International support for the students and faculty at UC Davis that shut down the US Bank branch on campus:

Sometime in July, in a court in Yolo County, California, eleven students and one professor at the University of California Davis will stand trial, accused of the willful and malicious act of protesting peacefully in front of a bank branch situated on their University campus.

There has been in recent months a great deal of online coverage of the brutality of public order policing at Davis. The treatment of the Davis Dozen, however, promises more longstanding injury. If found guilty, each faces charges of up to eleven years in prison and $1 million in fines.

The immediate history of the case stretches back to autumn 2008, when state budget cuts trickled down to the partly state-funded University of California. The administration of that University responded by announcing that tuition fees would be increased by 32%, prompting several months of vocal student protests and campus occupations, violently suppressed by the state authorities.

As the collapse of the US banking sector caused the State of California to withdraw its funding for its public Universities, those same Universities turned to the banking sector for financial support. On 3 November 2009, just two weeks before riot police would end a student occupation at UC Berkeley by firing rubber bullets and tear gas at the students and faculty gathered outside, the University of California Davis announced on its website a new deal with US Bank, the high street banking division of U.S Bancor, the fifth largest commercial bank in the United States.

According to the terms of that deal, US Bank would provide UC Davis with a campus branch and a variable revenue stream, to be determined by the University's success in urging its own students to sign up for US Bank accounts. In return UC Davis would print US Bank logos on all student ID cards, which from 2010 would be convertible into ATM cards attached to US Bank accounts. Just at the moment when, on the campus of UC Berkeley, riot police were beating up and shooting students who protested against austerity, fee increases, and their handmaiden, debt, the management of UC Davis was selling the debt of its own students to U.S. Bancor, the corporate beneficiary of austerity.

The poet and critic Joshua Clover, who has written extensively on those police actions, is among the twelve who sat down in front of the Davis branch of US Bank in protest, and who now faces the prospect of sitting in a cell in the Monroe County Detention Center until 2024, has argued that the rise in tuition and indebtedness simply is the militarization of campus. These processes, Clover says, are one and the same. The claim concerning police violence will not seem exaggerated to anyone who has watched the videos on You Tube of the police action at Davis.

The sit-down protests outside the UC Davis Branch of US Bank, in which the UC Davis Dozen were only a few of many participants, were not only peaceful; they were, in effect, the active demilitarization of campus. Their point was to make explicit the connection between corporate banking, state austerity and an increasingly militaristic police presence in universities.

US Bank closed its branch in the UC Davis Memorial Union Building in March. The sit-down protests were a success. That such effective protest cannot be tolerated is evident from the response of the University administration and the Yolo County District Attorney. The charges against the Davis Dozen have a notable history of service: Obstructing movement in a public place was an indictment invented to criminalise homelessness in Alabama. The Davis Dozen are to learn – on behalf of everyone affected by austerity – that protest against the conditions which lead to homelessness is criminalised by the same legislation that makes homelessness illegal. For the bankers, millionaire University administrators and state functionaries for whom revenue is to be maximised no matter what the cost to the people they serve, this paradox is no paradox at all.

We are grateful to the Davis Dozen for the example of principled and eloquent bravery in response to intolerable extensions of police and corporate power at a time when the poorest are being deterred from university study by the prospect of unmanageable debt. We, internationally located artists, critics, and writers, ask that the Davis Dozen be acquitted of these extraordinarily severe and ignoble charges, to which they have courageously pleaded not guilty.

Signed:

Dr. David Nowell-Smith, Université Paris VII - Denis Diderot, Prof. Robert Hampson, Royal Holloway, Dr. Daniele Pantano, Edge Hill University, Olivier Brossard, Maître de conférences, littérature américaine, Université Paris Est-Marne la Vallée, David Gorin Jean-Jacques Pouce, Fellow, Internationales Kolleg Morphomata, Genese, Dynamik, Medialität kultureller Figurationen, Daisy Fried Abigail Lang, Maître de conférences (Associate Professor), Université Paris-Diderot, Paris, Michelle Levy Schulz Dominique Pasqualini, Directeur de l'école EMA Fructidor (School of media and fine arts, Director), Chalon-sur-Saône, Sean Bonney, Marianne Morris, poet, UC Falmouth, Keston Sutherland, Reader in English, University of Sussex, Orlando Reade, University of Cambridge Binh Nguyen, San Diego, CA, Janet Holmes, Boise State University B, arry Schwabsky, art critic, The Nation, Robert Kiely, Birkbeck College Kent Johnson John Wilkinson, poet, Professor of Practice in the Arts, University of Chicago Alvin D. Greenberg, Boise State University Dr. Alberto Toscano, Department of Sociology, Goldsmiths Stacy Blint, Disappearing Books Katy Balma, Fulbright Fellow and Teaching Assistant, University of Connecticut Wendy Battin, poet and essayist David Lau, Lana Turner Magazine Nick-e Melville, poet and lecturer at Motherwell College, Scotland Peter Phillpott, Great Works, modernpoetry.org.uk Patrick Pritchett, Lecturer, History and Literature, Harvard University Robert Archembeau, Professor of English, Lake Forest College (Illinois) Rob Holloway, Joseph Kaplan, Dr. Jeffrey Pethybridge, Susquehanna University Dr. Don Stinson, Northern Oklahoma College George Cunningham, Hansa Arts Joseph Walton Hugh McDonnell, University of Amsterdam Megan Kaminski, Creative Writing Lecturer, University of Kansas Jose A. Alcantara K.E Allen, Lecturer in English, Comprehensive Studies Program, University of Michigan Allan Peterson, Gulf Breeze, FL Siobain Walker Dr. Nina Power, Senior Lecturer in Philosophy, University of Roehampton Francesca Lisette Caitlin Doherty, University of Cambridge Frances Richard, Barnard College Ryan Dobran, University of Cambridge Dr. Cathy Wagner, Miami University, OH John Bloomberg-Rissman, University of California, Riverside Carla Harryman, Associate Professor of Literature, Eastern Michigan University Robert Ellen Joel Duncan, University of Notre Dame Jared Schickling, Adjunct Professor, Humanities Division, Niagara Count Community College Dr. Ian Patterson, Fellow, Tutor, Director of Studies in English, Queens' College, University of Cambridge Dr. Lisa Samuels, Associate Professor, University of Auckland, New Zealand Ian Heames, University od Cambridge Prof. Alex Davis, University College Cork John Temple Jonathan B. Highfield Dr. Jennifer Cooke, Lecturer in English, Loughborough University Dr. Zoe Skoulding, Bangor University Kashka Georgeson David Grundy, University of Cambridge Luke McMullan Josh Robison, University of Cambridge Josh Stanley, Phd Student, Yale University Luke Roberts, Phd candidate, University of Cambridge Gareth Durasow.

Labels: Bailout of Finance Capitalists, California, Education, Neoliberalism, Sacramento

I'm the guy in the blue shirt and charcoal pants, holding my tea from the family operated Fluid on N Street. The introduction states that the liberals and the passives drifted away from the march after awhile, which is sort of true, but in my experience, the number of people involved in most marches tends to dwindle unless there is pre-determined destination for a rally, which was not the case in this instance. Furthermore, I'm not sure whether many of the participants would have called themselves liberals, and I doubt whether the term explains very much anymore. For example, in addition to the apparent union activists I observed, I spoke to one woman who was canvassing for the Peace and Freedom Party, while another one was trying to generate interest in a new, fledgingly International Socialist Organization chapter in Sacramento. So, it may have been the result of march fatigue as much as it was displeasure with the confrontational behavior of the Bloc.

Hat tip to Pham Binh at The North Star.

Labels: Activism, Anarchism, Bailout of Finance Capitalists, Occupy Wall Street, Sacramento

Yesterday, I resisted my temptation to engage in activist tourism, and decided to stay in Sacramento for May Day, instead of traveling to Oakland. Oakland is a fine place, no doubt, one that fuses memories of my childhood in Georgia and my junior high and high school years in midtown Sacramento, but I thought it best to participate in a public May Day protest at home. I tend to believe that my presence means more politically at a small scale event than a large one.

Over the weekend, I had checked the indybay calendar for a Sacramento May Day activity, and discovered this one: Anti-Capitalist Contingent for Sacramento May Day . . . This a call out for all in the central valley who are: Anarchists, Socialists, Communists& Anti-Capitalists, radical Queers, Dikes, feminists etc to converge on Sacramento this May Day and take to the streets in a anti-Capitalist Bloc during the May day Rally and March . . . Now, that got my attention. There must have been previous Sacramento May Day actions of this kind, but I don't recall them. In any event, I was pleased that something was happening to the left of the local trade unions, something that centered May Day around an express condemnation of capitalism.

Crocker Park, across from the Crocker Museum, near the I Street Bridge, was the gathering place for people interested in going on the march. I arrived at about 11:30am, about 30 minutes before the scheduled beginning of the march. As I approached one corner of the park at 4th and O Street, I saw a masked Black Bloc contingent of about 8 or 9 people. I became apprehensive as I could not initially see anyone else around, and pondered the surrealism of a 51 year old, unmasked man, marching down the Capitol Mall with them. On the one hand, I wondered whether they would consider me an undercover police officer, while, on the other, I considered the probability of arrest by the uniformed ones across the street on their bikes. I remembered a 2003 protest against the Iraq War along L Street nearby, just south of the K Street Mall, where officers immediately seized a young man wearing a bandanna when he stepped off the sidewalk and chalked the universal anarchy symbol in the street. But, as I got closer to the intersection, I could see another 30 or 40 people in the small park itself, and my apprehension dissipated. Upon entering the park, I noticed that some apparent union activists were there, with one woman wearing a Justice for Janitors T-shirt, another one wearing a Union Summer/AFL-CIO T-shirt and a third one wearing the distinctive purple of the Service Employees International Union. I proceeded to talk to some people for awhile until the Bloc on the corner gathered their signs and flags, including one with a CNT epigram on it, and called for the march to begin.

Interestingly, as I broke off my conversation with a couple of people, a couple of women, and started walking towards the corner to leave, I noticed that they had stayed behind. I asked if they were going on the march, and they said "no". Only about half of the people in the park had come forward to go on the march. A couple of people in the Bloc noticed, and went over to induce the others to come along. They succeeded. Perhaps, it was necessary for someone in the Bloc to speak to them to make them comfortable enough to participate by establishing a human connection severed by the masks. Our first destination were the banks and white collar office buildings along the Capital Mall a block away.

As the light at the intersection turned from green to red, there was an immediate clash of protest cultures. The Bloc at the front of the march continued to move forward after crossing the street, while the rest of us, with that Swiss sort of conformity that so characterizes many of us in Sacramento, stopped for the red light. A minute or two later, when the march had come back together on the other side of the street, some of the Bloc gently chastised us, insisting that we stay together. Of course, they were right, as separation increases the prospects of arrest, with disregard for the commands of the state, even if communicated by a traffic light, being an essential, non-negotiable feature of Bloc protest.

We then proceeded down the Mall, protesting at one bank after another, Wells Fargo, Bank of the West, US Bank, Bank of America. As we approached each bank, we chanted No Borders, No Nations, No Private Corporations! Oddly, I had not heard this one before, and it strikes me as the most concise crystalization of what Occupy, or, for that matter, any social movement should express as an ideological vision. And, indeed, May Day events, especially those in New York City, Oakland and Los Angeles, emphasized the interrelationship between immigration, trade union struggle and our economic distress. The chant identifies the global coalition of the precarious, whether documented or not, that is emerging to challenge capital and placed our small protest squarely within this effort. I am, as most readers of this blog are aware, insistent that any left movement in the US embrace an internationalist, as opposed to a nationalist, perspective.

At each bank, we chanted the slogans that have become the signatures of Occupy, such as Banks Got Bailed Out, We Got Sold Out. We also chanted Strike! Strike! Strike! at every place where people were working. It is easy to ridicule this, about 40 to 50 people trying to encourage hundreds of people in buildings and along the streets to strike as they go about their business. But, I thought, people have to get the idea to resist somewhere, even if it appears implausible at the time. I recalled Clarence Thomas of the International Longshore and Warehouse Union saying before the November 2nd general strike in Oakland that it was a practice effort. In Sacramento, we are not even at the level of practice, but people did appear to be surprised, and maybe a few thought about what we did.

One of the most striking features of the march was the pragmatism displayed by the Bloc. We walked through red lights, and took over part of the street at times, but, when challenged by the police, we complied with their orders. My impression was that the Bloc had decided prior to the march that confrontation with the police was counterproductive. Bloc members would push boundaries, but not risk having anyone arrested. The cops were most insistent that we stay out of streets with light rail lines. It was evident that the police had been instructed to allow the march to proceed unimpeded if possible. There was little tension in the air. The Bloc contented itself with some hostile chants directed towards the cops, like the one that is now iconic, Fuck the Police, From Oakland to Greece! There were also a few encounters with private security, but here as well, the hostile comments towards them from some of the Bloc lacked the edge that one experiences in the Bay Area.

Surprisingly, we were even allowed to march through the open air shopping mall at the west end of the K Street Mall, Downtown Plaza. The police kept their distance as we shouted that the employees should strike. A private security guard gently ushered us along, with perfunctory exhortations that we needed to keep moving and not touch anything. There was little urgency to his effort because, as he kept telling us, the mall was half empty. Rumor has it that the owner, the Westfield Group, is desperately trying to sell it. Downtown Plaza has become a symbol of the malaise that has affected Sacramento since 2007. Shortly afterwards, the march, after a stop in front of the jail, concluded at the small daytime Occupy encampment by City Hall between 9th and 10th and I Streets. There are two or three tents there, and one of the members of the Bloc, now unmasked, said that he had been staying there since the occupation began. While others may be fairweather friends, the Sacramento manifestation of the Bloc is committed to the preservation of Occupy.

Labels: Activism, Anarchism, Bailout of Finance Capitalists, Occupy Wall Street, Sacramento

For updates, Twitter is the most current source of information, with links to livestreams and photographs. Go to hashtags #M1GS and #BayM1GS. The Guardian is also providing live updates as well. For a livestream and updates as to events in New York City, go here.

Labels: Activism, Bailout of Finance Capitalists, Neoliberalism, Occupy Wall Street

If you haven't heard, Dimitris Christoulas killed himself on Tuesday evening in protest of the policies of austerity that are brutalizing the people of Greece:

An elderly man who took his life outside the Greek parliament in Athens , in apparent desperation over his debts, has highlighted the human cost of an economic crisis that has not only brought the country to the brink financially, but also seen suicides soar.

As Greeks digested the news, with politicians clearly as shocked as society at large, mourners made their way to Syntagma square, where the retired pharmacist shot himself with a handgun.

The 77-year-old pensioner pulled the trigger as people were emerging from a nearby metro station in the morning rush hour. One witness told state TV that before shooting himself he had shouted, I'm leaving because I don't want to pass on my debts.

As the YouTube video report indicates, Christoulas isn't the only person who has recently killed themselves because of their personal and economic distress. In his handwritten statement, he concluded:

. . . . One day, I believe, the youth with no future will take up arms and hang the national traitors at Syntagma square, just like the Italians did with Mussolini in 1945 (at Milan’s Piazzale Loreto).

According to the Guardian:

A picture of the man who has come to embody the inequities of Greece's financial crisis has begun to emerge, with friends and neighbours shedding light on the life of the elderly pensioner who killed himself in Athens on Wednesday.

Named as Dimitris Christoulas by the Greek media, the retired pharmacist was described as decent, law-abiding, meticulous and dignified.

The 77-year-old had written in his one-page, three-paragraph suicide note that it would be better to have a decent end than be forced to scavenge in the rubbish to feed myself.

With his suicide he wanted to send a political message, Antonis Skarmoutsos, a friend and neighbour was quoted as saying in the mass-selling Ta Nea newspaper. He was deeply politicised but also enraged.

Until 1994 Christoulas was a local chemist in the central Athens neighbourhood of Ambelokipoi. A committed leftist, he was active in citizens' groups such as I won't pay, which started as a one-off protest against toll fees but quickly turned into an anti-austerity movement.

Christoulas planned his action so meticulously that he paid all of his debts in advance. Meanwhile, suicides continue to skyrocket in Greece, and so many children are going hungry that some of them are fainting in class:

The serious economic crisis that has gripped Greece for the last four years could have serious repercussions for even the youngest swathes of the population. The physical and psychological development of youngsters in the country is at risk because of malnutrition caused by poverty, and so, therefore is their very future. The alarm has been raised in a report on the situation of young people in Greece drafted by Unicef's Greek committee and by the University of Athens. The report, entitled The condition of youth in Greece, 2012 says that 439,000 children in the country are currently living below the poverty line - underfed and in insalubrious conditions - in families that represent 20.1% of Greek households

. . . . The report also cites a number of cases of children fainting in class because of malnutrition. These cases were given significant media coverage in December when the director of the Athens orphanage, Maria Iliopoulou, complained that around 200 cases of malnourished newborns had been registered in the space of a few weeks because their parents had been unable to feed them appropriately. Iliopoulou also claimed that teachers from schools close to her institution would queue up every day for a plate of food for their neediest pupils. In many schools in Athens the situation is even more dramatic, Iliopoulou said at the time, because some children have fainted from hunger in classrooms. The Ministry of Public Education, which initially dismissed the claims as propaganda, was forced to recognise the seriousness of the problem and subsequently decided to hand out to pupils from the poorest families meal vouchers with which to buy breakfast from the school canteen. The Unicef report ends with an estimate from the Ombudsman for children, who says that there are around 100,000 minors working in Greece to contribute to the meagre and often non-existent family budget.

No wonder Christoulas believed that the young are going to hang the politicians.

Hat tip to Louis Proyect, The Unrepentant Marxist.

Labels: Activism, Bailout of Finance Capitalists, Europe, Greece, Neoliberalism, Sub-Proletarianization of America

UPDATE 2: A first hand account from Oscar Reyes in Barcelona, posted at Red Pepper:

* Over 1,000 people joined the march from our neighbourhood (Sant Andreu) into town. It wasn’t the 'usual suspects'. It was the regulars of our local high street – where most shops were closed – transplanted onto Meridiana, a major six-lane road into the centre of Barcelona. The good-humored march was one of numerous feeder marches that helped to bring the city to a standstill. The unions report an 800,000-strong demonstration. El Pais puts it at over 275,000.

* It isn’t hard to find evidence of clashes in the centre of town. Barricades had been lit on many of the road junctions around Diagonal, a well-off shopping district. These are being cleared away by street sweepers. But it’s the details that are telling here: the bin lorries are each placarded with 'serveis minims' [minimum service]. Most of the banks have had their windows smashed. They are cordoned off, but there is no attempt at a clean up here.

UPDATE 1: From the Guardian:

Demonstrators brought the centres of Madrid, Barcelona and other cities to a standstill as trade unions claimed the strike was more widely supported than previous nationwide stoppages in 2010 and 2002. Rajoy's officials claimed, however, that the 2010 strike against a socialist government had received greater support.

Electricity consumption fell by 17%, suggesting the strike was impacting on major industries – though most shops appeared to be open in Madrid.

Street fires were set in both Madrid and Barcelona, where roads into the city were blocked, but there were few reports of serious violence.

The strike was most successful where Spain's big two unions, the General Workers Union and the Workers Commissions, are strongest – in large factories, the civil service and transport.

General Workers leader Cándido Méndez put average participation at midday at 77% but said that it was 97% in industry and construction.

This strike has been an unquestionable success, he said.

Civilized protest looked unlikely to alter the determination of the government to drive on with reforms and austerity.

INITIAL POST:

There was a general strike in Spain today to protest the austerity policies being imposed by the government and the European Union. The police in Barcelona have used rubber bullets and tear gas, with reports of people smashing shop windows. Meanwhile, there have been large protest marches in Madrid and Barcelona. For a Guardian video report of events in Barcelona today, go here. For a livestream broadcast from Barcelona through the Global Revolution website, with English subtitles, go here. For Twitter updates in Spanish and English, go to the #M29 hashtag. Other video sources can be found through Twitter and YouTube as well.

Labels: Activism, Bailout of Finance Capitalists, Europe, Spain, Sub-Proletarianization of Europe, YouTube

UPDATE: There is a predictable symmetry between those who finance presidential campaigns and those who benefit from government economic policy:

The aftermaths of the Great Recession and the Great Depression produced sharply different changes in U.S. incomes that tell us a lot about tax and economic policy.

The 1934 economic rebound was widely shared, with strong income gains for the vast majority, the bottom 90 percent.

In 2010, we saw the opposite as the vast majority lost ground.

National income gained overall in 2010, but all of the gains were among the top 10 percent. Even within those 15.6 million households, the gains were extraordinarily concentrated among the super-rich, the top one percent of the top one percent.

Just 15,600 super-rich households pocketed an astonishing 37 percent of the entire national gain.

And, as you might have guessed, the concentration has intensified in recent decades:

The top one percent enjoyed 45 percent of Clinton-era income growth, 65 percent of Bush-era growth and 93 percent of Obama-era growth, though that is only through 2010.

A more damning indictment of the domestic policies of the Obama administration is hard to imagine.

INITIAL POST: Like many of you, I have pretty much tuned out the 2012 presidential campaign. From the fragments of media coverage that I have encountered, the Republican candidates are fighting about which one is this most militaristic and willing to transfer the most wealth to the top 1%. Meanwhile, President Obama is strategically counterpunching, taking advantage of the nascent economic recovery and opportunities to look reasonable in comparison to the religious right lunacy that periodically erupts during the Republican primaries.

But the real story, the one with the most importance, is the extent of the corruption of the US electoral process, as related by the indefatiguable David Dayen. 5 people are responsible for 25% of all SuperPAC contributions, political action committees that may raise and spend money independent of the candidates, with 200 people are responsible for 80% of them. Through the end of January, SuperPACs have spent nearly as much money on the Republican primary campaign as the candidates themeselves. It is fair to say that Newt Gingrinch would be out of the race if not for the open checkbook of Sheldon Abelson and his wife. Of course, President Obama, unopposed on the Democratic side, has no need for such expenditures at this time, but has endorsed SuperPAC efforts on his behalf.

For a good summary of the tentacular strangulation of the electoral process by SuperPACs, and the relationship of the wealthy donors who finance them to specific Republican candidates, go to this post at I Acknowledge Class Warfare Exists. Based upon the most recent information, OpenSecrets.org has determined that 379 SuperPACs have raised over $130 million dollars and spent over $77 million of it in this election cycle, with some of it directed outside of the presidential campaign. At this rate, SuperPAC spending for the entire campaign could exceed $400 million, and this is a conservative estimate, given the explosion of spending that will take place after the Republican and Democratic nominees are selected.

Why, you ask, am I walking through all this reported campaign finance data generated by well meaning journalists and liberal sunshine organizations? I am doing so because it should induce us to ponder whether we can bring about any meaningful change in this country through any participation in the electoral process. Preliminarily, it is essential to observe that this data conclusively pulls down the curtain on that brief period of progressive optimism during 2008, an unwarranted optimism based upon the utopian notion that presidential candidates, like Obama, could fund their campaigns independent of wealthy donors through small donations over the Internet. As reported just after the 2008 campaign by the Campaign Finance Institute, Obama received 74% of his contributions from people who contributed over $200, with large donors, defined as people who contributed over $1,000, providing 80% more funding than small donors, defined as people who contributed $200 or less.

Michael Malbin, the executive director of the Institute, reached the following conclusions from his evaluation of 2004 and 2008 campaign finance data:

. . . While the large donors thus were responsible for much more of Obama's money than either his small or middle range group, he received somewhat less proportionally from large donors than did his rivals or predecessors. Forty-seven percent of Obama's money came from large donors compared to 56% for Kerry and 60% for both Bush and McCain. However, because Obama's 47% is based on a larger total, that means he also raised significantly more large-donor money in absolute terms than any of his rivals or predecessors.

Much of this money was raised the old fashioned way. Since only about 13,000 of those who started out small for Obama ended up crossing the $1,000 threshold, that means the bulk of Obama's $213 million in large-donor contributions during the primaries came from about 85,000 people who started out giving big and stayed there. Much of this large-donor money – perhaps close to a majority – came to the campaign through bundling methods initially perfected by Bush.

According to the Center for Responsive Politics (CRP) – which in the absence of legally mandated disclosure had to use information provided by the campaigns – 561 bundlers had raised a minimum of $63 million for Obama by mid-August and 534 people had raised a minimum of $75 million for McCain. The bundlers undoubtedly were responsible for more than these amounts because the campaigns reported the bundlers in ranges and CRP's minimum totals were based conservatively on the low end of each range. A reasonable guess might estimate the real amount at about 50% above the minimum – the mid-point for each range – yielding a total of perhaps about $90 million for Obama as of mid-August and more than $100 million for McCain.

It is important to go through this recent history because it provides some insight as to why the Obama presidency adopted a neoliberal, militaristic course instead of a progressive one. Contrary to the public relations associated with the 2008 campaign, Obama was as dependent upon contributions from wealthy donors as past candidates, he was merely able to supplement them more effectively with a large, aggregate amount of small donations because of the enthusiasm generated by the prospect of electing a charismatic, young, potentially progressive, African American president. Obama revealed the true course of his presidency shortly after his election through his appointments of people like Rahm Emanuel, Robert Gates and Timothy Geithner. The naivete of Obama's supporters at the time, still intoxicated with the euphoria of his victory, was almost heartrending. I still remember my KDVS radio program co-host saying, with a straight face, as if were entirely plausible, that Robert Reich would be an excellent choice for Secretary of the Treasury.

Now, the situation, as documented by groups like OpenSecrets.org, is more transparent. Not necessarily worse, but more easily understood. The US electoral process remains dominated by people able to contribute large sums of money, but much of it is received from a shockingly small number of people, as explained by Dayen. Given that the 2008 progressive effort to transform the US socioeconomic system through participation in the Obama campaign has failed, an effort proselytized by an array of people ranging from Bill Fletcher to Barbara Ehrenreich to Tom Hayden to Jesse Jackson to Melissa Harris-Perry to the late Howard Zinn, among others, what is the alternative to another such failed effort? Can we really expect to incrementally democratize the US political system through political and legal reformist endeavors in the face of such concentrated financial power? With the participants of Occupy struggling with internal conflict and police repression, such questions retain their difficulty and their urgency. Difficult, because the possibility of a mass confrontation with US and transnational elites still appears unlikely, urgent, because the distress associated with their violent, rapacious practices shows no sign of abatement.

Labels: Bailout of Finance Capitalists, Barack Obama, Democrats, Elections, Liberals, Neoliberalism, Occupy Wall Street, Republicans, Sub-Proletarianization of America, Vote or Die

Most recent at 10:20AM PST:

Occupy Bernal Shuts Down Bernal B of A Branch
10:11am -- 45 Occupy Bernal protestors led by four families fighting eviction and foreclosure delivered demand letter and shut down Bank of America branch at 3250 Mission and 29th Streets, heading to Wells Fargo branch at 22nd and Mission Streets.


Banner Blocking Downtown Traffic
10:04am -- Banner blocking intersection at Montgomery and California.


15 Protestors Lock Entrances at Bank of America
10:01am -- 15 protestors lock down entrances at Bank of America at 345 Montgomery.


Protestors Take to the Streets at Bank of America
9:57am -- Protestors take to the streets at Bank of America at 345 Montgomery.


20+ Protestors Gather at Bank of America Branch
9:54am -- Twenty to twenty-five protestors have gathered at the Bank of America branch at Powell and Market Streets.


Police Commander Confirms Seven Arrests at Wells Fargo Headquarters
9:22am -- Police Commander confirms seven arrests so far at Wells Fargo Headquarters entrance at 420 Montgomery.


Police Raid at Wells Fargo Headquarters
9:22am -- Police are blocking off access to Wells Fargo Headquarters entrance at 420 Montgomery and cutting protestors out of lock boxes to arrest them.


Foreclosure House Party
9:21am -- Foreclosure house party with music and furniture at 7th and Sansome Sts.


Protest Shutting Down Wells Fargo Headquarters
8:50am -- 40 protestors and some squids now blocking entrances at Code Pink action at Wells Fargo Headquarters, 420 Montgomery St (at California).

Go here for more updates over the course of the day. You can also stay informed on Twitter at #occupysf, #occupywallstwest, #OWSwest and #occupyoakland. Tweets there will direct you to ustreams and livestreams of actions as they happen. Occupy Network is currently broadcasting two streams out of downtown San Francisco. Yesterday's post also names some of the possible ustreamers and livestreamers. There are also Occupy the Courts protests taking place in other parts of the country as well, including one on the steps of the US Supreme Court.

Labels: Activism, Bailout of Finance Capitalists, Bay Area, California, Neoliberalism, Occupy Wall Street

UPDATE: For a flyer that sets out the location of planned actions, with explanations, go here. Scroll down for the map.

INITIAL POST: Tomorrow:

6:00am Occupy Wall St West!
Day-long Nonviolent Mass Occupation

When: Fri, January 20, 6am – 9pm

Where: San Francisco's Financial District (map)

Description: See http://www.Occu​pyWallStWest.or​g for developing details

San Francisco Financial District
DAYLONG NONVIOLENT MASS OCCUPATION
of the Wall St. banks & corporations attacking our communities
DON’T GO TO (OR WALK OUT OF) WORK AND SCHOOL

Organized groups will be coordinating specific direct actions and set their times and places. For members of the public/Occupy that are not part of an organized group, you can converge on Bradley Manning Plaza (Justine Herman) and join with others at any of these times, 6:00am, 12 Noon and 5:00pm.

For more background, go here and here.

Starting at 6am PST tomorrow, you can follow the day's events on Twitter at #OccupySF, #OWSWest and #OccupyWallStWest, among others. There will be at least 8 ustreamers providing video broadcasts of the actions over the course of the day, including pixplz, occupy-sf-maya, codeframeosf and mikeqtips, as well as the occupysf channel. Go to http://www.ustream.tv to find them. The Twitter feed will undoubtedly have links to these ustreamers and others as well as events unfold.

Labels: Activism, Bailout of Finance Capitalists, Bay Area, California, Neoliberalism, Occupy Wall Street, Ustream

UPDATE 3 (2:03PM PST): There have been 5 arrests. The police have gotten out of the alley, and taken the arrestees to the nearby police station. Protesters are now in front of the station and demanding their release.

UPDATE 2 (1:55PM PST): Protesters have blocked the police paddy wagon trying to take away the arrestees in an alley.

UPDATE 1 (1:43 PM PST): Several cops have climbed up a fire truck ladder onto the roof, and taken the banners away. First arrests. Chants of let the people go, arrest the CEO!

INITIAL POST (1:02 PM PST): At 1:02 PM, California time, OccupySF is currently protesting foreclosures and evictions by Wells Fargo at the Wells Fargo branch right by the 16h Street and Mission BART station. Banners have been dropped and there are tents on the roof. he police have closed the parking lot with tape and tried to persuade activists to leave the roof without being arrested. For video, go here. Justin Beck, the public affairs director at KDVS in 1998 who put me on the radio, is the ustreamer. For twitter updates, go here.

OccupySF has described the purpose of this action as follows:

Thousands of renters and homeowners in San Francisco are being evicted by banks each year. San Francisco’s Mission District has been especially hard hit by the 1% banks preying on the 99% working class. Join Occupy SF Housing at Noon on January 14 to protest evictions of renters for condo conversions, which are being done by real estate speculators working with Wells Fargo Bank. We will demand that Wells Fargo stop all pending evictions which they are financing and to stop financing any more evictions for profit, where low & moderate income renters are evicted so affordable apartments can be converted into luxury condominiums for the wealthy.

Today's action is the first of what OccupySF has described as the Occupy Wall Street West campaign, which will culminate with planned mass occupations in the financial district on this upcoming Friday, January 20th.

Labels: Bailout of Finance Capitalists, Bay Area, California, Neoliberalism, Occupy Wall Street, Sub-Proletarianization of America

Actually, as the excerpt from this article by masaccio indicates, the fraud predictably involves not just Bank of America, but all the usual suspects as well, such as J. P. Morgan Chase, Citigroup and, drum roll please . . . Goldman Sachs:

The Bank of America (BAC) recently moved derivatives out of its Merrill Lynch subsidiary into a subsidiary plump with FDIC insured deposits. Bloomberg says the Fed wants to protect the bank holding company without increasing its own obligations. The FDIC opposes the transfer because it increases their risk.

Three of the five biggest derivatives players have already done this. The OCC Quarterly Report on Bank Derivatives Activities gives information about derivatives held by banks, and by bank holding companies, separately. AS of June 30, 2011, the numbers are nearly identical for JPMorgan Chase, Citigroup and Goldman Sachs. Only Morgan Stanley and BAC had a significant part of their derivatives outside the warm embrace of the FDIC.

BAC apparently held $21.7 trillion in notional value outside of banking subsidiaries at June 30, and it has now moved that into FDIC insured institutions. The Bloomberg article doesn’t say exactly how much, and it isn’t reported in BAC’s earnings release for the third quarter. A reporter asked about this in the earnings call. Bruce Thompson, the Chief Financial Officer of BAC, said he was surprised by the article, and that the move was in the normal course of business.

The OCC Report gives some idea of the increase in risk. It uses a measure of risk called Total Credit Exposure, which is equal to the sum of Net Current Credit Exposure and Potential Future Exposure. The first is the net amount owed to the bank if all contracts were suddenly liquidated. The second is an attempt to estimate the potential future losses, using a formula developed by regulators. This number is compared to the Total Risk-Based Capital, which is the sum of Tier One Capital and Tier Two Capital. This calculation effectively excludes Tier Three Capital, the assets for which there is no liquid market and no clear method of calculating value.

According to the OCC Report dated 6/30/11, the ratio of Total Credit Exposure to Total Risk-Based Capital at BAC was 182%, meaning that regulators calculated the potential losses from derivatives at nearly double the total of the assets subject to valuation in liquid markets.

The global economy is stalling out again, possibly entering another recession as severe as 2008, and the largest US financial institutions have already carried out their escape plan so that can live to speculate another day.

Yves Smith of naked capitalism explains the brazenness of this action in relation to Bank of America:

The reason that commentators like Chris Whalen were relatively sanguine about Bank of America likely becoming insolvent as a result of eventual mortgage and other litigation losses is that it would be a holding company bankruptcy. The operating units, most importantly, the banks, would not be affected and could be spun out to a new entity or sold. Shareholders would be wiped out and holding company creditors (most important, bondholders) would take a hit by having their debt haircut and partly converted to equity.

This changes the picture completely. This move reflects either criminal incompetence or abject corruption by the Fed. Even though I’ve expressed my doubts as to whether Dodd Frank resolutions will work, dumping derivatives into depositaries pretty much guarantees a Dodd Frank resolution will fail. Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral. It’s well nigh impossible to have an orderly wind down in this scenario. You have a derivatives counterparty land grab and an abrupt insolvency. Lehman failed over a weekend after JP Morgan grabbed collateral.

But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No Congressman would dare vote against that. This move is Machiavellian, and just plain evil.

So, for any of you out there planning to attend a general assembly at OWS or any other Occupy Together location, please bring this matter to the attention of the participants if they are unaware of it.

Labels: Activism, Bailout of Finance Capitalists, Neoliberalism, Occupy Wall Street, Sub-Proletarianization of America

For those of you who haven't followed the implementation of austerity in Greece since 2009, the Guardian reports that the EU and European Central Bank have determined that the Greek economy will contract by 15% between 2009 and 2012. Think about that for a moment. 15%. From July 2009 to August 2011, unemployment rose from just under 9% to 16.3%, with the IMF projecting 18.5% unemployment for 2012. Earlier in the year, in May, unemployment for people between the ages of 15 and 19 was 55%, and 37% for people between the ages of 20 and 24. One can therefore reasonably assume that unemployment among young people continues to increase and will continue to do so through 2012.

Accordingly, stories like this one are common:

I have worked since I was 16 and I have lived in Athens since I was 24. I remember that many times I had to struggle in order to survive with two jobs, but never have I stayed unemployed for too long. During the past eight years there were times when things were tight and difficult and other times when things were more or less ok. But not even in the most difficult period of my life, as a University student, did I find myself in the position I am today. For thirteen years I struggled, I fought, I stood on my feet. But now I can’t take it anymore. I’m giving up.

I’ve been unemployed for ten months. Knowing that I was going to lose my job, I started searching for a new one from as early as the Easter of 2010. By now I’ve send 155 CVs but I only got two replies back, both saying that they didn’t need employees. For the first time in my life I’m facing an eviction order by the end of this month. The landlord says that I have no dignity and that I live on her expense, forgetting the eight years that I have been meeting my obligations regularly or even the improvements I ‘ve made to her house on my own expenses. Still, she’s right. She’s no charity – she wants her money. The movers ask for 1200 euros to take my stuff back to my mother’s city or 150 per month in order to store them in a container. I cannot afford either of the two scenarios. I will probably have to throw away my household of ten years. The tax service is demanding 300 euro as an emergency levy with a 3% interest for every month I don’t pay. Another emergency tax is expected with the next electricity bill and that’s going to be 420 €. I have to pay 640€ every two months for social security, although the company I worked for explicitly told me that they have no job to offer and that even if they did, they would pay a monthly salary of no more than 420 euro. In short: the city in which I have lived for the past 13 years is spitting me off to the margins like if I’m some kind of trash. For the first time in my life, I have no place to stay and no one to hold on to. Any stock of patience and courage I had has now vanished.

And, then, there is this publicly known incident where a debtor set himself on fire in front of the Piraeus Bank in Thessaloniki. While this man was saved, reported suicides have doubled in Greece since the imposition of austerity:

A suicide help line at Klimaka, the charitable group, used to get four to 10 calls a day, but now there are days when we have up to 100, says a psychologist there, Aris Violatzis.

The caller often fits a certain profile: male, age 35 to 60 and financially ruined. He has also lost his core identity as a husband and provider, and he cannot be a man any more according to our cultural standards, Mr. Violatzis says.

Heraklion, commercial center of the island of Crete, has had a spate of such deaths.

Mr. Petrakis, the fruit and vegetable dealer, was just one of three recent suicides at a single wholesale food market on the edge of the city.

Victims once were typically adolescent males or old people facing severe illness, and in normal times suicide cases often involve a mixture of factors including mental illness, says local psychiatrist Eva Maria Tsapaki.

But the economic crash has created a new phenomenon of entrepreneurs with no prior history of mental illness who are found dead every other week, she says. It's very unusual.

With this context in mind, this sort of response starts to make sense:

The Greek government’s Minister of Interior affairs (Home Office) Harris Kastanidis was spotted in a cinema in Thessaloniki watching a movie. So a few hundred students stormed the cinema chanting slogans and threw him yoghurt. Several members of the audience joined the students booing Kastanidis and clapping when the yoghurt was thrown to him. Among other slogans one can hears: Let’s see who will jump first in the helicopter when this marvellous night like Argentina will come, In Greece, Turkey and Macedonia the enemy is in the ministries and in the banks, Terrorism is the waged slavery, no peace with the bosses.

If the United Kingdom, France and Germany, with the US conspiring in the background, try to hold the EU together with a new Greek junta, we can only hope that the workers of Europe come to the defense of the Greek people. Meanwhile, protests and riots in Athens have been ongoing throughout the day as the government secured approval of yet another round of austerity measures. For updates of what has been happening on the streets of Greece, go here and here and here and here.

Labels: Activism, Bailout of Finance Capitalists, Europe, Greece, IMF, Neoliberalism, Police, Sub-Proletarianization of Europe

UPDATE 2: Greek unions are saying that the strike today was the largest in the country's history with 500,000 people participating in it, with the media reporting 100,000. Significantly, a BBC reporter familiar with Athens said that he had never seen so many people on the streets. Meanwhile, others note that the Greek government is showing a shocking inability to control the crowds. Follow tweets on the Greek protests here. Is there a Pinochet to restore order, and impose discipline upon the working class so that the banks can be paid?

UPDATE 1: Updates from Occupied London over the course of the day (start from the bottom and read up):

17:52 PM Syntagma has been completely evacuated by the police. A huge, diverse crowd has attacked the Bank of Greece, trashing it inside. Large groups of demonstrators are trying to regroup in Syntagma. There is an urgent need for medical help at the square.

17:42 PM Cops try to scoop clear Syntagma, attacking from different sides. There is DELTA/DIAS at the Olympiou Dios columns, blocking off people from leaving

16:55 PM Generalised clashes all around Syntagma at the moment. The bulk of the demo has been pushed away form the sq.

16:45 PM A huge black block is attacked massively by police at the moment in front of the Ministry of Finance in Syntagma Sq.

16:22 PM Reltevely passive attitide of the police and reletevly calm situation now all around Syntagma. The masses of people remain there. banners of I do not Pay movement and base unions are in front of the police in the Unkown Soldier.

16.09 PM Step by step police units are occupying the Unkown Soldier Square in front of the Parliament, pushing people back towards Syntagma Square but they meet strong opposition and do not manage to move much forward, demonstrators respond with stones and head to head clashes any time a police unit tries to move forwrad. Thousands still there, just a couple of metres away from the police cordons and attack to them.

15:44 PM Clashes all around the centre of Athens. Tear gases, shock grenades mainly on Akadimias st. but burning barricades are all around the centre. In Syntagma several hundernd of demonstrators attacked with stones and sticks in co-ordinated way against the cops, police uses chemical gases en mase there, but people do not retreat and hold their posiitions in front of the parliament defending themselves, however a part of the Unkown soldier is occupied by the police now. Thick black smoke can be seen in front of the University Refectory.

15:19 PM Police operation along Akadimias st. head to head clashes with the police there. Clashes on the Uknown Soldier Square on the bottom of the staircase leading to the parliament building. Police operation takes place there as well, as they are trying to push the people towards Syntagma Square, stones and molotov cocktails against the police and clashes in front of the parliament carries on.

15:05 PM Base Union and Anarchist blocks are enetring now Syntagma Square from the lower part, from Stadiou st.

14:56 PM Clashes in front of the parliament building still going on, on Panepistimiou stthere are clashes, taxi drivers union along fellow protesters hold a barricade on Akadimias st. and fighting with the cops, at the moment the only street leading to Syntagma is Stadiou st. Tear gases and chemical gases used by the police in Syntagma but people are not leaving the area.

14.44 PM Gas shot straight into crowd at Panepistimiou metro. Earlier on Patison, anarchists attached the government money-printing building.

14.43 PM In front of the parliament people now have reached the bottom of the staircases that leads to the main building of the Parliament. In front of the parliament again on the other side, stones, molotov cocktails and other items are thrown to the police units guarding the parliament. Tension goes high. Police does not dare to attack, while Syntagma and the Unkown Solider square are occupied by protesters-strikers.

INITIAL POST: Reports from Greece are confused, but indicate that the government has prevailed on a preliminary vote for another round of austerity, with the final one scheduled for tomorrow, while police and protesters clash on the streets of Athens and Thessaloniki. Police have cleared protesters from the Syntagma Square in front of the parliament building after wounding 15 people, 6 of them seriously. Prior to the vote, protesters came close to storming the building. Tweets from Theodora Oikonomides give an impression of the intensity of the protests in Athens. For updates, consider the Guardian live blog as well. lenin has a good analysis of the situation here. A 48 hour strike commenced prior to the vote in Parliament continues.

Labels: Activism, Bailout of Finance Capitalists, Europe, Greece, IMF, Neoliberalism, Police, Sub-Proletarianization of Europe

As you might have guessed, I don't expect to post many blog entries about the 2012 presidential election, if at all. If I do, the entries will emphasis substantive issues instead of personalities. Similarly, I've already told some of my friends that I don't intend to produce a single KDVS public affairs program about the election on my Friday show, Speaking in Tongues. Once you tune out the white noise surrounding the emergent campaign, you can draw some fairly straightforward conclusions:

(1) all of the major party candidates, Obama included, advocate supply side economic solutions, despite the fact that unemployment and the resulting slack demand are the primary reasons for the country's economic stagnation;

(2) all of the major party candidates, Obama included, agree upon the need to curtail social welfare programs, such as Social Security and Medicare, for the purported purpose of debt reduction, even as the speculative activities of capitalists are further subsidized;

(3) all of the major party candidates, Obama included, support US military operations throughout the world in order to attain its objectives, with a special emphasis upon North Africa, the Middle East and Central Asia;

(4) all of the major party candidates, Obama included, support increased surveillance, the purported war on drugs and the expansion of the US prison system, to the disproportionate detriment of young people of color.

Oops, I forgot, there is one candidate who opposes the last of these two items, and that is, of course, Ron Paul. He is a contradictory candidate, one who supports economic and social policies that will intensify domestic and international conflict, while opposing the expansion of those institutions, such as the Federal Reserve, the US military and the police, required to regulate them. In any event, much like Ralph Nader in the past, his participation merely serves to legitimize the result in support of the military neoliberalism, as described by the Retort collective in their book, Afflicted Powers:

Chapter three, on Permanent War and chapter four, on The Future of an Illusion qua the creation and high maintenance of the state of Israel, are elaborations on the themes of a ghostly afterimage of a Kantian modernity that is predicated neither on enfranchisement nor eternal peace, but on weak citizenship and perpetual conflict. The post Cold War global age of information seems to be a differential flow of affective images. The scenario is more of a diffuse ecology of visibilities and passions, in which the carnivalesque elations of miracle economies are interspersed with abject formalisms of laws and rights, or the paranoia of state of siege societies. But between the grand images of piety – that of Israel being a site of a permanent struggle of Biblical proportions, and the millennial picture of making the desert bloom – lies the inhuman imperative of financialising the globe. Indeed, the American state’s obsession with Israel can often not be explained in terms of military or financial strategy (or with crude theories of a Zionist take over of the corridors of power in Washington). It pertains more to the materiality of the images themselves. The small state of Israel serves as an enthralling metaphor for the imperial behemoth of the West precisely because within its body politic it has two disparate ideas yoked together with violence – it is an exemplar of a society in which total militarisation and spectacular modernity were fully compatible. It is also that which encapsulates within its profile the dual onto-theologies of being – the final, millennial achievement of McJerusalem. The shining Oasis awaiting to engulf the desert and make it bloom is thus an image that illuminates its obverse – the wilderness that lies beyond. The latter is a site for the exertion of the surplus energy produced relentlessly by the American military-industrial complex. This is precisely why under the auspices of what Retort calls military neo-liberalism, distinctions are always blurred between information and surveillance, between civic enterprises and military ones, between freedom and empire, between war and peace, between extending markets, and dropping bombs. The principal aspect of primitive accumulation pertains to the fact that, unlike the assiduous dreams of humanism, casting state-of-the-art tentacles of profit extraction in such a wilderness may not be accompanied by the organic creation of a modern pedagogy, civil society, democratic institutions, or public spheres.

Beyond the obvious example of Palestine, as noted by the author of this review of Afflicted Powers, Anustup Basu, it is within Afghanistan and Pakistan where we most clearly encounter this perverse global vision on display. Libya is apparently another example, as Qaddafi's greatest fault was not his brutality nor his kleptocracy, neither of which disqualifies him for inclusion within the American empire, but his lack of modernity. Modernity, it seems, or, at least, the aspiration to attain it, is a necessary precondition for the expansion of opportunities for capital accumulation.

Curiously, although Retort highlights Israel as the most perfected instance of this phenomenon, an exemplar of a society in which total militarisation and spectacular modernity were fully compatible, they could have easily selected Saudi Arabia as well. And, indeed, it has been the byplay between the US, Europe and Israel and the US, Europe and Saudi Arabia that has defined the relationship of capital with the peoples of the region. For purposes of the 2012 election, it is essential to understand that all of the major party candidates, again, with the peculiar exception of Ron Paul, want the US to more expressly organize itself in this manner.

Labels: Afghanistan, American Empire, Bailout of Finance Capitalists, Israel, Neoliberalism, Pakistan, Palestine, Zionism

Today, the Greek socialist parlimentary majority, PASOK, approved a rigorous plan of austerity and privatization in order to facilitate a bailout from the IMF and the ECB. It is pretty much acknowledged that, if implemented, the plan will consign a generation of Greeks to poverty. Police were unrestrained in their use of tear gas in an attempt to clear away protesters from nearby Syntagma Square:

Protesters fought pitched body-to-body battles with riot police, toxic levels of tear gas filled the air and Syntagma Square, the nerve centre of Greece's new resistance movement, descended into chaos.

Within minutes, the plaza resembled a war zone, more reminiscent of Gaza than the flourishing hub of a western capital with the detritus of battle everywhere: in its burning barricades, smashed pavements, shattered masonry, looted shops, destroyed kiosks and trees.

Dangerous amounts of tear gas are being used to terrorize people, said Athanasios Pafilis, a communist MP as parliament wrapped up two days of debate on the debt-reduction measures. It's an intolerable situation … what we are seeing is chemical warfare and it has to stop.

Unprovoked riot police were firing it all over the place, said Andreas Skourtis, an architect demonstrating against the measures.

They were clearly working to a very well-organised plan. This is a government that has gone out of its way to not only keep crowds away but pass the measures no matter what. People are really angry. Civilians have been attacked not only in Syntagma but all over the city centre.

Other accounts convey the eruption of violence throughout the central city of Athens:

18.25 GMT+2 About 20 DELTA motorcycle cops rushed through the crowd situated in Ermou Street near Kapnikarea. A clash between groups of protesters and joined DELTA, MAT forces followed. One of the DELTA cops crashed with the protesters and got badly beaten right afterwards.

18.18 GMT +2: The use of tear gas inside Syntagma metro continues; the cops invade now. The people disperse in all directions at the risk of being trampled.

18.15 GMT +2: The cops moved from the surrounding streets and have invaded Syntagma square. The people are encircled. The cops hit brutally, throwing chemicals and stepping over the demonstrators’ tents.

18.05 GMT +2: The forces of repression are shooting rubber bullets at Stadiou and Voukourestiou streets.

18.00 GMT +2: People have gathered in Propylaea, responding to the gathering call at 6 pm.

17.53 GMT +2: Attempted arson at the Agrotikil Bank on Panepistimiou Street. People are smashing the surrounding banks. The protesters who tried to burn the bank stopped when they realized that there were people inside.

17.20 GMT+2: Street battles now in Filellinon Street. Continuous reports of severely wounded protesters. A municipality pillar was burned. Everybody demands the withdrawal of cops; great fatigue and anger of the people. Apart from the merciless chemical warfare, the cops are throwing stones back against demonstrators since hours.

Beyond the ongoing struggle on the streets, there are some obvious lessons. First, there is no government on the European continent that will resist the dictates of international capital as given expression through the World Bank, the IMF, the US Federal Reserve, the Bundesbank and the ECB. Democratic processes exist for the purpose of legitimizing policies imposed by them. Second, social democratic parties, like the PASOK in Greece, stand ready to preserve state authority by acting as the intermediary by which these policies shall be approved and implemented. lenin has identified the problem:

One might expect social democratic parties to take a different approach, to mobilise their constituencies around a defence of public services and social security. But their long years of complicity in managing neoliberalism means they are unable to think of an alternative to spending cuts. In opposition, they offer gradual and responsible austerity, but they still mean to cut, and cut deep. In government, the emphasis shifts from gradual to deep.

This process doesn't only threaten the major parties. At stake is the very legitimacy of the states carrying out these measures. Hitherto, they have relied on two key sources of public support. One is the ideology of prosperity, in which great inequalities of wealth are tolerable so long as the economy keeps growing. But in the last 30 years, that has depended on record private debt, which is no longer sustainable. The other is welfare, in which the government will provide a basic minimum of nourishment, health and education so that, in theory, all can participate in the opportunities of a market economy. If the market fails, the government will be there with a safety net. This is now under unprecedented attack.

lenin recognizes the severity of the situation, but refuses to draw the obvious conclusion: social democratic parties in Europe, with Marxist, Leninist and Trotskyite influences, cannot conceive of a future in the absence of the state institutions by which which they have sought to create a more egalitarian society. Terrified of a collapse of state authority that would make it impossible to use the state's administrative apparatus to provide social welfare in the form of public services, universal education, health care and social security, they are willing to eviscerate these programs in the hope that future generations can revive them. Forced to choose between continued fidelity to neoliberal policy and alternatives that risk permanently reducing the authority of the state, if not fully eliminating it, they will always act in defense of the state. Here, in the US, we experience a peculiar variant of this in regard to the liberal embrace of the state as necessary to protect civil rights and people of color, thus rationalizing support for Democratic party policies that impoverish much of the country in much the same manner as previous Republican ones have done.

Despite the vote, Greece is stalemated. The government has obtained the legal authority to impose more merciless austerity measures upon the populace, but lacks the capability to effectively implement them. Accordingly, as already mentioned yesterday, foreign investors are already seeking to induce a Greek Pinochet to come forward and enforce workplace discipline because Papandreou, PASOK, and the labor unions associated with them, are rapidly losing the ability to do so. An attempt by PASOK affiliated transit unions in Athens to disrupt protests through the ruse of participating in the general strike failed as many workers, at the request of the movement, reported to work to operate the subway system.

Meanwhile, the left, despite its great successes, has not developed a sufficiently broad based coalition capable of rendering Greece ungovernable under conditions imposed by the EU, the IMF and the ECB. Such a coalition will be necessary as Greece enters a new phase of conflict. The centers of confrontation will be the workplaces of public sector workers and publicly owned resources, such as the port of Athens, which is designated, along with other public assets for privatization, as well as the banks and other European institutions that will adminster the Greek economy. We can anticipate a coordinated campaign, with violent and non-violent features, for the purpose of making it impossible to carry out the mass firings and asset sales mandated by the austerity plan. European bank branches in Greece, especially German and French ones, are going to be the targets of ongoing vandalism. But it is important to note that, as far as we know, the police are standing steadfast with the government.

The anti-authoritarian movements of Greece face a great challenge, the urgency of participating in a broader coalition of resistance in which many of the participants either do not understand or do not fully share their ideological vision of society. Hence, criticism of the protesters in Syntagma Square for their fetishization of non-violence is not particularly helpful, but engaging them about the synergy created by a movement with violent and non-violent features can release a tremendous radical potential. It is precisely for this reason that a reformist media outlet like the Guardian insists upon placing violent and non-violent protesters in opposition to one another in its coverage, characterizing the violent ones as hooligans, without a base of support, so as to maintain the spiritual purity of those who resist non-violently. Of course, it is not very persuasive, because, after all, there are a lot of people resisting the attacks upon the square and taking the initiative by vandalizing banks and corporate businesses in downtown Athens. And yet, there is, dare one use the word, some sectarianism that must be overcome. Ultimately, the question is not so much one of violence and non-violence, but, rather, the effectiveness of various forms of resistance against this onslaught. In other contexts, social movements have been able to bridge the violent, non-violent direct action divide, as was done during the 2010 Vancouver Winter Olympics. Such an approach requires a willingness of all involved to recognize the possible consequences of their actions in relation to those undertaken by others.

Labels: Activism, Anarchism, Bailout of Finance Capitalists, Europe, Greece, IMF, Political Violence, Sub-Proletarianization of Europe

Clashes between protesters and the police in Athens in advance of a parliamentary vote tomorrow on intensified austerity measures required for additional IMF and European Central Bank funds are ongoing:

23.30 GMT+2 Up to this time, there are constant harsh clashes. Continually, medics run to help numerous injured protesters, transferring them from outside Hotel Grande Bretagne.

23.17 GMT+2 Dissent is generalized; there are people hurdling rocks to the police across the centre of Athens. In Stadiou Street police are now attacking demonstrators, and the clashes continue in Syntagma as before. Filellinon and surrounding streets are lined with police squads. There are at least 5-6 police units outside the Russian Church near Syntagma. At the Zappeion hundreds of DELTA motorcycle police forces. At the junction of Ardittou and Vouliagmenis streets, near First Cemetery of Athens, there are dozens of motorcyclist cops.

23.15 GMT+2 A huge crowd at Syntagma tonight, multiple times larger than the crowd at the general strike demo in the morning. Clashes between police squads and demonstrators forced the temporary halting of the concert. There are many stun grenades and tear gas thrown against demonstrators’ heads.

Such confrontations have been taking place for hours:

17.00 GMT+2 Demonstrators move away, so the tension shifts to the lower side of the square. Othonos Street has re-opened and is gradually filled with people. The area is under continuous attack from tear gas and shock grenades.

16.50 GMT+2 Syntagma: A lot of tear gas inside the metro station, from Amalias Street. The majority of anarchists are not present at the time, but comrades remain near Syntagma. Police raid en mass the upper side of the square; melees between demonstrators and cops. From Othonos Street a minor militant group with football fans’ distinctive features throws stones against the numerous repression forces. Several organizers of the Syntagma Assembly, possibly along with far-right ‘300 Greeks’, are offering Maalox in order to protect people from chemicals.

16.40 GMT+2 Ongoing clashes; tear gas thrown now in front of the Unknown Soldier Monument. The majority of the people have split away from the place. It is estimated that approximately 2,000 remain gathered. Nevertheless, demonstrators do not leave the square.

16.05 GMT+2 According to reports, three people have been detained at Syntagma – one of the detainees is a trade union member.

15.57 GMT+2 Protesters are taking back the area around Filellinon Street, at the lower side of Syntagma square.

15.45 Athens: Police squads evacuated Amalias Street by a savage chemical warfare operation; asphyxiant gases were poured inside the metro station and thrown even against the Medical Centres’ tend in Syntagma square.

For updates, go here and here.

Obscured by the pyrotechnics of the immediate confrontation is the probability that the Greek government will approve the austerity measures by a slight margin. Upon such approval, the conflict will enter a new phase, mass resistance to the implementation of the austerity and privatization program. European capitalists are already aware of this prospect, as reflected in this article in the Guardian last week:

There is doubt, though, over whether the measures can be imposed on an increasingly unhappy population.

Everything depends on Greece implementing the measures, Lord Brittan, the former vice president of the European commission, told the BBC's Today programme. Legislating is one thing, implementing is another, and Greece's history of implementation is not a happy one, Brittan added.

Jane Foley of Rabobank International agreed, saying there was widespread scepticism in the bond markets about the ability of the Greek political system to implement the reform.

In effect, investors are beginning to imply that regime change will be necessary to ensure the repayment of Greek debt to French, German, British and American financial institutions. Or, to put it more bluntly, a coup, whether initiated by the military, or by a government of national unity within the existing political system. So far, Prime Minister Panpandreou and the Socialists have been unable to reach agreement with the rightist opposition, but the EU, the IMF and the ECB may soon broker such a marriage to preserve the constitutional legitimacy of the austerity program and the repression required to execute it.

No doubt, the EU, the IMF and the ECB are desperate to avoid the installation of a new junta in the service of international capital, given the grave damage that it would inflict upon the project of a united Europe, but, if necessary, they will accept it. Supposedly, Greek media outlets have been disseminating alarms over the possibility of military intervention in recent days. Proposed new border controls within the EU, prompted by fears of a mass migration from North Africa, will also serve the purpose of keeping most Greeks incarcerated in their newly created debtor's prison. One hopes that the Greeks are already planning beyond this week to resist these measures.

Labels: Activism, Anarchism, Bailout of Finance Capitalists, France, Germany, Greece, IMF, Neoliberalism, Sub-Proletarianization of Europe

My mother is ill, and I am visiting her to assist with some medical issues. Meanwhile, there is a blockade of the Greek parliament planned for tomorrow to prevent it from approving yet another, more severe austerity plan imposed by the IMF, the EU, and the European Central Bank. For an anti-authoritarian perspective as events unfold, go here. While protesters are about to engage in a massive direct action, the bankers are haggling over the terms of the destruction of the Greek social welfare state, which may, if successful, serve as a model for application throughout the EU. Rumors of a possible coup, or other methods of extreme social repression, should not be discounted. I was troubled by the fact that Obama made an explicit reference to the importance of resolving the Greek problem, a subject that I never heard him speak about before, during a meeting with Chancellor Merkel of Germany last week. More recently, the New York Times published an article about the Greek crisis, suggesting that a default would result in an economic catastrophe analoguous to the 2008 one that it claims was precipitated by the collapse of Lehman Brothers. Will the EU, ECB and the IMF, with US approval, impose austerity upon Greece through the barrel of a gun? It is a question that we should start taking seriously.

Labels: Anarchism, Bailout of Finance Capitalists, Europe, Greece, IMF, Neoliberalism, Sub-Proletarianization of Europe

Just over a week ago, German and Turkish media reported the following:

The U.S. Central Intelligence Agency warned in a report that the tough austerity measures and the dire situation could escalate and even lead to a military coup, according to a report by Germany’s popular daily Bild.

According to the CIA report, ongoing street protests in crisis-hit Greece could turn into escalated violence and a rebellion and the Greek government could lose control, said Bild. The newspaper said the CIA report talks of a possible military coup if the situation becomes more serious and uncontrolled.

While by and large unreported in the US and much of Europe, there is a massive, growing protest movement against even more harsh austerity measures being imposed upon Greece by the IMF, the European Union and the European Central Bank, as indicated by this account of protests in Greece yesterday:

A crowd whose size is difficult to even estimate gathered in central Athens to protest against the crisis and the Memorandum tonight. The call to a pan-european call of action saw more than 100,000 (some estimates give much higher numbers) flooding Syntagma square and many central nearby avenues. In contrast to previous gatherings, police presence was much higher, with fencing erected around the parliament building and double, or triple rows of riot police around it.

The city is now building up for the General Strike of June 15th, which is also the next date of action announced at Syntagma square. Both mobilisations are aimed against the new agreement between the government and the troika (IMF/EU/ECB) which is planned to be voted at parliament on the morning of the 15th. The general assembly of Syntagma square has already called for a blocking of the parliament from the night of the 14th. In addition to the fencing installed around the parliament, a police water canon has also appeared nearby.

Similar demonstrations took place in Thessaloniki, Patras, Heraklion, Larisa, Volos and many other Greek cities. In the Cretan city of Chania, fascists bearing arms appeared in the gathering, in a failed attempt to provoke the gathered crowd.

People are protesting a new financial bailout plan that places the people of Greece at the mercy of transnational institutions, virtually eradicating any semblence of Greek sovereignty and local political participation:

Representatives of the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) signaled Friday that more bailout money would be forthcoming for Greece next month, after the Greek government assured them it would implement billions of euros in cuts and privatizations.

The EC, ECB, and IMF said that the government of Prime Minister George Papandreou had agreed to sell off 50 billion euros in state assets by 2015, and that Athens had also agreed to set up an independently managed privatization agency to oversee the sale.

While the press release did not provide details, the wording implies that the privatization and sell-off of large portions of the Greek state will take place under the control of international banks and financial institutions. Luxembourg Prime Minister Jean-Claude Juncker, the head of the Eurogroup forum of euro-zone finance ministers, made similar proposals last month.

The group, which concluded a four-week mission to Athens on Friday, added that the Greek government's proposal includes a significant downsizing of public sector employment, restructuring or closure of public entities, and cuts to social programs.

In a post written prior to the acceptance of the bailout terms by the Greek government, Yves Smith of naked capitalism explained why it is likely to fail, with this remarkable commentary:

Another reason this rescue is not a rescue is that one of its major elements, that of stripping Greece of assets, is unlikely to raise the €50 billion expected. The demands here are astonishing. Greek premier George Papandreou agreed to only €5 billion of asset sales a year ago; the best state owned assets are expected to fetch at best €15 billion. Trust me, if that’s all you can get from the best properties, anything else that can be cobbled together is likely to be worth at most half that in toto. So it’s not hard to foresee that the receipts from the infrastructure sales are likely to fall short by about half.

And the notion that the invading banker hoards are going to supervise tax collection is sure to mean that they will make certain that they are first in getting tax receipts. As various readers have pointed out, lower middle and middle class Greeks have taxes withheld from wages; it’s the rich and the participants in the black economy that escape. It is far fetched to think that foreign involvement will improve matters; indeed, I’d expect everyone who can to operate out of the black economy as an act of rebellion.

Greece looks to be on its way to be under the boot of bankers just as formerly free small Southern farmers were turned into debtcroppers after the US Civil War. Deflationary policies had left many with mortgage payments that were increasingly difficult to service. Many fell into crop lien peonage. Farmers were cash starved and pledged their crops to merchants who then acted in an abusive parental role, being given lists of goods needed to operate the farm and maintain the farmer’s family and doling out as they saw fit. The merchants not only applied interest to the loans, but further sold the goods to farmers at 30% or higher markups over cash prices. The system was operated, by design, so that the farmer’s crop would never pay him out of his debts (the merchant as the contracted buyer could pay whatever he felt like for the crop; the farmer could not market it to third parties). This debt servitude eventually led to rebellion in the form of the populist movement.

Of course, there is also another historical parallel, one that should not be readily dismissed given the contempt that many Greeks have for the military and the police, and that is, of course, the Bolshevik Revolution of 1917. Meanwhile, over at Counterpunch, Michael Hudson provides the background of this crisis, most importantly its origins as a consequence of the tax evasion policies of the 1967-1974 Greek junta and subsequent reliance on the issuance of debt for Greece by transnational financial institutions to maintain the country's infrastructure.

Interestingly, some Marxists do apparently believe that Greece may be on the verge of a revolutionary situation:

Yesterday's gathering in Athens, apart from its impressive size, had many new elements. The awkwardness and blind rage that characterized the first days of the movement have given way to enthusiasm. The masses have acquired a sense of confidence through the collective show of strength. While the early days were focused on the idea of a silent angry people, yesterday the mood had changed. The people shouted ingenious slogans against the government and the Troika, and everywhere groups of people were spontaneously formed in which everyone wanted to express an opinion on the movement and on the next steps to be taken.

At the same time, in the most advanced part of the protesters, especially in the youth, an interest to seek a political solution for the next day was evident. This explains the enormous interest in participating in the People's Assembly of Syntagma Square, which was attended by 10,000 people, patiently waiting to participate, although very few were able to speak.

From 9.30 pm onwards, the density of the protest made it impossible even to approach the site of the assembly. The predominant element in the meeting was the spontaneous opinions voiced by ordinary workers, unemployed and young people expressing the need to continue the struggle.

Many proposals were made: to besiege the parliament on the day the austerity measures are put to the vote; to fight to set up popular meetings in every neighborhood; to put into practice the decision of the People's Assembly for an indefinite general political strike; to fight the media propaganda with an organized campaign in the neighborhoods and squares. On one point all were agreed: next Sunday there will be a million people in the streets of Athens!

From here, it sounds a little hyperbolic, although we should not, as I already mentioned, dismiss it. The CIA certainly hasn't, as this scenario has prompted it to suggest the possibility of a military coup if uncontrollable unrest erupts when the Greek Parliament attempts to approve the agreement. But there is another reason why we should be fearful about the prospects for a crackdown in Greece. In Chile, the US, through the CIA, corporations like the International Telephone and Telegraph and labor unions like those affiliated with the AFL-CIO, sought to instigate a coup in Chile for economic reasons, not because of violent instability. Indeed, the US deliberately intensified pre-existing economic problems and social conflict within Chile in order to push rightists and high ranking officers within the Chilean military to forcibly remove Allende and subsequently destroy democratic institutions and the power of the working class.

The junta, lead by General Augusto Pinochet, created a dictatorship for the purpose of disempowering the populace for the benefit of capitalists, or, as liberals would say, investors, both within and without Chile. Social welfare programs for low and middle income people were slashed, while generous subsidies were provided for investors willing to purchase state assets. Unions were domesticated under legal restrictions that persist to this day. Radical protest was ruthlessly suppressed, with many leftists either killed or driven from the country. Land reform was, of course, reversed to the extent that it had been implemented at all. Chile thus became the laboratory for neoliberal economic experimentation that was thereafter implemented throughout most of the Americas.

Sounds familiar, doesn't it? In fact, it sounds a lot like the increasingly severe austerity measures that the EU, the ECB and the IMF have compelled the Greek government to accept over the last year and a half. In such a situation, the restoration of workplace discipline is essential. Capitalists, or, investors, if you will, can't recover their profits if the populace insist upon protesting the measures through job actions, strikes, protests and industrial sabotage. In this instance, the bankers of Germany, and especially France, can't collect their loans, plus interest, if the workers of Greece refuse to work more hours for less pay with increased productivity. Hence, the true threat of a coup lies, not so much in the spasmodic violence associated with protests against the bailout, but, rather, in the economic necessity for strict measures to force the populace to work under conditions imposed by the government and its foreign allies. Needless to say, such measures are much more easily imposed through a military dictatorship than through an obstensibly democratic political system weakened by the economic crisis. So, the leaked release of the CIA report may actually be an act of black propaganda, designed to obscure the real reasons for the coup if it should happen.

Labels: Activism, Anarchism, Bailout of Finance Capitalists, Chile, Europe, Greece, IMF, Neoliberalism, Sub-Proletarianization of Europe, Unions

The bottom line, from Charles Hugh Smith:

The top 5% of Americans by income are responsible for 37% of all consumer spending-- about the same as the entire bottom 80% by income (39.5%).

David Stockman, director of the Office of Management and Budget under President Reagan, recently noted in an editorial that the top 1% of Americans received two-thirds of the gain in national income from 2002 to 2006.

Over the past 25 years since 1985, the top 1 percent's share of national income has doubled; in 2007, it netted 23 percent of the nation’s total income. The income of the wealthiest Americans--the top 0.1 percent—has tripled in that 25 year period. This wafer-thin slice of Americans now earn as much as the bottom 120 million people.

Out of 113 million households, 1/100 of 1% rake in $10 million or more annually. As consumers, the top 5% carry the same weight as the bottom 80%. The top 10% take in 50% of the income. (The sources are listed in Two Americas: The Gap Between the Top 5% and the Bottom 95% Widens August 18, 2010.)

This explains how Nordstroms' earnings can rise by a healthy 43% while Wal-Mart's sales in the U.S. can decline. Frequent contributor Cheryl A. reported that on a trip to Wilmington, DE, the shopping mall was packed with shoppers and people dining out: It's like there never was a recession.

Meanwhile, I took an old friend who was visiting the San Francisco Bay Area to a restaurant in San Francisco that has never failed to be busy in the past 10 years, and the place had more empty tables than customers. The sidewalks were crowded with people, but how many were spending money?

I think the answer is obvious: the top 20% are spending money lavishly, as per their consumerist lifestyle, while the bottom 80% are taking the kids to Costco for entertainment.

For an illustration of how income has increased dramatically for the top 20% since Reagan became President, in the absence of any significant growth for the remaining 80%, go here. In the remainder of this article, as well as some others, Smith has some interesting observations about the extent to which much of the populace is now dependent upon some form of government assistance, even if his perspective is rightist (for example, some of the forms of assistance included in Smith's calculation are ones, such as Social Security, where the recipients have already pre-paid a substantial portion of the benefit).

Even so, Smith retains an acute sense of the nature of class conflict in the US:

The net result of this rising inequality is a high concentration of political power which flows from (and protects) the unearned income streams derived from the highly concentrated wealth. . . . The Political Class, the super-wealthy with vast unearned income and those drawing entitlements are all satisfied with this arrangement. Cash and cash equivalents paid to individuals by the Central State have ballooned up 80% above inflation, taxes on the super-wealthy are modest, and the difference--the $1.5 trillion annually needed to keep the swag flowing to the concentrated wealth/power holders (the Plutocracy) at the top and the complicit bottom (standard-issue welfare)--is borrowed from the Federal Reserve and global mercantilist sources of excess dollars accumulated from monumental trade imbalances.

Since the political class of conservatives and progressives are equally dependent on and beholden to the holders of concentrated wealth for their political power, then their protests against the deficits, welfare, corporate power, etc. all ring hollow.

Leaving aside Smith's deficit hawkery, it is clear that he is painting a familiar picture. It is precisely what transpired in many countries around the world that embraced neoliberal orthodoxy, countries such as Argentina, Greece, Ireland and the United Kingdom, among others. It is a social model that has, as predicted, concentrated wealth and power within a smaller and smaller group of people. Smith's insight is that it has also shrunk the base of consumption within our economy as well.

Among some liberals and leftists, there has been a tendency to consider such a social model as unsustainable precisely because of the narrowing of consumption described by Smith. For liberals, it is another example of their tendency to assert that US capitalism cannot escape the gravitational pull of the New Deal. At the end of the day, US capitalists will fall back upon a more egalitarian distribution of wealth for their long term survival. For leftists, it is a softer variation of an old theme that the demise of capitalism is just around the corner.

Of course, elites face the challenge of implementing this vision in such a way so as to avoid the explosion of civil unrest. But, by one important measure, things are going well:

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.

The government does not adjust the numbers for inflation, in part because these corporate profits can be affected by pricing changes from all over the world and because the government does not have a price index for individual companies. The next-highest annual corporate profits level on record was in the third quarter of 2006, when they were $1.655 trillion.

Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history. As a share of gross domestic product, corporate profits also have been increasing, and they now represent 11.2 percent of total output. That is the highest share since the fourth quarter of 2006, when they accounted for 11.7 percent of output.

This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.

What's not to like? Productivity increasing, expanding markets in East and South Asia accompanied by a quiescent domestic workforce. So, perhaps, I am a pessimist, but, to date, austerity has been quite effectively imposed by refusing to take action to reduce unemployment (such as, for example, providing direct assistance to the states to reduce budget deficits, increasing the the percentage of wage replacement for recipients of unemployment and stalling the rate of home foreclosures through cram down and loan modifications). Now, it is time to move on to the next stage, As long as the federal government, through its control of the money supply, can continue to do so without recourse to the immediate, draconian measures that are now required in Ireland and the UK, the prospects for success remain favorable. The inexorable depreciation of the US dollar is one of the best weapons in this effort.

With unassailable control over the US political system, the wealthy can manipulate the provision of social welfare to preserve their wealth while maintaining social order. Hence, now is the time for more permanent, structural changes to their advantage. Indeed, one can argue that this is the mission of Obama's Deficit Reduction Commission. It is possible to characterize the goal of the Commission as guaranteeing the future profits for those who earn their money from investment by ensuring low rates of taxation through cost containment of federal expenditures. Even if the short term prospects of the Commission's proposals are speculative, we can anticipate that many of them will form the basis for future legislative action.

Meanwhile, where should we look for developments that suggest a different, more contentious prognosis? First, and most obviously, the emergence of overt conflict among the major trading regions of the world, between the US, Europe, India and East Asia. Here, there are some signs of serious disagreement, particularly between the US, Germany and China, as expresssed over the Federal Reserve's new qualitative easing program, but it would be a stretch to characterize them as indicative of a permanent rift. Second, there is a possibility of social unrest, but the likelihood of the creation of a strong movement centered around changing the economic structure of the US remains remote, although there is a chance that resistance to austerity in Europe could ignite stronger resistance globally.

Finally, there is that great unmentionable, the eruption of a mutiny within the US military in Iraq, Afghanistan or Pakistan. Given the stresses placed upon people serving in the military (there is an ongoing epidemic of suicides among troops who have returned home), I wouldn't discount such an action as implausbile. And, finally, there is the possibility that the US may actually stumble into a war with Iran, which would radically reconfigure the global order, most likely to the detriment of the US. In any event, there is much organizing to be done. As Marx said, history is not deterministic, it requires us to seize the opportunity to create a better world. The capitalist endeavor to liberate capital from labor constraints, particularly the dependency upon wage labor generated demand, is a potentially dystopian catastrophe unless we collectively push in a different direction.

Labels: Bailout of Finance Capitalists, Europe, Neoliberalism, Sub-Proletarianization of America, Sub-Proletarianization of Europe, War with Iran