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Republished by Countercurrents, OpEdNews, Alliance for Sustainable Communities – Lehigh Valley, The Pigeon Post, Dissident Voice and The (Grace Lee) Boggs Blog!
The following exchange between Michael Carriere and Alex Knight occurred via email, July 2010. Alex Knight was questioned about the End of Capitalism Theory, which states that the global capitalist system is breaking down due to ecological and social limits to growth and that a paradigm shift toward a non-capitalist future is underway.
The interview will be available in four parts. Scroll to the bottom to read all of Prof. Carriere’s questions.
Part 1. Crisis and Opportunity
MC: The current financial crisis is clearly a moment of peril for both individuals and the broader system of capitalism. But would it also make sense to see it as a moment of opportunity?
AK: Absolutely. I see opportunity springing from every crack in the structure of capitalism. For all those who wish to see a different world, this moment is dripping with opportunity because the old order is crumbling before our eyes.
Shock and Awe on the New York Stock Exchange
The crisis extends far beyond the broken financial system. Millions of people are losing their jobs, homes, and savings as the burden of the crisis gets shifted onto the poor and working class. Public faith in the system, both the government and the capitalist economy, has been shattered and is at an all-time low. And it’s not just the economic crisis. The bank bailouts, the endless wars in the Mid East, the BP spill and the meltdown of the climate, and about a dozen other crises have shaken us deeply. It’s become common sense that the system is broken and a major change is needed. Barack Obama was elected in the US precisely by promising this change. Now that he is failing to deliver, more and more people are questioning whether the system can provide any solutions, or whether it’s actually the source of the problem.
Shattered faith is the dominant sentiment today. You can see it in people’s faces – the disappointment, grief, worry, and anger. To me, this loss of faith presents an enormous opening for putting forth a new, non-capitalist way of life. People are ready to hear radical solutions now, like they haven’t been since the Great Depression.
Historic Crossroads
If we go back to 1929, we’ll see some interesting parallels to our current moment. When that depression started, millions lost their livelihoods to pay for the bankers’ crisis. Faith in capitalism sunk to rock bottom. The public flocked to two major ideologies that offered a way out: socialism and fascism.
Socialism presented a solution to the crisis by saying, roughly: “Capitalism is flawed because it divides us into rich and poor, and the rich always take advantage of the poor. We need to organize the poor and workers into unions and political parties so we can take power for the benefit of all.”
Socialism attracted millions of followers, even in the United States. The labor movement was enormous and kept gaining ground through sit-down strikes and other forms of direct action. The Communist Party sent thousands of organizers into the new CIO, at the time a more radical union than the AFL. Socialist viewpoints even started getting through to the mass media and government. Huey Long was elected Senator from Louisiana by promising to “Share Our Wealth,” to radically redistribute the wealth of the country to abolish poverty and unemployment. (He was assassinated.) Socialism challenged President Roosevelt from the left, pushing him to create the social safety net of the New Deal.
On the other side, fascism also emerged as a serious force and attracted a mass following by putting forth something like the following: “The government has sold us out. We are a great nation, but we have been disgraced by liberal elites who are pillaging our economy for the benefit of foreign enemies, dangerous socialists, and undesirable elements (like Jews). We need to restore our national honor and fulfill our God-given mission.”
When people hear the word fascism, they usually think of Nazi Germany or Mussolini’s Italy, where successful fascist movements seized state power and implemented totalitarian control of society. Yet fascism was an international phenomenon during the Depression, and the United States was not immune to its reach. General Smedley Butler, the most decorated Marine in US history, testified before the Senate that wealthy industrialists had approached him as part of a “Business Plot” and tried to convince him to march an army of 500,000 veterans on Washington, DC to install a fascist dictatorship.
Today we are approaching a similar crossroads. When I hear the story of the Business Plot I think about the Tea Party, which has sprung from a base of white supremacist anger, facilitated by right-wing elements of the corporate structure like Fox News. This is an extremely dangerous phenomenon. The “teabaggers” have moved from questioning Obama’s citizenship, to now trying to reverse the gains of the Civil Rights Movement, such as the ability of everyone, regardless of color, to enjoy public accommodations like restaurants.
I think it’s fair to name the Tea Party, Glenn Beck, Sarah Palin, the Christian Right, etc. parts of a potential neo-fascist movement in the United States. Their words and actions too often encourage attacks on people of color, immigrants, Muslims, LGBT folks, and anyone they don’t see as legitimate members of US society. Ultimately, many in this movement are pushing for a different social system taking power in the United States: one that is more authoritarian, less compassionate, more exploitive of the environment, more militaristic, and based on a mythical return to national glory. This is not a throwback to Nazi Germany. It’s a new kind of fascism, a new American fascism. And it’s a serious threat.
Tea Party racism in Denver, April 15, 2009
On the other hand, this crisis is also an opportunity for all of us who see capitalism as a destructive force and believe the message of the recent U.S. Social Forum that “Another World is Possible. Another US is Necessary.” “Socialism” in the post-McCarthy/Cold War era of the United States is a dead word, because it carries a lot of baggage from the Soviet Union. Rightly so, the USSR was a terrible dictatorship that is hardly an example to follow. The question is, how do those of us who are progressive and anti-capitalist articulate our ideas to resonate with a mass audience in this moment?
Common Values
I argue that we need to speak to the population in a language of our common values: democracy, freedom, justice, and sustainability. Read the rest of this entry »
This essay, written following a listening tour across the US, asks some of the most important questions facing social movements today, including “How Do We Build Intergenerational Movements?”, “What About Multiracial Movement Building?” and “How Do We Develop Strategy?”
I read this when it first came out in the summer of 2006 and it pretty much rocked my socks off and made me excited to get involved in the new SDS, so I figured I’d repost it for folks who never got to read it. [alex]
Ten Questions for Movement Building
by Dan Berger and Andy Cornell
Originally published by Monthly Review Zine.
For five weeks in the late spring of 2006, we toured the eastern half of the United States to promote two books — Letters From Young Activists: Today’s Rebels Speak Out (Nation Books, 2005) and Outlaws of America: The Weather Underground and the Politics of Solidarity (AK Press, 2006) — and to get at least a cursory impression of sectors of the movement in this country. We viewed the twenty-eight events not only as book readings but as conscious political conversations about the state of the country, the world, and the movement.
Of course, such quick visits to different parts of the country can only yield so much information. Because this was May and June, we did not speak on any school campuses and were unable to gather a strong sense of the state of campus-based activism. Further, much of the tour came together through personal connections we’ve developed in anarchist, queer, punk, and white anti-racist communities, and, as with any organizing, the audience generally reflected who organized the event and how they went about it rather than the full array of organizing projects transpiring in each town. Yet several crucial questions were raised routinely in big cities and small towns alike (or, alternately, were elided but lay just beneath the surface of the sometimes tense conversations we were party to). Such commonality of concerns and difficulties demonstrates the need for ongoing discussion of these issues within and between local activist communities. Thus, while we don’t pretend to have an authoritative analysis of the movement, we offer this report as part of a broader dialogue about building and strengthening modern revolutionary movements — an attempt to index some common debates and to offer challenges in the interests of pushing the struggle forward.
Challenges and Debates:
The audiences we spoke with tended to be predominantly white and comprised of people self-identified as being on the left, many of whom are active in one or more organizations locally or nationally. We traveled through the Northeast (including a brief visit to Montreal), the rust belt, the Midwest, parts of the South, and the Mid-Atlantic. Some events tended to draw mostly 60s-generation activists, others primarily people in their 20s, and more than a few were genuinely intergenerational. Not surprisingly, events at community centers and libraries afforded more room for conversation than those at bookstores. Crowds ranged anywhere from 10 to 100 people, although the average event had about 25 people. Even where events were small gatherings of friends, they proved to be useful dialogues about pragmatic work. Our goals for the tour were: establishing a sense of different organizing projects; pushing white people in an anti-racist and anti-imperialist direction while highlighting the interrelationship of issues; and grappling with the difficult issues of organizing, leadership, and intergenerational movement building. The following ten questions emerge from our analysis of the political situation based on our travels and meetings with activists of a variety of ages and range of experiences.
1. What Is Organizing?
Every event we did focused on the need for organizing. This call often fell upon sympathetic ears, but was frequently met with questions about how to actually organize and build lasting radical organizations, particularly in terms of maintaining radical politics while reaching beyond insular communities. There are too few institutions training young or new activists in the praxis of organizing and anti-authoritarian leadership development. Read the rest of this entry »
Also published by The Rag Blog, OpEdNews, Signs of the Times, Interactivist Info Exchange, and Toward Freedom.
Who Were the Witches? – Patriarchal Terror and the Creation of Capitalism
Alex Knight
November 5, 2009
This Halloween season, there is no book I could recommend more highly than Silvia Federici’s brilliant Caliban and the Witch: Women, the Body, and Primitive Accumulation (Autonomedia 2004), which tells the dark saga of the Witch Hunt that consumed Europe for more than 200 years. In uncovering this forgotten history, Federici exposes the origins of capitalism in the heightened oppression of workers (represented by Shakespeare’s character Caliban), and most strikingly, in the brutal subjugation of women. She also brings to light the enormous and colorful European peasant movements that fought against the injustices of their time, connecting their defeat to the imposition of a new patriarchal order that divided male from female workers. Today, as more and more people question the usefulness of a capitalist system that has thrown the world into crisis, Caliban and the Witch stands out as essential reading for unmasking the shocking violence and inequality that capitalism has relied upon from its very creation.
Who Were the Witches?
Parents putting a pointed hat on their young son or daughter before Trick-or-Treating might never pause to wonder this question, seeing witches as just another cartoonish Halloween icon like Frankenstein’s monster or Dracula. But deep within our ritual lies a hidden history that can tell us important truths about our world, as the legacy of past events continues to affect us 500 years later. In this book, Silvia Federici takes us back in time to show how the mysterious figure of the witch is key to understanding the creation of capitalism, the profit-motivated economic system that now reigns over the entire planet.
During the 15th – 17th centuries the fear of witches was ever-present in Europe and Colonial America, so much so that if a woman was accused of witchcraft she could face the cruellest of torture until confession was given, or even be executed based on suspicion alone. There was often no evidence whatsoever. The author recounts, “for more than two centuries, in several European countries, hundreds of thousands of women were tried, tortured, burned alive or hanged, accused of having sold body and soul to the devil and, by magical means, murdered scores of children, sucked their blood, made potions with their flesh, caused the death of their neighbors, destroyed cattle and crops, raised storms, and performed many other abominations” (169).
In other words, just about anything bad that might or might not have happened was blamed on witches during that time. So where did this tidal wave of hysteria come from that took the lives so many poor women, most of whom had almost certainly never flown on broomsticks or stirred eye-of-newt into large black cauldrons?
Caliban underscores that the persecution of witches was not just some error of ignorant peasants, but in fact the deliberate policy of Church and State, the very ruling class of society. To put this in perspective, today witchcraft would be a far-fetched cause for alarm, but the fear of hidden terrorists who could strike at any moment because they “hate our freedom” is widespread. Not surprising, since politicians and the media have been drilling this frightening message into people’s heads for years, even though terrorism is a much less likely cause of death than, say, lack of health care.1 And just as the panic over terrorism has enabled today’s powers-that-be to attempt to remake the Middle East, this book makes the case that the powers-that-were of Medieval Europe exploited or invented the fear of witches to remake European society towards a social paradigm that met their interests.
Interestingly, a major component of both of these crusades was the use of so-called “shock and awe” tactics to astound the population with “spectacular displays of force,” which helped to soften up resistance to drastic or unpopular reforms.2 In the case of the Witch Hunt, shock therapy was applied through the witch burnings – spectacles of such stupefying violence that they paralyzed whole villages and regions into accepting fundamental restructuring of medieval society.3 Federici describes a typical witch burning as, “an important public event, which all the members of the community had to attend, including the children of the witches, especially their daughters who, in some cases, would be whipped in front of the stake on which they could see their mother burning alive” (186).
The witch burning was the medieval version of "Shock and Awe"
The book argues that these gruesome executions not only punished “witches” but graphically demonstrated the repercussions for any kind of disobedience to the clergy or nobility. In particular, the witch burnings were meant to terrify women into accepting “a new patriarchal order where women’s bodies, their labor, their sexual and reproductive powers were placed under the control of the state and transformed into economic resources” (170). Read the rest of this entry »
After a wild but empowering week of demonstrations in Pittsburgh, here’s a short media recap of some of the highlights. [alex]
$12 Trillion has been given by the US government to large banks and corporations since last year
Great short news video on why the protesters were in Pittsburgh.
Exposes the police repression felt by the whole city last week, not just protesters.
The successes of mass protest.
IVAW held a press conference and action Friday morning about no longer sacrificing for war
Finally, see this audio report from Free Speech Radio News for more context.
“The Shock Doctrine: The Rise of Disaster Capitalism”
by Naomi Klein
2007 Metropolitan Books
I feel confident saying that The Shock Doctrine is one of the most important political non-fiction works of the last decade. This should be a high school textbook, or at least required reading in college. Naomi Klein applies her extensive vision and intellect to present us with a way of seeing our world that is extremely relevant and powerful: in the pursuit of enormous profits, those running the global economy intentionally exploit terrible catastrophes, or even create them, to take things for themselves that only shocked and traumatized populations would give up. This ambulance-chasing strategy of those in power is defined as the “shock doctrine,” and “disaster capitalism”, alternatively known as “neoliberalism” is the dominant social paradigm it has created.
Although there are flaws here, which I will mention, this book is both timely and well-written; Klein carries the reader through a story about grandiose topics like neoliberalism, torture, psychology, and international politics that is fundamentally readable.
The most important contribution made by this book in my view is the dismantling of the myth that capitalism’s global dominance is a function of democracy or destiny. This is the notion that with the defeat of the Soviet Union, all alternatives to “the free market” have naturally faded into history, presumably because capitalism is so irresistible. To the contrary, Naomi Klein provides numerous case studies to show us the exact opposite is true – the temporary triumph of global capitalism has been fertilized by the victims of natural disasters, terrorist attacks, wars, campaigns of torture, and economic calamity. In short, alternatives to capitalism have been shocked into submission wherever they’ve appeared.
This is no accident, it is part of a conscious crusade by market fundamentalists, those devoted to the pseudo-religious belief that “the market solves all.” Klein explains that the shock doctrine was developed (at least in part) by the patron saint of neoliberalism, free-market economist Milton Friedman. In his words, “only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around.” And he intended to provide those ideas. It was Friedman’s opus “Capitalism and Freedom” that proclaimed neoliberalism’s core edicts: deregulation, privatization and cutbacks to social services.
Since the 1970s, these teachings have been vigorously applied across the globe by the “holy trinity” of the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO). Read the rest of this entry »
Very well-spoken article poking fun at our enigmatic president, who continues to flirt with both of the groups who brought him to the Big Dance: the corporate/financial elites who paid for his campaign, and the millions of progressive Americans who mobilized and turned out the vote.
Inspirational words, impressive moves, and boyish good looks have kept the two suitors enamored thus far, but at some point Barack’s going to have to choose his partner for the slowdance. So far he’s been sipping punch with the bankrolling capitalists, who have seduced him with fancy airplanes and false promises, but we, the people have to work up the courage to demand his attention if we have any hope of him coming home with us at the end of the night. And we can’t hide our intentions; let’s make clear that partnering with us means rejecting the system that caused this crisis – capitalism. Let’s be realistic and demand the impossible. [alex]
Fred Astaire in the White House
by Michael Brownstein
Originally published by Reality Sandwich, April 13, 2009.
“You can never awaken using the same system that put you to sleep in the first place.”
–Gurdjieff
This is an appeal, an open letter, a cry in the night: no matter how cranky it may make us to brush the stardust from our eyes, no matter how many friends we think we’ll lose by looking long and hard at what’s going on around us, let’s try to stay awake. Let’s not lose touch with what we really want for ourselves. Let’s not forget what we know about the nature of consumer capitalism: it is unsustainable and unworkable because it depends on infinite expansion in a finite world. It can only survive by a violent takeover of what belongs to others. Let’s not settle for halfway measures.
And let’s not wait for deliverance from on high.
Because the president we elected — out of so much hope for a definitive break with what came before — is not who he seems. It’s true that unlike the previous inhabitant of the White House (remember him?), Barack Obama is sane, intelligent, and mature. He’s responsive to what others think. He hopes to institute real change in education, health care, the environment.
But even with his great charisma and silver tongue, he’s a proper soldier for the system which is ravishing the planet. As he said in his inauguration speech in January, already aware of the huge financial mess he was inheriting, “We will not apologize for our way of life.”
What do these words mean? They mean that the mall-i-zation of the planet will continue. They mean that the commercialization of all of life will not stop. They mean that our massive so-called footprint will never be substantially downsized.
And they mean that the force which has erased indigenous cultures and plant and animal species, which has sullied our air and soil and water, will essentially not be called into question, no matter how many of its most glaring excesses may be curbed.
“The Tyranny of Oil: The World’s Most Powerful Industry and What We Must Do to Stop it”
by Antonia Juhasz
2008 HarperCollins
Ever wondered why the US government spends trillions of dollars to launch massive wars against Middle Eastern nations that have never attacked us, but refuses to do absolutely anything about the ongoing climate crisis? This book is for you.
The Tyranny of Oil is an exposee of “Big Oil”, meaning Exxon-Mobil, Chevron, BP, ConocoPhillips, and Royal Dutch Shell, the largest oil corporations in the world (and some of THE largest corporations in the world). The book exposes how these enormous oil octopi have gained virtually total control over the US government, and use their money and political power to make big profits at the expense of the public and the planet. (For example, Exxon Mobil in 2003 posted the largest profits of any corporation in history, then proceeded to beat that record each of the next 5 years).
It all starts with the origin of Big Oil, the mother, Standard Oil. Juhasz stresses the importance of monopolies and corporate mergers, in a sense missing the deeper analysis of capitalism, but nevertheless we come to understand how enormous companies wielding enormous profits can and do undermine democracy.
The book progresses to tell a story about Big Oil’s development and control over the government agencies that are supposed to be regulating it, and finally Big Oil’s plans for the future (War and Trashing the Planet, basically), before an inspirational chapter on What We Can Do. (There’s also a shoutout to SDS here and to our No War No Warming action in DC last year! Cool!)
This is essential reading for all US citizens, because if you aren’t familiar with the concepts she lays out, you frankly have no understanding of the country you live in. Environmental racism, corporate lobbyists and corrupt government agencies, the criminal behavior of Cheney’s Energy Task Force, deregulation and Enron-style fraud, tar sands, and the list goes on.
My only major complaint of the book was the virtual silence on the looming and imminent reality of Peak Oil and how this will transform everything. Juhasz does recognize the scarcity of oil and the likelihood of oil peaking, but chooses to essentially overlook its importance, instead blaming oil companies and speculators for driving up the cost of oil.
This is not just a minor quibble, because the BIG TRUTH is that we’re not just in a struggle against Big Oil, we’re in a struggle against capitalism, and it’s a fight that is reaching perhaps its final act. Peak Oil will challenge the dominant for-profit institutions of power, and can create an opening for social justice activists and organizers to push for much more radical change than appears possible within the current system. Nevertheless, this is probably a subject for another book (mine!), and Juhasz treads on steady ground by appealing to a more mainstream audience and demonizing the oil companies exclusively. This is a very effective book, highly recommended!
Finally, my favorite quote (pg. 325):
“As Paul Wolfowitz said in 1991, ‘The combination of the enormous resources of the Persian Gulf, the power that those resources represent – it’s power. It’s not just that we need gas for our cars, it’s that anyone who controls those resources has enormous capability to build up military forces.’”
I recently posted Dmitry Orlov’s great essay ‘Closing the Collapse Gap‘, and here is his latest piece, which he delivered to the 5th Conference on Peak Oil and Community Solutions. I am only reposting excerpts, because the original is very long and somewhat repetitive. I also must warn that although I find Orlov’s insight useful, I have a much more positive view of the collapse of US Imperialism, mainly because I think he is overlooking the benefits of this process for the planet’s ecosystem as well as the possibility of freedom for the majority of the world’s people who are currently suffering under US dominance. Iraqis certainly will have a different view of the collapse of the US Empire than those in the Pentagon.
How about for Americans? Is the collapse of the US better for people who live here? Orlov’s conclusion actually indicates that it may be, especially in terms of rebuilding the social fabric that has been worn away by individualism and consumerism. But he also overlooks the reality of social oppression in the US. Not everyone lives the same “middle class” lifestyle he seems to be taking for granted. There are already millions of Americans on the brink of poverty, or deep in poverty, who don’t worry about losing their SUVs.
The best outcome is for not just a collapse, but a transformation, so that nobody has to go hungry or work their life away just so that the wealthy can take cruises or visit the spa. The current Bailouts are the most striking example of the government having the exactly opposite priorities. Instead of bailing out homeowners, or the poor who lack access to public transportation, they are dumping money into the hands of the real estate and automaking profiteers! We must continue to oppose this nonsense, from Obama or anyone, and make sure that our money is used for the benefit of the majority, not the wealthy few. In a world of shrinking wealth, there should be no rich, and there doesn’t have to be any poor either. [alex]
The Five Stages of Collapse
by Dmitry Orlov
Originally published by Energy Bulletin, Nov. 11, 2008.
1.
Hello, everyone! [...] My specialty is in thinking about and, unfortunately, predicting collapse. My method is based on comparison: I watched the Soviet Union collapse, and, since I am also familiar with the details of the situation in the United States, I can make comparisons between these two failed superpowers.
I was born and grew up in Russia, and I traveled back to Russia repeatedly between the late 80s and mid-90s. This allowed me to gain a solid understanding of the dynamics of the collapse process as it unfolded there. By the mid-90s it was quite clear to me that the US was headed in the same general direction. But I couldn’t yet tell how long the process would take, so I sat back and watched.
I am an engineer, and so I naturally tended to look for physical explanations for this process, as opposed to economic, political, or cultural ones. It turns out that one could come up with a very good explanation for the Soviet collapse by following energy flows. What happened in the late 80s is that Russian oil production hit an all-time peak. This coincided with new oil provinces coming on stream in the West – the North Sea in the UK and Norway, and Prudhoe Bay in Alaska – and this suddenly made oil very cheap on the world markets. Soviet revenues plummeted, but their appetite for imported goods remained unchanged, and so they sank deeper and deeper into debt. What doomed them in the end was not even so much the level of debt, but their inability to take on further debt even faster. Once international lenders balked at making further loans, it was game over.
What is happening to the United States now is broadly similar, with certain polarities reversed. The US is an oil importer, burning up 25% of the world’s production, and importing over two-thirds of that. Back in mid-90s, when I first started trying to guess the timing of the US collapse, the arrival of the global peak in oil production was scheduled for around the turn of the century. It turned out that the estimate was off by almost a decade, but that is actually fairly accurate as far as such big predictions go. So here it is the high price of oil that is putting the brakes on further debt expansion. As higher oil prices trigger a recession, the economy starts shrinking, and a shrinking economy cannot sustain an ever-expanding level of debt. At some point the ability to finance oil imports will be lost, and that will be the tipping point, after which nothing will ever be the same.
This is not to say that I am a believer in some sort of energy determinism. If the US were to cut its energy consumption by an order of magnitude, it would still be consuming a staggeringly huge amount, but an energy crisis would be averted. But then this country, as we are used to thinking of it, would no longer exist. Oil is what powers this economy. In turn, it is this oil-based economy that makes it possible to maintain and expand an extravagant level of debt. So, a drastic cut in oil consumption would cause a financial collapse (as opposed to the other way around). A few more stages of collapse would follow, which we will discuss next.[...]
I don’t mean to imply that every part of the country will suddenly undergo a spontaneous existence failure, reverting to an uninhabited wilderness. I agree with John-Michael Greer that the myth of the Apocalypse is not the least bit helpful in coming to terms with the situation. The Soviet experience is very helpful here, because it shows us not only that life goes on, but exactly how it goes on. But I am quite certain that no amount of cultural transformation will help us save various key aspects of this culture: car society, suburban living, big box stores, corporate-run government, global empire, or runaway finance. Read the rest of this entry »
On President-elect Barack Obama’s first trip to the White House yesterday to meet privately with his predecessor, lame duck George W. Bush, reportedly the first and most pressing message Obama delivered to the man in charge was “bail out General Motors.”
Cartoon by The Rag Blog
The American taxpayers are sick and tired of their money being doled out to corporate crooks like the carbon-polluting, oil-guzzling auto industry, or banks like AIG who apparently weren’t satisfied by the first two bailouts and now want another. (They apparently spent too much of their last check on trips to the spa.)
Is this really Obama’s highest priority? Giving public money to private companies that will use it to pollute the planet?
If YOU had the opportunity to sit down with President Bush for an hour and have him actually listen to you, what would YOU ask him to do?
Why not instead bail out homeowners by ending foreclosures to keep people in their houses?
Why not bail out the poor, sick, and elderly, by instituting single-payer universal health care like every other industrialized nation does?
Why not bail out Iraqis, military families and soldiers by pulling U.S. forces out of Iraq and ending a bloody occupation? (or Afghanistan, or the 100+ countries where the US military is stationed)
Why not bail out human rights by ending torture, closing Guantanamo and allowing all prisoners a trial by jury?
Why not bail out civil rights by ending anti-immigrant raids and the criminalizing of immigration?
Why not bail out students, who are suffering from the greatest debt crisis in history as education becomes increasingly unaffordable?
Why not bail out the planet, by investing heavily in renewable energies controlled by local communities, urban gardens, home weatherization and create 5 million new Green Jobs?
Barack, if you’re going to be a president worthy of the immense praise and expectation placed on you, you’re going to need to stop palling around with terroristic industry and corporate lobbyists, and listen to the people.
[alex]
Sources: Obama pressed Bush for auto industry bailout
Originally published by CNN, November 11, 2008
Jessica Yellin, Candy Crowley, CNN’s Ed Henry
(CNN) – At their private Oval Office meeting on Monday, President-elect Barack Obama urged President Bush to support billions of dollars in aid for the struggling auto industry during the upcoming lame-duck session of Congress, according to three officials briefed on the meeting.
The officials said Bush privately expressed skepticism about taxpayer money for automakers on the heels of a string of government bailouts for other industries, and the president also urged Obama to help push through a free trade pact with Colombia Read the rest of this entry »
[There are many articles (including one I wrote in college), and even whole books written about Petrodollars - the way that US dollars dominate the world economy by their crucial involvement in all global oil trades. This just happens to be a very clearly written and accessible essay, so I'm reprinting it despite slightly out-of-date numbers. The extent to which the fragility of petrodollar hegemony affects US foreign policy is probably the biggest question mark, but it seems plausible that the much-threatened aggression against Iran has a lot to do with that country's moves to abandon the dollar for their oil trades. - alex]
Oil prices and the dollar
C. P. Chandrasekhar
Jayati Ghosh
Originally published by Business Line, February 26, 2008.
| The depreciation of the US dollar has been closely bound up with the movement of oil prices, as world oil trade is typically denominated in dollars. Yet this relationship may now be under threat as the dollar continues to depreciate and the US economy tips into recession. In this edition of Macroscan, C. P. Chandrasekhar and Jayati Ghosh examine how oil prices have changed with different numeraires, and consider the implications for the future of the oil-dol lar nexus. |
The relationship between oil and the US dollar has been at the heart of the way international economic relations have been organised for more than half a century.
International capitalism has relied on the US dollar as the basic reserve currency, and has therefore granted it an essential degree of stability for several decades despite the large external deficits run by the US and the periodic swings in its valuation in currency markets.
More than half of aggregate world exports are denominated in dollars; more than 80 per cent of all international currency transactions similarly involve dollars.
Loans made by the IMF and other multilateral institutions are denominated in dollars. More than 60 per cent of the foreign exchange reserves held by central banks of all countries are in dollar assets.
This has obviously meant huge advantages for the US. It has allowed the US economy to benefit from access to imports that can effectively be paid for simply by printing dollars, and has therefore allowed the US to run enormous current account deficits for prolonged periods. It has encouraged the rest of the world to finance these deficits by providing its savings to be held in US or dollar-denominated financial assets, to the point that all the developing regions of the world are also building dollar reserves that directly or indirectly find their way to the US economy.
Dollarisation of oil markets
A key feature of this entire process has been the dollarisation of world oil markets. Oil is the central commodity of industrial capitalism, absolutely essential for the production of essential and widely used goods. All industrial economies, and most developing ones, would grind to a halt with even a moderate disruption of oil supplies.
Most of the world oil trade has operated and continues to operate in dollars, even when the US is not the trade partner. Oil prices are defined in dollars for most oil exporters. As a result, oil importing countries also pay in dollars. The oil-exporting countries accumulate dollar reserves, which have been preferentially invested back in the US because of the zero currency risk involved in this.
Indeed, this recycling of petrodollars has been very significant as a source of finance for US trade deficits in several periods, including in recent times. Other countries also hold dollars for future oil purchase.
The dramatic increase in the price of oil in the past few years could be argued to have accentuated this tendency. As Chart 1 indicates, oil prices have increased dramatically in dollar terms especially from 2003, going up by nearly 2.5 times between 2003 and 2007.
This has obviously contributed very significantly to the wealth of oil exporters, and allowed them to generate balance of payments surpluses and build foreign exchange reserves, which have then been invested dominantly in dollar assets in US markets.
However, this is also the period that the US dollar has been depreciating, especially with respect to some of the other major currencies such as the euro and the Japanese yen. As a result, the change in oil prices has been less striking in terms of these currencies than in terms of the dollar.
The currency factor
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