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Dawn of Deflation

Global deflation is underway. I’ve linked to some sites in recent posts that I spend all too much time reading, especially The Automatic Earth and The Daily Reckoning, two of the more insightful pessimistic financial writers. Today Russia is reeling from massive capital flight, threatening to set off new panics and bank runs, similar to what they went through in the late 1990s. The blatant theft of public wealth going down in the U.S. is really breathtaking, what with AIG, and the newly minted banks like American Express, Goldman Sachs, and Morgan Stanley all queueing up to drink deeply at the public trough. This whole bailout scenario is so cynical–basically it’s a bunch of millionaires rushing to fill their pockets at the U.S. Treasury before the rules change or anyone demands any real accountability, getting ready for the global Depression that is unfolding slowly but surely every day. Huge debt rollovers scheduled for December 1 and dates in the year to come ensure that many more bankruptcies will be announced soon.

Notably the big three carmakers are going down. I say, good! But of course the people who will be hit hardest are the autoworkers and especially their pensioners, and all the folks who depend on autoworkers-as-shoppers, all of whom will be left high and dry, while the big rollers who ran these companies into the ground will surely waltz off with millions in golden parachutes. It’s astonishing how myopic the United Autoworkers has been all these years, and I have to credit Mark Brenner of Labor Notes who was very good on Democracy Now! this morning, calling out the union for its lack of independence vis-a-vis the industry, marching in lockstop behind the ecocidal agenda of SUVs and minivans. Brenner called for government subsidies to be withheld from the car companies unless it was sure to be used to move the transportation system away from private gas-powered vehicles. Fat chance! Obama and his advisors, along with the Democratic congress, are painfully conservative and unimaginative about how big the problems are, and how dramatically the priorities have to shift immediately.

Continue reading Dawn of Deflation

Floating, Waiting, Wondering

Old friends from the Committee for Full Enjoyment, drumming during last night's Dia de los Muertos in San Francisco. (see below)

Haven’t been blogging much lately… The election is dominating airspace, and though it’s not dominating the small space between my ears, I haven’t been able to focus on any good themes to blog about lately. I’m reading the People’s History of the Civil War and Framing the Black Panthers, both good books, both kind of slow reading. I figured it would be good background reading during the election of Obama, even though he’s as far removed from the issues of slavery and 1960s’ black militance as you can get and still be black…

I hope he wins. It’ll be much more interesting than the other option, but a day ahead of the election, I still wonder if we won’t be “shocked” by the news that McCain somehow pulled out a dozen states that he wasn’t expected to win, while charges of electronic fraud and broken machines, and lack of ballots, pile up all over the place. Democracy Now! covered the story of a guy who is being deposed today, a fellow accused of masterminding the election fraud perpetrated by Cheney/bush in 2000 and 2004, by forwarding the results from various states like Ohio to an intermediary computer in Tennessee where of course the results were doctored to suit their goals.

Probably we’ll have President Obama, and then it’ll be interesting to see if he will break with his sponsors at Goldman Sachs and the coal and nuclear industries to pursue the grassroots-supported “Green Economy,” one which is fraught with contradictions itself, but is being pushed by countless small groups, independent political actors, and is somehow embedded in a lot of folks’ deep aspirational psyches… or so it seems. To some extent the analysis in Nowtopia taps this too, though my book of course tries to reframe these aspirations in terms of class and an anti-capitalist agenda.

I’ve been reading a lot at Automatic Earth which is written in England and is just a fantastic clearinghouse of bleak analysis and financial information. The breaking news on a fair number of economically minded websites is that world trade is collapsing. Whatever attention you’ve paid (or not) to the bailouts and the fluctuations of stocks and housing prices, off our radar in the U.S. to a great extent are numbers like the Baltic Exchange Dry Index which measures the cost of shipping worldwide. This article at the TimesOnline UK (via Automatic Earth) gives the latest amazing stats wherein the cost of a Capesize freighter in May 08 was some $230,000 a day, and as of last week the same ship had fallen to about $5,800 a day! Apparently the credit freeze-up has stopped a huge amount of shipping, and we may be entering a period of radical contraction in world trade. That’s not gotten much attention lately during the insanity that passes as “politics” here in the U.S. election crazy season…

Continue reading Floating, Waiting, Wondering

Practical Solutions!

Ha ha! I am going to post a good ol’ commie program, first floated by Loren Goldner on his “Break Their Haughty Power” website… but before I do I want to give you a link to a remarkable story that happened in Spain, where a guy borrowed from banks nearly a half million Euros (ostensibly for businesses and personal needs) and managed to dispense most of it to various radical projects before disappearing from Spain and liquidating his “empire.” He dedicated it to projects that are geared to revealing the dynamics of financial chicanery and exploitation in these times, in a very Robin Hood-esque maneuver. It’s fascinating to read, and to imagine how semi-easy it probably is to reproduce some version of this…

Anyway, here’s the program, as promised. It’s not something that I necessarily agree with in toto, but a huge part of it makes good sense as an alternative to all the dumb blather about how to “fix” the capitalist credit market and manage the massive deleveraging that’s underway… Obviously his call for a  nuclear fusion program is pretty crackpot, and the whole abstract call for a program in the absence of movements for which this might provide practical direction also seems a bit odd… But here I am doing it myself!

An immediate program: to be implemented by a world soviet in power following successful world revolution.  Very heady thinking, do doubt, but the intention is to provide a “heuristic device” for how such a world soviet would act. In an economy as decadent as the U.S., for example, where probably 80% of all “work” would be eliminated in short order as socially useless or socially noxious, I think it is difficult for most people to imagine a “different world” and most of the legacy of the old left merely calls for the “democratic management” or “workers’ control” of this one. So here goes.

The first task of such a soviet would be to organize the global transition out of the production of value (in Marx’s sense of value).

What we need is a basic grasp of the total resources available on a world scale, in terms of existing labor power and means of production, to effect such a transition. The cost of reproducing world society in today’s terms is the “foundation” of a measure of “fictitious capital”. Here is the minimum, “first 100 days” program:

I. abolition of the dollar standard, etc. and an “organized deflation” of the world economy

II. abolition of all socially unnecessary and noxious labor

III. retraining of the work force freed by II.

IV. global expansion to uplift world population to an acceptable worldwide standard of living

V. shortening of the working day

VI) transition out of the automobile/ steel/ oil economy; dismantling of the urban/ suburban/exurban sprawl produced by the needs of that economy;

Tentative Final Remarks

Here are further programmatic points, offering more detail within the above framework,  for this victorious world soviet, very tentative. They amount to “Chapter 11″ bankruptcy proceedings for the capitalist system.

In abolishing fictitious capital, we impose “global accounting standards” or “world resource accounting” to take an “inventory” of total existing means of production and labor power, in terms of use values (The goal is pushing all production beyond the necessity of exchange, so that social “measurement” occurs neither in price nor in labor-time but is strictly in use-value terms of real goods and services produced. )

1) implementation of a program of technology export to equalize upward the Third World.

2) creation of a minimum threshold of world income.

3) dismantling of the oil- auto- steel complex, shifting to mass transport and trains.

4) abolish the bloated sector of the military; police; state bureaucracy; corporate bureaucracy; prisons; FIRE; (finance- insurance- real estate); security guards; intelligence services.

5) taking the labor power freed by this to begin retraining and reeducation around real needs.

6) crash programs around energy: nuclear fusion power, solar, wind, etc.

7)  application of  the “more is less” principle to as much as possible. (examples: satellite phones supersede land-line technology in the Third World, cheap CDs supersede expensive stereo systems, etc.)

8) a concerted world agrarian program aimed at using food resources of the US, Canada, Europe and developing Third World agriculture.

9)  integration of industrial and agricultural production, and the of breakup of megalopolitan concentration of population. This implies the abolition of suburbia and exurbia, and radical transformation of cities. The implications of this for energy consumption are profound.

10) automation of all drudgery that can be automated.

11) generalization of access to computers and education for full working-class participation in global and regional planning.

12)  free health and dental care.

13)  integration of education with production.

14) the shift of R+D currently connected with the unproductive sector into productive use

15) the great increase in productivity of labor makes as many basic goods as possible free, thereby freeing all workers (e.g. cashiers, etc.) involved in collecting money and accounting for it.

16) global shortening of work week.

I’ll be back blogging more soon… The Feast was a huge amount of work, pretty satisfying since it went well, but it left me behind several eight balls, not the least of which is our homestretch on the Shaping SF wiki. So a couple more weeks of crazy hours and then I think I’ll get back to a better pace with more time and space to ponder the fascinating history that’s unfolding all around us. The election is of course sucking all the oxygen out of the room… but I’m still breathing… hope you are too!