Tag Archives: #Plutocracy

Lost in a dream of electoral dictatorship: America as a failed state

30. III 2018

They turn our brothers and sisters into mercenaries

They are turning the planet into a cemetery

The Military and the Monetary, use the media as intermediaries

They are determined to keep the citizens secondary

They make so many decisions that are arbitrary

We’re marching behind a commander in chief

Who is standing under a spotlight shaking like a leaf

But the ship of state had landed on an economic reef

So we knew he was going to bring us messages of grief

(Gil Scott Heron, Work for Peace)

American oligarchs have had an eye on post-Soviet Russia ever since the first days of communism’s collapse. Their fascination with its post-communist transformation continues to this date. In less than two decades, the country of chronic state-mismanaged scarcity, where everyone had to stand in line in order to maintain elementary standards of living, where the 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.

The DNA of a typical Russian oligarch reveals a hybrid of a communist apparatchik, a government bureaucrat, and a strictly small-time criminal – a sub-mediocrity in every aspect. Yet, these people became an embodiment of the ultimate American Dream. People who lived all their lives in isolation, who had no exposure to business know-how and had no place or opportunities to learn about it; people who lived close to what in America would be considered the poverty level, emerged as super-rich. These passive and utterly unremarkable recipients of the political lottery jackpot were graced with unimaginable fortunes just by sitting on the wrong side of the political crossroads at the right time. This realization has had to inspire both rage and jealousy, and at the same time corrupt the mind of every honest western constituent brought up on the protestant ethics of hard work.

The main message of the post-communist transformation of the Soviet Union has been that political circumstances, rather than demographics, are the key explanatory variables behind the resulting outcomes. State sponsored corruption, the residual of the old communist system, was the secret sauce, which added a special flavor.  Failed states create conditions of unimaginable business opportunities. This realization added a new dimension to the already existing American Right’s fetish of a smaller state. With the recent rise of right-wing populism, the idea of the failed state as a new paradigm of economic and social restructuring gained wider acceptance and stronger footing.

For quite some time, supporting or explicitly engineering a failed-states project, and creating a global disequilibrium that would force or accelerate a change, has been a signature strategy of American global politics in its late neoliberal phase. This project got new wind in the 1990s, capturing not only the post-communist Soviet bloc, but spreading also to the Balkans, Iraq, Middle East, North Africa, and beyond, while in the West it manifested itself through tensions between the global oligarchy and populist implementations of the neo-feudal visions of the world.

Oligarchic tromboning: Pimps, sultans and banana republicans. The anatomy of a political mancrush

The failed-state project abroad has been a special inspiration at home. A source of superlative profits for the American Military Industrial Complex, in Russia, in terms of the rise of riches of their new elites, the results have been nothing short of a miracle. So, why not try it at home? After all, over the last three decades, we have had enough practice with a number of controlled experiments that this would be a no brainer.

Current political developments in the US reflect precisely this logic. There is a concerted effort to preserve the wealth of a very small group of people or powerful institutions, while at the same time, introducing corruption as an integral part of political dealing and diffusing the obstacles to its normalization. This is the ultimate form of oligarchic refunctioning, where everything else — culture, politics, social well-being — becomes subordinated to the interests of an absolute minority. Plutocracy becomes indistinguishable from Kakocracy – a Faustian pact where the elites form a coalition with a criminal element, and together they establish the government of the worst.

Based on everything we’ve seen so far, the dismembering of the USSR has emerged as a blueprint for the restructuring of the American state. The Soviet Union, which after its breakup started as an essentially criminal enterprise and subsequently made a sharp turn towards an electoral dictatorship and sultanic oligarchy.  When seen from the perspective of plutocratic interests, the post-Soviet style social transformation is rationalized as a more efficient form of social organization than any emancipatory alternative.

This has been embraced as a preferred transformational path of the American right wing. The contours of Trump’s economy indicate a process of transition from the invisible hand to the invisible fist, where economic justice completely eliminates the last vestiges of social justice and takes it to the realm where economic interests of a few are the only ones in existence. While Trump has displayed an open disdain for the world’s leading democratic leaders, a mancrush on Putin notwithstanding, he has gone out of his way to show unreserved support and admiration for autocratic outliers such as Duterte (invited to the WH), Nursultan Nazarbayev, Xi Jingpin (inspiring praise for his lifetime presidency), (“Smart cookie” and a worthy adversary) Kim Jong Un, Abdel-Fattah el-Sissi (the quiet general, aka The Pimp), and the Sultan himself, Recep Erdogan!

When viewed in the context of a general oligarchic framework, the two trajectories corresponding to the post-Soviet and current American political repositioning, outlined in the figure, both show convergence towards the same destination corresponding to a sultanic oligarchy.


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. 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. All historically known political structures reside within these four corners. Unlike electoral democracies which are characterized as civil oligarchies, in 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. Suharto’s Indonesia, the Philippines under Marcos, or post-Soviet Russia under Putin). This is an application of the framework defined in: J. A Winters, Oligarchy, Cambridge University Press (2011)

The fourth horseman and the (im)possibility of emancipation

Corruption, this fourth horseman of the apocalypse, which has long been in hiding, is now making itself fully visible. Together with the three main systemic disorders – Stagnation, Redistribution, and Plundering of the public domain – it outlines the contours of the terminal destination of the current social transformation in the developed world.

Trump’s ambition has never been to become just a president, but a sultan. The deliberate display of his own corruption with the intent to normalize it and pave the way for its widespread acceptance, together with an emphasis on being above the law as part of his privileged position are reflections of his sultanic aspirations.

Wolfgang Streeck gives the best summary of erosive effects of corruption on politics and society. Converting public trust into private cash has become routine. Greed is no longer magically converted into public virtue, depriving capitalism of its last consequentialist moral justification. Stylizing owners of capital as trustees of society is losing any remaining credibility. Corruption is considered a fact of life as well as the monopolization of political influence by the self-serving oligarchic minority. As a consequence, pervasive cynicism deeply ingrained in the collective common sense is changing the functioning of the system. A political career is seen as an institutionalized opportunity for the well-connected elites and it is irrational to say no to these opportunities. Populism no longer serves to recenter the center, but is becoming a major destabilizing force. The system is ultimately facing a looming legitimation crisis – the existing social order is being rendered morally defenseless in possible future contestation[1].

The silver lining, if one is to be found at all, is that chaos, if administered in the right way, instead of creating confusion, could serve as a political “eye-opener”. This could force a transformation of the political subjects’ psyche, triggering a transideological moment when the political body desires to transcend the political confines faced with absurdity and obsolescence of the existing ideological framework and embarks on a path of accidental emancipatory transformation.

[1] Wolfgang Streeck, How will Capitalism End?: Essays on a Failing System, Verso (2017)



Trump in wonderland

8.III 2017

In many areas of life, incompetent people cannot recognize just how incompetent they are, a phenomenon that has come to be known as the Dunning-Kruger effect. Logic itself almost demands this lack of self-insight: For poor performers to recognize their ineptitude would require them to possess the very expertise they lack. To know how skilled or unskilled you are at using the rules of grammar, for instance, you must have a good working knowledge of those rules, an impossibility among the incompetent. Poor performers fail to see the flaws in their thinking or the answers they lack. What’s curious is that, in many cases, incompetence does not leave people disoriented, perplexed, or cautious. Instead, the incompetent are often blessed with an inappropriate confidence, buoyed by something that feels to them like knowledge. (David Dunning)

Things got a little different in 2017. Within less than a month in the office, Trump’s cabinet managed to accumulate spectacular cognitive deficit never before seen in the White House. This deficit, accompanied with a commensurate loss of credibility, is threatening to become a permanent trademark of his troubled presidency.

The biggest change introduced by Trump’s arrival has been the reversal of information flows in the communications between the White House and the press. Until now, the White House had always been the center of political information and, through press briefings or other communication channels, shared a fraction of that information with the press. What the press knew was a subset of what was known to the White House. Because of this asymmetry (to avoid answering unpleasant questions or possible self-incrimination), the White House would engage in deception. There was a stable symbolic pact between the government and the press; the press got something to work with, while the White House was occasionally allowed to get out of an uncomfortable situation. No one’s intelligence was insulted.

All this underwent a 180 degree reversal with Trump. First of all, and this is the root of the problem, Trump’s administration seems to be reluctant to accept the fact that they won the election — as if that was never really a part of the plan. Instead of governing, they continue to behave like the opposition, always arguing from the position of the victims of establishment and raising objections and outrage at how the system functions. They have remained reactive instead of proactive, systematically behind the curve.

Trump’s White House is populated predominantly with political amateurs, dilettantes and professional yes-men who, themselves, do not produce any substantial informational content. They are by and large either misinformed and making things up or getting their facts from the low-tier media such as Fox News, Breitbar, tabloids or reality shows, who themselves are known to habitually make things up (their business model often based on fabricating “facts”). As a consequence, the mainstream press has been much better informed than the White House, both in terms of the area covered and the depth and quality of information. Trump’s White House operates with a subset of the information available to the press and the press can run circles around its staff. Because of that, current White House spokespersons have had a great difficulty engaging with the press. They are incapable of creating a deception when they need it – the conceptual difference between a deception and a lie seems to elude them — so they lie instead, and when they are called on a lie, they lie more and blame facts, which further undermines their credibility until there is none left. As a result, after less than a month in office, Trump had to declare war on facts and pronounce the press the enemy of the people.

Masochistic self-destruction

Power cannibalizes itself — it carries the seeds of its own destruction (Jean Baudrillard)

In their infinite political naïveté, Trump and his cabinet do not understand that by waging a war on facts, media and dissent in general, they are actually writing their own obituary.

The current administration is deluded by the idea that their rise to power and their program in general have a strong historical, messianic mission of correcting the years of imbalances caused by neoliberalism, globalization, and cultural displacement. In their minds, weakening of their power, even temporarily, would be a betrayal of that mission, and so, any voice of opposition has to be inhibited and ultimately subdued.

The fatal flaw of this position is that by suppressing the opposition, and the information its existence and voice provide, the leadership is left essentially blind to whatever is happening in their back yard. Within a very short time, they will have no vocabulary to discuss socio-political conditions and develop an approximate description of social reality.

In the face of perpetual conflict with reality, Trump’s political machine will foster a continued state of cognitive dissonance and with the help of spectacle possibly provide a temporary life support for their existence through the suspension of disbelief. However, Trump’s administration’s non-linear relationship with facts and truths will gradually turn whatever remains of their constituents into a cult following. Like most other authoritarian ideologies, both Trump and his followers will remain non-adaptive not allowing any feedback to penetrate the boundaries of their fortress of ignorance, and when the end becomes inevitable, they will be unable to transform or adjust. The autopsy of the communist experience and other totalitarian forms of political rule offer numerous illustrations of this trajectory.

Aside from this, there is a practical question regarding the sanity of Trump’s approach: How does one get away with a lie as a policy tool in the world of total information? This might be easier to implement in a society like the old Soviet Union, which had never been given a chance to properly embrace modernity and where the population had been subdued by chronic scarcity, where bare necessities had been a luxury for decades, and where people were ready to make any compromise that would restore their dignity and bring their lives closer to normal. In the era of relative affluence and absolute information such a project cannot take root, even in the short run — it would require an extraordinary force to maintain its stability.

And this is where things begin to break down. Large-scale systemic oppression requires the mobilization of enormous resources to keep control of political subjects and effectively turns them into hostages. Attempts to oppress growing discontent require a heavy-handed rule which in turn reinforces the hostage syndrome and brings about further escalation of discontent with generally adverse economic side effects. At that point, legitimation becomes the system’s biggest problem and requires mobilization of all resources, primarily aimed at its glorification. But, by then the oppression is the only thing the system knows how to deliver. It is the only strategy, and a very expensive one. Finally, when existing resources are fully exhausted, the system has to collapse.

Send in the rubes: Technology and political snake oil

Everybody has a plan until they get punched in the mouth (Mike Tyson)

Although with the help of social media, artificial intelligence and technology in general, oppression can take on subtler forms, the standard of tolerance will change with it and oppression will always be recognized for what it is. The illusion that this battle can be won by “psychological operations”, a systematic form of mass propaganda that acts on peoples’ emotions — a half-baked idea of crowding out the info-highway with misinformation — is a reflection of both ultimate ignorance and arrogance that comes with it. It is an ill-conceived program initiated by data analytics companies and funded by the right wing plutocrats who specialize in election strategies, based on an erroneous assumption that, in the era of total information, the society outside the governing party’s sphere of influence and control will remain static and non-adaptive, and that the pattern-recognition models of their currently employed consulting companies, will remain only their (and nobody else’s) proprietary tool forever. The absurdity of such assumption is best illustrated by the fact that every major hedge fund has already caught up with this trend and either has a similar platform and capabilities or is in the process of getting one very soon. Words like artificial intelligence and machine learning are the most frequently used buzzwords during the incoming student orientations at all major American universities — these topics are the most rapidly developing areas of science and technology. It is not difficult to imagine what this landscape will look like in four years or beyond.

After all, when it comes to economics and social sciences, there is one thing we learned about our attempts to model their dynamics: All models are wrong; some of them are useful (at best). So, it is all about how we decide to use these models, what sample and assumptions we choose to calibrate them etc. And, sooner or later, we realize that all these models of social behavior do not offer any substantial new wisdom, but can make our tasks of data manipulation easier only if we give them correct instructions as an input. In other words, it is garbage-in-garbage-out at the end, no matter what (this is the best outcome). In that context, alternative facts, misinformation, alienation from reality, or other forms of self-indulgence (an emotional state Trump’s cabinet is particularly prone to) can only compromise effectiveness of any given technological platform.

Yes, these companies can help you win the elections, but they can never become an instrument that secures a smooth and peaceful governing — that erroneous extrapolation is the new political snake oil. People like Stephen Bannon are real rubes here. Their anti-elitist sentiment, combined with their messianic fantasy, which has been running in displaced mode as a war on facts and critical thinking in general, compromised their own resistance to nonsense – they start believing the nonsense they are peddling and ultimately become victims of the snake oil sale themselves.

The ultimate delusion, however, remains a belief that this battle can be won at all. Ignorance by design is the trap any hegemonic ideology faces. Monochromatic political systems are vulnerable to loss of robustness and long-term fragility. The authoritarian project is self-defeating — even a temporary victory on that front is a guarantee of a defeat in the long run. History offers countless examples, collapse of the communism being just the latest one. Diversity of opinions, multiparty systems, and what is generally referred to as freedom of speech (even when existing only pro forma) are always superior in this context. Tolerance for existence of alternative forms of interpretation of social reality as well as social organizing (from street gangs, organized crime, religious cults, and self-sustainable communes to fringe or mainstream political parties) carries enormous informational value. After all, wasn’t the spectacular defeat of the centrist ideology in 2016 (and the traction of the right wing populism in the West) a direct consequence of ignoring the voice of the people who were left behind by progress and globalization — the people whose existence had been systematically delegitimized by neoliberalism. The diversity of opinions of the socio-political landscape allows rule of force to be replaced by a more efficient rule through freedom or self-conduct, which, while not necessarily less oppressive than the totalitarian structures, could be an economically superior alternative resulting in more robust and stable systems.