Economists Call for Nationalization

Neo-Fascism Waiting in the Wings

The word for today, boys and girls, is NATIONALIZE! All thru out the news yesterday, economic pundits called on the government to NATIONALIZE THE BANKS! What does this mean? Leading economists of the capitalist system calling for nationalization can mean several things. But first, we need to define nationalization and society in the age of misinformation.

President Barack Obama made a speech in Arizona, which has the third highest foreclosure rate in the country. Obama wants to help banks restructure mortgages, and refinance some mortgage holders who owe banks for homes no longer worth what they paid. All this is part of his stimulus package.

However, the automakers continue to be in distress and Goodyear lays off workers because slow car sales means less tire manufacturing. The New York Stock Exchange closed down by 300 points. Economic activity is predicted to contract and unemployment is expected to rise. Most experts believe the recession will last at least 24 months if it doesn’t plunge into a depression.

Structural readjustment for the US economy can only lead towards financial disaster. The bloodsucking international banking system proved this in Africa, Asia and Latin America. When economists begin demanding the nationalization of banks, capitalism is in big trouble. Nationalization means a government takeover of a sector or the whole economy. This can happen under a socialist state, which we do not have, or it can happen in a state moving towards fascism, which we appear to have.

While the administration has not broached this subject, since Larry Summers of the White House’s National Economic Council appeared in several interviews and never even hinted at it, business experts and leading economists have begun making powerful cases for nationalizing the banks. To underscore, Timothy Geithner, Treasury Secretary and former head of the New York Fed, has a grounded policy initiative due to a sharp change of course which resulted in tanking markets on Wall Street. The pundits have panned Geithner and made an issue of Obama trying to fix the economy from the White House, citing politics and, paradoxically, George W Bush’s policy of giving the Fed a free hand.

All the leading capitalists, from the president on down, smell like a stinking joke.

But to nationalize the banks? Wow, that is a great leap, and not of the Maoist kind. Because we must ask the inevitable question, how will that happen? Especially after banks continue to receive massive monies from the public coffers. In the age of misinformation, where the neocons have convinced white workers that welfare, national health care reform and Social Security are socialist programs while remaining silent on gov’t giveaways to financial institutions, people must be wary of what it means for certain forces to make the call for nationalization. Because if Obama’s administration emerges from this period looking like the Weimar Republic, it will set the stage for a neoconservative resurgence out for blood.

This is no attempt to solve the Imperialist crisis. Yet a government takeover of the banks musn’t transpire after so much money has been doled out to them, nor without purging the top management of any banks that get seized. No takeover should happen with compensation going to stockholders, either. Altho this contradicts US laws concerning imminent domain, the banks have already received massive liquidity injections of public funds on a periodic basis since July 2006. Whichever banks are insolvent the government has no business acquiring them in any attempt to make them float.

Thus, experts calling for nationalization seem to be pulling the wool over our heads. They have the temerity to defend Bush’s economic policy decisions while criticizing the moves made by the four week old Obama presidency. Business experts Nina Easton, Fred Mishkin, Nuriel Roubini and Mark Zandi appeared on Charlie Rose to form a consensus on nationalization and against having a White House-run national economic group. However, the calls for nationalization have been broader than just theirs, cattle-prodding the black president into a less deliberate response to a crisis that has built up over the life of the entire subprime mortgage era.

Since the Clinton-era “war on crime”, codified in repressive criminal legislation and accompanied by a massive prison boom on the backs of black prisoners that jolted the voodoo economy of his predecessors, plus the passage of NAFTA alongside the unspoken war against Chicanos and other Latino immigrant workers, the United States has become a neo-fascist republic. This trend sharply intensified under two terms of the Bush 43 administration with the so-called “war on terror”, itself a form of terrorism. Combine that with an economic crisis in the making since the S&L scandals of the Eighties thru the DotCom shakeout on to the current subprime mortgage meltdown, if it can be correctly characterized that way.

The effect of these combined scandals and crises has been a huge concentration of liquidity into ever fewer hands. The credit regime arose because liquidity had been squeezed to the extent that people lacked the resources to buy with cash.

So, in making paper tigers from coast to coast, it became necessary for economic growth to rely heavily upon consumer credit spending. And this practice resulted in a more intensified concentration of liquidity. By concentrating cash in so few hands, money became even scarcer for workers, the middle class and small business. Towards the end, statisticians revealed how Americans worked longer and harder than their counterparts in other industrial countries, how production had increased — because of people trying to work themselves out of debt — and folks had less to show for it.

In a country where workers happily settle for $300 tax kickbacks while the government doles out $750 billion to financial institutions, anybody calling for nationalization of banks is either delusional or on a serious mission to turn this country into a fascist state. The steps towards fascism remain firmly in place and Obama, being a part of the ruling class, may not be turning away from that.

Ultimately, we need a workers economy based upon redistribution of wealth. Concentration of wealth must become thoroly diluted so that society will experience no more of these economic crises. The abstract value of paper documents from legal tender to asset-backed commercial paper and other capitalist instruments has to be abolished. The love of one another will overwhelm the love of money if we make it happen. Ubuntu is our only future: We need a society built upon people power instead of crass dollarism.

Advertisements

Spin on Meltdown Defuses Indignation

A War on Society by Capitalism and Government

By I. Langalibalele

Two contending views exist concerning how the financial meltdown happened. Neither one is entirely incorrect, yet whichever view dominates will determine how society responds to the bail out. People must understand that their interpretation of events is based upon however themselves they perceive their relationship to the power structure and to the economic forces that run this country. Which in turn determines how democracy will operate thru the next period of political hegemony over the masses of Americans.

On the one hand, there is the belief that an over-extended practice of credit lending stretched thin the liquidity of US financial institutions. This view says that Americans lived on credit. They used credit to pay for everything from big ticket items like houses and autos and furniture and plasma screen televisions, to paying off utility, grocery and clothing bills. This view is not entirely wrong, but it is not at the root of the problem.

According to Milton Friedman, late architect of the cut and spend voodoo economics of every administration from 1981 to the present, economic crises stem from cash being regulated rather than distributed. In this scenario, the cash being regulated by the banks and corporate finance institutions have done what is characteristic under capitalism.

Wealth hoarded from society by financiers gets concentrated. They transform it into asset-backed commercial paper, which can be packed into briefcases, transported and negotiated anywhere. Sophisticated funds such as hedge funds, arbitrages, derivatives and other forms of capitalism are driven from the very credit market that the right-wing accuses Americans of having abused. Freidman was not wrong about cash being locked up, but he was the leading advocate of those responsible for concentrating wealth, a seeming paradox.

Liquidity is locked up in asset-backed commercial paper. Huge funds are driven by firms that bundle mortgages and sell them to investors; your home is only worth the down payment. Investors back their speculative investments such as oil futures on bundled real estate which has in part driven the price, not the cost, of gasoline over the last three years.

Wealth is locked up, Milton Friedman, by a handful of capitalists making war against society, assisted at the uppermost levels of the State.

Out of this current period, a massive shakeout of small investors has taken place, whereby people having their pensions tied up in stock options have taken another hit. From the S&L scandals of the Eighties and Nineties, to the DotCom shakeout and the stock option swindles — led by Tyco, Enron, Worldcom-MCI, and others — to the current financial crisis caused by the subprime housing market started during the Clinton era, the cycles of massive fraud and rip offs by corporate America seem to be building with increased frequency and viciousness.

Imperialism, international monopoly finance capitalism, has arrived at the point in history where it must cannibalize its base inside the world capitalist centers. For this, capitalism has less use for colonialism and racism. It no longer requires a theory of white supremacy as it shifts capital resources into China and India. Capitalism’s continuation as an economic force today depends upon reducing the conditions of all workers to the lowest possible state and keeping them divided.

Were that not the function of capitalism, workers would actually be paid for the value of their labor. Which underscores the logic that the crisis in social relations occurs at the point of production. This economic meltdown derives from the crisis in social relations created by capitalism, which takes place wherever the class struggle bumps heads. It is bumping heads right now where the banks are being bailed out to the tune of $700 billion. If the government directly bailed out mortgagees, that would reduce the amount to only $150 billion or so.

The Gubernatorial-Oppenheimer Party wiped out the biggest economic boom in history, That was like wrapping a show-room floor Maserati around a tree on a test drive, and walking away unfazed. The party of democracy thru Imperialism, using Imperialism to spread its limited democracy, has achieved its mission, waiting awhile to implement neo-fascist economic and political policies to eradicate unions, the Left, and civil society. It must wait for the Dems to lure the people back to sleep by working Imperialism thru democracy.

So, to say the credit system caused the financial meltdown is not completely true or even remotely accurate. The money locked up by banks derives from value produced by every worker in America and then lent back to them at exorbitant rates.

Working people build houses, thereby transforming raw land into real estate. And in America, land was never honestly purchased or traded; it was looted from the Turtle Islanders. American capitalism on free land built upon the slave labor of African people still cannot produce wealth without thievery, deception and misery.

This tendency adversely effects democracy and defines the next period of hegemony over working and poor people. Once the so-called government bail out of the banks gets finalized, new regulations and policies will go into effect.

As the corporate media defines democracy and flagellates the average American about having used too much credit, guilt becomes the new black. The supposed white guilt about racism that never was — because anti-racism never was about white guilt — will miraculously become transfigured into white guilt about finances. And the Democratic Party will implement the new regime under what will be, in  the upshot, Imperialism thru democracy.

Democracy and Racism

The Black Dialectic in Post-Neocon America

by I. Langalibalele

Many people in the black community have an aversion to the class question. That is, people avoid discussing relationships between the haves and have nots in any serious way. This seems due to the lack of any real democratic rights black working class and poor people may have in America. Everywhere our issues are raised, others seem intent on drowning out our voices or speaking up for us, ultimately with the goal of diluting our message.
It is the responsibility of organizers to break thru our temerity and elevate a class analysis that penetrates the broad masses of African people and repudiates Imperialism and especially the right-wing.
A close examination of racism shows that it is an expression of the class conflict which forms the basis of capitalist social relations. Racism is an expression of colonialism, and the backwards color theory of racist confrontation bases itself upon subjugating all colonized people so that mobility can be concentrated within the oppressor nation. African people understand how racism operates. Racism places the lowest caste among the colonizers above the best of the colonized.
For instance, white racist Byron de la Beckwith felt free to assassinate NAACP leader Medgar Evers in 1963 because de la Beckwith knew the system would not punish him for killing a black man. Same thing with James Earl Ray. In the Tulsa riots of 1921, whites destroyed the black business district because that meant black progress and they had to stop black people from having anything more than they owned. The racist, neocon opposition to affirmative action, equal opportunity and other legal remedies — aimed at reversing the effects of 500 years of racist oppression in North America — exists because white racists view blacks as a lower caste. We are supposed to be, as Booker T Washington paraphrased from the Biblical ‘drawers of water and hewers of wood for white people in this country.’
Some people attribute violent white behavior to emotional responses such as jealousy or hatred. Yet emotions begin with the racism people get taught in church, school, at home and in other cultural and political settings. Whites have been conditioned for 500 years to think of themselves as superior to everybody else and consider the colonized niggers of the world as their do-boys.
In Vietnam, American soldiers considered the people there gooks, slopes or rice niggers. If the Arabs were whites instead of towel heads or sand niggers, the Zionists would never have any support in America. Eskimos are ice niggers in Sarah Palin’s Alaska and cowboys routinely call the American Indians prairie niggers. Every colonized group is some kind of nigger. That is all the word mean is you are a slave under capitalism and Imperialism.
Racial conflict hones the very sharp edges of the class struggle. Since politics is economics concentrated, then racism concentrates the class question. However, during the rise of monopoly sector capitalism in the Twentieth Century, it became increasingly more difficult to maintain the strict, rigid class barriers that had been defined via racism. The years foreshadowing World War II forced competing ideas within the capitalist spheres to come into direct conflict. Capitalism’s collapse during the Great Depression instigated important social movements which began the decline of strict, race-based (colonial) relationships.
In Europe, the global economic disaster flushed out the most reactionary sections of the capitalist class. Germany, Italy, Portugal and Spain led the fascist movement which threatened to engulf Europe. At the 1940 Berlin Olympics, Hitler’s Aryan supermen competed against America’s nigger sons in track and boxing and came up short. This competition also caused America to seriously reevaluate its racist Jim Crow policy, tho change did not begin in earnest until the mid Fifties. Eventually, the most parasitic forces of reaction started a war the extreme right-wingers of Imperialism couldn’t finish.
Today, Imperialism — also known as international finance capitalism  (“monopoly sector capitalism”) characterized by the proliferation of powerful corporations that function like actual nation states — has reached its apex. It has totally saturated the entire globe at one level or another, and redefined the way people live. It imports and exports capital assets, it hides wealth by concentrating it into “asset-backed commercial paper,” documents which represent millions of dollars in value, which can be packed into a briefcase or a wallet and negotiated anywhere on the planet. Imperialism has become as rotten ripe as it can possibly become and Imperialism is also the highest stage of capitalism.
Now that capitalism is undergoing another economic crisis like it did in the Thirties and Forties, the forces of reaction in America have become let loose. They want a fascist dictatorship like the ones which reduced Europe to a rubble in the Forties. The neocons forget or don’t kno that fascism arose because of the economic crisis; fascism is an emergency political regime that is based upon repression. Hitler, known to the pigs as the leech who rebuilt Germany in twelve years, is also the one who employed armed managers (the Gestapo, the SS and the army) to enforce production quotas from workers. Mussolini, Franco and Salazar used similar tactics.
While the neoconservative reactionaries in this country try to stampede the masses by saying they don’t want socialism, the Keynesian capitalism upon which FDR modeled the US economic recovery still was based upon Jim Crow and colonialism. African people have walked away from slavery and Jim Crow, and we will fight to the death before we ever return to that. We refuse to submit to any system referred to as “voodoo economics” by its own neocon proponents.
We must be clear, as black workers in America, that our efforts have built this country and so we have an important voice to be raised. The interests which we seek to articulate must no longer be coopted by interpreters or middle class aspirants. Let them speak for themselves or their own class interests. We can speak for ourselves, and we have little to no relationship to the Democratic Party or the GOP.
Our interests involve economic and political control of our own community. We want the Black Panther Party program. We want the Uhuru Movement program. We demand reparations and an end to the neo-fascist prison industry built on our backs. If white people don’t want socialism, fine and good, but we want something which will move our community forward and out of dependency on Imperialism.
There is a black dialectic which differs from mainstream capitalist culture; it differs from what most preachers say in church on Sunday, and it differs from what black commentators say in black newspapers. It is something which you might read over the blogosphere or get in a conversation with somebody on the bus or on a corner. However, it is not the discussion on the radio or on BET.
And the efforts of the self-led black proletariat to distill this discussion into a political message represents a polemic against capitalism which deserves to be broadly articulated.
This is the message that has been shouted down, denied any democratic forum in American politics, and treated as tho it were a criminal or terrorist ideology. One thousand Byron de la Beckwiths exist for every African who has clarity about the role of black workers and poor people in US society. One thousand James Earl Rays rise up every time an organizer fights to advance conditions inside our community as a matter of anti-racist struggle. Our communities across this country look like the aftermath of the Tulsa riots and yet we are supposed to remain quiet, and be afraid of what the reactionaries call “socialism”. We must demand socialism, we must demand change more than we kno the capitalist system is willing to concede, but we must demand what we kno we can get if it takes sweat and blood to get it.