http://www.commondreams.org/print/52547
February 5, 2010 by Robert Reich's Blog
Who's Killing Financial Reform?
by Robert Reich
Senator Chris Dodd, the chairman of the Senate Banking Committee, scolded Wall Street representatives at a hearing Thursday for sending “an army of lobbyists whose only mission is to kill the common-sense financial reforms” needed by the public. “The fact is,” Dodd said, “I am frustrated, and so are the American people.” He charged that Wall Street’s intransigence was the reason for Congress’s failure to pass any bill to regulate the Street. “The refusal of large financial firms to work constructively with Congress on this effort borders on insulting to the American people who have lost so much in this crisis.”
In other words, it isn’t Congress’s fault. It isn’t the Senate Banking Committee’s fault. It certainly isn’t Dodd’s fault. The reason more than a year has passed since the biggest bailout in the history of the world and nothing has been done to prevent a repeat performance — even as the biggest banks are doling out more than $30 billion of bonuses, even as Goldman Sachs is awarding its big traders $16 billion in bonuses (more than the $13 billion Goldman collected from taxpayers via the bailout of AIG), even as AIG itself is handing out bonuses — the reason is … what, exactly, Senator? Because the Street has sent an army of lobbyists to Capitol Hill?
Call me old fashioned, but I thought Congress was in charge of passing legislation, not Wall Street.
Dodd left out the most telling detail, of course. Wall Street is where the campaign money is. Dodd of all people knows that. He’s been on the receiving end of lots of it over the years.
Wall Street firms and their executives have been uniquely generous to both political parties, emerging recently as one of the largest benefactors of the Democratic Party. Between November 2008 and November 2009, Wall Street firms and executives handed out $42 million to lawmakers, mostly to members of the House and Senate banking committees and House and Senate leaders. During the 2008 elections, Wall Street showered Democratic candidates with well over $88 million and Republicans with over $67 million, putting the Street right up there with the insurance industry as among the nation’s largest equal-opportunity donors.
Some Democrats are quietly grumbling that all the tough talk emanating from the White House in recent weeks — the President calling the Street’s denizens “fat cats” and threatening them with limits on their size and the risks they can take, even waiving a watered-down version of Glass-Steagall in their faces — is making it harder to collect money from the Street this mid-term election year. And the Street is quietly threatening that it may well give Republicans more, if the saber-rattling doesn’t stop.
Congress isn’t doing a thing about Wall Street because it’s in the pocket of Wall Street. Dodd’s outburst at the Street is like the alcoholic who screams at a bartender “how dare you give me another drink when all I’ve done is pleaded with you for one!”
Dodd is right about one thing. The American people are frustrated, and the failure of Congress to pass real financial reform is insulting. But in trying to place responsibility for this appalling failure on Wall Street, Dodd insults us even more.
© 2010 Robert Reich
Saturday, February 20, 2010
Wednesday, February 3, 2010
Israeli Commander: 'We Rewrote the Rules of War for Gaza'
http://www.independent.co.uk/news/world/middle-east/israeli-commander-we-rewrote-the-rules-of-war-for-gaza-1887627.html
February 3, 2010 by The Independent/UK
Israeli Commander: 'We Rewrote the Rules of War for Gaza'
Civilians 'put at greater risk to save military lives' in winter attack - revelations that will pile pressure on Netanyahu to set up full inquiry
by Donald Macintyre in Jerusalem
A high-ranking officer has acknowledged for the first time that the Israeli army went beyond its previous rules of engagement on the protection of civilian lives in order to minimise military casualties during last year's Gaza war, The Independent can reveal.
An Israeli soldier directs a tank outside the Gaza Strip in December 2008. (REUTERS)The officer, who served as a commander during Operation Cast Lead, made it clear that he did not regard the longstanding principle of military conduct known as "means and intentions" - whereby a targeted suspect must have a weapon and show signs of intending to use it before being fired upon - as being applicable before calling in fire from drones and helicopters in Gaza last winter. A more junior officer who served at a brigade headquarters during the operation described the new policy - devised in part to avoid the heavy military casualties of the 2006 Lebanon war - as one of "literally zero risk to the soldiers".
The officers' revelations will pile more pressure on Israeli Prime Minister Benjamin Netanyahu to set up an independent inquiry into the war, as demanded in the UN-commissioned Goldstone Report, which harshly criticised the conduct of both Israel and Hamas. One of Israel's most prominent human rights lawyers, Michael Sfard, said last night that the senior commander's acknowledgement - if accurate - was "a smoking gun".
Until now, the testimony has been kept out of the public domain. The senior commander told a journalist compiling a lengthy report for Yedhiot Ahronot, Israel's biggest daily newspaper, about the rules of engagement in the three-week military offensive in Gaza. But although the article was completed and ready for publication five months ago, it has still not appeared. The senior commander told Yedhiot: "Means and intentions is a definition that suits an arrest operation in the Judaea and Samaria [West Bank] area... We need to be very careful because the IDF [Israel Defence Forces] was already burnt in the second Lebanon war from the wrong terminology. The concept of means and intentions is taken from different circumstances. Here [in Cast Lead] we were not talking about another regular counter-terrorist operation. There is a clear difference."
His remarks reinforce testimonies from soldiers who served in the Gaza operation, made to the veterans' group Breaking the Silence and reported exclusively by this newspaper last July. They also appear to cut across the military doctrine - enunciated most recently in public by one of the authors of the IDF's own code of ethics - that it is the duty of soldiers to run risks to themselves in order to preserve civilian lives.
Explaining what he saw as the dilemma for forces operating in areas that were supposedly cleared of civilians, the senior commander said: "Whoever is left in the neighbourhood and wants to action an IED [improvised explosive device] against the soldiers doesn't have to walk with a Kalashnikov or a weapon. A person like that can walk around like any other civilian; he sees the IDF forces, calls someone who would operate the terrible death explosive and five of our soldiers explode in the air. We could not wait until this IED is activated against us."
Another soldier who worked in one of the brigade's war-room headquarters told The Independent that conduct in Gaza - particularly by aerial forces and in areas where civilians had been urged to leave by leaflets - had "taken the targeted killing idea and turned it on its head". Instead of using intelligence to identify a terrorist, he said, "here you do the opposite: first you take him down, then you look into it."
The Yedhiot newspaper also spoke to a series of soldiers who had served in Operation Cast Lead in sensitive positions. While the soldiers rejected the main finding of the Goldstone Report - that the Israeli military had deliberately "targeted" the civilian population - most asserted that the rules were flexible enough to allow a policy under which, in the words of one soldier "any movement must entail gunfire. No one's supposed to be there." He added that at a meeting with his brigade commander and others it was made clear that "if you see any signs of movement at all you shoot. This is essentially the rules of engagement."
The other soldier in the war-room explained: "This doesn't mean that you need to disrespect the lives of Palestinians but our first priority is the lives of our soldiers. That's not something you're going to compromise on. In all my years in the military, I never heard that."
He added that the majority of casualties were caused in his brigade area by aerial firing, including from unmanned drones. "Most of the guys taken down were taken down by order of headquarters. The number of enemy killed by HQ-operated remote ... compared to enemy killed by soldiers on the ground had absolutely inverted," he said.
Rules of engagement issued to soldiers serving in the West Bank as recently as July 2006 make it clear that shooting towards even an armed person will take place only if there is intelligence that he intends to act against Israeli forces or if he poses an immediate threat to soldiers or others.
In a recent article in New Republic, Moshe Halbertal, a philosophy professor at Hebrew and New York Universities, who was involved in drawing up the IDF's ethical code in 2000 and who is critical of the Goldstone Report, said that efforts to spare civilian life "must include the expectation that soldiers assume some risk to their own lives in order to avoid causing the deaths of civilians". While the choices for commanders were often extremely difficult and while he did not think the expectation was demanded by international law, "it is demanded in Israel's military code and this has always been its tradition".
The Israeli military declined to comment on the latest revelations, and directed all enquiries to already-published material, including a July 2009 foreign ministry document The Operation in Gaza: Factual and Legal Aspects.
That document, which repeats that Israel acted in conformity with international law despite the "acute dilemmas" posed by Hamas's operations within civilian areas, sets out the principles of Operation Cast Lead as follows: "Only military targets shall be attacked; Any attack against civilian objectives shall be prohibited. A 'civilian objective' is any objective which is not a military target." It adds: "In case of doubt, the forces are obliged to regard an object as civilian."
Yedhiot has not commented on why its article has not been published.
Israel in Gaza: The soldier's tale
This experienced soldier, who cannot be named, served in the war room of a brigade during Operation Cast Lead. Here, he recalls an incident he witnessed during last winter's three-week offensive:
"Two [Palestinian] guys are walking down the street. They pass a mosque and you see a gathering of women and children.
"You saw them exiting the house and [they] are not walking together but one behind the other. So you begin to fantasise they are actually ducking close to the wall.
"One [man] began to run at some point, must have heard the chopper. The GSS [secret service] argued that the mere fact that he heard it implicated him, because a normal civilian would not have realised that he was now being hunted.
"Finally he was shot. He was not shot next to the mosque. It's obvious that shots are not taken at a gathering."
February 3, 2010 by The Independent/UK
Israeli Commander: 'We Rewrote the Rules of War for Gaza'
Civilians 'put at greater risk to save military lives' in winter attack - revelations that will pile pressure on Netanyahu to set up full inquiry
by Donald Macintyre in Jerusalem
A high-ranking officer has acknowledged for the first time that the Israeli army went beyond its previous rules of engagement on the protection of civilian lives in order to minimise military casualties during last year's Gaza war, The Independent can reveal.
An Israeli soldier directs a tank outside the Gaza Strip in December 2008. (REUTERS)The officer, who served as a commander during Operation Cast Lead, made it clear that he did not regard the longstanding principle of military conduct known as "means and intentions" - whereby a targeted suspect must have a weapon and show signs of intending to use it before being fired upon - as being applicable before calling in fire from drones and helicopters in Gaza last winter. A more junior officer who served at a brigade headquarters during the operation described the new policy - devised in part to avoid the heavy military casualties of the 2006 Lebanon war - as one of "literally zero risk to the soldiers".
The officers' revelations will pile more pressure on Israeli Prime Minister Benjamin Netanyahu to set up an independent inquiry into the war, as demanded in the UN-commissioned Goldstone Report, which harshly criticised the conduct of both Israel and Hamas. One of Israel's most prominent human rights lawyers, Michael Sfard, said last night that the senior commander's acknowledgement - if accurate - was "a smoking gun".
Until now, the testimony has been kept out of the public domain. The senior commander told a journalist compiling a lengthy report for Yedhiot Ahronot, Israel's biggest daily newspaper, about the rules of engagement in the three-week military offensive in Gaza. But although the article was completed and ready for publication five months ago, it has still not appeared. The senior commander told Yedhiot: "Means and intentions is a definition that suits an arrest operation in the Judaea and Samaria [West Bank] area... We need to be very careful because the IDF [Israel Defence Forces] was already burnt in the second Lebanon war from the wrong terminology. The concept of means and intentions is taken from different circumstances. Here [in Cast Lead] we were not talking about another regular counter-terrorist operation. There is a clear difference."
His remarks reinforce testimonies from soldiers who served in the Gaza operation, made to the veterans' group Breaking the Silence and reported exclusively by this newspaper last July. They also appear to cut across the military doctrine - enunciated most recently in public by one of the authors of the IDF's own code of ethics - that it is the duty of soldiers to run risks to themselves in order to preserve civilian lives.
Explaining what he saw as the dilemma for forces operating in areas that were supposedly cleared of civilians, the senior commander said: "Whoever is left in the neighbourhood and wants to action an IED [improvised explosive device] against the soldiers doesn't have to walk with a Kalashnikov or a weapon. A person like that can walk around like any other civilian; he sees the IDF forces, calls someone who would operate the terrible death explosive and five of our soldiers explode in the air. We could not wait until this IED is activated against us."
Another soldier who worked in one of the brigade's war-room headquarters told The Independent that conduct in Gaza - particularly by aerial forces and in areas where civilians had been urged to leave by leaflets - had "taken the targeted killing idea and turned it on its head". Instead of using intelligence to identify a terrorist, he said, "here you do the opposite: first you take him down, then you look into it."
The Yedhiot newspaper also spoke to a series of soldiers who had served in Operation Cast Lead in sensitive positions. While the soldiers rejected the main finding of the Goldstone Report - that the Israeli military had deliberately "targeted" the civilian population - most asserted that the rules were flexible enough to allow a policy under which, in the words of one soldier "any movement must entail gunfire. No one's supposed to be there." He added that at a meeting with his brigade commander and others it was made clear that "if you see any signs of movement at all you shoot. This is essentially the rules of engagement."
The other soldier in the war-room explained: "This doesn't mean that you need to disrespect the lives of Palestinians but our first priority is the lives of our soldiers. That's not something you're going to compromise on. In all my years in the military, I never heard that."
He added that the majority of casualties were caused in his brigade area by aerial firing, including from unmanned drones. "Most of the guys taken down were taken down by order of headquarters. The number of enemy killed by HQ-operated remote ... compared to enemy killed by soldiers on the ground had absolutely inverted," he said.
Rules of engagement issued to soldiers serving in the West Bank as recently as July 2006 make it clear that shooting towards even an armed person will take place only if there is intelligence that he intends to act against Israeli forces or if he poses an immediate threat to soldiers or others.
In a recent article in New Republic, Moshe Halbertal, a philosophy professor at Hebrew and New York Universities, who was involved in drawing up the IDF's ethical code in 2000 and who is critical of the Goldstone Report, said that efforts to spare civilian life "must include the expectation that soldiers assume some risk to their own lives in order to avoid causing the deaths of civilians". While the choices for commanders were often extremely difficult and while he did not think the expectation was demanded by international law, "it is demanded in Israel's military code and this has always been its tradition".
The Israeli military declined to comment on the latest revelations, and directed all enquiries to already-published material, including a July 2009 foreign ministry document The Operation in Gaza: Factual and Legal Aspects.
That document, which repeats that Israel acted in conformity with international law despite the "acute dilemmas" posed by Hamas's operations within civilian areas, sets out the principles of Operation Cast Lead as follows: "Only military targets shall be attacked; Any attack against civilian objectives shall be prohibited. A 'civilian objective' is any objective which is not a military target." It adds: "In case of doubt, the forces are obliged to regard an object as civilian."
Yedhiot has not commented on why its article has not been published.
Israel in Gaza: The soldier's tale
This experienced soldier, who cannot be named, served in the war room of a brigade during Operation Cast Lead. Here, he recalls an incident he witnessed during last winter's three-week offensive:
"Two [Palestinian] guys are walking down the street. They pass a mosque and you see a gathering of women and children.
"You saw them exiting the house and [they] are not walking together but one behind the other. So you begin to fantasise they are actually ducking close to the wall.
"One [man] began to run at some point, must have heard the chopper. The GSS [secret service] argued that the mere fact that he heard it implicated him, because a normal civilian would not have realised that he was now being hunted.
"Finally he was shot. He was not shot next to the mosque. It's obvious that shots are not taken at a gathering."
Five Supremes: Corrupt to the Core
http://www.opednews.com/articles/Five-Supremes-Corrupt-to-by-Brent-Budowsky-100202-268.html
February 2, 2010
By Brent Budowsky
Testifying under oath during confirmation hearings, Chief Justice John Roberts and Associate Justice Samuel Alito offered assurances about their respect for legal precedent and the appropriate role of the judiciary.
The recent decision of the court overturning settled campaign finance law achieved through bipartisan action of the elected legislative and executive branches was contemptuous of precedent, aggressive in its political intent, extremist in its impact and radical in its usurpation of power against the elected branches of government.
The "anything goes" ethic of a politics held in wide disrepute now extends to five Supreme Court justices who rule that unlimited sums of unregulated money can be spent to buy power over our republic.
They hold in contempt the warning of Madison in Federalist 10 that special-interest factions could overwhelm the nation. They ignore the warnings of Washington about the dangers of foreign entanglements that may, under this decision, if not clarified, further corrupt the governance of the nation. They hold in contempt the time-honored truth of Lincoln that America is the land of the people, by the people and for the people, and not the property of the money, by the money and for the money at the expense of people who lack the money.
Under the Supreme Court decision, companies that received investment from Nazi financiers and armed the Nazi war machine could have spent unlimited money to destroy elected officials who opposed their agenda.
Under this decision, oil companies dependent on the good will of unfriendly nations, which receive investment from foreign sources, including some that covertly fund bin Laden and others who overtly despise Israel, could spend unlimited money to promote an agenda hostile to our own.
The sheer extremism of this decision, the contempt for legal precedent that preceded it and the confirmation testimony that promised to honor this precedent, the disregard for the widely held view that Washington is corrupted by money in the service of greed, will go down in history alongside the opinion that slaves were property of slave-owners.
This decision is reminiscent of the mercantilist view of King George III, in which the power of the few with money would colonize the many who lack it, a view anathema to the essence of our republic, a view that inspired the American Revolution fought to end it.
I propose that Congress pass an American Elections for Americans Only Act of 2010 that would prohibit unlimited, unregulated spending by American subsidiaries of foreign companies and firms or entities that benefit from foreign investment or capital.
This act would simply prohibit unlimited spending, clarify ambiguities in the court decision and require the court to decide whether foreign interests have free-speech rights to dominate American elections.
A recent Gallup poll found that 76 percent of Americans believe government should limit corporate political spending. There will be a tidal wave of public support for making American elections American-only.
Our system is corrupt to the core. If a special interest offered bags of cash in return for a politician's vote, it would be a criminal felony. Our system is designed to legalize what is essentially this transaction. The least we can do is not further globalize the corruption.
February 2, 2010
By Brent Budowsky
Testifying under oath during confirmation hearings, Chief Justice John Roberts and Associate Justice Samuel Alito offered assurances about their respect for legal precedent and the appropriate role of the judiciary.
The recent decision of the court overturning settled campaign finance law achieved through bipartisan action of the elected legislative and executive branches was contemptuous of precedent, aggressive in its political intent, extremist in its impact and radical in its usurpation of power against the elected branches of government.
The "anything goes" ethic of a politics held in wide disrepute now extends to five Supreme Court justices who rule that unlimited sums of unregulated money can be spent to buy power over our republic.
They hold in contempt the warning of Madison in Federalist 10 that special-interest factions could overwhelm the nation. They ignore the warnings of Washington about the dangers of foreign entanglements that may, under this decision, if not clarified, further corrupt the governance of the nation. They hold in contempt the time-honored truth of Lincoln that America is the land of the people, by the people and for the people, and not the property of the money, by the money and for the money at the expense of people who lack the money.
Under the Supreme Court decision, companies that received investment from Nazi financiers and armed the Nazi war machine could have spent unlimited money to destroy elected officials who opposed their agenda.
Under this decision, oil companies dependent on the good will of unfriendly nations, which receive investment from foreign sources, including some that covertly fund bin Laden and others who overtly despise Israel, could spend unlimited money to promote an agenda hostile to our own.
The sheer extremism of this decision, the contempt for legal precedent that preceded it and the confirmation testimony that promised to honor this precedent, the disregard for the widely held view that Washington is corrupted by money in the service of greed, will go down in history alongside the opinion that slaves were property of slave-owners.
This decision is reminiscent of the mercantilist view of King George III, in which the power of the few with money would colonize the many who lack it, a view anathema to the essence of our republic, a view that inspired the American Revolution fought to end it.
I propose that Congress pass an American Elections for Americans Only Act of 2010 that would prohibit unlimited, unregulated spending by American subsidiaries of foreign companies and firms or entities that benefit from foreign investment or capital.
This act would simply prohibit unlimited spending, clarify ambiguities in the court decision and require the court to decide whether foreign interests have free-speech rights to dominate American elections.
A recent Gallup poll found that 76 percent of Americans believe government should limit corporate political spending. There will be a tidal wave of public support for making American elections American-only.
Our system is corrupt to the core. If a special interest offered bags of cash in return for a politician's vote, it would be a criminal felony. Our system is designed to legalize what is essentially this transaction. The least we can do is not further globalize the corruption.
Saturday, January 30, 2010
The Corpocracy Rules / For Now
http://blogs.salon.com/0002255/2010/01/27.html
January 27, 2010
The Corpocracy Rules / For Now
By Allen L Roland
Aided by a mind boggling decision by the Supreme Court allowing unlimited campaign spending by private interests ~ the Corpocracy, where corporate dollars trump individual votes, has revealed its ominous ruling presence and insatiable appetite for power, profit and control but also has set the stage for a major populist revolt.
Now that the Supreme Courthas ruled that corporations may buy and own as many congressman as they can afford ~ it's time for a widespread populist revolt particularly in this mid term election year.
As John Geyman noted last year in the Huffington Post ~ " The scope of corpocracy goes beyond what most of us realize.
According to a 2007 report of the Institute for Policy Studies, 51 of the top 100 economic entities in the world are corporations. Wal-Mart and Exxon Mobil each have higher annual revenues than the gross domestic product of Poland or Saudi Arabia. The top 200 corporations account for about one-quarter of total economic activity in the entire world."
Geyman goes on to reveal " that Most of these large corporations are multinational and largely immune from the laws of any one nation. They are free to set up partnerships of convenience across borders, seek out countries that best serve their interests, and often pay little or no taxes." http://www.huffingtonpost.com/john-geyman/corpocracy-vs-democracy-i_b_241452.html
This is a dangerous time for American where our Republic is rapidly morphing into a Plutocracy or government by the wealthy. FDR warned of this possibility in 1938 ~
"The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic State itself. That, in its essence is Fascism~ ownership of government by individual, by a group, or any controlling private power."
The game is on ~ the enemy has been identified ~ as activist groups organize and a few courageous politicians try to implement legislative stop gaps to this insidious corporate cancer but corporate groups are also ready to attack the legislators who dare to oppose them.
Forget Obama, whose allegiance to the corpocracy gained him the presidency, we all need to be involved in this upcoming battle of the people versusthe corpocracyand Bill Moyers sums up the stakesthis election year ~ "The game goes on and the insiders keep dealing themselves winning hands. Nothing will change~ nothing ~ until the moneylenders are tossed out of the temple, the ATM's are wrested from the marble walls, and we tear down the sign they've place on government - the one that reads, 'For Sale.'"
As ChrisHedges, who wroteEmpire Of Illusions, says "Our for-profit health care system makes money off of death, the same way our arms merchants make money off of death. And the inability within our country to face this reality, the inability in a corporatized media to even have this discussion is, I think, evidence of the power of the corporate state, which drives debate, which permits institutions that are morally bankrupt to have a seat at the table. And that is symptomatic of a society in deep decay."
We are beyond the point of no return and only a full fledged populist revolt can right this badly listing Republic. Under G.W. Bush, torture became legal and under Obama, bribery has just become legal.
January 27, 2010
The Corpocracy Rules / For Now
By Allen L Roland
Aided by a mind boggling decision by the Supreme Court allowing unlimited campaign spending by private interests ~ the Corpocracy, where corporate dollars trump individual votes, has revealed its ominous ruling presence and insatiable appetite for power, profit and control but also has set the stage for a major populist revolt.
Now that the Supreme Courthas ruled that corporations may buy and own as many congressman as they can afford ~ it's time for a widespread populist revolt particularly in this mid term election year.
As John Geyman noted last year in the Huffington Post ~ " The scope of corpocracy goes beyond what most of us realize.
According to a 2007 report of the Institute for Policy Studies, 51 of the top 100 economic entities in the world are corporations. Wal-Mart and Exxon Mobil each have higher annual revenues than the gross domestic product of Poland or Saudi Arabia. The top 200 corporations account for about one-quarter of total economic activity in the entire world."
Geyman goes on to reveal " that Most of these large corporations are multinational and largely immune from the laws of any one nation. They are free to set up partnerships of convenience across borders, seek out countries that best serve their interests, and often pay little or no taxes." http://www.huffingtonpost.com/john-geyman/corpocracy-vs-democracy-i_b_241452.html
This is a dangerous time for American where our Republic is rapidly morphing into a Plutocracy or government by the wealthy. FDR warned of this possibility in 1938 ~
"The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic State itself. That, in its essence is Fascism~ ownership of government by individual, by a group, or any controlling private power."
The game is on ~ the enemy has been identified ~ as activist groups organize and a few courageous politicians try to implement legislative stop gaps to this insidious corporate cancer but corporate groups are also ready to attack the legislators who dare to oppose them.
Forget Obama, whose allegiance to the corpocracy gained him the presidency, we all need to be involved in this upcoming battle of the people versusthe corpocracyand Bill Moyers sums up the stakesthis election year ~ "The game goes on and the insiders keep dealing themselves winning hands. Nothing will change~ nothing ~ until the moneylenders are tossed out of the temple, the ATM's are wrested from the marble walls, and we tear down the sign they've place on government - the one that reads, 'For Sale.'"
As ChrisHedges, who wroteEmpire Of Illusions, says "Our for-profit health care system makes money off of death, the same way our arms merchants make money off of death. And the inability within our country to face this reality, the inability in a corporatized media to even have this discussion is, I think, evidence of the power of the corporate state, which drives debate, which permits institutions that are morally bankrupt to have a seat at the table. And that is symptomatic of a society in deep decay."
We are beyond the point of no return and only a full fledged populist revolt can right this badly listing Republic. Under G.W. Bush, torture became legal and under Obama, bribery has just become legal.
Scandal: Albert Edwards Alleges Central Banks Were Complicit In Robbing The Middle Classes
Go to URL to see graphs.
http://www.zerohedge.com/article/scandal-albert-edwards-alleges-central-banks-were-complicit-robbing-middle-classes
Albert Edwards
Zero Hedge
Thu, 21 Jan 2010 22:20 EST
We apologize in advance for the New York Magazine-style headline, but this is a report that has to be read by all Senators who are preparing to reconfirm Bernanke for a second term. When voting for the Chairman, be aware that all of America will now look at you as the perpetrators who are encouraging the greatest inter and intra-generational theft to continue, and as prescribed by Newton 3rd law, sooner or later, an appropriate reaction will come from the very same middle class that you are seeking to doom into a state of perpetual penury and a declining standard of living.
America spoke in Massachusetts, and will speak again very soon if you do not send the appropriate signal that you have heard its anger - Do Not Reconfirm Bernanke.
You have been warned.
We present Albert Edwards' latest in its complete form as it must be read by all unabridged and without commentary. These are not the deranged ramblings of a fringe blogger - this is a chief strategist for a major international bank.
Theft! Were the US & UK central banks complicit in robbing the middle classes?
by Albert Edwards, Societe Generale
Mr Bernanke's in-house Fed economists have found that the Fed wasn't responsible for the boom which subsequently turned into the biggest bust since the 1930s. Are those the same Fed staffers whose research led Mr Bernanke to assert in Oct. 2005 that "there was no housing bubble to go bust"? The reasons for the US and the UK central banks inflating the bubble range from incompetence and negligence to just plain spinelessness. Let me propose an alternative thesis. Did the US and UK central banks collude with the politicians to 'steal' their nations' income growth from the middle classes and hand it to the very rich?
Ben Bernanke's recent speech at the American Economic Association made me feel sick. Like Alan Greenspan, he is still in denial. The pigmies that populate the political and monetary elites prefer to genuflect to the court of public opinion in a pathetic attempt to deflect blame from their own gross and unforgivable incompetence.
The US and UK have seen a huge rise in inequality over the last two decades, as growth in national income has been diverted almost exclusively to the top income earners (see chart below). The middle classes have seen median real incomes stagnate over that period and, as a consequence, corporate margins and profits have boomed.
Some recent reading has got me thinking as to whether the US and UK central banks were actively complicit in an aggressive re-distributive policy benefiting the very rich. Indeed, it has been amazing how little political backlash there has been against the stagnation of ordinary people's earnings in the US and UK. Did central banks, in creating housing bubbles, help distract middle class attention from this re-distributive policy by allowing them to keep consuming via equity extraction? The emergence of extreme inequality might never otherwise have been tolerated by the electorate (see chart below). And now the bubbles have burst, along with central banks' credibility, what now?
© Profs Emmanuel Saez and Thomas Piketty
After reading Ben Bernanke's speech, once again denying culpability for the bubble, I really didn't know whether to laugh or cry (remember that Ben Bernanke, like Tim Geithner, was a key member of the Greenspan Fed). I feel like Peter Finch in the film Network, sticking my head out of the window and shouting "I'm as mad as hell and I'm not going to take it anymore!" Although criticism of the Fed (and the Bank of England) has now become louder and more widespread, I feel my longstanding derision for their actions during the so-called "good years" puts me in a stronger position than some to offer further comment.
Opening my 2002-2005 file of old weeklies I did not have to go any further than the first paragraph of the top copy (end of December 2005). "As far as Alan Greenspan's tenure at the Fed is concerned, we have spared few words of derision. We have made plain our views that the supposed US prosperity that has accompanied his tenure has been based on a grotesque mountain of debt. We have likened the economy to a Ponzi scheme which will ultimately collapse. He has allowed the funding of strong economic activity by mortgaging the US's future against one bubble (equity) and then another (housing), which is now beginning to implode". These are almost consensus thoughts now, but not then.
The pigmies that populate the political and monetary elites prefer to genuflect to the court of public opinion. Blaming the banks is simply a pathetic attempt to deflect the public fury from their own gross and unforgivable incompetence. We have stated before that banks are not the primary cause of the bust. Just as in Japan, a decade earlier, bank problems are a symptom of the bust. It is the monetary and regulatory authorities that are responsible for this mess. And it is not just obvious in retrospect. It was perfectly obvious from the beginning.
I was shocked by a recent survey of Wall Street and business economists, published in the Wall Street Journal (see 'Bernanke View Doubted', 14 Jan). Asked whether they agreed or disagreed with the proposition 'excessively easy Fed policy in the first half of the decade helped cause a bubble in house prices', some 42, or 74% agreed with the proposition. So unbelievably there are still 12 economists surveyed who did not agree! Even more incredible, a majority of academic economists did not agree with the proposition. Maybe they have sympathy for a fellow academic or maybe they actually believe the preposterous proposition that the western central banks were not in control of the bubbles which were primarily due to tidal waves of surplus savings washing across from Asia.
John Taylor shows this to be nonsense. There was no global savings glut (see chart below)
© John Taylor
John Taylor is well known for his famous "Taylor Rule" for the appropriate level of interest rates and he has been very vocal in his criticism of Fed laxity in the aftermath of the Nasdaq crash in his paper 'The Financial Crisis and Policy Responses: An Empirical Analysis of What Went Wrong', Nov. 2008 and elsewhere. His thesis is simple. Lax monetary policy caused the boom in housing upon which euphoric credit excesses were built. The subsequent bust was an inevitable mirror image of the boom. This simply would not have occurred had the Fed (and the Bank of England) acted earlier to tighten policy as shown in the Taylor's counterfactual profiles (see charts below).
© John Taylor
More recently, the San Francisco Fed published a paper this month showing that those countries which saw the steepest run-up in house prices over the last decade also saw the largest rise in household sector leverage (see charts below and here). Of course the causality runs both ways. Loose monetary policy generates higher borrowing which pushes up house prices. Subsequently this prompts other households to borrow against the rising value of their houses to finance consumption via net equity extraction.
© Federal Reserve Bank of San Franciso
Generally most commentators have fallen for the populist line that the banks are to blame. Very rarely does a leading commentator pin the blame where it deserves to be: on the central banks. Hence, I was very interested to read the Financial Times Insight column on Tuesday from the deep-thinking columnist, John Plender (interestingly his title in the print edition was "Blame the central bankers more than the private bankers" was changed to "Remove the punchbowl before the party gets rowdy" in the web edition).
Plender's point is classic Minsky. An unusually long period of economic stability, also known as The Great Moderation, engineered by Central Bank laxity inevitably created the conditions for the subsequent bust. "Central banks clearly bear much responsibility for past excessive credit expansion. The Fed's gradualist and transparent approach to raising rates in middecade also ensured that bankers were never shocked into a recognition that unprecedented shrinkage of bank equity was phenomenally dangerous. Despite the popular perception that financial innovation caused so much of the damage in the crisis, the rise in bank leverage was a far more important factor". His point that it takes guts to remove the punch-bowl when the party is in full swing is spot on. The Fed and the Bank of England were both gutless and spineless. Their love affair with The Great Moderation meant they simply were not prepared to tolerate a little more pain now to avoid a Minsky credit bust and massive unemployment later.
But what is the relationship, if any, between this extreme central bank laxity in the US and UK and these countries being at the forefront for the extraordinary rise in inequality over the last few decades (see cover chart)? And does it matter?
I was reading some typically thought-provoking comments from Marc Faber in his 'Gloom, Boom and Doom' report about current extremes of inequality. It reminded me that our own excellent US economists Steven Gallagher and Aneta Markowska had also written on this. To be sure, the rise in inequality has been staggering in the US in recent years (see charts below).
© Emmanuel Saez, University of California / Sudden Debt, USDA
It is well worth visiting the website of Emmanuel Saez of the University of California who has written extensively on this subject and now has updated his charts up until the end of 2008 (data available in Excel Format). The New York Times reported on the recently released Census Bureau data and showed not only that median income had declined over the last 10 years in real terms, but that this is the first full decade that real median household income has failed to rise in the US. What is also so interesting from Professor Saez's cross-sectional research is how inequality has clearly risen fastest in the Anglosaxon, freemarket economies of the US and the UK (also note that France, with much higher levels of equality, saw much more subdued growth in household leverage).
Our US economists make the very interesting point (similar to Marc Faber) that peaks of income skewness - 1929 and 2007 - tell us there is something fundamentally unsustainable about excessively uneven income distribution. With a relatively low marginal propensity to consume among the rich, when they receive the vast bulk of income growth, as they have, then the country will face an under-consumption problem (see 9 September, The Economic News. Marc Faber also cites John Hobson's work on this same topic from the 1930s).
Hence, while governments preside over economic policies which make the very rich even richer, national consumption needs to be boosted in some way to avoid underconsumption ending in outright deflation. In addition, the middle classes also need to be thrown a sop to disguise the fact they are not benefiting at all from economic growth. This is where central banks have played their pernicious part.
I recalled seeing another article from John Plender on this topic back in April 2008. His explanation for why there had been so little backlash from the stagnation of ordinary people's income at a time when the rich did so well was simple: "Rising asset prices, especially in the housing market, created a sense of increasing wealth regardless of income. Remortgaging homes over a long period of declining interest rates provided a convenient source of funds via equity withdrawal to finance increased consumption."
Now you might argue central banks had no alternative in the face of under-consumption. Or you might conclude there was a deliberate, unspoken collusion among policymakers to "rob" the middle classes of their rightful share of income growth by throwing them illusionary spending power based on asset price inflation. We will never know.
But it is clear in my mind that ordinary working people would not have tolerated these extreme redistributive policies had not the UK and US central banks played their supporting role. Going forward, in the absence of a sustained housing boom, labour will fight back to take its proper (normal) share of the national cake, squeezing profits on a secular basis. For as Bill Gross pointed out back in PIMCO's investment outlook 'Enough is Enough' of August 1997, "When the fruits of society's labor become maldistributed, when the rich get richer and the middle and lower classes struggle to keep their heads above water as is clearly the case today, then the system ultimately breaks down." In Japan, low levels of inequality and inherent social cohesion prevented a social breakdown in this post-bubble debacle. With social inequality currently so very high in the US and the UK, it doesn't take much to conclude that extreme inequality could strain the fabric of society far closer to breaking point.
http://www.zerohedge.com/article/scandal-albert-edwards-alleges-central-banks-were-complicit-robbing-middle-classes
Albert Edwards
Zero Hedge
Thu, 21 Jan 2010 22:20 EST
We apologize in advance for the New York Magazine-style headline, but this is a report that has to be read by all Senators who are preparing to reconfirm Bernanke for a second term. When voting for the Chairman, be aware that all of America will now look at you as the perpetrators who are encouraging the greatest inter and intra-generational theft to continue, and as prescribed by Newton 3rd law, sooner or later, an appropriate reaction will come from the very same middle class that you are seeking to doom into a state of perpetual penury and a declining standard of living.
America spoke in Massachusetts, and will speak again very soon if you do not send the appropriate signal that you have heard its anger - Do Not Reconfirm Bernanke.
You have been warned.
We present Albert Edwards' latest in its complete form as it must be read by all unabridged and without commentary. These are not the deranged ramblings of a fringe blogger - this is a chief strategist for a major international bank.
Theft! Were the US & UK central banks complicit in robbing the middle classes?
by Albert Edwards, Societe Generale
Mr Bernanke's in-house Fed economists have found that the Fed wasn't responsible for the boom which subsequently turned into the biggest bust since the 1930s. Are those the same Fed staffers whose research led Mr Bernanke to assert in Oct. 2005 that "there was no housing bubble to go bust"? The reasons for the US and the UK central banks inflating the bubble range from incompetence and negligence to just plain spinelessness. Let me propose an alternative thesis. Did the US and UK central banks collude with the politicians to 'steal' their nations' income growth from the middle classes and hand it to the very rich?
Ben Bernanke's recent speech at the American Economic Association made me feel sick. Like Alan Greenspan, he is still in denial. The pigmies that populate the political and monetary elites prefer to genuflect to the court of public opinion in a pathetic attempt to deflect blame from their own gross and unforgivable incompetence.
The US and UK have seen a huge rise in inequality over the last two decades, as growth in national income has been diverted almost exclusively to the top income earners (see chart below). The middle classes have seen median real incomes stagnate over that period and, as a consequence, corporate margins and profits have boomed.
Some recent reading has got me thinking as to whether the US and UK central banks were actively complicit in an aggressive re-distributive policy benefiting the very rich. Indeed, it has been amazing how little political backlash there has been against the stagnation of ordinary people's earnings in the US and UK. Did central banks, in creating housing bubbles, help distract middle class attention from this re-distributive policy by allowing them to keep consuming via equity extraction? The emergence of extreme inequality might never otherwise have been tolerated by the electorate (see chart below). And now the bubbles have burst, along with central banks' credibility, what now?
© Profs Emmanuel Saez and Thomas Piketty
After reading Ben Bernanke's speech, once again denying culpability for the bubble, I really didn't know whether to laugh or cry (remember that Ben Bernanke, like Tim Geithner, was a key member of the Greenspan Fed). I feel like Peter Finch in the film Network, sticking my head out of the window and shouting "I'm as mad as hell and I'm not going to take it anymore!" Although criticism of the Fed (and the Bank of England) has now become louder and more widespread, I feel my longstanding derision for their actions during the so-called "good years" puts me in a stronger position than some to offer further comment.
Opening my 2002-2005 file of old weeklies I did not have to go any further than the first paragraph of the top copy (end of December 2005). "As far as Alan Greenspan's tenure at the Fed is concerned, we have spared few words of derision. We have made plain our views that the supposed US prosperity that has accompanied his tenure has been based on a grotesque mountain of debt. We have likened the economy to a Ponzi scheme which will ultimately collapse. He has allowed the funding of strong economic activity by mortgaging the US's future against one bubble (equity) and then another (housing), which is now beginning to implode". These are almost consensus thoughts now, but not then.
The pigmies that populate the political and monetary elites prefer to genuflect to the court of public opinion. Blaming the banks is simply a pathetic attempt to deflect the public fury from their own gross and unforgivable incompetence. We have stated before that banks are not the primary cause of the bust. Just as in Japan, a decade earlier, bank problems are a symptom of the bust. It is the monetary and regulatory authorities that are responsible for this mess. And it is not just obvious in retrospect. It was perfectly obvious from the beginning.
I was shocked by a recent survey of Wall Street and business economists, published in the Wall Street Journal (see 'Bernanke View Doubted', 14 Jan). Asked whether they agreed or disagreed with the proposition 'excessively easy Fed policy in the first half of the decade helped cause a bubble in house prices', some 42, or 74% agreed with the proposition. So unbelievably there are still 12 economists surveyed who did not agree! Even more incredible, a majority of academic economists did not agree with the proposition. Maybe they have sympathy for a fellow academic or maybe they actually believe the preposterous proposition that the western central banks were not in control of the bubbles which were primarily due to tidal waves of surplus savings washing across from Asia.
John Taylor shows this to be nonsense. There was no global savings glut (see chart below)
© John Taylor
John Taylor is well known for his famous "Taylor Rule" for the appropriate level of interest rates and he has been very vocal in his criticism of Fed laxity in the aftermath of the Nasdaq crash in his paper 'The Financial Crisis and Policy Responses: An Empirical Analysis of What Went Wrong', Nov. 2008 and elsewhere. His thesis is simple. Lax monetary policy caused the boom in housing upon which euphoric credit excesses were built. The subsequent bust was an inevitable mirror image of the boom. This simply would not have occurred had the Fed (and the Bank of England) acted earlier to tighten policy as shown in the Taylor's counterfactual profiles (see charts below).
© John Taylor
More recently, the San Francisco Fed published a paper this month showing that those countries which saw the steepest run-up in house prices over the last decade also saw the largest rise in household sector leverage (see charts below and here). Of course the causality runs both ways. Loose monetary policy generates higher borrowing which pushes up house prices. Subsequently this prompts other households to borrow against the rising value of their houses to finance consumption via net equity extraction.
© Federal Reserve Bank of San Franciso
Generally most commentators have fallen for the populist line that the banks are to blame. Very rarely does a leading commentator pin the blame where it deserves to be: on the central banks. Hence, I was very interested to read the Financial Times Insight column on Tuesday from the deep-thinking columnist, John Plender (interestingly his title in the print edition was "Blame the central bankers more than the private bankers" was changed to "Remove the punchbowl before the party gets rowdy" in the web edition).
Plender's point is classic Minsky. An unusually long period of economic stability, also known as The Great Moderation, engineered by Central Bank laxity inevitably created the conditions for the subsequent bust. "Central banks clearly bear much responsibility for past excessive credit expansion. The Fed's gradualist and transparent approach to raising rates in middecade also ensured that bankers were never shocked into a recognition that unprecedented shrinkage of bank equity was phenomenally dangerous. Despite the popular perception that financial innovation caused so much of the damage in the crisis, the rise in bank leverage was a far more important factor". His point that it takes guts to remove the punch-bowl when the party is in full swing is spot on. The Fed and the Bank of England were both gutless and spineless. Their love affair with The Great Moderation meant they simply were not prepared to tolerate a little more pain now to avoid a Minsky credit bust and massive unemployment later.
But what is the relationship, if any, between this extreme central bank laxity in the US and UK and these countries being at the forefront for the extraordinary rise in inequality over the last few decades (see cover chart)? And does it matter?
I was reading some typically thought-provoking comments from Marc Faber in his 'Gloom, Boom and Doom' report about current extremes of inequality. It reminded me that our own excellent US economists Steven Gallagher and Aneta Markowska had also written on this. To be sure, the rise in inequality has been staggering in the US in recent years (see charts below).
© Emmanuel Saez, University of California / Sudden Debt, USDA
It is well worth visiting the website of Emmanuel Saez of the University of California who has written extensively on this subject and now has updated his charts up until the end of 2008 (data available in Excel Format). The New York Times reported on the recently released Census Bureau data and showed not only that median income had declined over the last 10 years in real terms, but that this is the first full decade that real median household income has failed to rise in the US. What is also so interesting from Professor Saez's cross-sectional research is how inequality has clearly risen fastest in the Anglosaxon, freemarket economies of the US and the UK (also note that France, with much higher levels of equality, saw much more subdued growth in household leverage).
Our US economists make the very interesting point (similar to Marc Faber) that peaks of income skewness - 1929 and 2007 - tell us there is something fundamentally unsustainable about excessively uneven income distribution. With a relatively low marginal propensity to consume among the rich, when they receive the vast bulk of income growth, as they have, then the country will face an under-consumption problem (see 9 September, The Economic News. Marc Faber also cites John Hobson's work on this same topic from the 1930s).
Hence, while governments preside over economic policies which make the very rich even richer, national consumption needs to be boosted in some way to avoid underconsumption ending in outright deflation. In addition, the middle classes also need to be thrown a sop to disguise the fact they are not benefiting at all from economic growth. This is where central banks have played their pernicious part.
I recalled seeing another article from John Plender on this topic back in April 2008. His explanation for why there had been so little backlash from the stagnation of ordinary people's income at a time when the rich did so well was simple: "Rising asset prices, especially in the housing market, created a sense of increasing wealth regardless of income. Remortgaging homes over a long period of declining interest rates provided a convenient source of funds via equity withdrawal to finance increased consumption."
Now you might argue central banks had no alternative in the face of under-consumption. Or you might conclude there was a deliberate, unspoken collusion among policymakers to "rob" the middle classes of their rightful share of income growth by throwing them illusionary spending power based on asset price inflation. We will never know.
But it is clear in my mind that ordinary working people would not have tolerated these extreme redistributive policies had not the UK and US central banks played their supporting role. Going forward, in the absence of a sustained housing boom, labour will fight back to take its proper (normal) share of the national cake, squeezing profits on a secular basis. For as Bill Gross pointed out back in PIMCO's investment outlook 'Enough is Enough' of August 1997, "When the fruits of society's labor become maldistributed, when the rich get richer and the middle and lower classes struggle to keep their heads above water as is clearly the case today, then the system ultimately breaks down." In Japan, low levels of inequality and inherent social cohesion prevented a social breakdown in this post-bubble debacle. With social inequality currently so very high in the US and the UK, it doesn't take much to conclude that extreme inequality could strain the fabric of society far closer to breaking point.
Democracy in America Is a Useful Fiction
http://www.truthdig.com/report/item/democracy_in_america_is_a_useful_fiction_20100124/
Democracy in America Is a Useful Fiction
Chris Hedges
Truthdig
Sun, 24 Jan 2010
Corporate forces, long before the Supreme Court's decision in Citizens United v. Federal Election Commission, carried out a coup d'état in slow motion. The coup is over. We lost. The ruling is one more judicial effort to streamline mechanisms for corporate control. It exposes the myth of a functioning democracy and the triumph of corporate power. But it does not significantly alter the political landscape. The corporate state is firmly cemented in place.
The fiction of democracy remains useful, not only for corporations, but for our bankrupt liberal class. If the fiction is seriously challenged, liberals will be forced to consider actual resistance, which will be neither pleasant nor easy. As long as a democratic facade exists, liberals can engage in an empty moral posturing that requires little sacrifice or commitment. They can be the self-appointed scolds of the Democratic Party, acting as if they are part of the debate and feel vindicated by their cries of protest.
Much of the outrage expressed about the court's ruling is the outrage of those who prefer this choreographed charade. As long as the charade is played, they do not have to consider how to combat what the political philosopher Sheldon Wolin calls our system of "inverted totalitarianism."
Inverted totalitarianism represents "the political coming of age of corporate power and the political demobilization of the citizenry," Wolin writes in "Democracy Incorporated." Inverted totalitarianism differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader, and finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, boast of replacing decaying structures with a new, revolutionary structure. They purport to honor electoral politics, freedom and the Constitution. But they so corrupt and manipulate the levers of power as to make democracy impossible.
Inverted totalitarianism is not conceptualized as an ideology or objectified in public policy. It is furthered by "power-holders and citizens who often seem unaware of the deeper consequences of their actions or inactions," Wolin writes. But it is as dangerous as classical forms of totalitarianism. In a system of inverted totalitarianism, as this court ruling illustrates, it is not necessary to rewrite the Constitution, as fascist and communist regimes do. It is enough to exploit legitimate power by means of judicial and legislative interpretation. This exploitation ensures that huge corporate campaign contributions are protected speech under the First Amendment. It ensures that heavily financed and organized lobbying by large corporations is interpreted as an application of the people's right to petition the government. The court again ratified the concept that corporations are persons, except in those cases where the "persons" agree to a "settlement." Those within corporations who commit crimes can avoid going to prison by paying large sums of money to the government while, according to this twisted judicial reasoning, not "admitting any wrongdoing." There is a word for this. It is called corruption.
Corporations have 35,000 lobbyists in Washington and thousands more in state capitals that dole out corporate money to shape and write legislation. They use their political action committees to solicit employees and shareholders for donations to fund pliable candidates. The financial sector, for example, spent more than $5 billion on political campaigns, influence peddling and lobbying during the past decade, which resulted in sweeping deregulation, the gouging of consumers, our global financial meltdown and the subsequent looting of the U.S. Treasury. The Pharmaceutical Research and Manufacturers of America spent $26 million last year and drug companies such as Pfizer, Amgen and Eli Lilly kicked in tens of millions more to buy off the two parties. These corporations have made sure our so-called health reform bill will force us to buy their predatory and defective products. The oil and gas industry, the coal industry, defense contractors and telecommunications companies have thwarted the drive for sustainable energy and orchestrated the steady erosion of civil liberties. Politicians do corporate bidding and stage hollow acts of political theater to keep the fiction of the democratic state alive.
There is no national institution left that can accurately be described as democratic. Citizens, rather than participate in power, are allowed to have virtual opinions to preordained questions, a kind of participatory fascism as meaningless as voting on "American Idol." Mass emotions are directed toward the raging culture wars. This allows us to take emotional stands on issues that are inconsequential to the power elite.
Our transformation into an empire, as happened in ancient Athens and Rome, has seen the tyranny we practice abroad become the tyranny we practice at home. We, like all empires, have been eviscerated by our own expansionism. We utilize weapons of horrific destructive power, subsidize their development with billions in taxpayer dollars, and are the world's largest arms dealer. And the Constitution, as Wolin notes, is "conscripted to serve as power's apprentice rather than its conscience."
"Inverted totalitarianism reverses things," Wolin writes. "It is politics all of the time but a politics largely untempered by the political. Party squabbles are occasionally on public display, and there is a frantic and continuous politics among factions of the party, interest groups, competing corporate powers, and rival media concerns. And there is, of course, the culminating moment of national elections when the attention of the nation is required to make a choice of personalities rather than a choice between alternatives. What is absent is the political, the commitment to finding where the common good lies amidst the welter of well-financed, highly organized, single-minded interests rabidly seeking governmental favors and overwhelming the practices of representative government and public administration by a sea of cash."
Hollywood, the news industry and television, all corporate controlled, have become instruments of inverted totalitarianism. They censor or ridicule those who critique or challenge corporate structures and assumptions. They saturate the airwaves with manufactured controversy, whether it is Tiger Woods or the dispute between Jay Leno and Conan O'Brien. They manipulate images to make us confuse how we are made to feel with knowledge, which is how Barack Obama became president. And the draconian internal control employed by the Department of Homeland Security, the military and the police over any form of popular dissent, coupled with the corporate media's censorship, does for inverted totalitarianism what thugs and bonfires of books do in classical totalitarian regimes.
"It seems a replay of historical experience that the bias displayed by today's media should be aimed consistently at the shredded remains of liberalism," Wolin writes. "Recall that an element common to most 20th century totalitarianism, whether Fascist or Stalinist, was hostility towards the left. In the United States, the left is assumed to consist solely of liberals, occasionally of 'the left wing of the Democratic Party,' never of democrats."
Liberals, socialists, trade unionists, independent journalists and intellectuals, many of whom were once important voices in our society, have been silenced or targeted for elimination within corporate-controlled academia, the media and government. Wolin, who taught at Berkeley and later at Princeton, is arguably the country's foremost political philosopher. And yet his book was virtually ignored. This is also why Ralph Nader, Dennis Kucinich and Cynthia McKinney, along with intellectuals like Noam Chomsky, are not given a part in our national discourse.
The uniformity of opinion is reinforced by the skillfully orchestrated mass emotions of nationalism and patriotism, which paints all dissidents as "soft" or "unpatriotic." The "patriotic" citizen, plagued by fear of job losses and possible terrorist attacks, unfailingly supports widespread surveillance and the militarized state. This means no questioning of the $1 trillion in defense-related spending. It means that the military and intelligence agencies are held above government, as if somehow they are not part of government. The most powerful instruments of state power and control are effectively removed from public discussion. We, as imperial citizens, are taught to be contemptuous of government bureaucracy, yet we stand like sheep before Homeland Security agents in airports and are mute when Congress permits our private correspondence and conversations to be monitored and archived. We endure more state control than at any time in American history.
The civic, patriotic and political language we use to describe ourselves remains unchanged. We pay fealty to the same national symbols and iconography. We find our collective identity in the same national myths. We continue to deify the Founding Fathers. But the America we celebrate is an illusion. It does not exist. Our government and judiciary have no real sovereignty. Our press provides diversion, not information. Our organs of security and power keep us as domesticated and as fearful as most Iraqis. Capitalism, as Karl Marx understood, when it emasculates government, becomes a revolutionary force. And this revolutionary force, best described as inverted totalitarianism, is plunging us into a state of neo-feudalism, perpetual war and severe repression. The Supreme Court decision is part of our transformation by the corporate state from citizens to prisoners.
Chris Hedges, a Pulitzer Prize-winning correspondent, writes a column published every Monday on Truthdig. His latest book is "Empire of Illusion: The End of Literacy and the Triumph of Spectacle."
Democracy in America Is a Useful Fiction
Chris Hedges
Truthdig
Sun, 24 Jan 2010
Corporate forces, long before the Supreme Court's decision in Citizens United v. Federal Election Commission, carried out a coup d'état in slow motion. The coup is over. We lost. The ruling is one more judicial effort to streamline mechanisms for corporate control. It exposes the myth of a functioning democracy and the triumph of corporate power. But it does not significantly alter the political landscape. The corporate state is firmly cemented in place.
The fiction of democracy remains useful, not only for corporations, but for our bankrupt liberal class. If the fiction is seriously challenged, liberals will be forced to consider actual resistance, which will be neither pleasant nor easy. As long as a democratic facade exists, liberals can engage in an empty moral posturing that requires little sacrifice or commitment. They can be the self-appointed scolds of the Democratic Party, acting as if they are part of the debate and feel vindicated by their cries of protest.
Much of the outrage expressed about the court's ruling is the outrage of those who prefer this choreographed charade. As long as the charade is played, they do not have to consider how to combat what the political philosopher Sheldon Wolin calls our system of "inverted totalitarianism."
Inverted totalitarianism represents "the political coming of age of corporate power and the political demobilization of the citizenry," Wolin writes in "Democracy Incorporated." Inverted totalitarianism differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader, and finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, boast of replacing decaying structures with a new, revolutionary structure. They purport to honor electoral politics, freedom and the Constitution. But they so corrupt and manipulate the levers of power as to make democracy impossible.
Inverted totalitarianism is not conceptualized as an ideology or objectified in public policy. It is furthered by "power-holders and citizens who often seem unaware of the deeper consequences of their actions or inactions," Wolin writes. But it is as dangerous as classical forms of totalitarianism. In a system of inverted totalitarianism, as this court ruling illustrates, it is not necessary to rewrite the Constitution, as fascist and communist regimes do. It is enough to exploit legitimate power by means of judicial and legislative interpretation. This exploitation ensures that huge corporate campaign contributions are protected speech under the First Amendment. It ensures that heavily financed and organized lobbying by large corporations is interpreted as an application of the people's right to petition the government. The court again ratified the concept that corporations are persons, except in those cases where the "persons" agree to a "settlement." Those within corporations who commit crimes can avoid going to prison by paying large sums of money to the government while, according to this twisted judicial reasoning, not "admitting any wrongdoing." There is a word for this. It is called corruption.
Corporations have 35,000 lobbyists in Washington and thousands more in state capitals that dole out corporate money to shape and write legislation. They use their political action committees to solicit employees and shareholders for donations to fund pliable candidates. The financial sector, for example, spent more than $5 billion on political campaigns, influence peddling and lobbying during the past decade, which resulted in sweeping deregulation, the gouging of consumers, our global financial meltdown and the subsequent looting of the U.S. Treasury. The Pharmaceutical Research and Manufacturers of America spent $26 million last year and drug companies such as Pfizer, Amgen and Eli Lilly kicked in tens of millions more to buy off the two parties. These corporations have made sure our so-called health reform bill will force us to buy their predatory and defective products. The oil and gas industry, the coal industry, defense contractors and telecommunications companies have thwarted the drive for sustainable energy and orchestrated the steady erosion of civil liberties. Politicians do corporate bidding and stage hollow acts of political theater to keep the fiction of the democratic state alive.
There is no national institution left that can accurately be described as democratic. Citizens, rather than participate in power, are allowed to have virtual opinions to preordained questions, a kind of participatory fascism as meaningless as voting on "American Idol." Mass emotions are directed toward the raging culture wars. This allows us to take emotional stands on issues that are inconsequential to the power elite.
Our transformation into an empire, as happened in ancient Athens and Rome, has seen the tyranny we practice abroad become the tyranny we practice at home. We, like all empires, have been eviscerated by our own expansionism. We utilize weapons of horrific destructive power, subsidize their development with billions in taxpayer dollars, and are the world's largest arms dealer. And the Constitution, as Wolin notes, is "conscripted to serve as power's apprentice rather than its conscience."
"Inverted totalitarianism reverses things," Wolin writes. "It is politics all of the time but a politics largely untempered by the political. Party squabbles are occasionally on public display, and there is a frantic and continuous politics among factions of the party, interest groups, competing corporate powers, and rival media concerns. And there is, of course, the culminating moment of national elections when the attention of the nation is required to make a choice of personalities rather than a choice between alternatives. What is absent is the political, the commitment to finding where the common good lies amidst the welter of well-financed, highly organized, single-minded interests rabidly seeking governmental favors and overwhelming the practices of representative government and public administration by a sea of cash."
Hollywood, the news industry and television, all corporate controlled, have become instruments of inverted totalitarianism. They censor or ridicule those who critique or challenge corporate structures and assumptions. They saturate the airwaves with manufactured controversy, whether it is Tiger Woods or the dispute between Jay Leno and Conan O'Brien. They manipulate images to make us confuse how we are made to feel with knowledge, which is how Barack Obama became president. And the draconian internal control employed by the Department of Homeland Security, the military and the police over any form of popular dissent, coupled with the corporate media's censorship, does for inverted totalitarianism what thugs and bonfires of books do in classical totalitarian regimes.
"It seems a replay of historical experience that the bias displayed by today's media should be aimed consistently at the shredded remains of liberalism," Wolin writes. "Recall that an element common to most 20th century totalitarianism, whether Fascist or Stalinist, was hostility towards the left. In the United States, the left is assumed to consist solely of liberals, occasionally of 'the left wing of the Democratic Party,' never of democrats."
Liberals, socialists, trade unionists, independent journalists and intellectuals, many of whom were once important voices in our society, have been silenced or targeted for elimination within corporate-controlled academia, the media and government. Wolin, who taught at Berkeley and later at Princeton, is arguably the country's foremost political philosopher. And yet his book was virtually ignored. This is also why Ralph Nader, Dennis Kucinich and Cynthia McKinney, along with intellectuals like Noam Chomsky, are not given a part in our national discourse.
The uniformity of opinion is reinforced by the skillfully orchestrated mass emotions of nationalism and patriotism, which paints all dissidents as "soft" or "unpatriotic." The "patriotic" citizen, plagued by fear of job losses and possible terrorist attacks, unfailingly supports widespread surveillance and the militarized state. This means no questioning of the $1 trillion in defense-related spending. It means that the military and intelligence agencies are held above government, as if somehow they are not part of government. The most powerful instruments of state power and control are effectively removed from public discussion. We, as imperial citizens, are taught to be contemptuous of government bureaucracy, yet we stand like sheep before Homeland Security agents in airports and are mute when Congress permits our private correspondence and conversations to be monitored and archived. We endure more state control than at any time in American history.
The civic, patriotic and political language we use to describe ourselves remains unchanged. We pay fealty to the same national symbols and iconography. We find our collective identity in the same national myths. We continue to deify the Founding Fathers. But the America we celebrate is an illusion. It does not exist. Our government and judiciary have no real sovereignty. Our press provides diversion, not information. Our organs of security and power keep us as domesticated and as fearful as most Iraqis. Capitalism, as Karl Marx understood, when it emasculates government, becomes a revolutionary force. And this revolutionary force, best described as inverted totalitarianism, is plunging us into a state of neo-feudalism, perpetual war and severe repression. The Supreme Court decision is part of our transformation by the corporate state from citizens to prisoners.
Chris Hedges, a Pulitzer Prize-winning correspondent, writes a column published every Monday on Truthdig. His latest book is "Empire of Illusion: The End of Literacy and the Triumph of Spectacle."
Democracy in America Is a Useful Fiction
http://www.truthdig.com/report/item/democracy_in_america_is_a_useful_fiction_20100124/
Democracy in America Is a Useful Fiction
Chris Hedges
Truthdig
Sun, 24 Jan 2010 19:22 EST
Corporate forces, long before the Supreme Court's decision in Citizens United v. Federal Election Commission, carried out a coup d'état in slow motion. The coup is over. We lost. The ruling is one more judicial effort to streamline mechanisms for corporate control. It exposes the myth of a functioning democracy and the triumph of corporate power. But it does not significantly alter the political landscape. The corporate state is firmly cemented in place.
The fiction of democracy remains useful, not only for corporations, but for our bankrupt liberal class. If the fiction is seriously challenged, liberals will be forced to consider actual resistance, which will be neither pleasant nor easy. As long as a democratic facade exists, liberals can engage in an empty moral posturing that requires little sacrifice or commitment. They can be the self-appointed scolds of the Democratic Party, acting as if they are part of the debate and feel vindicated by their cries of protest.
Much of the outrage expressed about the court's ruling is the outrage of those who prefer this choreographed charade. As long as the charade is played, they do not have to consider how to combat what the political philosopher Sheldon Wolin calls our system of "inverted totalitarianism."
Inverted totalitarianism represents "the political coming of age of corporate power and the political demobilization of the citizenry," Wolin writes in "Democracy Incorporated." Inverted totalitarianism differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader, and finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, boast of replacing decaying structures with a new, revolutionary structure. They purport to honor electoral politics, freedom and the Constitution. But they so corrupt and manipulate the levers of power as to make democracy impossible.
Inverted totalitarianism is not conceptualized as an ideology or objectified in public policy. It is furthered by "power-holders and citizens who often seem unaware of the deeper consequences of their actions or inactions," Wolin writes. But it is as dangerous as classical forms of totalitarianism. In a system of inverted totalitarianism, as this court ruling illustrates, it is not necessary to rewrite the Constitution, as fascist and communist regimes do. It is enough to exploit legitimate power by means of judicial and legislative interpretation. This exploitation ensures that huge corporate campaign contributions are protected speech under the First Amendment. It ensures that heavily financed and organized lobbying by large corporations is interpreted as an application of the people's right to petition the government. The court again ratified the concept that corporations are persons, except in those cases where the "persons" agree to a "settlement." Those within corporations who commit crimes can avoid going to prison by paying large sums of money to the government while, according to this twisted judicial reasoning, not "admitting any wrongdoing." There is a word for this. It is called corruption.
Corporations have 35,000 lobbyists in Washington and thousands more in state capitals that dole out corporate money to shape and write legislation. They use their political action committees to solicit employees and shareholders for donations to fund pliable candidates. The financial sector, for example, spent more than $5 billion on political campaigns, influence peddling and lobbying during the past decade, which resulted in sweeping deregulation, the gouging of consumers, our global financial meltdown and the subsequent looting of the U.S. Treasury. The Pharmaceutical Research and Manufacturers of America spent $26 million last year and drug companies such as Pfizer, Amgen and Eli Lilly kicked in tens of millions more to buy off the two parties. These corporations have made sure our so-called health reform bill will force us to buy their predatory and defective products. The oil and gas industry, the coal industry, defense contractors and telecommunications companies have thwarted the drive for sustainable energy and orchestrated the steady erosion of civil liberties. Politicians do corporate bidding and stage hollow acts of political theater to keep the fiction of the democratic state alive.
There is no national institution left that can accurately be described as democratic. Citizens, rather than participate in power, are allowed to have virtual opinions to preordained questions, a kind of participatory fascism as meaningless as voting on "American Idol." Mass emotions are directed toward the raging culture wars. This allows us to take emotional stands on issues that are inconsequential to the power elite.
Our transformation into an empire, as happened in ancient Athens and Rome, has seen the tyranny we practice abroad become the tyranny we practice at home. We, like all empires, have been eviscerated by our own expansionism. We utilize weapons of horrific destructive power, subsidize their development with billions in taxpayer dollars, and are the world's largest arms dealer. And the Constitution, as Wolin notes, is "conscripted to serve as power's apprentice rather than its conscience."
"Inverted totalitarianism reverses things," Wolin writes. "It is politics all of the time but a politics largely untempered by the political. Party squabbles are occasionally on public display, and there is a frantic and continuous politics among factions of the party, interest groups, competing corporate powers, and rival media concerns. And there is, of course, the culminating moment of national elections when the attention of the nation is required to make a choice of personalities rather than a choice between alternatives. What is absent is the political, the commitment to finding where the common good lies amidst the welter of well-financed, highly organized, single-minded interests rabidly seeking governmental favors and overwhelming the practices of representative government and public administration by a sea of cash."
Hollywood, the news industry and television, all corporate controlled, have become instruments of inverted totalitarianism. They censor or ridicule those who critique or challenge corporate structures and assumptions. They saturate the airwaves with manufactured controversy, whether it is Tiger Woods or the dispute between Jay Leno and Conan O'Brien. They manipulate images to make us confuse how we are made to feel with knowledge, which is how Barack Obama became president. And the draconian internal control employed by the Department of Homeland Security, the military and the police over any form of popular dissent, coupled with the corporate media's censorship, does for inverted totalitarianism what thugs and bonfires of books do in classical totalitarian regimes.
"It seems a replay of historical experience that the bias displayed by today's media should be aimed consistently at the shredded remains of liberalism," Wolin writes. "Recall that an element common to most 20th century totalitarianism, whether Fascist or Stalinist, was hostility towards the left. In the United States, the left is assumed to consist solely of liberals, occasionally of 'the left wing of the Democratic Party,' never of democrats."
Liberals, socialists, trade unionists, independent journalists and intellectuals, many of whom were once important voices in our society, have been silenced or targeted for elimination within corporate-controlled academia, the media and government. Wolin, who taught at Berkeley and later at Princeton, is arguably the country's foremost political philosopher. And yet his book was virtually ignored. This is also why Ralph Nader, Dennis Kucinich and Cynthia McKinney, along with intellectuals like Noam Chomsky, are not given a part in our national discourse.
The uniformity of opinion is reinforced by the skillfully orchestrated mass emotions of nationalism and patriotism, which paints all dissidents as "soft" or "unpatriotic." The "patriotic" citizen, plagued by fear of job losses and possible terrorist attacks, unfailingly supports widespread surveillance and the militarized state. This means no questioning of the $1 trillion in defense-related spending. It means that the military and intelligence agencies are held above government, as if somehow they are not part of government. The most powerful instruments of state power and control are effectively removed from public discussion. We, as imperial citizens, are taught to be contemptuous of government bureaucracy, yet we stand like sheep before Homeland Security agents in airports and are mute when Congress permits our private correspondence and conversations to be monitored and archived. We endure more state control than at any time in American history.
The civic, patriotic and political language we use to describe ourselves remains unchanged. We pay fealty to the same national symbols and iconography. We find our collective identity in the same national myths. We continue to deify the Founding Fathers. But the America we celebrate is an illusion. It does not exist. Our government and judiciary have no real sovereignty. Our press provides diversion, not information. Our organs of security and power keep us as domesticated and as fearful as most Iraqis. Capitalism, as Karl Marx understood, when it emasculates government, becomes a revolutionary force. And this revolutionary force, best described as inverted totalitarianism, is plunging us into a state of neo-feudalism, perpetual war and severe repression. The Supreme Court decision is part of our transformation by the corporate state from citizens to prisoners.
Chris Hedges, a Pulitzer Prize-winning correspondent, writes a column published every Monday on Truthdig. His latest book is "Empire of Illusion: The End of Literacy and the Triumph of Spectacle."
Democracy in America Is a Useful Fiction
Chris Hedges
Truthdig
Sun, 24 Jan 2010 19:22 EST
Corporate forces, long before the Supreme Court's decision in Citizens United v. Federal Election Commission, carried out a coup d'état in slow motion. The coup is over. We lost. The ruling is one more judicial effort to streamline mechanisms for corporate control. It exposes the myth of a functioning democracy and the triumph of corporate power. But it does not significantly alter the political landscape. The corporate state is firmly cemented in place.
The fiction of democracy remains useful, not only for corporations, but for our bankrupt liberal class. If the fiction is seriously challenged, liberals will be forced to consider actual resistance, which will be neither pleasant nor easy. As long as a democratic facade exists, liberals can engage in an empty moral posturing that requires little sacrifice or commitment. They can be the self-appointed scolds of the Democratic Party, acting as if they are part of the debate and feel vindicated by their cries of protest.
Much of the outrage expressed about the court's ruling is the outrage of those who prefer this choreographed charade. As long as the charade is played, they do not have to consider how to combat what the political philosopher Sheldon Wolin calls our system of "inverted totalitarianism."
Inverted totalitarianism represents "the political coming of age of corporate power and the political demobilization of the citizenry," Wolin writes in "Democracy Incorporated." Inverted totalitarianism differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader, and finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, boast of replacing decaying structures with a new, revolutionary structure. They purport to honor electoral politics, freedom and the Constitution. But they so corrupt and manipulate the levers of power as to make democracy impossible.
Inverted totalitarianism is not conceptualized as an ideology or objectified in public policy. It is furthered by "power-holders and citizens who often seem unaware of the deeper consequences of their actions or inactions," Wolin writes. But it is as dangerous as classical forms of totalitarianism. In a system of inverted totalitarianism, as this court ruling illustrates, it is not necessary to rewrite the Constitution, as fascist and communist regimes do. It is enough to exploit legitimate power by means of judicial and legislative interpretation. This exploitation ensures that huge corporate campaign contributions are protected speech under the First Amendment. It ensures that heavily financed and organized lobbying by large corporations is interpreted as an application of the people's right to petition the government. The court again ratified the concept that corporations are persons, except in those cases where the "persons" agree to a "settlement." Those within corporations who commit crimes can avoid going to prison by paying large sums of money to the government while, according to this twisted judicial reasoning, not "admitting any wrongdoing." There is a word for this. It is called corruption.
Corporations have 35,000 lobbyists in Washington and thousands more in state capitals that dole out corporate money to shape and write legislation. They use their political action committees to solicit employees and shareholders for donations to fund pliable candidates. The financial sector, for example, spent more than $5 billion on political campaigns, influence peddling and lobbying during the past decade, which resulted in sweeping deregulation, the gouging of consumers, our global financial meltdown and the subsequent looting of the U.S. Treasury. The Pharmaceutical Research and Manufacturers of America spent $26 million last year and drug companies such as Pfizer, Amgen and Eli Lilly kicked in tens of millions more to buy off the two parties. These corporations have made sure our so-called health reform bill will force us to buy their predatory and defective products. The oil and gas industry, the coal industry, defense contractors and telecommunications companies have thwarted the drive for sustainable energy and orchestrated the steady erosion of civil liberties. Politicians do corporate bidding and stage hollow acts of political theater to keep the fiction of the democratic state alive.
There is no national institution left that can accurately be described as democratic. Citizens, rather than participate in power, are allowed to have virtual opinions to preordained questions, a kind of participatory fascism as meaningless as voting on "American Idol." Mass emotions are directed toward the raging culture wars. This allows us to take emotional stands on issues that are inconsequential to the power elite.
Our transformation into an empire, as happened in ancient Athens and Rome, has seen the tyranny we practice abroad become the tyranny we practice at home. We, like all empires, have been eviscerated by our own expansionism. We utilize weapons of horrific destructive power, subsidize their development with billions in taxpayer dollars, and are the world's largest arms dealer. And the Constitution, as Wolin notes, is "conscripted to serve as power's apprentice rather than its conscience."
"Inverted totalitarianism reverses things," Wolin writes. "It is politics all of the time but a politics largely untempered by the political. Party squabbles are occasionally on public display, and there is a frantic and continuous politics among factions of the party, interest groups, competing corporate powers, and rival media concerns. And there is, of course, the culminating moment of national elections when the attention of the nation is required to make a choice of personalities rather than a choice between alternatives. What is absent is the political, the commitment to finding where the common good lies amidst the welter of well-financed, highly organized, single-minded interests rabidly seeking governmental favors and overwhelming the practices of representative government and public administration by a sea of cash."
Hollywood, the news industry and television, all corporate controlled, have become instruments of inverted totalitarianism. They censor or ridicule those who critique or challenge corporate structures and assumptions. They saturate the airwaves with manufactured controversy, whether it is Tiger Woods or the dispute between Jay Leno and Conan O'Brien. They manipulate images to make us confuse how we are made to feel with knowledge, which is how Barack Obama became president. And the draconian internal control employed by the Department of Homeland Security, the military and the police over any form of popular dissent, coupled with the corporate media's censorship, does for inverted totalitarianism what thugs and bonfires of books do in classical totalitarian regimes.
"It seems a replay of historical experience that the bias displayed by today's media should be aimed consistently at the shredded remains of liberalism," Wolin writes. "Recall that an element common to most 20th century totalitarianism, whether Fascist or Stalinist, was hostility towards the left. In the United States, the left is assumed to consist solely of liberals, occasionally of 'the left wing of the Democratic Party,' never of democrats."
Liberals, socialists, trade unionists, independent journalists and intellectuals, many of whom were once important voices in our society, have been silenced or targeted for elimination within corporate-controlled academia, the media and government. Wolin, who taught at Berkeley and later at Princeton, is arguably the country's foremost political philosopher. And yet his book was virtually ignored. This is also why Ralph Nader, Dennis Kucinich and Cynthia McKinney, along with intellectuals like Noam Chomsky, are not given a part in our national discourse.
The uniformity of opinion is reinforced by the skillfully orchestrated mass emotions of nationalism and patriotism, which paints all dissidents as "soft" or "unpatriotic." The "patriotic" citizen, plagued by fear of job losses and possible terrorist attacks, unfailingly supports widespread surveillance and the militarized state. This means no questioning of the $1 trillion in defense-related spending. It means that the military and intelligence agencies are held above government, as if somehow they are not part of government. The most powerful instruments of state power and control are effectively removed from public discussion. We, as imperial citizens, are taught to be contemptuous of government bureaucracy, yet we stand like sheep before Homeland Security agents in airports and are mute when Congress permits our private correspondence and conversations to be monitored and archived. We endure more state control than at any time in American history.
The civic, patriotic and political language we use to describe ourselves remains unchanged. We pay fealty to the same national symbols and iconography. We find our collective identity in the same national myths. We continue to deify the Founding Fathers. But the America we celebrate is an illusion. It does not exist. Our government and judiciary have no real sovereignty. Our press provides diversion, not information. Our organs of security and power keep us as domesticated and as fearful as most Iraqis. Capitalism, as Karl Marx understood, when it emasculates government, becomes a revolutionary force. And this revolutionary force, best described as inverted totalitarianism, is plunging us into a state of neo-feudalism, perpetual war and severe repression. The Supreme Court decision is part of our transformation by the corporate state from citizens to prisoners.
Chris Hedges, a Pulitzer Prize-winning correspondent, writes a column published every Monday on Truthdig. His latest book is "Empire of Illusion: The End of Literacy and the Triumph of Spectacle."
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