Blowback


Another Sabbath eve. I’m not going to commit to writing every Friday night, but the thought occurs that it might be good—If not for you, then for me—a way to reflect back on my week. If nothing else it’ll keep me at home.

Doom permeates the air wherever I go.

Our economy is headed down the tubes. Many Democrats think things are going to get better now that Obama has been elected into office. I don’t share their optimism.

A year or so ago, I picked up Chalmers Johnson’s book, Blowback. I read about half of it and then it got lost in a stack of partially finished books. Earlier this week I ran out of something to read and reopened the book. The last half could well have been taken from today’s newspaper.

Then I considered the fact that Blowback had been written before George W. Bush served a single day in the White House.

From the next to last chapter of the book:

This is not to say that all barefoot peoples of the world who might like to wear athletic shoes or all the relatively poor people who might be able to afford a television set or an automobile are satisfied. But for now they are too poor to be customers. The current overcapacity in East Asia has created intense competition among American and European multinational corporations. Their answer has been to lower costs by moving as much of their manufacturing as possible to places where skilled workers are paid very little. These poorly paid workers in places like Vietnam, Indonesia, and China cannot consume what they produce, while middle- and lower-class consumers back in the United States and Europe cannot buy much more either because their markets are saturated or their incomes are stagnant or falling. The underlying danger is a structural collapse of demand leading to recession and ultimately to something like the Great Depression. As the economic journalist William Greider has put it in his book One World, Ready or Not, ”Shipping high-wage jobs to low-wage economies has obvious, immediate economic benefits. But, roughly speaking, it also replaces high-wage consumers with low-wage ones. That exchange is debilitating for the entire system.” The only answer is to create new demand by paying poor people more for their work. But the political authorities capable of enacting and enforcing rules to enlarge demand could no do so even if they wanted to because “globalization” has placed the matter beyond their control.

In the last chapter titled The Consequences of Empire Johnson sums up the book, describing how America’s Imperialistic machinations have led to many of the ills we face today. And then he offers this advice (once again, written pre-9-11):

What is to be done? Were awareness of an impending crisis of empire to rise among American citizens and their leaders, then it would be fairly obvious what first steps should be taken: adjust to and support the emergence of China on the global scale; establish diplomatic relations with North Korea and withdraw ground forces from the Korean peninsula; pay the United States’ dues to the United Nations; support global economic diversity rather than globalization; extricate ourselves from our trade-for-military-bases with rich East Asian countries, even if they do not want to end them; reemphasize the “defense” in the Department of Defense and make its name fit its mission; unilaterally reduce our stockpile of nuclear warheads to a deterrent level and declare a no-first-use policy; sign and ratify the treaty banning land mines; and sign and ratify the treaty establishing an international criminal court.

More generally, he United States should seek to lead through diplomacy and example rather than though military force and economic bullying. Such an agenda is neither unrealistic nor revolutionary. It is appropriate for a post-Cold War world and for a United States that puts the welfare of its citizens ahead of the pretensions of its imperialists...

It took a long time for us to dig ourselves into this hole and it may take a long time to get back out. There are no guarantees that we will be able to do so.

As for Bush, why waste another word on the guy? We have work to do.


Don November 21, 2008 - 9:09pm
( categories: Miscellany )

This were Greed gets us or what madison ave sells you your needs.
Sad.
jo6pac

jo6pac November 21, 2008 - 10:37pm

... some real strings attached. Mainly the freedom of workers to form independent trade unions. No Western country should have ever engaged in free trade with dictatorships. The whole concept of "free trade" is rotten to the core and truly an Orwellian misnomer. There is nothing free about it.

quax November 21, 2008 - 10:57pm

I'm not saying this is THE apocalypse. But if the definition of apocalypse is an unveiling, today's collapse qualifies as AN apocalypse. It began in July, 2007, for the record (and my brother Bill, who told me so before the fact).

by Mike Whitney

...

"Neoliberal economists in the last three decades have denied the possibility of a replay of the worldwide destructiveness of the Great Depression that followed the collapse of the speculative bubble created by unfettered US financial markets of the 'Roaring Twenties'. They fooled themselves into thinking that false prosperity built on debt could be sustainable with monetary indulgence. Now history is repeating itself, this time with a new, more lethal virus that has infested deregulated global financial markets with 'innovative' debt securitization, structured finance and maverick banking operations flooded with excess liquidity released by accommodative central banks. A massive structure of phantom wealth was built on the quicksand of debt manipulation. This debt bubble finally imploded in July 2007 and is now threatening to bring down the entire global financial system to cause an economic meltdown unless enlightened political leadership adopts coordinated corrective measures on a global scale."

Rome is burning. It's time to stop tinkering with a failed system and move on to "Plan B" before it's too late.

I did inhale.

Don November 22, 2008 - 8:13am

Got a link?

Synoia November 22, 2008 - 11:20am

We think in a top down structured form, where it only makes sense when we view it from this supposedly objective perspective, while the flip side of the coin, the bottom up serial processor, is more elemental, but than it is therefore more fundamental. The absolute isn't an ideal from which we fell. It's the essence from which we rise. Life bootstraps itself upward through successive creation and consumption of that structure and form of which we are the current manifestation. So when the structure cannot grow any higher, it crumbles, to be consumed as energy for the next push upward. We started as tribes, led by chiefs and instructed by shamen. These became politicians and priests. Then technology pushed it to a higher level and all that organization of complexity allowed us to create ever greater social bodies and civil structures. Think about it though. For all our innovation, is our civilization really any more complex then the multicellular organisms which first emerged hundreds of millions of years ago? Currently we are top predator in an environmentally collapsing ecosystem and those bankers and financiers are top predators in a collapsing economy. What happens next? Can we look at the biological record and sense what the next stage might be, other than falling back into the muck for another thousand, or hundred thousand years? Is this the beginning of the end, or the end of the beginning? Is there a way that humanity can make the step from being top predator in the planetary ecosystem, to central nervous system of the planetary organism? That would be the next logical step up the evolutionary ladder. I think there are two specific moves which have to be made. The point I've made previously about how the monetary and banking systems have to be reformed as public utilities, so that rather than an economic cyclone which is pulling value out of communities and the environment, the essential progressive taxation forces people to store value in communities and the environment. Also as a bit of a side note, we need to get rid of this religious conceit that the spiritual absolute is an ideal from which we fell, as opposed to the reality that it is the essence from which we rise. It has been useful for providing a broad tool of civil indoctrination, but it vests more power in the status quo then it deserves. Power corrupts, then it crashes.

So many waves are coming together into one super wave and it will either crush us, or lift us even higher.

brodix November 22, 2008 - 2:48pm
Don November 22, 2008 - 7:58pm

Credit bubbles are nothing new. It's just that we have applied modern methods of technological efficiency to keep the process going until it is many orders of magnitude larger than the economy on which it is based. The simple fact is that total savings is determined by prudent lending, not by earnings reserved from expenses. Above that natural limit and it just inflates asset values. This means that those with outsized amounts of wealth do impede the ability of others to effectively invest their savings. Since these people are, by definition, politically powerful, this fact cannot be admitted. Instead the propaganda is that we need government spending to prime the economy and get it going again. This means borrowing that excess wealth, at interest, from those with money to spare, or just printing it. Either way,they still get to skim more off the top and the problem gets pushed down the road a little further, but only grows even larger and the next blowup is bigger and requires more public borrowing and spending, etc.

brodix November 23, 2008 - 7:26am

because Bush represents the kind of people we truly are; perhaps that's why the commandment "love your neighbor" is is so universal since human souls tend to be aware of their own fate exclusively.

moreover, I think that's why the story about the crucifixion of Christ is so important because, at the end of the day, we tend to let injustice escape; that's the kind of courage we have, almost none.

IMO, Obama's presidency will be about "political correctness" and so we'll be hiding behind stars instead of basking in the the sunshine.

mrmx November 22, 2008 - 3:06pm
Raja November 22, 2008 - 4:00pm

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