Talkin' Dirty Secrets Keepin', Executive Branch Authoritarianism Pushin', Disaster Capitalism Evincin', Patriot Act Recallin', Bailout Blues!

Secretary of the Treasury Henry Paulson
("Hank" to his friends. So let's stick with Henry).

Q. Should Congress pass into law the $700 billion Wall Street bailout -- otherwise known as The Bailout, otherwise known as the Temporary Asset Relief Plan -- proposed by Secretary of State Henry Paulson (and supported, obviously, by all of the Bushies and the Federal Reserve Chairman Ben Bernanke), in its current form?

A. No, if estimates by Daniel Bruno Sanz, and numerous other experts, predict correctly what fate will befall the value of the not-so-Almighty US dollar. (i.e.: free fall) (Huffington Post).

A. No, because it's "an enormously expensive plan that doesn’t seem to address the real problem," according to Paul Krugman, in whose view Senator Chris Dodd's counterproposal is vastly superior, and which "has a real chance" of edging out Paulson's, due to the paternalism, arrogance and pushiness of Paulson's demand for full Executive Branch control, with zero oversight (more on this in a moment). (New York Times Web site)

You want full immunity from any & all future prosecution??
Say it ain't so, Henry. We thought you were different.

A. No, because, first and foremost, Paulson's proposal gives the Executive Branch FULL CONTROL over the allocation of the $700 billion, with ZERO OVERSIGHT and FULL IMMUNITY FROM OVERSIGHT AND EVEN PROSECUTION. Patriot Act, anyone? Just fucking read this sentence, for which some sneaky little fuck in the Bush Administration wins the Totalitarian Fascist of the Year Award (actually, let's just award it to Paulson; oh, and the boldface is mine):

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Yes. That day has really come, America, where your Executive Branch is actually saying: "Just hand over to us all of the control over everything, and just trust us, we'll fix everything behind closed doors. All we need is this $700 billion! Please just sign on the dotted line immediately."

If you're not angry, America, you should be. You respond: "But, I'm too busy to pay attention to this. I've got a job and a wife and a car and mouths to feed, and...." All the more reason you should be angry, America. All the more reason you should be angry....

Here's a taste of what Yves Smith, contributing to Naked Capitalism, which is a fantastic blog for those of us who are looking for straightforward explanations of the Bush Administration's economic shenanigans, has to say about it this sneaky little provision, in a post titled "Why You Should Hate the Treasury Bailout Proposal":

This puts the Treasury's actions beyond the rule of law. This is a financial coup d'etat, with the only limitation the $700 billion balance sheet figure. The measure already gives the Treasury the authority not simply to buy dud mortgage paper but other assets as it deems fit. There is no accountability beyond a report (contents undefined) to Congress three months into the program and semiannually thereafter. The Treasury could via incompetence or venality grossly overpay for assets and advisory services, and fail to exclude consultants with conflicts of interest, and there would be no recourse. Given the truly appalling track record of this Administration in its outsourcing, this is not an idle worry.

But far worse is the precedent it sets. This Administration has worked hard to escape any constraints on its actions, not to pursue noble causes, but to curtail civil liberties: Guantanamo, rendition, torture, warrantless wiretaps. It has used the threat of unseen terrorists and a seemingly perpetual war on radical Muslim to justify gutting the Constitution. The Supreme Court, which has been supine on many fronts, has finally started to push back, but would it challenge a bill that sweeps aside judicial review? Informed readers are encouraged to speak up.

Nouriel Roubini does not think it passes the smell test:

`He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. ``He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.''

A. No, because the proposal is fundamentally dishonest, and furthermore, would not work. Smith goes on to articulate a significant (and in a couple of respects, shocking) substantive (again, the boldface is mine) problem:

...The Treasury has been using the formula that it will buy assets at "fair market prices". As we have noted, there is simply huge amounts of cash ready to bottom fish in housing-related assets (we saw an estimate of $400 billion a couple of months ago). The issue is not lack of willing buyers; it's that the prospective sellers are not willing to accept prices that reflect the weak and deteriorating prospects for housing.....

...[T]he plan makes no sense unless the Orwellian "fair market prices" means "above market prices.".....Confirmation of our view came from a reader by e-mail:

I worked at [Wall Street firm you've heard of], but now I handle financial services for [a Congressman], and I was on the conference call that Paulson, Bernanke and the House Democratic Leadership held for all the members yesterday afternoon. It's supposed to be members only, but there's no way to enforce that if it's a conference call, and you may have already heard from other staff who were listening in.

Anyway, I wanted to let you know that, behind closed doors, Paulson describes the plan differently. He explicitly says that it will buy assets at above market prices (although he still claims that they are undervalued) because the holders won't sell at market prices. Anna Eshoo pressed him on how the government can compel the holders to sell, and he basically dodged the question. I think that's because he didn't want to admit that the government would just keep offering more and more.

I don't think that our leadership has been very good during this negotiation (or really, during any showdowns with this administration) at forcing the administration to own their position. If Paulson wants this plan, then he needs to sell it to the public, and if he sells a different plan to the public (the nonsense buying-at-market-price plan) then we should pass that. I'd rather see the government act as a market maker for the assets to get them transferred over to private equity firms and sovereign wealth funds and other willing holders. And if we need to recapitalize these companies, it seems like the cheapest way for the taxpayer is to go in and buy up the distressed debt and then convert that to equity.

So unlike the Resolution Trust Corporation, which took on dodgy assets which had fallen into the FDIC's lap due to the failure of thrifts, and the Home Owners' Loan Corporation, which was established in 1934 after the housing market had bottomed, this program is going to swing into action with the clear but not honestly disclosed intent of buying assets at above market prices when future markets and the analysts with the best track records on forecasting this decline (you can add Robert Shiller, CR at Calculated Risk, and Nouriel Roubini to the list) believe it has considerably further to fall.

A. No. But also, Naomi Klein warns us to be equally wary of alternative far-Right proposals, particularly those of Newt Gingrich, that seek to use this moment's crisis as an opportunity to shotgun through legislation that would push agendas of privatization, reverse what few social justice safeguards we may still recognize in this country, and -- of course -- to deregulate the private sector even further, including the repeal of the Sarbanes-Oxley Act. This is serious and twisted shit. Excerpt of Klein's piece, which draws upon her convincing theory of 'disaster capitalism' (Huffington Post):

I wrote The Shock Doctrine in the hopes that it would make us all better prepared for the next big shock. Well, that shock has certainly arrived, along with gloves-off attempts to use it to push through radical pro-corporate policies (which of course will further enrich the very players who created the market crisis in the first place...).

The best summary of how the right plans to use the economic crisis to push through their policy wish list comes from Former Republican House Speaker Newt Gingrich. On Sunday, Gingrich laid out 18 policy prescriptions for Congress to take in order to "return to a Reagan-Thatcher policy of economic growth through fundamental reforms." In the midst of this economic crisis, he is actually demanding the repeal of the Sarbanes-Oxley Act, which would lead to further deregulation of the financial industry. Gingrich is also calling for reforming the education system to allow "competition" (a.k.a. vouchers), strengthening border enforcement, cutting corporate taxes and his signature move: allowing offshore drilling.

Drill, Baby Drill! God damn, am I sick of the Grand Old Party. I mean, although I have always found his politics to be barbaric, its underlying principles deeply racist in character, in a weird way I have always found Newt Gingrich to be essentially a principled and intellectually honest man. (Keep in mind, this is in comparison to the majority of the bullshit artists of the Far Right.) Having said that, this is one of those moments in which I'd like nothing more than to punch him right smack dab in the middle of that fat, smug, pink, greasy cracker face of his.*

Newt Gingrich: "What about the plantation-owners??"

_______________
* What's gotten into me today?

Bush & McCain are both Republicans: the party of lies, torture, warmongering, destruction of public infrastructure, widening gap between rich & poor.

John McCain and George W. Bush are members of the same political party.
(Let's all remind our friends, relatives, colleagues and coworkers.)

In which I, having set out to enthuse about a new blog on the privatization of Chicago's public infrastructure, instead decry neoliberalism generally.

The following quotation is taken from the initial post of a certain Tom Tresser, whose blog is called Connecting The Dots In Chicago, which is about the privatization of public infrastructure. I am very happy to see that such a blog exists, and, although I as of yet know nothing about Tom Tresser except his initial post, I think I like his politics a lot. Tresser's blog is to be found on The Huffington Post's new Chicago-specific Web site:

[W]hat is the real state of our city finances? Is this trend toward self-financing and privatization really in the best interest of the people? Is Chicago so poor that it has to sell the Skyway and is contemplating selling Midway Airport? Is the Board of Education so strapped that parents all over the city tax themselves through never-ending fundraising in order to add staff, purchase computers and basic supplies for our public schools? Is the Park District so needy that it demands citizens to raise or find two thirds of the funding for local park improvements? Is the city so needy that it is entering into partnerships with anyone with cash or clout that strip the public out of "public assets[?]"

It's such a relief to witness the emergence of efforts like Tresser's to expose in digestible terms and with local/familiar points of reference the privatization of public assets, neoliberal politics, sleazy oligarchic alliances between government and big business.

It's my hope that the contributions of hard-working, clear-thinking and morally/ethically engaged people like Tresser, there will result an increased public consciousness of and capacity to think critically about:

1. the accumulation of facts on the ground of ongoing cynical and corrupt instances of the selling-off of public infrastructure -- which for apparently structural or market-dictated reasons don't seem to be covered under the beats of any mainstream or even formally 'public' news media I can think of,
   
2. and the ways in which the past 30 years of Republican neoliberal governance and strong-arm politics -- capitalizing on and perpetuating the latent fears of the so-called 'middle-class' -- has distorted in pernicious ways the very rhetoric that we use on a day-to-day basis to refer to a host of things economic, political and even personal. Namely, the 'logic of the marketplace' -- and its corollary, the 'our rights as consumers' -- has crept into sectors of society and human life in which it simply should have no place.

To elaborate on #2: a theory that I've seen floated (I think in an article in Slate, if memory serves, commenting upon the recent Wall Street Journal piece "Why no outrage?" by James Grant) about the lack of 'outrage' with respect to recent instances of the federal government doling out what in essence are welfare checks to corporations and wealthy investors. The author in Slate theorized that it has precisely to do with this 30 years of ideological work conducted by the GOP slogan-machine on behalf of the economic Right, including, obviously, corporate interests.

The result of this conditioning is that many of we Americans who probably lack completely either comprehension or even conscious allegiance to this neoliberal ideological agenda (and corporate profit-making agenda) associate ANY public ownership of infrastructure, no matter how big or how small, with inefficiency, ineptitude, and a kind of decline in economic dynamism, and thereby, an overall decline in the efficacy of the American project, which is, after all, built upon things like the vitality and industriousness of the atomized, private individual, acting in his own interests(!).

This GOP strategy by which public rhetoric and sentiment is conditioned against public infrastructure is, it seems to me, choc-full of weaknesses. One of the reasons we are seeing its stranglehold over the populace – and its stranglehold is greatest, let’s face it, over the ‘middle class’, broadly construed, and the ‘baby boomers’, narrowly construed – begin to unravel is because the sexy illusion that declares the privatization of all aspects of ownership and governance to be in everyone’s best interest can only sustain itself for as long as, in the main, economic prosperity continues to appear to march forward. In other words: the illusion can sustain itself only for as long as people keep their jobs and make pay that they’re happy with. The illusion is unlikely to fracture on the basis of our cognizance of other people’s declining economic status and opportunities. We have too many illusions to obscure us from that cognizance.

But, once our individual leg up begins to disappear, it becomes more and more difficult to avoid recognizing that something’s up. Private interest starts to seem in fact to stand in POSITIVE relation to public interest (a novel idea, that!). When private citizens can no longer afford to buy enough privately distributed gasoline from the privately owned gas station to drive to work everyday in their private cars, it becomes increasingly apparent that – to our shock – that the lower our private economic means, the more that the curbing of public ownership amounts to the curbing of our ability to rely on the ownership of anything at all! Without that ownership – be it public or private – we lack access to amenities and services. And without access to amenities and services, we lack the capacity to improve our quality of life.

Especially in the short-term, however, plenty of us who have been brainwashed by the GOP’s neoliberal agenda will continue to hold onto the dream, even as the dream starts to seem like more and more of a nightmare. When we lose our job, we will blame ourselves for not being hard-working enough. When gas prices become too high for us to afford, we will redirect our resentment and anger, and aim it squarely at people who look and speak differently than we do.

After all, it’s no secret that the GOP machine currently and since Richard 'Tricky Dick' Nixon at least, capitalizes upon the middle class’s resentment of that which is unfamiliar, and preys upon the middle class’s self-pity at the notion of having to think for so much as a moment about the interests of those who look different and live differently than it does. In other words, the resentment of the haves toward the have nots. A resentment revolving around such intangibles as fear, paranoia, historical but usually sublimated racism, and – of course – the myth of American meritocracy, with its built-in relief from having to feel guilty about how much more you have than other people. When you think about it, the fact that the GOP since Nixon was able to capitalize and perpetuate a resentment of the poor than flows from the top to bottom of the economic ladder – despite how clearly counterintuitive this would appear – is quite astonishing!

So, now, as it becomes increasingly difficult for Joe Suburb, who’d construed himself previously to be a have to ignore the fact that on a day-to-day basis, he’s more and more of a have not, the GOP will perhaps discover an ideological task for itself that on paper should be much easier than the one it’s been up to for the past 30 years. All the GOP has to do is reorganize its ideological energies around the notion that outside forces, particularly in the Middle East – tapping in, naturally to existing but mostly sublimated racism, fear and anti-Arab sentiment – is responsible for having taken the opportunities of the American middle class away! Indeed, the Right has already been at it, laying the groundwork not only for the neoconservative idea of attacking Iran, but I would argue, for the neoliberal idea that Middle Eastern oil-rich nations are, as it were, 'infringing upon the American, free-market-derived right' to buy and sell oil/gasoline at a 'fair’, price that’s not ‘artificially inflated’ by ‘evil-doers’ who look different than we do.

Again, if the GOP was able to tap into the resentment of the haves toward groups of have-nots who ‘look, talk, act and pray different than we do’, it should be fairly easy for it to redirect that resentment toward people who not only ‘look, talk, act and pray’ differently, but who live on the other side of the world, and who are portrayed as the actual culprits for the decline in the standard of living in the United States’s middle class. Oh, and by the way: ‘they’re all terrorists, and they hate our freedom’.

After all, one of the hallmarks of the aforementioned 30-year ideological project is that it undertakes to becloud the bright line that should, of course, exist between good governance and good economics. Between the public good and the good of private industry. Between democracy and capitalism! The Chinese Olympics, after all, is a kind of apotheosis of the alliance of gentlemanly economic goodwill between the USA and China that was brokered originally by Nixon and Henry 'Realpolitik' Kissinger.

At present, there is justifiable outrage on the part of activists and ordinary people globally toward China’s extensive past and continuing human rights abuses. But, do you know what I find awfully telling? The fact that you’d have to look much harder indeed to find people expressing outrage at an even more pernicious and even less containable evil: that of authoritarian capitalism. I believe that only a paranoid lunatic would suggest that any mainstream politician or business interest in the USA actually favors authoritarianism. What I am pointing to is the fact that there appears to be such an alarmingly meager amount of discussion of the ways in which the combination of authoritarianism and capitalism is a blueprint in and of itself for widespread human, political and economic injustice.

It’s easier, after all, to talk about human rights abuses – be they systemic or discrete – because it just makes more human sense as offensive to those of us who see ourselves as having a moral conscience. It functions in much the same way as the recent spate of corruption and abuse in Washington DC through alliances between federal government and private sector interests: I’m speaking of course about Jack Abramoff, et al. As Tom Frank’s new book apparently discusses (I haven’t read it yet, apart from the excerpt published in Harper’s), such lobbying/contracting/special interest abuses are SYSTEMIC in Washington. But the way business is done in DC, there are one or two ‘fall guys’ chosen from among a number of powerful participants, the ‘fall guy’ is prosecuted in a big-headline-generating, sex-scandal-type way, and life goes on, as though the whole thing was a discrete, unique, even bizarre or unusual infraction of a system that basically works.

As more and more of us begin to realize, the system of course doesn’t work. And I’m happy to see that Tresser’s blog has been set up for the purpose of addressing these tendencies on a local level, where they’re familiar and palpable. Where we ordinary Joes can trace trends and tendencies as they unfold before our eyes, in addition to taking to task on a case-by-case basis individual politicians and shady businessmen for their corruption, neglect or the deliberate creation of opacity from public scrutiny. So that we can all begin to recognize intuitively that the outsourcing of public infrastructure to the marketplace is in effect the outsourcing of democracy itself; the destruction of our rights to scrutinize, to protest, to oppose, and to vote in accordance with our beliefs, ethics and political preferences; a gag order against the use of our own voices as citizens. So that we have a shot at realizing that the outsourcing of our public infrastructure is in effect the outsourcing of the public good.

Slavoj Žižek on authoritarian capitalism, other horrors.

In an interview, broadcast on Icelandic television (the date is unknown to me), Slavoj Žižek argues that the Left needs to take notice of the decoupling of capitalism and democracy, and--in the example of China, whose lead smaller states have begun to follow--the disturbing advance of authoritarian capitalism. Also discussed is biotechnology, the implications of which, he argues, traditional and current ethical discourses are ill-equipped to handle.