Letter from America

The following piece is from US comrade R. Alpert

The other day the US Army carried out a “raid” in Syria, which raid resulted in the deaths of at least seven people. The United States now feels that it has the “right” to attack any country at any time for any reason. I would add that this attack drew scant notice from the media –democratic or republican. The heated discussion of the day was the cost of Sarah Palin’s wardrobe. Even the collapse of the financial system was pushed off the front page.

How did we arrive at what I can only call an economy and culture of madness?

I do not pretend to be an economist (a dubious “expertise” in my view in any case) and the language in which experts attempt to portray the current financial collapse seems deliberately mystifying. Forgive me if I ignore them.

The current financial and cultural crises seem long overdue. Since the 1980’s the economy of the west has been driven by American consumerism. That consumerism—made possible by the enormous social capital generated by World War two is over. Dead. The wonder is it took so long.
Socialists (and I mean “Socialist” as it is understood by grown ups rather than American politicians) have always understood that Capital values profit over survival. The point seems so obvious as to be trivial; however, it seems to have been genuinely lost on experts like Greenspan (who confessed that his whole ideological and economic world view had been mistaken). Socialists have also always understood that capital must expand to survive. I have often reflected that I could be quite rich if I made it my business to rob all the houses in my neighborhood.

The FED (which Greenspan ran) had been reducing interest rates for some time. I think it had reduced them to about 1.5%. The result was the intended and pernicious increased availability (so it seemed) of money. I should point out that this had been going on for years. For example: there was a time when you had to go to a bank and write a check to get cash. ATM machines assured the constant availability of Cash (as did Credit Cards). However in the face of the FED’s reduction of interest rates Capital, in the quest for greater returns did a monstrously stupid thing—it looked unto mortgages which had a return of say 5% and saw in them salvation. What had hitherto been controlled thievery became a wild west free for all. Banks and Mortgage Lenders granted loans without making sure that people could repay them. Adjustable Mortgages became common. We call this lunacy “deregulation”. Since the real standard of living among American’s had been declining for some time, it was not surprising that people could not pay their mortgages (or their credit card bills for that matter)—lenders began to go broke, banks started to fail and the crises became international. The temptation is to blame Bush and his junta but much as I hate to say it that is not quite fair. The rules, or firewalls, such as they were, had begun to be destroyed by Reagan and Thatcher. Without them Bush Cheney Greenspan and the rest of the crew would not have emerged as Capital’s hit men.

There was surprisingly little resistance to Reagan. He was a “crusader” in the worst American tradition. He and his Republican and Democratic cronies began to destroy New Deal arrangements with astonishing rapidity. “Free Trade”—the unfettered flow of capital both monetary and human, effectively destroyed what little Trade Union resistance existed. Reagan’s tax cut caused a massive upward redistribution of wealth.

Thatcher was another matter. I remember following with impotent fury what was without doubt the greatest and most heroic working class struggle in the second half of the twentieth century—the great miner’s strike of 1984-5. Thatcher’s defeat of the miners not only destroyed a great democratic firewall to the unfettered flow of capital but also destroyed the Labour party itself. Britain was turned into a one party state—just like the US.
I believe that had the miners been victorious, there would have been real consequences for not only British capital but for US Imperialism itself.

There was however one great firewall still remaining—the Soviet Union and the Socialist world. Whatever their defects, the Socialist community remained a massive affront to Capital—22 million Soviet lives are testimony to the monstrous historical attempt to remove this enormous impediment to the “crusade for democracy”. There is an important lesson here. Capital does not have to “win” a war against a Socialist country. The enormous damage Fascism wrecked on the Soviet Union caused distortions in its political economy—distortions that made the tragedy of 1989-90 possible. The same thing happened in Vietnam.

This is all to say that by the Clinton years Capital had a free hand. A free hand for free trade and free destruction. Prior to the collapse of the Soviet Union only countries such as El Salvador or Vietnam had the happiness of feeling the effects of democratic crusade. After 1990 however, Europe itself was no longer immune. Bill Clinton presided over the destruction of Serbia.

Not only that. Capital’s free hand is also reflected in the massive amounts of privatization that occurred under Clinton’s regime. This privatization MUST be understood as linked with the massive introduction of technology into the political and cultural economy. One example: Cable television was a corner stone of what I like to call the “cell phone” culture that had existed in embryo previously but became horrifically incarnate under Clinton’s rule. Cable television—that is the privatization of television allowed Murdoch and others to construct a propaganda apparatus that may even bring a chuckle to Herr Goebbels down there in the 9th circle of Hell. The introduction of technology-- Cat scans, MRI’s into medicine not only raised the cost of Medical care in the US but also lowered the quality of it. In my youth a visit to a Doctor began with a detailed history lasting 30-45 minutes. These days 10 minutes seems to be the norm. Economic and cultural arrangements are intertwined. Suffice to say that the cultural pathologies that sprung up in sports, education and personal relationships were as bizarre as they were inevitable.

Postscript

US capital has plundered (and continues to plunder) the “third world” It effectively kidnaps and lynches leaders in Europe who refuse as we say “to get with the program” and effectively has reduced countries in Europe to third world status. What I had not realized was that it had no compunction about doing the same thing to the US itself. The problem seems to be that the costs of an economy of theft ironically outweigh its gains.

I recently went to a talk in a wealthy part of Boston given by a liberal economist. He argued that Obama was the new Roosevelt. Obama, he claimed, would “regulate”. Obama our savior. I was surprised to hear one woman ask him “But who are the regulators?”--There was applause. Even the wealthy whose stocks have lost so much value somehow sensed that all of these ”experts” came out of the same stew pot—she was saying Obama’s regulation was like taking a shot of malaria for pneumonia.

Obama’s election seems to be a done deal. Conservatives are jumping ship. This desertion suggests to me that the “right-minded right” feels Obama is someone they can do business with. On the other hand, Obama has been making timid noises about leveling—or building wealth from the bottom up. Could it be that Capital has come to its senses?
Nah! The headline the other day was that Boston was having all of its new trains built—in South Korea.

We shall see.