Posts Tagged ‘IMF’

Capitalism is Dead, Long Live Capitalism

April 6, 2009

What of Religion?

By Badri Raina | ZNet, April 5, 2009

I

One million Indian lives were consumed by the famine of 1771 in the Purnea district of the then undivided Bengal Province.

Warren Hastings, Governor General, proudly wrote back to the Board of Directors of the East India Company that, contrary to what might have been expected, he had collected more taxes that year than ever before!

This may have pleased the Company but did not please Edmund Burke.

His fulminations about how the Company had devastated flourishing cities like Dacca and Murshidabad and handed the region over to the tiger and the orangutan are of course legend.

So why was he so displeased, and why did he become the chief engine of the subsequent impeachment of Hastings?

Not because his heart bled for the Indians, but because he knew cannily enough that if such depredations were allowed to continue, the Company could not hope to survive for long.

Crucial to the continued exploitation of the colony and to the drain of its wealth was the preservation of the myth that the British were in India to do good to the Indians against their own primitive incompetence. The “white man” had to show himself a saviour.

Such was also the reason why Burke was to become an implacable enemy to the revolution in France.

It was important to show that the British dispensation at home, however oppressive, was anyway to be preferred to the egalitarian impulse of the French event, and to ensure that nothing of that kind brewed within the shores of Britannia.

Some fifty years on from there, Carlyle wrote perhaps the first three-volume account of the French Revolution (1836).

And the intent was no different. The purpose was to egg the new Whig parliament to effect “reforms” in good time lest Chartism took on the dimensions of the French happenings at home.

II

Something similar seems to have happened at the London, G-20 summit.

Recognizing the collapse of the Anglo-Saxon model of free-market Capitalism, its global votaries have put their heads together to salvage Capitalism from its ruins.

The air from London is thus thick with news of Capitalist institutions and practices up for pragmatic “reform.”

Interestingly, if “reform” since the Washington Consensus (1990) had meant a near-total deregulation of Capital flows, Banking practices, Market mechanisms, and a dissolution of the sovereignty of nation-states to enable the global privatization of wealth and profit-maximisation, “reform” at the 2009 London conclave seems to have come to mean something rather contrary to all that. Even if only as a change of garb.

We now hear of a global intent to reform the IMF, even as more liquidity is infused into its coffers ($500 billion, precisely), of regulation of banking and other investment practices, of sops to be doled out to those most innocent of the collapse but most affected by it, and of steering clear of “protectionism” so that the revival of global wealth multipliers are not thwarted by debilitating autarky.

In one word, the Captains of world Capitalism seem to have come to the view that if Capitalism is to be saved for the times to come, it will need to be given the garb of a world-wide Social Democracy for a while.

And, the Sinner of the first part, namely the United States of America, seems to have also come round to the view that it may not hope to lord it over the wealth of nations in quite the unfettered way it has been used to.

Cannily, if the survival of Capitalism requires that parties such as India, South Africa, Brazil, and China be incorporated fully into the world Capitalist system then so be it.

Better that than give them the breathing space to chalk out political economies of an alternate kind.

And, surely, all of them seem equally elated to be now sitting at the global high-table, with a stake in the pie. And the right to make impressive noises in the world’s regulatory committees.

However we may cavil at the subterfuges, the news of the death of the Washington Consensus and of its transmutation into the London Consensus must for now be greeted with some relief, even as the struggle for Socialism must continue to be engaged in with conviction and hard work.

III

The world could, however, also do with another concomitant relief—namely, from the devastating ravages that religion has been subjecting it to.

This writer has often pointed to the integral tie-up between Capital and organized Religion (www.zcommunications.org/zspace/badriraina.)

And a full enunciation of that thought is now available in a book called God Is Back, written by John Micklethwait and Adrian Woolridge.

Indeed, these two gentlemen, one a Roman Catholic and another an Atheist, concur sentiently on how the adherence to faith and to science-driven capital meet most sweetly in the market-economies of the world. Precisely what we have been at pains to say.

It is another matter that the book shallowly endorses this marriage of convenience, without, as Troy Jollimore underscores in a fine review (Truthdig, April 2, 2009), being troubled by any chicaneries and inconsistencies of logic or principle. Including the reality that this unholy tie-up has tended to “encourage parochialism and hatred of the other, as well as superstition and scientific ignorance.”

As Jerry Coyne says it in The New Republic, to say that science and religion are compatible because many profit by the conjunction is “like saying that marriage and adultery are compatible because some married people are adulterers.”

Here is a sampling of what some illustrious souls have had to say on the matter:

“Religions are all alike—founded upon fables and mythologies”

(Thomas Jefferson)

“The Bible is not my book nor Christianity my profession. I could never give assent to the long, complicated statements of Christian dogma.”

(Lincoln)

“Religion is based. . . mainly on fear. . .fear of the mysterious, fear of defeat, fear of death. Fear is the parent of cruelty and therefore it is no wonder if cruelty and religion have gone hand in hand. . .My own view on religion is that of Lucretious. I regard it as a disease born of fear and as a source of untold misery to the human race.”

(Bertrand Russel)

Say what you will about the sweet miracle of unquestioning faith, I consider a capacity for it terrifying and absolutely vile.”

(Kurt Vonnegut)

“Faith means not wanting to know what is true.” (Nietzsche)

“I cannot believe in the immortality of the soul. . . No, all this talk of an existence for us, as individuals, beyond the grave is wrong. It is born of our tenacity of life—our desire to go on living—our dread of coming to an end.” (Edison)

“I cannot imagine a God who rewards and punishes the objects of his creation, whose purposes are modeled after our own—a God, in short, who is but a reflection of human frailty. Neither can I believe that the individual survives the death of his body, although feeble souls harbor such thoughts through fear or ridiculous egotism.” (Einstein)

and, succinctly for our consideration of contemporary international life:

If we believe absurdities, we shall commit atrocities.” (Voltaire).

Indeed, the thinker most congenial to the Capitalist way of perceptions, Freud, was to call religion an “extraordinarily useful illusion.”

IV

The fact is that where organized religion before the advent of Capitalism presided unmitigatingly as the chief oppressor in league with privileged authority, Capitalism, from the Protestant Reformation onwards, has found in it a potent tool to neuter the secular concerns and mobilizations of vast billions of human beings, as well as to make of it yet another source of commercialized profit-making.

And when the need arose, to draft whole nations into war through a deadly mix of faith and jingoism. All for the enrichment of the possessing classes.

It is hardly a wonder that the conflict between a rampant imperialism thirsting to appropriate the oil wealth of Western Asia and the Middle East, and to secure land and sea routes for the purpose was until the other day to find it useful to pitch the contention as a “clash of civilizations.”

And we were invited to think that the “civilization” responsible for Hiroshima, the Holocaust, the slave trade, and innumerable other depredations through centuries of aggressive invasions was “superior” to Babylon and Mesopotamia. Think again.

That human frailty, compounded by immiseration and exploitation, looks heaven-ward is perhaps both understandable and excusable.

Yet, that “global” impulse has nowhere been given a more humane expression than in the saying of those drop-outs from organized “high-religions” whom the world knows as the Sufis, the Mystics, the Dervishes and so forth.

A tribe of empathy-riddled, non-coveting, and fearlessly loving human beings who placed the least always at the centre of their teachings and concerns.

Happily, such ones were to be found among all of the world’s major semitic and non-semitic faiths, and among all of the world’s poet-legislators.

They were, and remain, the uniters, not the vicious dividers.

I may conclude by citing just one couplet from the great Mirza Ghalib—a couplet that could bring light and wisdom both to the fraught world of contemporary Islam and their counterparts everywhere, including the right-wing Hindutva fascists in India:

Hum Muvahid hein, hamara kesh hai tarque rasoom, Milatein sab mitt gayein, ajzaayei eemaan ho gayein.”

Instantly translated, this might read:

Ghalib, I hold all gods to be one god:

The highest faith can result only

When all discrete dogmas are shunned.

V

At a time now when Capitalism is somewhat on the back foot, when the drums of war seem more hesitant, when relations between nations and communities are sought to be “reset’, how lovely it would be if the world were also to be freed of the fatal stranglehold of dogmas, and returned to the noble instincts of common humanity.

After all, what use is it otherwise to say that Jesus, Mohammed, Ram, Budh were indeed the finest human beings—before they were anything else—known to the history of homo sapiens?

Can we expect that Capitalist and other warlords will now spare both the earth and the human race from the twin onslaughts of Capital and Religion?

badri.raina@gmail.com

Fidel Castro: The Worst Variant

October 31, 2008

Reflections of Fidel | Granma, Oct 31, 2008

TODAY I read that the U.S. Federal Reserve had opened a new line of credit for the central banks of Mexico, Brazil, South Korea and Singapore.

The same report claimed that similar credits have been issued to the central banks of Australia, Canada, Denmark, the United Kingdom, Japan, New Zealand, Switzerland and the European Central Bank.

Based on these agreements, the central banks will receive funds in exchange for hard currency reserves from these countries, which have sustained considerable losses due to the financial and trade crisis.

This consolidates the economic power of the U.S. currency, a privilege granted at Bretton Woods.

The International Monetary Fund, which is the same dog with a different collar, has announced the injection of large sums of money into its Eastern European clients. Hungary will be receiving the equivalent of 20 billion euros, a large part of which are dollars from the United States. Their machines keep printing bills and the IMF keeps granting its leonine loans.

For its part, the World Wildlife Fund (WWF) stated in Geneva yesterday that, at the current rate of spending, by the year 2030, humanity will need the resources of two planets to maintain its lifestyle.

The WWF is a serious institution. There is no need to be a University graduate in Mathematics, Economics or Political Science to understand what this means. It is the worst variant. Developed capitalism hopes to continue plundering the world as if the world were still able to sustain it.


Fidel Castro Ruz
October 30, 2008
8:05 p.m.

How the Media Sold Their Souls to Wall Street

October 3, 2008

by Josh Silver

If you are like me, the pundits, and 99.9% of the American public, you really don’t know much about economics. And despite Monday’s refreshing moment of rebellion in the Congress, in all likelihood the House and Senate will pass a modified version of the $700 billion handout this week to fat cat Wall Street financiers.

The likely result, according to Nobel economist Joseph Stiglitz: “The unemployment rate will still increase, growth will remain anemic, house prices will continue to fall, the number of houses in foreclosure will continue to rise, credit will be harder to get, states and localities will remain in a fiscal crisis, and there will be cutbacks in basic public services. …. Our living standards in the future will be lower than they otherwise would have been. ”

Here’s the problem: None of us really know that the hell is going on, and what the largest financial bailout in the history of our nation would actually achieve. Based on McCain and Obama’s hasty support of the bailout, it would seem they are both too far under the thumb of Wall Street to look at viable alternatives to an unprecedented handout to the same reckless bankers who got us into this mess.

And like they did in the run-up to war in Iraq and the passage of the Patriot Act, the media are compounding the problem rather than helping it. While TV devotes 24/7 coverage to pretending that mudslinging Democrats and Republicans represent the full range of debate, while right-wing radio hosts scream socialism, and while pundits like Thomas Friedman implore Congress “to give them the capital and the flexibility to put out this fire,” the American people are getting virtually no hard economic analysis about what the bailout would achieve or what the range of options are.

Why aren’t Luc Laeven and Fabian Valencia on television right now? They just submitted a comprehensive report to the International Monetary Fund after studying 42 banking crises over the past 37 years. Their conclusion: Bailouts often do not work, they often result in more bad practices, and they distort economies by transferring wealth from taxpayers to bankers and their customers.

Why hasn’t economist Dean Baker been invited onto a single television program in the past week ? He is one of the guys who actually predicted the current crisis. He wrote this week: “There is no way that the failure to do a bailout will lead to more than a very brief failure of the financial system. The worst case scenario is that we have an extremely scary day in which the markets freeze for a few hours. Then the Fed steps in and takes over the major banks. The system of payments continues to operate exactly as before, but the bank executives are out of their jobs and the bank shareholders have likely lost most of their money. In other words, the banks have a gun pointed to their heads and are threatening to pull the trigger unless we hand them $700 billion.”

Why isn’t New York University economist Nouriel Roubini all over the news right now? He says the claim that “spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification. This way of recapitalizing financial institutions is a total rip-off that will mostly benefit – at a huge expense for the U.S. taxpayer – the shareholders and even unsecured creditors of the banks. ….The pockets of reckless bankers and investors (will) have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession.”

Roubini continues, “Instead, the restoration of the financial health of distressed financial firms could have been achieved with a cheaper and better use of public money. It is pathetic that Congress did not consult any of the many professional economists that have presented alternative plans that were more fair and efficient and less costly ways to resolve this crisis. … and it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners.”

But turn on your television – the place where more than 60% of Americans get their primary news – turn on your radio, or open your local newspaper, and you’re not going to see what these top economists are saying. It’s a McCain quote, an Obama sound byte, and the same pundits who have proven their incompetence over and over. The result is an American public that is fundamentally uninformed about the issues that matter most – like economics, health care, and war – and over-informed about those that matter least: sports, celebrity, the latest campaign ad, and horserace analysis of elections.

We have no reason to believe that the press — and along with it, most politicians — will ask the tough questions, expand the range of debate, and bring the facts to the American people. But until they do, our economy – and our democracy — will continue its race to the bottom.

Josh Silver is the Executive Director of Free Press a national, nonpartisan organization that he co-founded with Robert McChesney and John Nichols in 2002 to engage citizens in media policy debates and create a more democratic and diverse media system.

Militarism and a Uni-polar World

August 28, 2008


By Lenora Foerstel  | Global Research, August 27, 2008

The Trilateral Commission was founded in 1973 by David Rockefeller as an off-shoot of the Council of Foreign Relations (CFR). David Rockefeller was chairman of the CFR in 1970 and subsequently became the founding chairman of the Trilateral Commission. Soon the membership of the Commission had grown to 300 members, including prominent political figures like Zbigniew Brzezinski. Most members of the Trilateral Commission are bankers, media moguls, or corporate CEOs, primarily from North America, Europe and Japan, while all members of the CFR are U.S. Citizens.

The Commission seeks to extend its influence abroad and is careful to avoid the scrutiny of congressional investigations. The CFR on the other hand, focuses on the control of American media.

When American media discuss globalism, they rarely mention that the Trilateral Commission sets most global economic goals, primary among them being the creation of a one-world system of trade. It is basically a form of fascism in which global corporations and their elite CEOs determine the policies and direction of world governments. The creation of the International Monetary Fund and the World Bank after World War II was intended to encourage Third World countries to borrow money from wealthy nations, so long as they agreed to the imposition of a wide range of “structural adjustment policies.” Any nation borrowing money from either organization would not be allowed to nationalize its natural resources and would be unable to prevent foreign corporations from buying or controlling those resources.

Shortly before World War II, Hjalmer Schacht, a German banker, toured the United States soliciting American corporate support for Hitler’s new fascist state. U.S. corporations not only agreed to support Germany against the socialist economic system of the Soviet Union, but also declared their opposition to the strong labor movement arising in the United States and Europe.

General Motors was prominent among the corporations that supported the Nazi government, investing $20 million in industries owned or controlled by Herman Goering and other Nazi officials. Other US multinational corporations that profited from and supported Hitler’s industrial war machine included General Electric, Standard Oil, Texaco, International Harvester, ITT and IBM. Today, Standard Oil of New York is unabashed in honoring its chemical cartel that manufactured Zyklon-B, the poison gas used by the Nazi gas chambers. (1)

Among the eminent business leaders backing these multinational corporations were the Rockefellers and Prescott Bush, father of George Bush and grandfather of George W. Bush. Prescott Bush worked with his father-in-law, George Herbert Walker, in the family firm Union Banking Corporation to raise $50 million for the Nazi government by selling German bonds to American investors from 1924 to 1930.

Even though the United States helped to defeat Nazi Germany in World War II, many of the powerful elite families continued to support Hitler’s fascist ideology after the war. John Rockefeller III was an uncritical believer in the doctrine of Thomas Robert Malthus, who claimed that population always increased at a geometric rate while food supply increased at the slower arithmetic rate. Malthus therefore concluded that population growth had to be rigidly controlled. Today, his theory is widely criticized for failing to take into account the vast technological advances in agriculture and food production.

Rockefeller also accepted Hitler’s concept of an Aryan race, leading him to propose population control on the poor and people of color, whom he believed were producing children of inferior intelligence. In an effort to support such views, the Rockefeller family became involved with Eugenics, a fascist doctrine that advocated breeding a superior race by eliminating the mentally ill, physically handicapped, and racially inferior.

Continued . . .