Oh, and don't worry Polish kids, it's only a matter of time until the course laid in leads to a completely privatized American-style college system of trillion dollar debt slavery before you've even entered the workforce. Just ask any 20-year-old Brit what it's like

Would the UK and Poland be much different if Thatcher had never been? Maybe not seeing as even the EU, the institution that most separates Maggie and Poland, has become nothing more than a glorified debt collector/pusher a fact not lost on most Poles as they become more disenchanted with the concept as their democracy ages just as Thatcher did. Even the Iron Lady, as she mentions in her autobiography, was caught off guard at how much she came to rely on the financial manipulators, how little she was able to control them and the scale of those bankers' greed; she convinced us to sell the family silver for the benefit of the rentiers who perceived the Thatchers and Friedmans as pawns, well-meaning promoters wrapping austerity economics in populist garb. Unfortunately, the deleterious social effects of the inequality caused by growing GDP through financialization of the economy, empowering those banks and other corporations to pursue profit without paying the price for wrongdoing and turning people into consumer zombies takes years to measure and decades to be felt. Trillions in wealth will continue to by siphoned out of the productive economy while we are forced to run faster and faster just to keep up and are convinced that our phone has somehow made us smarter. Yet while there is always time to get off the tracks before the train hits there's not much chance of heeding the warning the more we come to rely on those who profit from us being run over.