Monday, September 5, 2011

Let Them Eat iPads!

Whether or not Marie Antoinette ever uttered the phrase that modern myth-makers have attributed to the much maligned monarch to help spark the French Revolution, there is less doubt surrounding the harsh realities of a peasant's life in late18th century France. Rising bread prices, unemployment, rising war-related debt, an inefficient financial system leading to difficulties managing said debt exacerbated by the burden of an inadequate system of taxation and a ruling class disconnected and isolated from the realities of the day-to-day life of the population are all cited as causes leading up to the storming of the Bastilles. Fortunately, as North Americans finish their Labor Day holiday (Labour up north, eh), they can enjoy those picnic hotdogs all the more in the knowledge we've come a long way since 1789, as democracy and capitalism have spread and taken hold guaranteeing an equal voice and opportunity for all.

The struggle of man against power is the struggle of memory against forgetting
- Milan Kundera
The trick you see is to help/make a majority of the people ignore the relevant facts by distorting or drowning them out. Let's start with the holiday itself. The first Labor Day celebration in the US was nothing but a parade organized by unions in New York on September 5, 1882, as a celebration of "the strength and spirit of the American worker." Their goals were simple: decent wages, an eight-hour workday and the right to organize. The national holiday wasn't instated until twelve years later in 1894 when President Grover Cleveland needed good publicity cover for, get this, crushing a labour strike by sending in troops during the economic depression known as the Panic of 1893. Politicians and labour leaders were content to keep the holiday in September, far from the growing popularity of May Day. Both the workers and Cleveland turned out to be the losers as Grover lost the Democratic nomination in 1896 and the reforms labour sought did not come about for nearly half a century when the Depression-era fair labour laws that were passed under Franklin D. Roosevelt finally set standards like the eight-hour day and an end to child labour.

Those laws (and the US hegemony of the post-WWII world) set the stage for an era of unparallelled growth and prosperity. All this success inevitably bred the hunger for more, and more now. Satiating today's desires became more important than tomorrow's which were less pressing than next week's. In the business world this was reflected in a culture that rewarded results this quarter through increasing stock prices and executive pay and neglected the necessity for planning for a few years down the road. People worked longer hours, women entered the workforce then they took on two jobs or overtime. When this wasn't enough they simply financed it in an orgy of credit cards, payday loans and even turned their homes into cash machines. Of course all of this was cheered on by corporate America which adapted by shifting the entire economy away from manufacturing towards financing all that debt. General Electric doesn't make their money producing light bulbs, they are now first and foremost a finance company. This seemed great for everyone for awhile, those at the bottom needed money to keep buying more stuff, those at the top needed somewhere to invest all the cash they were making and the financial intermediaries gladly created ever more complex securities to shuffle the money from one to the other.

Well, we know all know how that wound up. Luckily the US today is nothing like France in 1789, you remember - "Rising bread prices, unemployment, rising war-related debt, an inefficient financial system leading to difficulties managing said debt exacerbated by the burden of an inadequate system of taxation and ruling royalty disconnected and isolated from the realities of the day-to-day life of the population". We're told by government statistics that inflation is under control so bread prices can't be a problem; somehow printing trillions to bail out the banks and to lend them at near zero interest rates hasn't affected prices. Oh, that's right, core inflation is what they talk about. Core, meaning the price of everything that we don't need to live, as it excludes the price of food and energy. Lucky those new iPads are tasty and keep us warm at night. Meanwhile, the financial industry has done a great job of using their free cash to bid up the price of food and oil.
"Wealth is like sea-water; the more we drink, the thirstier we become"
- Arthur Schopenhauer
Incomes have risen to meet the real increased cost of living - if you were already rich to start with at least. Today, he richest 1% of households earn as much each year as the bottom 60% put together taking in a quarter of the nation's income; they possess as much wealth as the bottom 90%; with each passing year, a greater share of the nation’s treasure flows through their hands and into their pockets giving them control of 40% of the nation's riches. In twenty-five years they have more than doubled their share of income while wealth rose from 33% of the total. "Meh", says Joe six-pack, "it's not so much how you divide the pie that matters, it's how big the pie is, besides, one day, I could be part of the 1%." Unbeknownst to him, median incomes declined outright from 1999 to 2009 for those lucky enough to still have a job. For 90 percent of American workers, incomes have stagnated or fallen for the past three decades, while they've ballooned at the top, and exploded at the very tippy-top: By 2008, the wealthiest 0.1% were making 6.4 times as much as they did in 1980 (adjusted for inflation).

Cruelly, the August jobs report released just last week showed that no jobs were created which really represents a net loss as at least 125,000 are needed to keep up with population growth. Since the end of 2007, America’s potential labour force – working-age people who want jobs – has grown by over 7 million but the number of Americans with jobs has shrunk by more than 300,000. We're told the unemployment rate has been over 9% for a couple of years which sounds horrible enough but is nothing when compared to reality. Again, statistics are manipulated to manufacture cold comfort as reported unemployment only measures active job seekers and takes no account of underemployment. Taking into account long-term discouraged workers who were defined out of official existence in 1994 and those forced to work part-time because they cannot find full-time work, the SGS Alternate Unemployment Rate is 22.8%.

Did someone say rising war related debt? Again, if you live in America, about half of you have been convinced that the debt was either created by greedy teachers or is part of President Obama's plan to sell you into indentured servitude to his Muslim Kenyan drunk uncle. Step back, get off the Tea Party, Koch crack. If the Bush-era tax cuts are renewed next year, that policy will by 2019 be the single largest contributor to the nation's public debt -- "the sum of annual budget deficits, minus annual surpluses" -- according to new (well, May) analysis from the non-partisan Center for Budget and Policy Priorities. Graph's on the right. These tax breaks, combined with the cost of fighting wars in Iraq and Afghanistan, will account for nearly half the public debt in 2019, measured as a percentage of economic output.

Oh, it only gets worse war worriers. These figures surely underestimated the costs associated with almost 50% of returning troops eligible to receive some level of disability payment and more than 600,000 treated so far in veterans’ medical facilities. But the social costs, reflected in veteran suicides (which have topped 18 per day in recent years) and family breakups, are incalculable. Am I the only one twisted enough to find it funny that so many people have been convinced to back the union busting way of governors from Wisconsin to Ohio, Michigan and Florida by snake-oil salesmen to cut deficits when in fact it was increased defense spending, together with the Bush tax cuts that were key reason why America went from a fiscal surplus of 2% of GDP when Bush was elected to its parlous deficit and debt position today. That is the real reason wieners like Rep. Eric Cantor say the country needs to find savings elsewhere before helping the people of Vermont after a catastrophe.

Efficient modern financial market have turned out to be nothing but a pipedream as they've turned out to be worse than those in the time of Jean Valjean. We've spent countless trillions propping up a system that is rotten to the core. Without Faux News or lunatics screaming CNBC about subsidizing deadbeat homeowners creating moral hazard we may have done just that, keeping a roof over people's head instead of, you know, creating moral hazard by giving cash to the bank. The muppets keep droning on spouting supposed financial forecasting knowing full well that economists are nothing but people who see something working in practice and try to figure out if it would work in theory. Voila, socialized losses and privatized gains for the banks. The financial system creates NO wealth on its own, its value lies in its ability to efficiently allocate capital, to smoothly transfer money from savers to spenders. The key word is efficiently, there shouldn't be much friction in the system. Yet the ยต (Mu) has been rising - the financial industry has increase its share of US domestic corporate profits from 16% in 1985 to over 40% today.

One need look no further than the hostage taking of Dollarmageddon this summer for proof of a nation having difficulties managing its debt. Here we see the malevolent influence of money on the gears of power as the paid lackeys parading as congressmen in Washington do the bidding of their corporate masters, creating a crisis to allow them to implement their agenda. This Kibuki theatre play is worsened by the false-front democracy of a two-party system where one is dumb, greedy, evil and only exists to be re-elected in the next cycle and the other is well, a bit dumber, greedier and more evil hoping to be elected in the next cycle. In fact, faced with a near insurmountable mountain of debt and only two ways to narrow the deficit, lowering spending and raising taxes, not one of the presidential candidates for the dumber, greedier and eviler side would consider the latter. That'll get you a credit downgrade and qualify as a difficulty managing debt.

Bigger? Click.
The final ingredient in the French Revolution, a ruling class disconnected and isolated from the realities of the day-to-day life of the population, is in heavy supply in today's America. Wall Street controls Washington through K Street with no regard to Main Street. It turns out that at a time when austerity for everyone but the rich in order to pay back the banks leaving less money for the economy is the only accepted prescription offered by the ruling class, it's better to have no government like in Belgium. You'd expect some empathy when thanks to the recession, the number of American families no longer earning enough to pass the minimum threshold to pay income tax has risen from 30% to 47%. Never mind that the number of children now living in poverty has risen to 15 million, 21% of all children in the US, that 45 million people rely on food stamps to survive, or that these people pay a myriad of other more regressive taxes such as payroll, sales, state and local - no, the crazier party believes they should pay more. That's right, CEO's who are massively rewarded with higher pay for helping their corporations dodge taxes don't need to pay any taxes (a must read report, infographic on the left), but the poor, well, they need to pay more. Forget that it's those people spending that keeps the economy going - consumer spending accounts for 70% of economic activity - they need to be taxed more. About the only elite who doesn't seem blind to the chaos caused by the chasm between us and them is one of the three richest men in the world, Warren Buffet, who took the the NY Times op-ed page to call for an end to the coddling of the super-rich. What, and have them pay as much as under Clinton? Outrageous!
Our democracy is but a name. We vote. What does that mean? It means that we choose between two bodies of real -- though not avowed -- autocrats. We choose between 'Tweedledum' and 'Tweedledee'.
- Helen Keller
In fact, some elites have become so blinded with rage by the situation somehow caused by the rest, they've decided to pull up stakes and let the poor fend for themselves. Yep, John Galt himself would be proud. Those who in their benevolence choose to stay and help us poor plebs will be sure to fight to ensure that all of their tax advantages stay in place. Of course the politicians in Washington, most of whom are part of the 1% anyway, have every incentive to only listen to the richest voices, they'll need jobs after getting out of office, self-interest and all, you know? Strangely - or more correctly - predictably enough, turns out senators only listen to the rich (PDF of study here). No wonder that slightly more evil party even thinks poor people voting is un-American.



It's all about convincing enough of the people things are fine and lies, such as the one that businesses aren't hiring because of taxes and regulation. The corporate tax rate is supposedly the highest in the world at 35% yet over 100 companies on the S&P 500 paid less than 20%, GE earned billions at home while paying nothing as did at least 15 others. Media, from Hollywood to your iPad has served her corporate masters well as it seems as long as we can buy more stuff, never mind if it's made in China and sold at Wal-Mart, everything is better than before. Amazingly, with all of the propaganda their exposed to, when asked about income distribution, Americans tend to think they live in Sweden, wish they lived in a Socialist utopia but in fact live in Turkmenistan or the Uganda. No offense Turkmen and Ugandans.

American workers' have seen their number of hours worked per week rise along with their productivity which magically seems to grow corporate profits but not median salaries. They put in an average of 122 more hours per year than Brits, 137 hours more than Japanese workers and 378 hours (nearly 10 weeks!) more than Germans. It's the only country besides Papua New Guinea, Sierra Leone, Liberia, Samoa, and Swaziland that doesn't legislate paid time off for new moms and the only country in the OECD where a right to weekends off and paid vacation time isn't guaranteed. The only explanation of satisfaction for those living in a country where income mobility is falling and people get excited when McDonald's is hiring is some weird twisted ur-myth of Ben Franklin-Horatio Alger-Henry Ford where through hard work one can attain the American Dream and become rich and successful. To get ahead though, a 70-hour work week has become the new standard. I've got news for anyone who doesn't realize the economic catastophe of the past few years will make it easier for employers to demand more while giving less. Is there any wonder why illegal drug use is at a decade high and prescription drug abuse has surged 400% in a decade while mental illness has skyrocketed?

Reality doesn't hit most until they're one of the 50 million Americans without health insurance and they get sick in a country that spends the most for health care (about double) for less than average results. They don't care until joining the 25.3 million Americans out of work, forced to work part-time, unable to find a full-time job or have given up searching for a job in the past month. Giving up is easy when they realize there is one job for every 4.5 job seekers. If you're wondering where the jobs are check out the chart to the right. By avoiding the responsibilities of taxes that mere people are required to pay and squeezing ever higher productivity out of workers while firing domestically and hiring elsewhere, American corporations are sitting pretty while workers only defense in the past, unions, are losing more and more power. In fact, the ratio of corporate profits to wages is now higher than any time since before the Great Depression. Apple, Exxon and Goldman Sachs don't exist to make our lives better in the crony capitalism that we've allowed to develop, in fact they seem a lot better at making them worse - just like the economy is going to get on our present course, hello double dip, er, recession I mean! Will it take a Robespierre to rally the retards or will enough people simply pitching tents on Wall Street September 17th to let the banksters know the other 99% are suffering? Either way, I'd say let capitalism make you rich and invest in a good, solid guillotine maker.



More suggested reading and doing:
Can the Middle Class be Saved?
The Rise of the New Global Elite
Of the 1%, By the 1%, For the 1%
Occupy Wall Street September 17th
US Uncut
Great charts and graphs here and here

Wednesday, August 31, 2011

A Keystone XL Rube Goldberg Machine

Not so long ago it seemed like the world had woken up to the fact that perpetual growth powered by finite resources on a finite planet was impossible. People spoke of a transition to a green economy in which little bunnies would frolic among solar collector panels while soaring birds would circle wind turbines. Gas prices were skyrocketing, people were talking about peak oil and it was clear that we were inviting ecological, social and economic disaster by continuing our energy policy. No, I'm not talking about this summer or last year, that was 1970 and a conservative into conservation was in the White House - Richard Nixon. He brought the Environmental Protection Agency into existence and along with it a raft of legislation to protect the air, water and land. Well, here we are forty years later facing the same problems again and an American president who promised his election would bring "the moment when the rise of the oceans will begin to slow and the planet will begin to heal..." on the verge of completing our suicidal Rube Goldberg Machine and signing our death sentence by allowing a project which Jim Hansen of NASA, the world's foremost climate scientist, said is "essentially game over" for our planet.

What, you still haven't looked up Rube Goldberg? First, it's known as Heath Robinson in the UK. Still not there? Did you ever play the game Mouse Trap when you were a kid? Too old school? How about The Incredible Machines? Still too '90s? Ok, well maybe you've seen this video:



That's a Rube Goldberg Machine, a a deliberately over-engineered machine that performs a very simple task in a very complex fashion, usually including a chain reaction. With a little imagination it's not hard to see the world's dependence on oil as one giant Rube Goldberg machine whose aim optimistically is to burden us financially for the benefit of a few oil companies, pessimistically to catalyze the burning of the planet. Many had hoped that we'd either save ourselves by developing a new technology to replace oil or that it would simply run out, so called Peak Oil. Our machine is so deviously complex that it even works against both solutions. Despite the enormous wealth oil has created for a few companies (ExxonMobil, BP, ConocoPhillips, Chevron, and Shell made $35 billion in profit in the first quarter this year), our governments still give them massive tax breaks (more than $4 billion for that previous group of five from Uncle Sam) and allow them to write the legislation (see Dick Cheney's 2005 energy bill and it's Haliburton Loophole) to keep producing oil and gas thanks to the political influence they can buy in our corpocracy. Worse, instead of technology setting us free, it's further enslaved us in recent years making deep sea drilling, hydraulic fracturing and tar sand extraction feasible and profitable. The games been rigged and the trigger is about to be pulled.

When President Obama got back from vacation at Martha's Vineyard last weekend I wonder if he even saw the hundreds of people in front of the gates waiting to be arrested. A couple of thousand people signed up to be arrested for sitting, singing and holding signs protesting against TransCanada's plans to build the Keystone XL oil pipeline. Once you get past the 'huh, they can be arrested for that?' moment (you know, it would be embarrassing if the tourist saw them or worse, they could be terrorists) one naturally wonders what could drive people to such an extreme. The answer lies in northern Alberta, the source of the pipelines payload. See, Alberta's oil isn't the conventional kind, it's even got it's own name, tar sands, or if you prefer, oil sands, which is actually vast deposits of bitumen - black, tarlike goo that is mixed with sand, clay, water and oil. There are approximately 2.5 trillion barrels of the stuff, the largest hydrocarbon deposits in the world and in terms of recoverable oil, the 2nd biggest in the world outside of Saudi Arabia. The problem is and has always been turning this crud into crude.

The view over Mordor, er, near Fort McMurray
Unsurprisingly, it was Obama's predecessor(s) who made it all possible. When Dubya's handlers were scouting international locations for him to begin reaping the rewards of his presidential legacy - giving speeches for cash - they found their options to be rather limited thanks to the international crimes he had committed. Fortunately for them, there was one place in the world sure to welcome him being much like Dubya's home state it was more Texas than Texas and all- Alberta, Canada. So, instead of being arrested by the ICC as he disembarked from the plane in Calgary, he only had to deal with a few protestors on his way to a $4,000/plate speech. Yes, Alberta, home of pickup trucks with shotgun racks and oil. Lots and lots of oil. It's been said that the only winner of the invasion of Iraq was Alberta as it played a part in the machine, helping push the price of oil into the triple digits and thus turning Alberta's biggest natural resource from a perennial money loser into the next big thing.

You see, strip mining the world's largest boreal forest for oil ain't cheap, environmentally or financially. It's kinda like ripping out your lungs while filling your chest with smoke. Loading the world's largest trucks with crud, moving it, heating it with natural gas (28 cubic metres or 1000 cubic feet of natural gas to produce one barrel of oil), mixing with 2.5 to 4 barrels of water, storing the toxic waste in tailing ponds big enough to be seen from space and finally transporting it costs money. With the price of oil stuck around $20/barrel (as low as $12 in 1998/99) it didn't make economic sense for oil companies to do the dirty work, so the government did. For decades the people of Alberta made up the loss in subsidies. A habit they still haven't seemed to shake despite the turnaround, giving more in subsidies to tar sands producers than the entire Environment Canada budget.

Higher oil prices have indeed led to an R&D extravaganza along with profits, but it is squarely focused on figuring out how to get the dirtiest possible oil out of the hardest-to-reach places. Shell, for instance, is working on a "novel thermal recovery process", embedding large electric heaters in the deposits and literally cooking the earth. Thanks to war and insatiable usage, the surge in oil prices allowed the United States Energy Information Administration to "discover" oil in the tar sands. It announced that Alberta - previously thought to have only 5 billion barrels of oil - was actually sitting on at least 174 billion "economically recoverable" barrels. The next year, Canada overtook Saudi Arabia as the leading provider of foreign oil to the United States. Iraq's oil boom wasn't delayed; it was relocated. There is a certain irony there: The United States invaded Iraq at least in part to secure access to its oil. Now, thanks partly to economic blowback from that disastrous decision, it has found the "security" it was looking for right next door.

Click to enlarge
So thank dog it's not Dubya sitting in the Oval Office deciding whether or not to allow the Keystone XL pipeline to cross the border and deliver oil all the way to the Gulf of Mexico via Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas. Nebraska's Sand Hills, the Yellowstone River and the Ogallala Aquifer, an underground reservoir that supplies two million Americans in the Midwest with water all lie along the path. Especially when the precursor pipeline suffered a dozen leaks in the past year would mean that a larger one in which 1.3 million barrels of bitumen with dozens of poisons needed to act as lubricants is forced at high pressure over 1,711 miles (over 2,750 kms) is bound to suffer a major leak sometime. Or wait, maybe it's the knowledge that it doesn't matter who's sleeping at 1600 Pennsylvania Avenue that so many people are willing to face arrest to raise awareness of what is being done to us. Faced with a financial crisis caused by too big to fail banks, greed, corruption and out of control inequality, Obama chose to bail out the very same banks and extend the Bush tax cuts which incentivized the greed and blew open the gap between rich and poor. Faced with an out of control health care system which delivers worse results for way more money than any other OECD country, Obama chose to reward the insurance industry that lead to the problems of exclusion and cost. A winning Rube Goldberg Machine takes delicate planning to put everything in place. The oil industry gets preferential access to Canadian Prime Minister Harper, together they lobby against the Europeans banning tar sands to protect the dirty fuel's clean image and a former ambassador to the US gets dispatched to lobby in Washington fueled by the petrodollars at the disposal of Exxon and BP and finding familiar nameplates in the very corridors tasked with shaping the laws and regulations for the industry. No one was surprised to hear Hillary Clinton comment that she was inclined to approve the pipeline months before the State Department or the EPA had even compiled a report. Even less surprisingly, the State Department has since given the KXL project green lights, while receiving red from watchdogs, in all their flawed reports to date.

Tar Sands. Hydraulic Fracturing (Fracking). Deep Sea and Arctic Drilling. Mountaintop Removal (MTR). Nuclear Energy. It seems so counter-intuitive when we know the dangers behind each but these are the energy sources that America and the world are turning to when we have alternatives. The oil companies simply play their spin machine to keep us addicted to their crack. Fracking is poisoning watersheds and water tables across America, it's been documented, we've been warned but it'll keep being done and move to to Europe, including the UK with the same dearth of regulation and even here to Poland. The technology that goes into drilling for oil thousands of feet below the sea is impressive so nothing could ever go wrong like it did in the Gulf of Mexico until it did, disastrously with BP last summer. Or just a few weeks ago for Shell in the North Sea and, gosh, ruining their reputation! Following the Gulf of Mexico disaster, Obama gave the OK to expand drilling over 20 million acres in the Gulf and soon probably in the Arctic Ocean. Remember how hard it was to stop the Gulf spill? Now imagine the remote Arctic. But, but, the technology! Let's not even speak of the horrors of blowing the tops off mountains to get at ever more inaccessible coal. We learned the lesson of Fukishima too, right? The Germans may have but not America and certainly not China. Holy shit, thanks again Wikileaks.



If you read the wrong newspapers or watch nearly any TV (really, people still do) the oil companies myth making machines will be screaming about the jobs these projects while using numbers made up by the industry to create while presenting a false choice between the economy and the environment. Even if true the reality runs something like this - we (as in us, it's our planet) grant oil, coal and nuclear companies access to our land for a minimum fee, while providing them with subsidies and tax incentives so that they can make billions in profit today and we have to pay with our health, lives and cash thanks to the damage that they leave behind. Yeah, sounds fair, kinda like the banking industry. There are better, safer, sustainable ways to spend $7 billion. I'll bet you didn't know that America is actually a $1.9 billion net exporter of solar energy products. I'd say the big problem is that it's not the right people making or saving the money the money when alternative energy is used. BP and Exxon can charge us for the oil for as long as we need it but they can't charge us for the sun and wind.

The Real Slippery Slope
There'll also be the banshee screams of those claiming that oil from Alberta is more ethical than that from places such as Saudi Arabia, Nigeria or Venezuela, countries that are potentially unstable or hostile. Um, yeah, Canadian's farts don't smell either. And the most childish (see what I did there?) spin of all, finger pointing, the old "if we don't do it, someone else will". This one's trumpeted over and over with the tar sands, that if the US doesn't get it, then the Chinese will. The Chinese! Wrong. A devastating new report from Oil Change International shows that Keystone XL will not only allow oil companies to exploit big domestic (read US the biggest kind) tax loopholes but also send most of its oil to export. USA! USA! Not only do you get all the risk of spills but you won't even get taxes to help pay for it. Anyway, a pipeline to the Pacific will be fought in the courts by native tribes and the people of the BC will fight any plan to fill tankers with the gunk off their coast. At the very least it will staunch the flow, time will be bought, time to build alternative energy sources. Fort McMurray, Alberta is a long way from anywhere so killing this pipeline turns the tar sands into a landlocked bomb instead of a nuclear submarine. Tar sand production is set to triple by 2020, stopping this pipeline throws a wrench into those plans. As an oil company economist and vice-president said, "Unless we get increased market access, like with Keystone XL, we’re going to be stuck". Alberta’s Energy Minister, Ron Liepert added "If there was something that kept me up at night, it would be the fear that before too long we’re going to be landlocked in bitumen...We’re not going to be an energy superpower if we can’t get the oil out of Alberta." Exactly.

Back to Richard Nixon. He wasn't really more progressive than Obama when it comes to the environment. It took 20 million people out in the streets for Earth Day in 1970 to get him to finally act. Yes, people power forced him to sign the bills that established the EPA and the landmark Clean Air Act then in 1972 Nixon signed the Coastal Zone Management Act; the Ocean Dumping Act; the Marine Mammal Protection Act; the Federal Insecticide, Fungide, Rodenticide Act; and the Toxic Substances Control Act. Nixon's term also saw passage of the Endangered Species Act in 1973 and the Safe Drinking Water Act in 1974. Somehow we've allowed ourselves to be sent back to the 70's while becoming so apathetic that only a handful are forced to try to defuse the largest carbon bomb on the planet.

Look, I'm not here to try to convince you that climate change is happening. It is, regardless of what your chosen means of indoctrination tell you. Of course this doesn't mean we're causing it regardless of what most climate scientists are telling us. I get it, there's no way to prove it despite the overwhelming evidence. The fact is we might be and whether or not you think volcanoes contribute more CO2 to the atmosphere than human activity (they don't) or that stolen emails showed that scientists manipulated data (they didn't) or that only an benign deity can influence the planet (he/she/it doesn't), carbon dioxide concentration in the atmosphere is steadily climbing. So, as we approach seven billion inhabitants we're allowing the powers that be dictate our continued addiction to oil which will get harder and more dangerous to retrieve. Simultaneously, tar sands not only uses vast amounts of fresh water, it poisons it as part of the production process and carries an elevated risk of contaminating more in transportation. War is a natural consequence of shortages in either oil or water and now we've also learned that it also occurs thanks to warmer weather associated with El Nino. Hmmm, not good if the planet is indeed heating up. Oh, yeah, all part of the Rube Goldberg suicide machine. Tar Sands production is set to triple by 2020 while producing more CO2 than conventional oil both in production and ultimate use, you know, when you burn it in your Godcar going down to Wal-Mart. As most emissions come from burning it, the industry tries to spout figures comparing "well to wheels" (about 15% higher) instead of the more damning "well to tank" figure (up to 300% higher).

To stop it we need a change, not just in energy production, transportation and exploitation, but in our way of thinking, behaving and advancing. Regardless, you don't have to believe in climate change, anthropogenic or not, to believe in the increasing cancer rates caused around Fort Chipewyan by tar sands extraction and the destruction wreaked by the run off of arsenic, lead and mercury into the Athabasca River flowing into and thus endangering the Peace-Athabasca Delta. More than just mutant fish I'm afraid. Alberta won't stop it, decades of pro tar sands cheerleading have ensured the population is completely misinformed by what was just recently revealed to be pure propaganda as a federal report released in December accused the authorities of not having anywhere near the proper monitoring and controls in place.

To be fair, as the Economist pointed out, the report also indicated that environmentalist's claims that the tar sands are the "most environmentally destructive project on Earth" were "not accurate". Via the Globe and Mail on the same report, it "notes that scientific data shows air pollution is minimal, water pollution a potential concern but is having no immediate impact, that there's no correlation between oil sands pollution and an elevated cancer rate in Fort Chipewyan". All this of course without saying what is more destructive or much data thanks to the lack of monitoring. You might remember the preferred method of regulation and oversight in the Alberta oil industry from the financial industry a couple years ago. Ironically, the one man who can bring a change is the same who promised he'd bring it a few years ago, Barack Obama. As it crosses an international border, Obama and no one else gets to decide if the construction of the Keystone XL pipeline to carry oil from the tar sands of northern Alberta to the Gulf of Mexico goes forward or not.
View of the Athabasca-Peace Delta
There's a lot of things that I just can't seem to wrap my head around. There are Christians who profess to follow the teachings of the world's most famous socialist, Jesus Christ, yet whose true system of belief is based on a greed that makes them believe the best way to allocate scarce resources is a corrupt, oligarchical system they call the free market or capitalism. Haven't they even read the bible? Don't they even listen to the pope? Even sillier are those who believe in a democracy in which two (or maybe even three) corporate financed and thus controlled parties conspire to determine who maybe half of the population will choose between. America is of course where economics, politics and religion meet head on. It's the only place in the world where batshit crazy wackos such as Michele Bachmann and Rick Perry could be considered for the presidency. Thanks to folks like them monopolizing the media, the tandem of natural disasters that hit Washington DC in the last couple of weeks are more likely to be seen as acts of god warning the American people to cut spending in the words of Bachmann (please, don't look into her eyes) than independent events. Perry can extol the wonders of Texas schools teaching creationism alongside evolution to children in a land where most of the population believes that a bearded man in the sky created the Earth in six days around 6,000 years ago to once again drown out the lesson that could be learned of preparation and conservation by screaming like the monkeys they really evolved from.

Ah, Rube Goldberg again, keep the people stupid, feed them garbage and keep degrading the science that tells us that our actions aren't necessarily creating the climate but almost definitely making it worse. How else could Americans not connect the dots from April, when a series of killer tornadoes tore up the South to May, when floods ravaged the entire Mississippi River basin, through July, when killer heat waves seared the Midwest and Northeast to August, when Texas officially passed its worst one-year drought on record and finally to the warmer ocean pulling Hurrican Irene northward last weekend? The same way as last year. And the previous decade. By framing the issue with their media cohorts by asking the wrong question - "What caused these events?" - instead of "What's making them worse?". Despite 595 people (and counting) - from regular folks from Nebraska to event organizer and 350.org founder Bill McKibben and Daryl Hannah - being arrested in front of his bedroom, it's clear the Faux sound machine and the petro-interests have made sure President Obama has heard the wrong question on this issue as they have on all the others. We're this close to getting him to hear the message but there's only a few more days in Washington (then September 26th in Ottawa) so stand up, sit down, sign up, help out and call out the right answer to the right question - US!

Additional links (cause you can just never have enough!):
- Stop the Pipeline!
- "Tipping Point: The Age of the Oil Sands" (only available in Canada)
- Top 10 Tar Sands Facts
- Is There a Cancer Threat from the Oil Sands Industry?
- Slow Motion Oil Spill
- Ten Years After 9/11 - Canada's True Cost of Oil (great pics)

Saturday, August 13, 2011

Blindness


Last week London was hit by mindless violence, so mindless it spread to Liverpool, Leeds and Birmingham. Amazingly, the social safety net led to this by both existing and being torn apart. Daily Mail readers (US translation: Faux News watchers) have and will continue to read stories increasing their fear of the feral youths, part of an evil socialist experiment breeding a violent underclass with government handouts. Meanwhile, liberal hearted Guardian readers (MSNBC in the USA I guess?), those who are worried about the impact of fiscal austerity on vulnerable communities, will find material online that confirms their world-view. Most importantly though, thanks to mother media (sure is great to be back from vacation and in her loving arms - not!), we'll all know for certain that the riots were completely unpredictable and the only way to deal with them is to further increase the police state and take away more personal liberties. Outlawing masks? Lucky there's no Halloween I guess.

Before we forget, the spark that set off the riots was the police shooting of Mark Duggan. Of course police brutality couldn't ever lead to trouble in a civilized society.



Rodney King anyone? Can't we all just get along? Innocent bystanders are never victims either like good old Reginald Denny. Nothing but a random blast from the past.

In a city like London - where at least 333 people have died in police custody since 1998 and not a single officer has been convicted - we're not even allowed to bring up how racial profiling could have been a factor in the undercurrent of rage. It's unimaginable that in the most unequal city in the developed world, where fleets of Rolls Royces ferry oligarchs, tycoons and oil sheiks by them everyday, a mob of youths could flaunt the law in a bid for a piece of faux-luxury, from plasma TVs to fast fashion. A rioter wouldn't say "Why are you going to miss the opportunity to get free stuff that's worth loads of money?" as he knows that the looting of a store isn't tolerated but the looting of the entire economy is rewarded with bailouts, golden parachutes and sky-high financial-sector salaries? It's not like one thing we know about riots is that they are underpinned by perceptions of illegitimacy of authority. Being from a place where upward mobility depends not just on having gone to a handful of top schools (Oxford, Cambridge, LSE), but on having the right accent, postcode, and background they should know to just stand by while the super rich get super richer and the rest hope to tread water. If we questioned any of this we wouldn't be trying to look for solutions, we'd be condoning the violence. Almost makes you wonder why this clip was only aired once on the BBC?



Back to Mark Duggan for a moment. He's been variously described as a hardened gangster and drug dealer or a loving family man, again depending on where you choose to get your propaganda. The media would never use this to distract us from what's important as we know neither love nor drug policies ever lead to violence. I wonder if many of the areas involved in the riots contain strong gang elements which are the product of silly drug laws in the UK which enrich criminal gangs.

No, probably not, after all, thanks to the media we're always well informed and therefore made all the safer. Live conversation between an ITV reporter and a young London rioter:
ITV Reporter: Is rioting the correct way to express your discontent?
Young Londoner: You wouldn't be talking to me now if we didn't riot, would you?
ITV Reporter: ...
Young Londoner: Two months ago we marched to Scotland Yard, more than 2,000 of us, all blacks, and it was peaceful and calm and you know what? Not a word in the press. Last night a bit of rioting and looting and look around you.

It would be blasphemous to suggest there are better ways to spend millions of pounds than on a royal wedding in the middle of an economic downturn that has brought about austerity measures. Sounds a bit like 1981, but no, there aren't any other parallels. The Conservative, cost-cutting government of that time was led by a monster named Thatcher while this Conservative led ConDem, cost-cutting government is led by a two-headed monster called CamClegg. That wedding was between a prince named Charles and a commoner named Diana; this one paired their kid Willie and girl named Kate, a, well, commoner with a hotter sister. The UK riots that took place in that summer of 1981 centered in Brixton and race played a major part. Thirty years later, the riots didn't happen until well into the summer and only some of the problems were in Brixton, and we've already established that race had nothing to do with it, right? Patterns, smatterns, this stuff is unpredictable and needs a heavy hand; after all people can even see patterns in the burning of toast or Wal-Mart receipts that prove their belief in 2000 year old fairy tales.



What about that whole austerity thing? Spending cuts couldn't have been a factor causing riot-like problems, could they? If only there was some proof that they do. If cuts caused the problems they do, the government would avoid them by not throwing billions away in faraway lands such as Iraq and Afghanistan. Hundreds of millions to bomb Libya for not honoring oil deals signed with BP on the heals of releasing a convicted terrorist who may have had something to do with the Lockerbie bombing. No, it would be Marxist propaganda to say that economic reality could be a driver of social upheaval. To say that the problems of youth unemployment, cuts in services for young people, the shockingly bad state education in poor areas, the shortage of council-built or affordable housing along with the startling growth in inequality as social mobility has fallen off the cliff over the past thirty years had anything to do with the UK riots would be saying that the rioters had a preconceived political agenda for their actions.

It would be idiotic to notice that the youth of the world seem to be organizing around the idea that they are the ones who will pay the price for the failures of crony capitalism. No, it's just an isolated cloudburst over Camden Lock not a superstorm spreading from Tahrir Square to Syntagma Square to Puerta del Sol (lucky I got outta Spain before pope B-16 got there, too bad the people have to pay for it). Since each example is very different from the others we can ignore the similarities, the lost generation of youths, close our eyes and not make connections with what is happening in Chile, Spain, Greece and even across the north Africa and the Middle East from Tunisia to Israel.

Of course it's silly to try to link events happening half a world away. Fortunately there hadn't been any disturbances in the UK itself that could have given some clue to the underlying tension. It would be even easier to make a connection if they had anything to do with making it harder for the youths to improve their future. No, the student protests that followed the tripling of tuition fees just last November were merely disturbances in which opportunistic vandals splashed some paint on Prince Charles' Rolls-Royce. It wasn't a reminder how governments can afford to bail out banks but the cost of education is somehow beyond their reach creating a system that will see student's loan burdens double between this year and next. Somehow, everywhere you look in this system, the general premise is to keep you indebted and under constant financial pressure just to have a marginally comfortable life. If only nearly a half million people had marched this March to demonstrate their displeasure with funding cuts that finance the tax breaks of some of the very corporations who saw their stores smashed last week, maybe we could have known something was up and done something about it. Funny we haven't heard about Nick Clegg's Nostradamus-like prediction way back even before the election. He's probably just hoping no one brings up his youthful dalliance with arson. Oops, too late.



Instead, we'll let the media paint a picture the plutocrats want us to see, a blurry canvas of racism with stacatto streaks of mindlessness and capricious dabs of unpredictability. As in the aftermath of the 2005 Banlieue uprising in France, this will facilitate the continued drift toward authoritarianism. In somewhat similar circumstances the political right was the major beneficiary as Super Sarkozy's rise from interior minister to president owed a great deal to his role in expressing the anxious aggression of a mass constituency that lived far away from the burning cars and public buildings. In the UK it may help the BNP or even Cameron's Conservative coalition if he can just get tough enough, further entrenching the police state. New powers will be bestowed on our benevolent protectors and personal freedoms will be further eroded.

This seems to be the pattern of problem solving in the 21st century, the implementation of policies that further exacerbate the completely unexpected problem. No one could have foreseen an event like 9/11 coming, not with the continued occupation of Palestine, the bombing of the same ill-fated towers in 1993, the 1998 embassy bombings in Kenya and Tanzania, the USS Cole bombing in 2000 and the CIA being ordered not to kill bin Laden ten times before the Twin Towers were taken out. Instead of examining the lead up and looking for cures, the remedy was to make the problem worse by bombing Afghan villagers and imposing a democratic government on Iraq by killing a million people. Presto, more hatred and terrorism.

The financial crisis of 2008? Completely blindsided almost every economist as the explosion in soon-to-be-toxic triple-A securities created to feed the furnace of the perpetual growth fantasy was hard to notice. Unless you looked. The solution? You guessed it. The debts of banks that were too-big-to-fail were passed onto states that are too-big-to-bail facilitating further consolidation of the financial monoliths. The credit rating agencies such as S&P who gave the triple-A ratings to the sliced and diced derivatives for a fee have gone from mere service providers to policy dictators(and not just for PIIGS anymore, America too! Debt has been piled onto debt in order to solve a debt crisis. Executive pay tied to short term results has returned and even surpassed insane pre-crisis levels. Corporations and the rich who were the beneficiaries of deregulation and tax cuts have been donned as our job creators and saviours while hoarding trillions in cash from record profits thanks to being granted interest free loans, extensions on tax cuts and the magic of quantitative easing. Oh, and there's promises for more.



So there is no single meaning in what happened last week in London and elsewhere. Sure, it was more Harrod's Boxing Day than Paris '68 but there are connections that we can make, that we should make, that we need to make. Much is the consequence of decisions made by governments and there is little hope of rapid improvement. The same politicians now denouncing the mindless violence of the mob all supported a system of political economy that was as unstable as it was pernicious. They should have known that their policies would lead to disaster. They didn't know. Who then is more mindless?

Let's assume that the Ruling Class was taken by surprise by these events. This presupposes ignorance of the fact that austerity regimes and slave wage capitalism ultimately lead to demonstrations, strikes, riots and revolutions. I would argue that they know perfectly well what they are doing. Rebellions like this one are not simply a cost of doing business as usual they are, in fact, opportunities to further impose their will on the populace as the media minions stoke calls for more draconian measures and police powers. There will be finger pointing and hand wringing by the so-called left but the program will move forward. We are trapped by the late-stage decadence Marx predicted as we have finally created a crisis that seems to have no solution. A succession of treatments have caused side-effects we would know to avoid by opening our eyes and reading the label. The symptoms will get worse if we don't scream the solution in unison - yes, revolution. More likely though, we'll all go back to being happy again with plenty of nothing.

Thursday, June 9, 2011

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 Geraรงรฃo ร  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 Jรณhanna Sigurรฐardรณttir), 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?