Category Archives: Politics

One hundred years of solitude (in hindsight): 1917 — 2017

7. XI 2017

In Andersen’s fairy-tale “The Red Shoes”, an orphan girl is given a pair of magical shoes by her rich adoptive mother. She wears them to church where she pays no attention to the service and, when her mother becomes ill, the girl deserts her, preferring to attend a party and dance in hear red shows. An angel appears to her and, to punish her vanity, condemns her to dance even after she dies. The shoes begin to move by themselves, but they can’t come off.  The girl finds an executioner and asks him to chop off her feet. He does so and the girl receives a pair of wooden feet and crutches. However, the shoes continue to dance even with her amputated feet inside them. The red shoes are embodiment of an undead partial object, a pure libido which goes beyond persistence, not an interpolation between the living and the dead, but more vigorously alive than ordinary mortals — it insists on repetitive movement of dancing irrespective of the well being of the host to which it is attached[1].

Communism had to die twice. The first, symbolic, death occurred after the fall of the Berlin wall. Its second, material, death was announced after the first Iraq war when the Soviet military machine was outclassed and rendered obsolete by the far superior western war technology. But, communism could not die yet. Symbolically dead while “biologically” alive, communism still inhabits the world of undead. Although it was eventually buried in the countries where, after their initial breakup, states got reconstituted — in many places the red shoes continue to dance on.

What went wrong with the communist idea and how did liberté, egalité, fraternité become a totalitarian nightmare? Communism’s biggest sin was its vanity — an obsessive conviction that it could take uncertainty out of life as such. To accomplish and maintain that task requires an extraordinary amount of violence. Both excessive determinism and excessive force compromise system’s robustness and deprives it of valuable information, which prevents formation of adaptive mechanisms necessary for its survival.

Nomenclature of the early communist state saw their ideas as having strong scientific legitimation and maintained their conviction that loss of political power even temporarily would have been a betrayal of their historical mission. Thus, any opposition had to be inhibited and gradually eradicated. The suppression of unofficial organizing, and information that such process generally provides, left the leadership essentially blind to whatever was happening in their back yard. The red shoes began to dance. While sciences, engineering and technology had to remain competitive in order to keep up militarily with the West, communism completely neglected social sciences. A vocabulary for describing social and political conditions and adequate description of social reality never properly developed. In the face of perpetual conflict with reality communism fostered a continued state of cognitive dissonance. It erected its own boundaries to protect itself from contamination from the outside and in extreme cases morphed into a cult following. The accumulation of its shortcomings, which remained undiagnosed for a very long time, was allowed to self-reinforce. Like most other totalitarian ideologies communism remained non-adaptive, not allowing any feedback to penetrate its boundaries. It lacked a corrective and when the end came, it was unable to transform or defend itself.

Eradication of uncertainty breads ignorance which leads to paranoia and escalates oppression. These inhibit risk taking and creativity and negatively impacts economic growth with a loss of competitive edge in global marketplace. In the long-run, the system becomes fragile. As it tries to adjust to such environment, change takes the form of positive feedback. Oppression mobilizes enormous resources to keep control of its allies and political subjects and effectively turns them into its hostages. Attempts to express growing discontent require a heavy hand rule which in turn reinforces the hostage syndrome and brings about further escalation of discontent and additional loss of competitive edge. At that point, legitimation becomes the system’s biggest problem and requires mobilization of all resources, primarily aimed at glorification of the system. But, by then the oppression is the only thing the system knows how to deliver. It is the only strategy, and very expensive one — only extremely resources-rich countries can truly afford them. When existing resources are fully exhausted, the system collapses.

Because of its shortcomings, communism in its mutated form was indefensible. It required enormous resources and force to keep it alive and that was in no one’s interest. At the end, it did not work for anyone and in most places it was dissolved practically overnight. Although most communist states, one by one, declared themselves as capitalist, the transition period, after the formal breakdown of communism, appeared as building of capitalism without capitalists, at least on the surface. In an essay that could be considered as a sociological version of Orwell’s Animal Farm, Immanuel Wallerstein[2] compared the communist states to factories seized by a labor union during a strike. If the workers try to operate the factory themselves, they inevitably have to follow the rules of capitalist markets. The narrow circle of those making managerial decisions would cut themselves off from the larger group and evolve into new ruling elite and it was only a matter of time when they would no longer feel compelled to disguise the reality. This is “the iron law of oligarchy”. The factory would then revert to being a normal capitalist enterprise.

The communist supernova exploded in the center of the global geopolitical landscape. In countries where it took place, collapse of communism unfolded according to four scenarios, not two, contrary to the still dominant one-dimensional, cold-war view, which divides contemporary political systems into totalitarian and democratic. The evolution of the Soviet Union, socialist north (Poland, Czechoslovakia, Hungary and DDR) and the Balkans went in four different directions. The four underlying trajectories that marked the transition period highlight the four attraction centers of the general political landscape and outline the corresponding oligarchic modes.

Comparative politics of social change and coordinates of wealth preservation

Traditional approach to problematic of geopolitical change relies on the assumptions that the dominant dimension of country’s political actions is geographically conditioned. However, recent contributions to this view are based on the observation that there is another, complementary determinant defined by different modes of wealth protection which has been the central force behind political changes throughout history. This is the orthogonal dimension of political change; it assumes the wealth concentration and its defense as the fundamental ingredients, often independent of geography. Thus, oligarchy as the politics of wealth defense emerges as a candidate for a unifying framework for describing different modes of political structures and geopolitical flows, especially during their formative stages. Different political systems and forms of social organization are efficiently summarizable in terms of simple oligarchic structures.

Two aspects define the building blocks of oligarchic landscape: Oligarchs & Oligarchies, wealth defense & their means. Oligarchs, in the generalized sense used here, are defined as individuals endowed by enormous wealth which both empowers and exposes them to threats. Because to that, wealth defense becomes their primary objective for which they can mobilize considerable resources. Oligarchy represents different modes of wealth defense. The interplay between oligarchic coercive power and their organization defines the four corners assigned to underlying political systems within which all political structures reside. In general, extreme concentration of power or material inequality result in political inequality and particular oligarchic structures describe different modes of wealth and power defense. Property claims and rights can never be separated from coercion and some kind of violence. Variations across oligarchies are two-dimensional with main axes defined by how oligarchs impose their will (e.g. are they armed or disarmed) and their mode of rule (e.g. individualitstic, collective or institutionalized). This results in four possible structures, the four oligarchic corners that represent cognitive coordinates of our framework (Figure). All historically known political structures reside within these four corners[3].

Oligarchy Simple

From: Jeffrey A Winters, Oligarchy

Starting with the origin (lower left corner), in warring oligarchies a connection between violence and property defense is most direct. The illustrative examples are African warlords or medieval Europe. Oligarchs are individually involved with unstable transient alliances. The mechanism between wealth and power is circular — coercive capacities exist for wealth defense and wealth is deployed to sustain coercive capacities.

In a ruling oligarchy (upper left corner), individual oligarchs surrender a major part of their power to a collectivity of oligarchs. Oligarchs as a group are more powerful than any single oligarchs (examples: mafia, ancient Rome, State cities).

In contrast, in a sultanic oligarchy (lower right corner), oligarchs surrender a major part of their power to a single individual. One oligarch is more powerful than the rest (e.g. Suhartos Indonesia or the Philippines under Marcos).

Civil oligarchies (upper right corner) represent the most significant political innovation, never seen in history before creation of the modern state. Here, oligarchs surrender a major part of their power to an impersonal and institutionalized government in which the rule of law is stronger than all individuals. While this protects property, wealth defense does not stop there; its focus merely shifts to income defense – the effort to deflect the potentially redistributive predations of an anonymous state – where all resources are now mobilized. Electoral democracies fall at the end of the oligarchic spectrum. While their activity remains heavily constrained by the law and by the democratic process — they do not control the law, but obey it — in most cases different sectors of income defense industry give access to various modes of oligarchic actions. There is, however, no necessity for a civil oligarchy to be electorally democratic (e.g. Singapore or Malaysia)[4].

Saying goodbye to all that: Anatomy of the perverse unwind

The partial downfall of communism has been both celebrated and mourned. The most puzzling aspect of this process was its largely peaceful character and swift resolution in the hardline centers and violent and protracted unwind in states where communism saw its most liberal and flexible implementations. In Europe alone its departure from the political scene caused tectonic changes that made all theoretically informed models crumble. Former Soviet Union, Czechoslovakia and Yugoslavia are now 28 different countries (24 legitimate; 4 with limited international recognition) and a fluctuating number of statelets constantly changing number of territories seeking the status of sovereign state or trying to be attached to another already legitimate entity. Ten poorest countries and failed states all emerged from the former communist block. In Poland, Hungary and DDR state was not dissolved. These countries were absorbed by Europe and transformed along the lines of civil oligarchies. In USSR, Czechoslovakia and Yugoslavia, dissolution of the state caused variable outcomes and defined radically different trajectories.

Oligarchy Breakup

North: Civil oligarchies

To a large degree, each country of the north had something different going on, which made it interesting for the West and an easy candidate for integration into EU. Poland, with its large population, was a big labor force and consumer. Czechoslovakia, in its pre-communist days, was already a well developed country with considerable economic potential that could be relatively easily revived given their mentality and habits. The course of the last 50 years, a historical digression, could have been reversed. DDR was really never fully separated from the West Germany and in addition, it was ready to be absorbed and subsidized during the transition. Euro zone recognized strategic significance of the periphery and rushed to bring in Rumania and Bulgaria. In terms of nominal GDP per capita[5], north post-communist countries are ranked close to peripheral Europe together with Baltic States with Estonia, Czech Republic slightly below $19,000, and Poland near $13,500 defining the upper and lower bounds of the range. In the last ten years, north post communist and former Baltic states almost all have recorded a steady double digit annualized increase in GDP per capita, with Slovak Republic growing from $6,187 in 2003 to $17,706 in 2013 at an average annualized rate of 11%, Poland at 9%, Czech Republic at 7% and Hungary at 5%, while Baltics grew faster than 10%.

The main diagonal: Soviet Union between ruling & sultanic oligarchies

The rationale behind vastly different character of the breakup of different socialist regimes and the dissolution of the corresponding states can be understood by highlighting the difference between the underlying structures of those states. In empire different sectors of periphery do not interact with each other, only with the center. In a federation, they do. In confederation there is no center. The main characteristic of the dissolution of the Soviet Union was that the breakup was amicable. It was a consensual dissolution of the state, but relationship between the center and periphery was preserved. Prior to that, the state was preserved, but obsolete – couldn’t function under existing conditions but ethnically and historically was unambiguous. Gorbachev accelerated the process and to a large extend defined the direction of its change. Yeltsin settled for less state, but by shedding the periphery, gained more reform and more power. It was a compromise, the second best solution after the Soviet Union entering the capitalism as a big, unified player[6]. Yeltsin vs. Gorbachev clash was confined to the center, while periphery remained untouched. Unlike the Balkans where new states (with exception of Slovenia) didn’t have control of their territory – states fell apart while borders were unspecified. For a time Soviet internal borders swelled into sovereign state borders (structures of power) and it seemed they will remain untouched.

Officially never recognized structure of political power relations defined the rules of game when it came to the grabbing of reach resources (“privatization”). The net result was that an enormous state owned wealth had ended in the hands of a few who commended the decision making process. What happens with the secret police and ideological inquisition when the state falls apart? They have to become some form of organized crime force. The crime infiltrated in the vacuum. Army, whose primary mandate was external, defined through the Warsaw pact membership, remained on the sidelines. It was not a political force during the transition.

Majority of Asian Soviet states remained like satellite states with ties to Russia. While some still function like communist, pseudo-totalitarian systems or electoral dictatorships, resources rich states have shaped themselves along the lines of sultanic oligarchies with high number of Russians still there. The consensual breakup was orchestrated in such a way that formal sovereignty was respected in exchange for military and economic dependence on Russia and comfortable position of Russian minorities there. When after a while this dependence was questioned (Armenia, Ukraine) it automatically entailed revoking of recognition of sovereignty and Russian army more or less openly intervening in formally internal clashes.

At nominal GDP per capita of $14,591 and annualized growth rate of 17% in the last ten years, Russia sits above the rest of the southern European and post-Soviet states, but below the Baltics and post-communist north. Within the group of Asian former Soviet states, there has been a significant bifurcation between the resources rich states and the rest. Kazakhstan has been the best success story with GDP at $13,509 and the most aggressive growth of 21% in the last ten years, followed by Azerbaijan at $7,900 and 24%. Turkmenistan remains in the middle with $7,157 and 12%, while Uzbekistan at $1,878 and Tajikistan at $1,045 remain on the other side of the spectrum and below any of their European counterparts.

The Balkans: Warring oligarchies

Unlike the Soviet Union where the structure of the empire de facto remained preserved, in the Balkans there was no clear breakup scenario, especially in Yugolsavia which functioned as a confederation. Another dimension made the breakup problematic for it. For example, while in Czechoslovakia the primary target was socialism, in Yugoslavia it was the territory, which remained ambiguously defined. As a confederation of equal republics, without a clearly specified center, it lacked incentives to identify common ground. The state fell apart. Historical and demographic parameters were mixed and ambiguous except in the two westernmost republics. The breakaway states had only partial sovereignty with incomplete control of their territory and at the same time ambitions for territorial enlargement.

Conflicts over future borders escalated into the game of dismemberment followed by territorial disputes. Breakaway republics were more or less ethnically mixed and had not had full sovereignty of their territory after the breakup. As a counterweight to the army, whose main mandate was internal, basically around defending the constitution and, therefore, the integrity of the Federation, local militias were organized by the new republics. The stakes were high as state assets were offered on fire sale to a few privileged who had an access to power and information, which defined highly parcelized sovereignties and set terrain for formation of warring oligarchies with territorial claims as the main agenda together with all the side effects of that environment, instability, shifting alliances, extreme violence and ethnic purges. What followed was the mode of land-grabbing and property claims with multiple warlords and local militias going against each other, the landscape akin to warlords of medieval Europe.

Except for Slovenia with GDP per capita at $23,317, but slow growth of 4.6%, characteristic only for highly developed European countries, which has done slightly better than Czech Republic in this metric (and ahead of peripheral Europe), all other former Yugoslav republics are on the list of 10 poorest European countries with GDP per capita below $6,000. Their GDP ranges from $2,200 to $5,900 accompanied with persistently slow growth in the past ten years. In all of them the state still remains the “only business” – no new market venture is possible without consent and some form of the pay-off to the political elite.

What next?

Contemporary geopolitical discourse still views the world as us & them, free and totalitarian systems, a division largely a legacy of the cold war and everything that happens on that landscape is seen as a result of tensions between these two “extremes”. According to that narrative, dictatorship is the worst outcome of social evolution and all societies should strive towards democracy while progressive forces should be united in unconditionally supporting every effort to topple dictators. The post-communist experience, 25 years after its symbolic downfall, demonstrate that such a simplified framework is a poor approximation of reality. It shows rather unambiguously that there are far more extreme alternatives to dictatorships and that, in some cases, their dismantling could be a turn for worse or much worse.

Communism fell apart because it didn’t work for anyone and no one wanted to defend it. This is a qualitatively different situation from what late capitalism (and Western democracies) is currently facing. Extrapolation of the capitalist experience so far indicates that it is working for a progressively smaller segment of its population. At some point, its main problem will have to become its legitimation in the context of liberal democratic mode of social organization. The powerful minority, however, has the means to defend the system as long as it works for them and that will require a heavier hand as the discontent of the excluded rises. The only peaceful consensual transformation could happen if capitalism stops functioning for capitalists (e.g. inability to externalize the costs further).

The same way communism could have been a nominally well conceived idea that went wrong (in practice), democracy could be drifting away from its basic principles and gradually evolving into its antithesis. It has been largely recognized by the Western democracies that force is an inefficient form of rule. Power is an embarrassment – no one wants to claim it and it refuses to dominate. That is why advanced societies do not rely on force, but governmentality. Ideological innovations will be needed for their survival with a search for new forms of power.

In the meantime, as discontent of the excluded grows, capitalism could begin to move against democracy. This means that there could be a growing need for adjustment of either democracy or capitalism (or, most likely, both). What makes exact prediction regarding the new forms of social organizing especially difficult is that resilience towards redistribution of wealth remains firm in place with revolutions becoming obsolete as wealth is no longer only material.

There are several logical directions along which this transformation process can take place. The four corners define a rich set of possibilities; there is a vast territory that they inscribe. The four attraction centers are not necessarily the only stable configurations. In principle, civil oligarchies could begin to move looking for a new domicile in the field. It is reasonable to expect that some lessons from the breakdown of communism will be absorbed in that process. After all, capitalism owes its vitality to its adaptability. While the final destination is a long- or very-long-term project, the underlying direction and trajectory should have significant impact on the immediate future.

If there is one lesson to draw from a century of communist experience, it is that ignorance by design is the trap any hegemonic ideology faces. In its search for legitimacy, late-stage capitalism is committing the same mistakes that communism did in its early days. And every time history repeats itself, the price goes up. The spectacular display of systematic anti-scientific bias, war on facts and knowledge in general, together with eroticization of stupidity, which in the last decades has reached alarming proportions, have all created a Sachzwang – a factual constraint residing in the nature of things that leaves no choice but to perpetuate the existing conditions that are spreading throughout the neoliberal West. This desperate move to engineer legitimacy for an indefensible order of things, which consists of choosing to adjust reality to the underlying ideology, instead of the other way around, boils down to deliberately giving up adaptability of the system – its most valuable strength. That alone is bound to become the main source of positive feedback, which compromises the system’s robustness and undermines its long-term stability. This inherently suboptimal strategy is a one-way street, the same one that led to communism’s ultimate demise. After all, facts always matter, even if we don’t like them.

 

[1] S. Zizek, Less than Nothing, p.548, Verso (2013)

[2] Immanuel Wallerstein, (1973)“The Rise and Future Demise of the World Capitalist System” reprinted in the Essential Wallerstein (New York: New Press, 2000).

[3] Jeffrey A. Winters, Oligarchy, Cambridge (2011)

[4] Ibid, Ch. 1

[5] All numbers refer to the 2013 IMF WEO data measured in units of 2013 USD

[6] Instead of rationally bargaining on superpower advantages for a more honorable collective inclusion in the world capitalist hierarchy, the nomenklatura squandered and cannibalized Soviet assets in a panicked rush to protect the individual oligarchic positions against Gorbachev’s purging and the prospect of popular rebellions. It was an embarrassing political failure of Soviet elites to act together in the pursuit of their best historical opportunity. G. Deruluigan, (2013), p.123. in Does Capitalism Have a Future?, Oxford University Press ( 2013)

 

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Weimar guitar gently weeps: Masochistic self-destruction of the right

10. IX 2017

Hitler plus power is gruesome, but Hitler minus power is a comedy. (Sedar Soumucu)

Despite its infamy and unprecedented negative press, almost one century after its first print, Adolf Hitler’s Mein Kampf continues to play an important role in shaping the populist narrative (kind of like Uber’s influence on shared economy). Modern day right-wing populism just doesn’t seem to be able to distance itself from its main message. While most populist interpretations have been careful in staying clear of a direct endorsement or explicit references to the text, most of them have in this or that form emulated the three aspects of the mechanism behind Hitler’s rise to power outlined in Mein Kampf: Interplay between comedy, terror and power, Infiltration of ideological terrain, and Blending of speech acts, half-truths and conspiracy theories.

Perhaps the most important lesson of the post 1968, an actual birth of neoliberalism and governmentality, has been, what Jean Baudrillard has identified as The agony of power[1]: Power is a highly inefficient form of governing, not only because of its refusal to be dominated, but also in the refusal to dominate. Force is the most “expensive” way of maintaining power and conventional dictatorships have become unsustainable. This realization has defined a turn away from the oppressive rule and towards Groucho Marx authoritarianism — a depoliticization of politics — a mixing of “spontaneous” goofiness aimed at inspiring trust and anesthetizing the public, but with the most ruthless state manipulations. This started arguably with Ronald Reagan, continued with G. W. Bush, and became a template of governing in a wider context (Berlusconi, Ahmadinejad, and many others). This transformation coincided with escalation of conflicts between capitalism and democracy and in response to the challenges of implementing unpopular government programs in nominally democratic societies by using essentially autocratic methods. This is where comedy entered political scene.

Comedy, terror & power

Comedy and terror sit on the opposite sides of the emotional spectrum, but politics brings them close together into a symbiotic bond where they coexist in perfect (and logical) harmony as they serve the needs of power. Comedy and terror are the defining coordinates of power. That the two are closely related should not surprise anyone too much. Cruelty borders on comedy inasmuch as it, too, proves incomprehensible — how many times did we laugh at the sights of arbitrary acts of self-satisfied omnipotence (which refuses any explanation to their victims)[2]?

Comedy makes even the most ruthless tyrants palatable. Terror stabilizes their power, no matter how ridiculous they might appear – it is an antidote to their ridiculousness. Kim Jong Un’s chubby figure and his hairstyle have a completely different meaning with and without nuclear weapons; Donald Trump (any aspect of his persona, hair included) alone or in the context of the powers he commends. Terror provides a necessary means for aspiring or self-declared autocrats trying to compensate for their lack of legitimate power[3].

Infiltration of ideological terrain and the politics of speech acts

In the same way Hitler and his close followers appeared just as a small group of self-taught crackpots pushing their half-baked pseudo-intellectual ideas in the early 20th century, during the 2016 US Presidential elections, after years of hibernation, with the backing by serious money of selected oligarchs, similar character types crawled out straight onto the political center stage, while their like-minded individuals and institutions like Fox “News”, who in the meantime became part of the establishment, struggled to find their place on the newly defined political scene.

To the segment of the nation traumatized by failure, poverty, social degradation, and general hopelessness, today’s populism, like its early 20th century predecessor, promises to restore both honor (social and, to some who feel entitled to it, racial status) and the means to achieve greatness (again or for the first time, all the same). It gives to many of them a sense of direction; it turns ambivalence into clear-cut meaning to be worked out with unbridled hatred. All of this amounts to satisfying the wish for a coherent fictitious world, a straightforward extrapolation of the simple (predominantly male) fantasy of omnipotence and superheroes syndrome, which arises from accumulated frustration and general impotence.

In the same way this has played out in the 1930s Germany, populism nowadays communicates another desire (and pleasure) too, one that savors the power of empty words that make an impact – the fascination of power deriving strictly from its own ascent, which fashions itself out of nothing. This has been the major achievement of the grand populist demagogues, both then and now — to create the sensation of proximity of the void, the cognitive black hole effect, and arouse the wave of nihilism. Ultimately, power in this context, derives from a way of using language rather than from a system of ideas – a use of language that does not articulate form to anything preexisting, that takes joy by commanding being and nothingness, life and death[4].

Comparison with the 1930s Germany is interesting and relevant also because it defines a strategic choice of the present ideological terrain. Hitler’s program offered a synthesis supposed to lead to natural unity, a semantic solution whose double trademark of German and Worker connected the nationalism of the right with the internationalism of the left; thereby it stole the political contents of the other parties, in this case socialists. Rather than set the antagonist at the opposite end of the political spectrum, Hitler’s ideological maneuvering made his rival occupy the same terrain. The problem does not involve points of contradiction so much as areas of political overlap. The struggle to be the masses’ spokesman now amounts to combat at extremely close quarters. When rivalry is this close, demonization proves indispensable[5].

While in the early 20th century Germany, National socialists had to persuade people (despite absence of any evidence) that they offered a better alternative to Marxists, in the 21st century USA, people who would benefit from widespread state welfare programs and general wealth redistributive policies are being seduced into aligning their interests with the very people responsible for their social degradation and their existing condition. What in the 1930s was offered by phantasm of the Jewish world conspiracy (it helped that Karl Marx was a Jew) as a way of smoothing over any and all conceptual gaps in the populist narrative, in 2016 “universal blame” has been shared by the global oligarchy, Hollywood, liberal media, foreigners, and other disenfranchised people who see a different path to their social redemption. Both cases — demonization of Jews in 1930s and implication of global oligarchy today — represent examples of a class struggle in a displaced mode. These conspiracy theories possess a built-in mechanism that makes them resistant to disproof: anyone seeking to refute them may be accused of having already fallen for the ruse of the Jewish press, or liberal media and “fake news” today, thereby proving the theory’s accuracy. In this manner, the underlying conspiracy theory seals itself off from the outside and achieves inner coherence. For the movement followers, its attractiveness lies in precisely this closedness, which ensues a strong group identity internally and projects a figure of enemy externally[6].

Fanaticism, half-truths, and rationality of irrational acts

This, naturally, creates a problem in the short run as reality does not support the entire narrative, but this has never been an obstacle for populism. The primary concern of the aspiring leader or dictator in power is to become the spokesman for what has been neglected until now or pursued only halfheartedly. Fanaticism does not necessarily arise from genuine conviction. Its beginnings lie in chance identification of the options afforded by the market of opinions[7].

For example, Breitbar guys, its founding members at least, were former employees of a liberal outlet, Huffington post, and departed in the opposite direction, not due to the change of heart and ideological flip, but in pursuit of superior opportunities elsewhere. Their position and rhetoric continue to escalate towards what appears to be irrational extremes. However, in the periods of sustained social tensions – this has been the lesson of the German experience — radicalization, no matter how unmotivated and self-destructive it might appear, can actually become strategic. In a calculated manner, the leader or his surrogates can even drift off into seeming absurdity insofar as the base puts a premium on flights of enthusiasm, which signal initiation to insiders and confirm that consensus of others does not matter (this sheds some light on the events of the last summer). This is where self-intoxication begins. By repeating and ritually solidifying lies, those who tell them and hear them may, after a while, embrace them as articles of faith – even though doing so is not necessary from inception[8].

Coda

No matter what color, shape or origin, modern-day right wing populism just cannot shake off its fascination with Mein Kampf. In their marvelous and persistent display of metaphysiological nonsense, they continue to show essential refusal to accept that Hitler’s rise to power was not unconditional. In that process, they create a man-made irrelaity – a construction of a human mind which becomes slave to its own fictions – a tactical manipulation aimed at deluding themselves and seducing the public into believing that literal transplant of political maneuvering, which transformed Weimar Germany, could define the path to and solidify their grip on power almost a century later in a completely different socioeconomic, political and technological context.

With appropriate reassignment of political variables, the three main political maneuvers — Comedy/terror/power, Infiltration of ideological terrain, and Reliance on half-trues and conspiracy theories — were taken and implemented literally by different populist fractions, perhaps most thoroughly in the US in the last year. However, in their infinite naïveté, dilettantism and political (and general) illiteracy, Trump’s handlers and self-proclaimed ideologues, in their sloppy plagiarism, they failed to grasp a very simple fact that Hitler’s populism struck resonance not because of his talents as a politician and orator, but because on the other side of his message was Weimar Germany ravished by poverty, unemployment, hyperinflation, humiliation after the lost war, and general hopelessness: The entire country spoke in one voice. The United States today has no resemblance to that in any of the outlined categories — although it could be many other things, the main point is that the country has never before been so divided: The polivocality in today’s America is deafening.

The dilemma is not whether Trump’s handlers and ideologues have read and emulated Mein Kampf and National Socialists’ message and the tricks of their rise to power, but whether they have read any other books on politics and history at all.

[1] Jean Baudrillard, The Agony of Power, semiotext(e) 2010

[2] Albrecht Koschorke, Adolf Hitlers “Mein Kampf”: Zur Poetik des Nationalsozialismus, Berlin (2016)

[3] ibid.

[4] ibid.

[5] ibid.

[6] ibid.

[7] ibid.

[8] ibid.

A hole in the head: The fetishism of a failed state

20. III 2017

The society of the spectacle is turning into a soft version of the theater of cruelty, a burlesque of death with the globe as its stage (Jean Baudrillard)

Trepanation is an ancient procedure, second oldest after circumcision, in which a hole is drilled into the skull. People have been doing it for thousands of years in order to relieve headaches, seizures and various mental disorders, or as a ritualistic practice in which the shamans, the kings and the priests were trepanned in order to access new levels of consciousness. There is no scientific evidence that trepanning has any tangible benefits. Its proponents believe in a natural equilibrium between the brain and the rest of the universe that can be described poetically in pre-modern terms as “letting light in” or “letting devils out”. [1]One of the most highly publicized examples of trepanation in modern times dates back to the early 1970s. After years of experimentation with a range of hallucinogenics (and guided by deeply seeded cranial claustrophobia), in search of a new/permanent high, 27-year old Amanda Feilding performed self-trepanation by drilling a hole in her forehead with an electrical drill with a flat bottom and a foot pedal, while her partner filmed the entire event with an 8mm camera. She described the effect of trepanation at the time as a radical change in her consciousness comparing it to the tide coming in.

Almost half a century later, another quest for a new equilibrium is being staged. For several decades now, with the help of neoliberalism and globalization, Western oligarchs have enjoyed unprecedented positive externalities for their wealth accumulation. However, those positive externalities came at considerable social costs. As oligarchic wealth swelled, so did the social deficits they created; their compounding grew until their cumulative effect became so substantial that it began to undermine the normal functioning of the system. With time, the system’s legitimation became the main problem and with it the issue of the excess population — the growing volume of the population made redundant by neoliberalism’s global triumph whose size is now exceeding the managerial capacity of the planet. This has gained new urgency in the last decade as it became clear that democratic process has become incompatible with the oligarchic program, while force, tried many times before, is found to be a highly inefficient and expensive way of maintaining stability.

In the same way a hole in the head was an organic, non-chemically induced high for the 60s generation, the quest for a new social equilibrium is a permanent oligarchic high. State and ideology were no longer sufficient to satiate the appetite for wealth accumulation (or a need for its preservation). A new natural order was needed and, for that to happen, one had to remove the remaining barriers, break some bones and spill some blood. As the ideologically driven oligarchic high began to taper off, after reaching its peak during the last decades of globalized neoliberalism, a quest to find new levels of social consciousness gained new urgency. Ironically, the breakdown of communism – the ultimate triumph of neoliberal ideology – offered clues for how to proceed and how to define a search for a new equilibrium.

American oligarchs have had an eye on post-Soviet Russia ever since the collapse of communism. Their fascination with its post-communist transformation process continues to this date. In less than two decades, the country where chronic and severe scarcity, grossly mismanaged by the state, was its trademark, where everyone had to stand in line in order to maintain an elementary standard of living, where western middle-class lifestyle was just a pipe dream, and where getting rich was a crime, this very country became an oligarchic paradise producing practically overnight a stunning number of obscenely rich and disturbingly powerful individuals, who rose directly from the rubble of the dismembered Soviet state.

To a western mind, brought up on protestant ethics of hard work, such a transformation was difficult to grasp. Russian oligarchs represent a hybrid of communist apparatchiks, government bureaucrats, and strictly small-time criminals, sub-mediocrity in every aspect of their existence – nothing remarkable about them. Yet, they became an embodiment of an ultimate America dream. People who lived all their lives in isolation, had no knowledge or even exposure to business know-how, had no place or opportunities to learn about it, and lived close to what in America would be considered poverty level, emerged as super-rich. With time, it became clear that this puzzling transformation was not about the people, but about the actual conditions created by the collapse. This realization resonated hard with the aspiring American oligarchs, temporarily embarrassed billionaires, nouveau riche, and those who are always ready to operate on the margins of law, now struggling to ride Donald Trump’s coattails. Very early on, it became apparent that failed states create conditions of unimaginable business opportunities, a realization which became the primary driving force behind the fetish of the smaller government perpetuated by the American right.

Engineering failed states everywhere, and thus creating a global disequilibrium that would create chaos and force or accelerate a change became a signature strategy of American global politics in its late neoliberal phase. It reflected the interests of global oligarchies, a political trajectory that, using Immanuel Wallerstein’s terminology, could be described as democratic fascism — a 20% of the world keeps the remaining 80% in submission – an old wine in new bottles already tried out with different ratios and failing because of the flawed math. This project got new wind in the 1990s and continued to accelerate ever since capturing the post-communist Soviet block and spreading to the Balkans, Iraq, Afghanistan and North Africa, while in the West it showed up domestically in waves manifesting itself through various forms of identity politics and irrupting tensions between the global oligarchy and the right-wing populist implementations of the neo-feudal vision of the world.

This seemingly strange idea of forcing a change by destruction was first outlined in the works of the 19th century French thinkers (e.g. Alfred Jarry’s Ubu Roi), and developed further by the post-modernists and finally crystallized by Jean Baudrillard:

Total revolution is a strategy geared to escalate the system and push it to its breaking point. Then, giving up on every pretense of rationality, it starts revolving and achieves in the process a circularity of its own. The society of the spectacle is turning into a soft version of the theater of cruelty, a burlesque of death with the globe as its stage. Life is being exchanged for nothing, for a handful of glittering toys, work absorbs time like a sponge and leaves no traces. The system itself becomes the exterminator.

It is not difficult to recognize shades of this pattern in the political life of the developed world of the last year. The tide is coming in. For over two decades, the quest for a new order from chaos and dis-equilibrium – letting light in & devils out — has been operating full force away from home. Everybody has a hole in the head or is about to get one drilled, UK being the latest example, while France apparently eager to follow (Dutch got cold feet recently and decided not to rush with it). The time has come now for the next and possibly final step in an ongoing global transformation process for America to perform this bizarre experiment on itself. The unmistakable similarity between the mixture of the self-anesthetizing euphoria coupled with the cranial draft of the first two months of Trump’s presidency, and that experienced during a DIY trepanation seems to suggest that this process is well underway.

Even after all these years, Amanda Feilding, now Countess of Wemyss and March, wife of the landowning 13th Earl (he, too, has a hole in his head), and a friend of the Royal Family, has not abandoned her belief in the ancient practice of trepanning — drilling a hole in the skull — or her hope that it will one day gain the acceptance and legitimacy it deserves. She must be enjoying the spectacle.

[1] The higher state of mind sought by trepanation is that of childhood: When a baby is born, the top of the skull is soft and flexible. As a baby ages, the skull bones close which inhibits the full pulsation of the heartbeat, believed to be responsible for a wide range of problems and anxieties that come with the adult life.

American anotherhood: Innocence unprotected

19. XI 2016

Post-traumatic subject is a victim who has survived its own death. After the event of symbolic erasure, a new subject emerges and there is no continuity between new and old identity

For more than a year, we couldn’t stop laughing. We laughed until it hurt, knowing all well that nothing consequential could come out of it. On November 8th shortly before midnight the chuckle stopped, suddenly, not allowing our mouths to adjust, leaving behind a frozen smile. It felt like a hazing ritual gone wrong: someone got hurt badly. Shit got real!

Although presidential elections are political events, the election of Donald Trump was something else. November 8, 2016 was really a cultural and anthropological moment, the American cultural G-spot tornado. The long-standing illegible process became instantaneously legible by the sheer power of the event. This was the day of the encounter with the American traumatic Real, revelation of the knowledge that did not know itself. If the 2008 financial crisis was an economic response to the four decades of neoliberalism, this year’s elections, its social counterpart, was the second installment.

I wish Jean Baudrillard were alive today to enjoy the spectacle he so eloquently foretold. He would have had a blast watching the bonfire of neoliberalism: Symbolic erasure in 2008 and its sequel — symbolic resurrection of America in 2016. Baudrillard’s observations on America, as primitive society of the future, are more relevant today than ever before and are the key to unlocking the gates of its collective subconscious:

Like primitive societies of the past, America has no “ancestral territory”—speaking not of land but of symbolic terrain—that has accumulated centuries of meaning and cultivated principles of truth. America lives primarily in the unconscious realm of myths and symbols. America is like a child. It has no roots except in the future and is, therefore, nothing but what it imagines.

Americans lack a robust tradition of the absurd. Their innocence about themselves is a precious cultural commodity by no means reserved only for the unenlightened. America has been carefully protecting this innocence for ages and this protected innocence became its unique cultural dimension. This innocence was lost On November 8th. On this day America came of age and joined the adult world.

Complex emotional response to the election’s outcome goes beyond negative aesthetics, disdain for vulgarity, cultural degradation, and outright physical repulsion of the candidate. It is aligned with a sobering self-realization and beginning of a new self-awareness. Our disappointment and anger are no longer directed at Donald Trump – he was just a catalyst; he won fair and square and against all odds — but is directed inwards. It comes from what we see through our introspection, at what we just discovered America really is. After years of anesthetizing the public discourse with neoliberal narrative and political correctness, we are shocked at what stands before us. We are staring in disbelief at our collective soul and are frightened with what we see, how deeply divided America is and how alarming its split personality has become. Suddenly, reality is heavy, dark and troubling.

The origins of divided America goes back to the crisis of governmentality and the transformation of its culture in the post-1968 world. Its initial conditions are defined by the realization that true democracy is ungovernable. This realization has shaped the constitution of the neoliberal state and its mode of governing in subsequent years. The core of that program has been centered on preventing a formation of a unified voice of discontent and consensus in general. Ideological response to that challenge has been to align people along emotional rather than economic interests, to streamline the emotions defined around various charged issues, making sure that there is a steady inflow of polarizing topics that never gets stale. For this program to work, it was important to nurture perception that we are in each other’s way on the road to happiness and prosperity — the essence of social atomization. The divide had to be permanent and irreconcilable, in other words, cultural. Only then could it be effective. As a consequence, culture no longer acted as an agent of change aimed at building consensus and enlightment, but has functioned as an instrument of seduction, to lure people into the trap in which they become eminently governable.

It is not American history per se or its lack — there is more than four centuries of it — that is so problematic. Rather, it is the way America has dealt with its history, the process that can be characterized as a systematic denial of shit. Most of the troubling past had been reframed and reshelved never allowing it to become a burden, making sure the focus remains on the future.

America has been quite effective in not speaking about its traumatic past: Collective sociopathia — grotesque aggression, an archetypal love of objecthood elevated by obsession of giving up nothing at all; genocide on Native Americans, slavery, Hiroshima, internment camps, misogyny, racism, wasted lives, mass incarceration, general mixophobia, and systemic exclusion. All of this had to be suppressed, its importance marginalized, absolved of any guilt, rationalized and legitimized by reframing it as a necessity of freedom and progress. And this baggage of the past was blended to perfection with the belief that this country is entitled to permanent and unconditional greatness — this is America’s destiny, mission and goal that should be achieved regardless of the consequences. The bizarre cocktail of the two, which resurfaced during the 2016 elections, is the most troubling aspect of the emerging American political landscape.

This is America’s ancestral territory. These are the true initial conditions that define the origin of American cognitive coordinates. This terrain represents everything America so desperately didn’t want to be, everything it refused to know about itself. It represents everything that it taught itself to considers shameful and for which it reproached other nations and cultures, and for whose wrongdoings it had picked up the pieces some many times in the past.

There is no self-reflexive, self-mirroring level, the civilizing level of unhappy consciousness, which comes with history and which places a distance between the symbolic and the real[1]. Accumulation of latent rage, that made itself visible during the presidential campaign, is a result of all those passions Americans were forced to be ashamed of for so long.

The future of post-traumatic America depends on its ability to acknowledge its ancestral territory and metabolize the traumatic realization of its lost innocence. America will have to find itself in the world of adult nations. But, before it could find itself, America first has to lose its way.

[1] Jean Baudrillard, America

Heroin & non-consensual capitalism: As the rich get richer, the poor get higher

29. X 2016

Heroin consolidates all your problems into one big one. No more worrying about aggression, repression, poverty, futility, and frustration – just heroin and how to get a hold of it.

The street price of heroin has dropped below $100 per gram. A disturbing development. For a novice, about 10-20 mg provides a decent high. Simply put, one can get high on heroin for the price of a chocolate bar. The most addictive drug is now also the cheapest, cheaper than cigarettes. Its 20-fold price decline, from $2000 in the 1980s, is unlike any other commodity or product. This is not a result of a more efficient production process or technological advances, but a curious cooperation between the forces of geopolitical and ideological makeup. Three decades of heroin price history parallel the transformation of the neoliberal state and society. It tells an interesting story of business, politics, economics, globalization, and governmentality.

heroin-prices

Heroin price history as experienced by wholesale, small dealers, and drug users

  • Pull back. The blood rushes in. Slowly push the plunger. I want this to last. Pull it back out again, the blood swirls back in. Now, squeeze! It rushes up my arm in tingles. Then it hits. It is like a mini explosion of pure pleasure. Everything is blissful and beautiful. It is pure joy to be alive, to have a body. Depending on the quantity and quality this is there for hours. It is sensual. All your nerves are on fire and just having someone run their fingers along your skin feels delicious. It isn’t really sexual. It is simply that the intensity of the experience lends itself to being described that way. This is when you are “high” on heroin.

In 1980 a wholesale dealer (if he had $1 million) could buy 1kg of heroin from the supplier at $1000/g (red line) and sold it to hoppers (street dealers) at $1700/g (blue line). In this transaction, he would have made $700/g profit ($700K for a kilo). In comparison, a hopper buys at $1700/g and sells to the users at $2000. His profit is $300/g, i.e. $3000 for a 10g package.

Since then, the price continues to decline at an annual rate of 9% — it drops to 1/3 of its value every 12 years. In the 1990s the wholesale price of heroin was $300/g. Dealers had to work harder (sell more heroin) to earn the same money as before. However, risks associated with drug dealing were lower and the money was still good, especially on a risk adjusted basis and when compared to the available alternatives. The business was booming.

Another decade and a half later and another threefold drop in prices: Heroin in the new century is selling for near $100. No longer is just the first hit free, but all subsequent hits are practically free as well. This changes the business model completely. Post-90s is the period of major consolidation and systematization of drug business. The dealers are no longer interested in quick profit from one-time sales to occasional users. They are now after lifetime subscribers. And the system continues to deliver them in numbers like never before. Drug businesses began to think and operate like any legal profit center, which sets in motion the true market forces.

Globalization has played a key role in these developments. It has achieved this effect in two ways. 1) Efficiency of the distribution of drugs: Lower transport costs, the use of the new IT and the enhanced worldwide competition have dramatically improved the efficiency of drug business. At the same time, the greater efficiency of the distribution process, made it easier to conceal the transport and the stock management of drugs. 2) Risk premium effect: Globalization has opened the borders of many countries with a surplus of poor and low-skilled workers. Millions of havenots who have little to lose have been attracted by the fantastic intermediation margins provided by the drug market[1].

Inelasticity of demand has defined the background as one of the main economic drivers. For heroin addicts, nothing is more frightening than being without heroin. No one who has gone through heroin withdrawal wants to repeat this experience. So, no matter how high the price, they will find the way to pay for it.

The Breakdown of communism has created new markets and sustained demand. Post-socialist countries, which have largely been sheltered from the influence of hard drugs in the past, suddenly opened up as a new untapped market. Erosion of local state institutions, and general hopelessness that ensued after its fall, were directly responsible for the surge in drug users.

The war on drugs became its own antithesis from inception. It supported high margins, which guaranteed that drug business remains more attractive, and therefore more competitive, than any other business[2]. Wholesale dealers held the racket. They effectively lowered their own risk by transferring their exposure to street dealers and were happy to accept lower margins as this increased their business longevity. What was lost on tighter margins was made up by the volume of the business. Bigger volumes and increasing profit gave access to the benefits of the legal system, attorneys and corrupt government officials, which provided an additional protective layer and reduced risks further, while elaborate money laundering schemes opened the doors to legitimate investment opportunities and further wealth accumulation. So, although margins were lower, on a risk adjusted basis, drug business never looked better.

Ideological mainlining: Biopolitical penetration of the American brain

One of the most extensive by-products of globalization is a surplus of humanity that is unwanted, inconvenient, and ultimately displaced. The volume of humans made redundant by capitalism’s global triumph grows unstoppably and comes close now to exceeding the managerial capacity of the planet; there is a plausible prospect of capitalist modernity choking on its own waste products which it can neither reassimilate or annihilate, nor detoxify. (Z. Bauman)

This is one of the biggest and the most acute problems today. The need to address this issue has shaped the transformation of the neoliberal state in the last decades from the welfare to the penal modality of its functioning. While neoliberalism produces social and economic vulnerability, criminalization produces ways to capitalize on that vulnerability. The criminalization of illicit drugs accomplishes three things at once. First, it reinforces socioeconomic vulnerability through a steady flow of pre-trial detainees, prisoners, parolees and families disrupted by harshly punitive sanctions. Second, it makes the economic viability of hard drugs dependent on a willingness to assume risk, especially as entry-level narco-labor. This willingness is a condition clearly associated with the socioeconomically marginalized – those who have little to lose but their “freedom” [3]. Third, it guarantees accessibility of hard drugs to the disenfranchised segment of the population. In this way, the very victims of global capitalism are trapped in the spider web of the carceral state and the more they struggle to survive in it, the more precarious their position becomes.

In the past, drug addiction existed as an expensive “luxury” for a small minority. Democratization of heavy drugs has been embraced by the ideological apparatus as a way of managing exclusion, poverty and discontent in general. Within the neoliberal project, the war on drugs has become synonymous to the war on poverty. And so, as poverty grew, so did the heroin usage.

heroin-and-gini

As the rich get richer, the poor get higher: Decline in heroin prices vs. inequality

  • Gini coefficients are often used as a measure of wealth inequality and, as such, they are an indirect measure of poverty. Developed/civilized societies, like the most advanced West European countries, have Gini’s typically in the mid 20s. Among developed countries, the United States has the highest levels of inequality, the only one in the western hemisphere with Gini above 40. In that metric, it is on par with China, the Dominican Republic, Nepal and Ecuador for income. The Figure shows the history of the (wholesale) heroin price against Gini coefficients (on inverted axis) since 1980. The two histories, both having exponential trend, show high degree of commonality. Declining price of heroin goes hand in hand with growth of poverty: As rich get richer, poor get higher.

State as enabler of self-destruction

I bought a gun and chose drugs instead (Kurt Cobain)

While global capitalism is the engine of production of socioeconomic vulnerability, the state is the main architect of subjects and spaces of exclusion, e.g. the black American male and the post-industrial ghetto, whose political and economic exclusion catalyzes participation in illicit economies as well as vulnerability to policing. The objective of criminal justice in the neoliberal state is no longer to correct behaviors that are socially harmful, but to identify the bodies that must be excluded from the population and justify this exclusion by labeling their behaviors as abnormal. In this context, heroin has been recognized (and embraced) as a powerful tool of self-destruction, capable of turning any resisting individual into a perfectly docile social subject, eminently manageable by its dependency.

The evolution of the heroin business reveals the inner logic of the massive consolidation of the state’s repressive apparatus in the post-1968 era. When viewed in this context, the war on drugs emerges as but one of many neoliberal strategies of governing, a technique for identifying populations that must be governed in other ways. The essence of these strategies is that they do not use force to destroy dissent, but push it to self-destruct. They stay as a constant reminder that power has been deemed as a highly ineffective tool of governing. Outside of its repressive apparatus, the state no longer represents the ability to engineer change, but has become an enabler. The war on drugs is an ideological answer to the problem of surplus population, and heroin an instrument of drainage of wasted lives.

[1] C. Costa Storti, P. De Grauwe, Int. J. Drug Policy, 20 (2009) 488

[2] In the 1990s, assuming a hopper sells 10g every day, he could make $2000 a day ($250 an hour or 50 times the minimum wage commensurate with qualifications of most of the drug dealers), which, translates into $500K a year (untaxed), equivalent to an $800K of taxable annual income. This is a full-blown Wall Street salary. In most cases, they pay “tax” to the wholesale distributors who “own” the territory hold the racket.

[3] D. Corva, Political Geography, 27 (2008) 176

There is something wrong with the future

28.VIII 2016

Give me back the Berlin wall
Give me Stalin and St. Paul
Give me Christ
Or give me Hiroshima
Destroy another fetus now
We don’t like children anyhow
I’ve seen the future, baby:
It is murder[1]

After getting accustomed to low crime rate since its peak in the 1990s, the world is once again entering a phase of accelerated crime growth. The rise of crime is palpable –- from rapes and robberies to homicides, from blue to white collar, from individual to mass murders, from random to organized and terrorist — although one cannot point to a single reason why. Crime is now at the inflection point. Its presence is felt everywhere, from info-sphere, media, entertainment and schools, to corporations, streets and politics. And the more efforts and resources are deployed to fight it, the more pervasive and out of control it gets. However, it would be a mistake to misidentify this trend as an aberration, an unwarranted side-effect of the post-industrial era. This state of affairs is an inevitable outcome of the neoliberal project at the core of which lies the idea of competition, a highly polarizing concept, which upsets the basic functioning of both society and the economy.

Neoliberalism was born at the intersection of the two crises, the crisis of governmentality and of dominant forms of power during the general contestation of the 60s. The emerging ideology outlined new forms of self-conduct, which satisfy aspiration to freedom in every sphere of existence, while the economic science was conceived as the newest technological invention through which new social reality revealed itself.

At the core of the neoliberal project lays the program of submission of human relationship to one single goal, competition, which has become a general political principle that governs reforms in all areas. This is an extension of market rationality to existence in its entirety. Its unprecedented systematization has profoundly shaped subsequent social reality, as a system of economic production became also a system of anthropological production[2].

So, how did we get here? What kind of reality has neoliberalism created and what is its future?

As the competent constituents of the past (e.g. bourgeoisie of industrial capitalism) gave way to the managerial class that turned competition into the only rule and virtue, the concept of competition gradually replaced that of competence. Only those who had become skilled in managerial functions could become wealthy through their labor. The decisions about production are more influenced by managers than experts as those decisions accounted for the reduction of costs and realization of profits. But, a managerial function detached from intellectual competence consists ultimately of fabrication, trickery, lies and fraudulent accounting, tax evasion and, if necessary, the physical removal of competitors[3].

Competition, once a guarantee of output’s quality, has undergone a major transformation. It has moved closer to the physical removal of competitors, ultimately leading to the systematic devastation of everything that does not submit to the profit of the strongest. Who competes better than those who eliminate their competitors? Mergers are just one form of physical elimination. Profit centers have used their considerable wealth to influence legislative process that removes all barriers for such activity. The state has become both an accomplice and a catalyst in this game. When was the last time government said no to a large merger?

Competition has become a reinforcing mechanism that provides a validation process for the legitimation of crime. Crime is no longer a hidden activity but the alpha & omega of every business, not just a marginal function, but the only way to stay in the game, and often the decisive winning factor in deregulated markets. Crime has disappeared thorough its proliferation. It cannot be eliminated, but it must be embraced. Its total and unconditional acceptance leads ultimately to its invisibility. Permissiveness has become the ultimate form of tyranny and capitalism has turned into a criminal system. Its survival in its present form is predicated on violence, because only violence is decisive.

Re-contextualization of murder: Society and human nature

Neoliberal government requires liberty as its condition of possibility: To govern is not to govern against liberty, or despite it; it is to govern through liberty to actively exploit the freedom allowed individuals so that they end up conforming to certain norms of their own accord[4].

Politics ultimately becomes the tool of social alignment with human nature and consists of the systematic removal of inhibitory mechanisms that allow us to come out as we actually are. Emergence of crime as a paradigm, its omnipresence, is the ultimate consequence of this political struggle. The modalities of resulting social structures have a deep resonance with who we really are.

This is the core problem of neoliberalism, the main reason why it is an anti-social project and why ultimately it either has to self-destruct or society as such has to disintegrate.

Designing a system of social organization which is in harmony with human nature is not something we should aspire to. It is generally a bad idea. A very bad one, actually. Without a considerable amount of inhibition, human nature is socially toxic. In fact, in order to become social, we have to abandon our true nature. The entire process of growing up, of becoming socially integrated – what is referred to as civility – is all about inhibiting our true impulses (e.g. toilette training, selfishness, lack of empathy, aggression, ability to engage in a dialogue,…). These inhibitory skills define us as social beings. Without them there is no society. We are born without those skills and we spend a considerable portion of our lives learning how to acquire and use them.

So, we are the real problem. Violence is inscribed in our genetic code and, as such, it becomes the essential component of neoliberalism. Killing as a (predominantly male) strategy of attaining the status position of dominant power has been adaptive. It is installed in the human brain because it worked. Murder has been a remarkably effective method of achieving evolutionary success (at least in the game of reproductive competition). Modern humans are descendants of those who succeeded in evolution. They are wired in the same way as their ancestors as dominant factors of success propagated[5]. Murder is inscribed deep into our genetic code; it only needs to be set free. The question is then, how close are we to the grand convergence when all barriers are removed and ideology becomes a true representation of ourselves. How far are we from setting free the murder? Well, we may not be there yet, but it is in the cards.

Life in neoliberal utopia. Who has the right to kill whom?

If utopia represents the impossible (imaginary places where social relations are represented, contested, and inverted), and developed society has reached the point where (almost) everything is possible, than the problem of finding our way is no longer the problem of disappearing utopia, but the problem of vision and politics. So what is the neoliberal utopia really like? What is a logical extrapolation of the neoliberal experience and what could be the next frontier for its all-around permissiveness?

Of all the issues that have emerged in the last years, murder has been the most divisive. From police brutality, to vigilante killings, mass murders, shooting of cops and terror attacks. All these cases were really about who has the right to kill whom, and at what price. Black lives matter, terrorism, the OJ Simpson trial, … they have all been about the same theme: Is it ok for the whites to kill blacks, for Muslims to kill Christians, for rich to kill poor, or even for the rich blacks to kill poor whites etc.? There has always been some implicit hierarchy of rules in that space.

Issues that have played a similar divisive role in the past have been alcohol prohibition, abortion (right to life), legality of drugs, prostitution, gay marriage, speed limits, etc. In many countries where these issues have been put to rest, tensions and problems associated with the issue have disappeared.

It is common sense to assume that removing an aura of taboo reduces the appeal of the vice. By legalizing something, one eliminates the challenge and reduces the abuse. For example, incidence of teenage drinking, drunken driving etc. are much lower in countries which have no minimum drinking age, and similarly in the case of car accidents vs. speed limit. In the same manner, one can argue, that legalization of drugs could lead to lower incidence of drug abuse and reduction of crimes associated with illegal drug trafficking. Same holds for prostitution. The upside of legalizing these activities is that society becomes less polarized – people get along better with each other – and, once divisive aspects are removed, politics becomes more constructive.

By analogy with these well-know cases, it makes sense to ask the same question regarding the murder. First, there is an insane number of murders every year. Obviously, the fact that murder is a capital offense is no detractor for killers; the rate of killing (individual/random/mass) keeps increasing. We now have more than one mass murder for each day in the year. The legitimate question to ask then is would the number of murders increase if they become legal. Most likely, there would be an initial surge, but then the trend would gradually subside and new lower murder rate equilibrium reached.

Death by shooting would gradually be accepted as a consequence of our freedoms, in the same way as death caused by traffic accidents, plane crashes, fire, or natural disasters have.

The benefits are immediately visible. First, guns would get the status of a regular appliance, like car or TV — everyone would own (at least) one. This would be plain common sense. All debates about the second amendment would become obsolete and with them the polarizing effects would go away. There would be no justification for the existence of the gun lobby. The NRA would be rendered politically irrelevant and politics, free of its influences, would be able to focus on issues that matter. Without polarization around the second amendment, republicans and democrats could even merge into a single party.

Smart guns would become the new technological innovation. Apple would produce first iGun, synchronizable with iPhone and iWatch, and Teslas would come with special road rage software and appropriate smart guns usable in such situations.

Compulsive killing would be frowned upon. It would be deemed uncool, along the lines people treat obesity. There would be awareness groups that provide counseling and talk shows where compulsive killers would be subject to shaming.

The US would enter its post-political phase (given the current political developments, this could be a blessing). There would be less need for police; private protection would be the new area of economic expansion. There would be far fewer people in prisons, both private and state run. No debates about death penalty or life sentence? All these would free the federal budget for more constructive projects. People would be much more considerate and respectful of each other’s feelings. Conflicts would tend to be avoided. Everyone would be nice to each other (assholes would have a very low chance of survival). Generally, people would get along much better. Right?

This is the face of neoliberal utopia. At the end, it is every man for himself, or in the words of Margaret Thatcher: There is no such thing as society. There are individual men and women, and there are families.

[1] Leonard Cohen, The Future

[2] Pierre Dardot and Christian Laval, The New Way of the World: On Neoliberal Society

[3] Franco Berardi, After the Future

[4] Dardot & Laval

[5] David Buss, The Murderer Next Door

 

I have returned there where I had never been

30. VI 2016

Debt and guilt are two intimately related concepts. In some languages (Sanskrit, Aramaic, Hebrew, German) the two words even have the same root — the German makes it particularly explicit: Schulden (debt) vs. Schuld (guilt). In the same way guilt implies that we will have to atone in the future (or in the afterlife) for the sins committed today, debt is a handover of a part of our future in exchange for present consumption.

The dynamics of capital accumulation is based on the perpetual process of investment in a borrowed future. “Borrow today and repay later” logic carries an implicit bet on the future. Without an optimistic outlook on the future, there is no lending or borrowing. Debt links the present and the future in a circular way: A prosperous future cannot happen without the present, and the present cannot take off without a belief in (better) future. In this way, the very concept of the future undergoes a transformation in capitalism: It no longer represents a timeline we experience, but a concept we envision.

By now, accumulation of debt has become so pervasive that today there is more debt than wealth in the world. No debt will ever be repaid. It exists in a virtual space with an understanding that it can never be allowed to intersect with the real world. Today, debt links institutions and individuals through virtual default — everyone is both a victim and an accomplice in that game[1]. So why does debt still persist?

Debt defines the power structure inherent in the debtor-creditor relation. It has become the main instrument of biopolitics, especially in the last decades of neoliberal hegemony. In the absence of a real collateral (like house, car or any material good), creditor feels entitled to impose upon the debtor’s modes of behavior consistent with initial expectations of debt issuance. It is logical for the creditor to demand from the debtor maintenance of a lifestyle that guarantees his creditworthiness and ability to honor his obligations. For example, in the case of welfare (social debt), government has the power and (it assumes) the rights to pressure the welfare recepient into a conduct that increases his chances of getting back on track — rehabilitated and reintegrated into the mainstream society — so that his social debt is effectively reduced.

In the past, the United States, and other developed countries, used to finance the production of others — this was the traditional center-periphery interaction. Its credit-financed growth, which came to a halt in 2007, created domestic imbalances. This “domestic debt” had to be paid by borrowing from abroad — borrowing to service an already existing debt — a grand pyramid scheme of a sort. In an odd and misguided interpretation of the theory of comparative advantages, the United States specialized in the production of debt, but in international currency (US dollar). This enabled others, e.g. China, to “buy dollars” in exchange for its commodities[2]. To put it more bluntly, the United States imported from China commodities, labor and real products, in exchange for debt – a piece of paper, an IOU. (Who really got a better deal here, or who could get potentially screwed in this transaction?) Thus came about a strange situation in which the emerging world producers, the periphery, also became the net world creditors on condition, however, that payment of debt never be demanded.

United States, the world’s largest economy, owes foreign countries more than $6 trillion dollars, about 1/3 of its GDP (and another $10-12tr domestically). To China alone, it owes $1.2tr, to Japan $1.1tr and to European countries around $1.5tr — about 2/3 of its total foreign debt is concentrated in three economic regions. In principle, these three (and not to forget, rather powerful) creditors have the right to tell the United States how to “behave” — how to conduct its policies to insure its ability to service and repay its debt. In turn, the US is incentivized to comply with whatever the imposed rules, this implicit “code of conduct”, in order to maintain its creditworthiness and ability to borrow more in the future.  Global capital, thus, can demand access to the US political process, and, in order to allow that access, the US laws should be modified accordingly: Global creditors are given a way to have a say about who is elected in policy making offices, including the president of the United States. This is how debt becomes an instrument of global governance. This is the same mechanism already seen at play when IMF and the European Union used their “creditor rights” to disagree with the results of the Greek elections, their choice of the finance minister and a general shape of the local political landscape, followed by their insistence to impose austerity measures in order to insure Greece’s ability to service its debt to the large European banks and to the detriment of the Greek economy and people.

In this way, democratic process becomes compromised by influence of global capital which demands as collateral the ability to protect its interests through presence in domestic policy or eventually access to the real US assets, demand tighter regulations and smaller financial markets as a way of reducing the default risk, or more favorable trade agreements.

Submission to the tyranny of the Global becomes the other side of debt. Our lives become arranged to harmonize with demands of extraterritorial capital flows over which local politics has no jurisdiction and little or no influence. In order to keep global capital happy, budgets have to be balanced, welfare state dismantled, safety net removed and precarity and asymptotic unemployment as a way of life accepted. In this constellation of things politics becomes the problem instead of solution and status quo the only (peaceful) way ahead.

The acceptance of the existing democratic mechanisms as the ultimate frame is preventing a radical (or any other) transformation. Peaceful social life is itself an expression of the (temporary) victory of one class- the ruling one, with the state as an apparatus of class domination. Unable to perform the functions that states generally do, all states eventually become failed states.

Compromised democracy and loss of autonomy is the price to pay for excessive government debt. This is a perpetual process whose end is becoming only more elusive with time. It looks increasingly less like atonement and more like an eternal damnation.

[1] Jean Baudrillard, The Transparency of Evil, Verso 2009

[2] Massimo Amato & Luca Fantacci, Saving the Market from Capitalism, Polity 2014