Thursday, April 05, 2007

Criminal Capitalist Gets Honorary Degree


The U of A does it again. Celebrating criminal capitalism by giving an honorary degree to E. Hunter Harrison of CN. Heck he is the perfect model for a MBA think of all his successes; the accidents, environmental damage, job losses, and forcing workers to strike. If he is one of the top executives in his field then perhaps they should consider Conrad Black for an honorary degree next year.


Former deputy prime minister Anne McLellan and CN chief executive E. Hunter Harrison are among 10 people who will receive honorary degrees at the University of Alberta’s spring convocation ceremonies.

In making its choices, the university made sure to pick a diverse group of leaders from the fields of art, science, business, and community involvement, U of A chancellor Eric Newell said.

Among the selections, the choice of Harrison has the potential to cause some controversy since it was one of his company’s trains that derailed and spilled oil into Wabamun Lake in 2005.

CN was criticized for its handling of the incident in the early days following the spill.

But Newell said Harrison is a worthy choice to speak to business graduates because he is widely recognized as one of the top executives in his field, and CN’s operational headquarters are based in Edmonton.

See

CN


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TILMA Made In Alberta NAFTA

Accidental Deliberations points out that the NDP Government in Saskatchewan will be holding public hearings on the Alberta/B.C. TILMA pact, which is an agreement to homogenize provincial standards with NAFTA.

TILMA is being is being promoted Canada wide as the model for bilateral and multilateral agreements to end trade restrictions between provinves across the country.

The fact that like NAFTA and other international corporate government accords, this one was conducted in secret, with no public input.

Saskatchewan will allow the first public hearings on TILMA. This will allow a full discussion and disclosure of this internal NAFTA style pact. And thus it will allow labour, community, and others concerned with the pact to challenge it.

Like the MAI accord and other such multilateral and bilateral corporatist state trade agreements, public exposure will show that once again those who decry the State and call for less government really mean that they oppose transparency and responsibility to the citizens, preferring to do business with business behind close doors.

TILMA is a perfect example of the Alberta democratic deficit, which is the real politiks of the the Republicanadian right when they speak of wanting smaller or less government. It really means less political responsibility to the citizens.

See:

TILMA


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Labour Boom = Falling Rate Of Profit


Go figure. Under capitalism an increase in labour, that is real productivity, means a real reduction in profit levels, a decline in surplus value, thus a falling rate of profit.

In other words more workers available means the economy is less productive than if you laid off workers and replaced them through technology or outsourcing. Go figure.

This is of course an analysis that is not based on the labour theory of value, but rather 20th Century Macroeconomics. And yet the mainstream economist outlines the essential truth of the Marxist critique of capitalism.

Last year's freakish growth disguised our falling productivity, said professor Ted Chambers of the Western Centre for Economic Research, University of Alberta. "Full-time employment rose by 7.6 per cent -- 114,000 jobs," he said.

If employment rose even faster than total output, then output-per-worker must have declined, Chambers explained.

"Provincial productivity numbers, released by Statistics Canada not long ago, showed Alberta at the bottom."

Productivity -- not GDP -- drives profits, incomes, and competitiveness.


The reason for the decline in 'productivity', is the decline in profits due to the increase in wages earned by the growing workforce.

Economy churns out 55,000 new jobs in March; unemployment holds at 6.1%

In the first quarter of the year, the agency estimated that employment grew by 158,000, the strongest first-quarter growth since 2002.

The booming job market has also resulted in Canadians earning more. Hourly wages rose 2.4 per cent during the first three months of this year, compared with last year, well in excess of the 1.6 per cent inflation rate.

Alberta's booming economy was mostly responsible for higher wages, rising 5.4 per cent in the first quarter of this year, from the same period in 2006.

The rise in March employment was led by women aged 25 years and older as adult women reached a new high in workforce participation at 59 per cent. In March, women in this age group captured over 39,000 of the new jobs created.

Over the past 12 months, adult women more than doubled their male counterparts in finding new jobs. Women over 55 also reached record levels of participation in the workforce, at 25.8 per cent.

By sector, employment growth in the services sector grew by 66,000 jobs in March, more than making up for the continuing weakness in Canada's beleaguered manufacturing.

Employment in trade grew by 27,000, with Alberta registering almost half the gains. The agency said the strength in this sector in March reflects gains in wholesale trade as a result of increased activity following February's CN strike.

Canada's labour force participation, the proportion of adult Canadians that have jobs or are actively looking for one, has jumped 0.6 per cent since last October and now stands at 67.7 per cent.

See:

Productivity Myth

Canadian Workers Poorer Today Than Yesterday

Variable Capital


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Petro Dollars and U.S. Debt


An interesting post on the U.S. Debt and the U.S. Dollar as it relates to American Petro-Economy Imperialism


Cost, abuse and danger of the dollar


By Rudo de Ruijter,
Independent Researcher
Netherlands


Camouflaged conflicts


To keep the permanent demand for dollars going, oil sales must remain in dollars. That is why the US tries to keep as much influence as possible, as well on the US owned IPE and NYMEX world oil markets, as with the people in power in oil exporting countries. By doing so the US secures its oil supply at the same time. Beyond that, lucrative contracts can be obtained from the local governments, and with these contracts a maximum of benefits can be seized from the oil production.

Fear always wins over reason

But when the local governments do not want to sell their oil in dollars anymore, the US has a problem. Then, the US-president will not explain how dependent the US is on the dollar demand. The conflict is always camouflaged. And to do so, always an emotional theme is chosen. In times gone by this was the danger of communists, today it is the danger of terrorists, fundamentalists and other popular bogies, like “the enemy has weapons of mass destruction” or “the enemy tries to make nukes.”

The fact that there is, rationally, not a single proof for such allegations, does not matter. The emotions always win. Even the fact, that these accusations could be turned around and then can be proved, is noticed by hardly anyone. There was no proof Iraq had weapons of mass destruction, but the US, the accuser, has weapons of mass destruction and has used them. There is no proof Iran has intentions for nukes, but the US, the accuser, has nukes and has used them, and, afterwards, repeatedly threatened to use them again.

But once again, at the moment accusations are loaded with emotions, humans switch off their intelligence. Then, reason is no argument for peace anymore. The theatre is only about the launched accusations. And because, as a result, only specialists of weapons of mass destruction or nukes are called upon to give their opinion, nearly nobody finds out what the conflict is really about.

Venezuela

In Venezuela, since many years, the US tries to pull down president Chavez, pretexting he is a dangerous communist. Chavez has nationalized the oil industry and has set up Barter-deals to export Venezuelan oil in exchange for medical care from Cuba and others. In Barter deals there is no necessity for dollars and the US has no profit from the oil trade.

Iraq

Until 1990 the US maintained lucrative commercial contacts with Saddam Hussein. He was a good ally. For instance, in 1980 he had tried to free the hostages at the US-embassy in Teheran.

But in 1989 Saddam accused Kuwait of flooding the oil market and making the oil price go down. The following year Saddam tried to annex Kuwait. It led to an immediate turn around of the attitude of the US. With the annexation Saddam would dispose of 20 percent of world oil reserves. The Iraqis were chased out of Kuwait by the US, with an alliance of 134 countries, and condemned to water and bread by a UN-embargo that lasted ten years.

Although the US sought a way to re-establish its influence in Iraq, Saddam’s switch to the Euro on November 6, 2000 [9], would lead to the US invasion. The dollar sank away and in July 2002 the situation got that serious, that the IMF warned that the dollar might collapse. [10] A few days later the plans for an attack were discussed at Downing Street. [11] One month later Cheney proclaimed it was sure now, that Iraq had weapons of mass destruction. [12] With this pretext the US invaded Iraq on March 19, 2003. The US switched back the oil trade into dollars on June 5, 2003. [13]

There is a huge difference between trading Iraqi oil in euros and trading it in dollars. This will be explained below. (See: “How do you steal oil reserves?”)






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Smurfs are Commies

A Marxist deconstruction of the Smurfs by a non-marxist. LOL.

"In summary, I would contend that the Smurfs, a comic strip created at the height of the cold war in a social democratic country in Europe, featuring communitarian lessons and an unsympathetic characterization of those who "lust for gold", does in fact hold up as a piece of Soviet Nonconformist art, expressing the principals of Marxist Communism succinctly, compellingly, and in a manner that children can understand, making it the perfect teaching tool for your children, should you want to raise Communist children for some reason."


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Wednesday, April 04, 2007

The Tory Nanny State


This has upset even the True Believers.

What they forget of course is that Canada is a mixed economy, that is it is a state capitalist economy. The state providing risk capital to private corporations, as well as running its own crown corporations. Though many of those are now privatized or arms length, they like the private sector still rely upon state funding and protective regulations of the market in their favour. Regardless of the government in power.

And there is no province that understands this better than Quebec whose industrialization has been subsidized by federal governments interested in defusing separatism. And once again the capitalist basket case that is Bombardier benefits. Liberal Tory same old story.


Ottawa is investing $900 million in Canada's aerospace sector over the next five years, Industry Minister Maxime Bernier announced Monday.

Bernier made the announcement in Montreal Monday alongside Public Works Minister Michael Fortier and industry executives.

Many aerospace companies are based in Quebec, including aircraft manufacturer Bombardier Inc., engine builder Pratt and Whitney Canada, components maker Heroux-Devtek and CAE Inc., one of the world's biggest providers of pilot training services.

The Tory government had been expected to unveil their replacement Technology Partnerships Canada for weeks now.

The TPC, whose mandate was not renewed last year, provided venture capital for corporate research projects.

It had long been criticized by the Conservatives as an example of the ineffectiveness of corporate subsidies.

Some argue that corporate subsidy programs like the TPC were less efficient than tax cuts or other approaches.

The Liberals say that the new program is a remake of their earlier program.


Also See:

A History of Canadian Wealth, 1914.

Origins of the Captialist State In Canada

Canada's State Capitalist Success

Corruption, nationalism and capitalism


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Crisis in the Ukraine


Despite all the protest flags and mobilizations of party faithful the reality behind the political crisis in the Ukraine stripped of the rhetoric;
a privatization putsch.

Competing Oligarchs
and their political parties vying for the transformation of the Ukraine from State Capitalism to Monopoly Capitalism.

The death of the Orange Revolution and the continuation of the capitalist revolution in the Ukraine.


Although the two leaders are separated by such ideological differences as whether Ukraine should join NATO or more closely align with Russia, much of the wrangling has been widely viewed as efforts by their financial backers and power-brokers seeking to protect business interests. Several business groups are known to be vying for influence over lucrative enterprises — for example, ventures connected to the country`s natural gas transport system.

Yanukovich has signed up to a government programme that is broadly in favour of a market economy and a pro-western foreign policy. The government will try to complete talks on joining the WTO before the end of this year; it will allow private sales of agricultural land; and it will start to negotiate a free trade area with the EU. Those who have met Yanukovich recently report that he has made a big effort to spruce up his style and become a more "western" politician - perhaps his American PR advisers have helped.
Expensive Enemies
Even these expenses pale, however, in comparison with the real cost of the ongoing struggle for power. Viktor Yanukovych's return to power last year was not only his personal triumph and that of his Party of the Regions – it was also a victory for the many business interests associated with the prime minister, particularly the company System Capital Management (SCM), which belongs to Rinat Akhmetov, the richest man in Ukraine; the corporation Interpipe, headed by Leonid Kuchma's son-in-law Viktor Pinchuk; and the group UkrSib, which belongs to Alexander Yaroslavsky and Ernest Goliev.

Consequently, businessmen sympathetic to the prime minister's opponents, the Our Ukraine and Bloc of Yulia Tymoshenko parties, have been cut out of the loop. Incidentally, the last few months have seen privatization actively moving forward in Ukraine under the supervision of the government Property Fund (FGI), whose leader Valentina Semenyuk is a member of the Socialist Party, which is a partner in Viktor Yanukovych's "national unity coalition." Coincidentally or not, the decisions that the FGI has been making lately have been unfavorable for businessmen associated with Yulia Tymoshenko. The noisiest scandal involved the recent privatization of the holding company Luganskteplovoz: although Privat Group, which is owned by long-term Tymoshenko associate Igor Kolomoisky, wanted to bid on shares in the company, the FGI ruled that only two Russian companies, Demikhovsky Mashinostroitelny Zavod (Moscow Oblast) and the managing company of Bryansk Mashinostroitelny Zavod (both companies are controlled by the group Transmashkholding), would be allowed to participate in the auction. When Luganskteplovoz eventually went to Bryansk Mashinostroitelny Zavod for $58.5 million, the Bloc of Yulia Tymoshenko (BYuT) charged that the deal was illegal and initiated a parliamentary investigation lead by BYuT deputy Andrey Kozhemyakin, the head of the Committee for Privatization Issues.

The fiercest battles over privatization still lie ahead, however. This year the FGI is preparing to auction off shares in Ukrtelekom, and Mr. Akhmetov's SCM has already expressed interest. The Ukrainian government has also given its consent to a broad privatization campaign in the electrical energy sector. Shares will be offered for sale in numerous government-owned regional energy companies, including Prikarpatenergo, Lvovenergo, Sumyenergo, Chernigovenergo, and Poltavaoblenergo, and experts are already predicting that SCM, Interpipe, and Privat will fight tooth and nail over the spoils.

Such a state of affairs does not sit well with the rest of the heavyweights in the Ukrainian market, who are now determined to see a change in the current political landscape. In large measure, the actions of Yulia Tymoshenko and Our Ukraine are driven by the expectations of businessmen claiming offense at the hands of the government. "Yanukovych is lobbying not only for the interests of Akhmetov but also for those of Russian business, which the Luganskteplovoz affair shows," believes Vadim Karasev, the head of the Kiev Global Strategy Institute. "If BYuT and Our Ukraine succeed in getting early elections called and form a coalition that ends up holding the reins of power, the oligarchs standing behind them, i.e., Privat, will also win. That is the cost of dissolving the Rada – Ukraine as a business asset."

OP-ED by Anders Aslund, International Herald Tribune (IHT)
Europe, Thursday, February 10, 2005

The economic programs of the two presidents are remarkably similar. Both

advocate a free but social market economy. Both countries have a flat
personal income tax of 13 percent. Ukraine needs to catch up with Russia
in market economic legislation, but with rising authoritarianism, the role
of the state is growing in Russian business.
.
The critical issue is the property rights of the oligarchs. Putin has given
up much of his initially good economic policies by ruthlessly going after
one oligarch, leaving the property rights of others in doubt. Yushchenko
must avoid repeating his mistake. Yet he campaigned for the re-privatization
of Kryvorizhstal, the last, biggest and most controversial privatization in
Ukraine. Having been bought by Ukraine's two wealthiest oligarchs (Rinat
Akhmetov and Viktor Pinchuk), it is a palatable political target. The
challenge to Yushchenko is to limit re-privatization to the politically
necessary and then sanctify property rights. For economic growth,
Ukraine needs more privatization rather than re-privatization.
.
Ukraine's "orange revolution" has made democracy look modern again.
Yushchenko's challenge now is to balance calls for social justice with the
need for secure property rights. -30-

Foreign Affairs - Ukraine's Orange Revolution - Adrian Karatnycky

Corruption accelerated after Kuchma's election as president in 1994. The former director of the Soviet Union's largest missile factory, Kuchma brought with him ambitious and greedy politicians from his home base, the eastern city of Dnipropetrovsk. The greediest of the crew was Pavlo Lazarenko, who, in June 2004, was convicted in U.S. District Court of fraud, conspiracy to launder money, money laundering, and transportation of stolen property. Lazarenko, currently free on $86 million bail, was accused of having stolen from the state and extorted from businesses hundreds of millions of dollars between 1995 and 1997, when he served for 12 months as first deputy prime minister and for 7 months as prime minister. When the scale of Lazarenko's corruption became known, some Ukrainian leaders were outraged. But Kuchma could not have been surprised. In 2000, his former bodyguard leaked hundreds of hours of transcripts of the president's private conversations. On the tapes, Kuchma is heard dispensing favors, paying massive kickbacks, and conspiring to suppress his opponents--making it clear that the president sat at the head of a vast criminal system.

Several factors facilitated Ukraine's massive corruption. High inflation meant that until the mid-1990s, many cross-border financial transactions were conducted using a barter system, which was easily falsified to understate the amount of goods traded; resources that were exported to Russia ostensibly for energy often brought huge kickbacks instead. Wide-ranging privatization also enabled government insiders and cronies to buy state enterprises at bargain-basement prices. Steel mills, today worth several billion dollars, were bought for a few million. Regional energy companies fell prey to the same forces. The tax inspectorate was another weakness in the system, as the government manipulated it to gain financial and political advantages: competitors could be harassed or forced out of business by inspections and fines, and oligarchs could easily evade paying taxes.

In general, the oligarchs were able to operate their businesses without fear of independent oversight. Under Ukraine's constitution, local government officials are not elected but appointed by the president, who allowed oligarchic groups to create local enclaves headed by their allies. In the Zakarpattya (Transcarpathia) region, local and central government officials enabled one oligarchic consortium to amass vast fortunes from the lumber industry by stripping the forests of their trees. Now, parts of this once richly forested mountain region have been dangerously depleted, compounding the problems caused by deforestation in the Soviet era.

Over time, several Ukrainian oligarchic clans became dominant in the young nation. Medvedchuk, who became presidential chief of staff in December 2002, represented the Kiev clan, which controlled regional energy and timber companies and invested in broadcast media. The Dnipropetrovsk clan, which invested in the energy pipeline industries, included Viktor Pinchuk, now Kuchma's son-in-law. A powerful group from the eastern coal-mining Donbass region included metallurgy baron Rinat Akhmetov, the postcommunist world's second-wealthiest man, with a net worth of $3.5 billion.

Each interest group established its own political party in parliament. The Kiev clan ran the Social Democratic Party of Ukraine (United). The Donetsk oligarchs created the Party of Regions, the ranks of which included a local governor who later became prime minister: Yanukovich. The Dnipropetrovsk group created and backed the Labor Party. And the influence did not stop there. The oligarchs owned or controlled their own national broadcast media and local and national newspapers. Each was capable of massively funding political campaigns in the emerging pseudodemocratic system.

In the late 1990s, the oligarchic clans largely remained under the control of Ukraine's powerful president. But in 2000-2001, Kuchma's power began to weaken as the wealth of the robber barons grew significantly and Kuchma's personal corruption and criminality started coming to light. Eventually, Kuchma even faced a vigorous opposition campaign to impeach him for his role in an abduction that ended with the murder of the investigative journalist Heorhiy Gongadze. But the campaign stalled as the president and his backers blocked efforts to institute the legal procedure needed to formally make the charges.

CHANGES

It was this turbulent period that saw the metamorphosis of Yushchenko from colorless central banker into charismatic opposition leader. In December 1999, pressure from Western donor countries seeking deeper economic reforms resulted in his appointment as prime minister. As chairman of the National Bank of Ukraine in the 1990s, Yushchenko had tamed rampant inflation and introduced responsible fiscal controls. In taking the reins of the government, he was determined to impose fiscal discipline and rigorously collect tax revenues and privatization receipts. To achieve these goals, Yushchenko needed to crack down on Ukraine's crony capitalism. He formed an alliance with one of the system's own--Yulia Tymoshenko, a former energy mogul who had run afoul of the Kuchma regime. With Tymoshenko's help, Yushchenko managed in just a year to recoup more than $1 billion in revenues that had been siphoned off by energy oligarchs.

Ukrainian society was also experiencing profound changes of its own, including the rise of a significant middle class in Kiev and other urban centers. In 2002, thanks in part to the ongoing effects of policies enacted by Yushchenko when he was prime minister, GDP grew by 5.2 percent; the next year, it increased 9.4 percent; and in 2004 it grew by 12.5 percent. From 1999 to 2004, Ukraine's GDP nearly doubled. Although this growth mostly benefited a narrow circle of oligarchs, it also spawned many new millionaires and a new middle class. These new economic forces resented the latticework of corruption that constantly ensnared them--from politically motivated multiple tax audits to shakedowns by local officials connected to business clans.

For Richer and For Poorer

The FSU's troubled relations with its wealthy

To Ukrainians, the wealthy are like thieves who stole all the money they had in the bank, along with the titles to their homes, then drive up in luxury cars and threaten to beat up their families if they don't pay the rent.

Take Renat Akhmetov, Ukraine's richest man with $2.3bn, now under investigation in a murder case going back a decade. Rather than face questioning, he skipped town. Now the authorities have raided his company in search of evidence. Of course we all hope that if Akhmetov does go to court, it will be for legitimate reasons, the court proceedings will be fair, and the outcome will be just. Yushchenko said rule of law would be a priority, but the strange lack of closure on the case against Borys Kolyesnykov, Akhmetov's fellow Donetsk tycoon, makes it seem as though the Ukrainian justice system is still not up to doing its job.

What goes on in the court may or may not be just, but what the average voters see is the following: in the course of a decade or so, while ordinary Ukrainians lost all their savings, this man made $2.4bn. Did he create any companies? No, he bought them or cobbled them together from other companies. Did he rebuild the crumbling businesses of Eastern Europe? No, they're still crumbling. Did he create new processes, invent new machines, formulate effective new management strategies? No, no, and no. Akhmetov did not make his money on innovation. He and the people like him are not like capitalists as I know them from Silicon Valley, they are like the Marxist ideal of capitalists: people who make money without adding anything. Like robber barons without Rockefeller Center, or the Carnegie Endowment, or new railroads, for that matter. [update: Reader dlm has rightly reminded me how deeply connected the philanthropic work of, for example, Carnegie was connected to his belief in Christian charity. Of course this is also something that is not yet a strong positive influence in Eastern Europe after decades of state opposition to Christianity.]

The “evolving oligarch”


Business oligarchs like Fridman continue to power the Russian economy — and to hold the fate of minority shareholders in their hands. According to a December 2001 study by Brunswick UBS Warburg, a Moscow-based investment bank, eight financial-industrial groups control the 64 largest private companies in Russia. Among the prominent oligarchs cited in the study alongside Fridman and Khodorkovsky were Roman Abramovich (Russia's second-richest man, who is merging his oil operations with Khodorkovsky's), Oleg Deripaska (who owns the largest aluminum producer in the country) and Vladimir Potanin (who used part of his oil proceeds to corner Russia's nickel output). Critics contend that this concentration of wealth creates barriers to competition, makes it more difficult for new businesses to get started and offers portfolio investors very limited choices on the local equity markets. The big financial-industrial groups “aren't acting very differently from monopolies anywhere else,” says Christof Ruehl, chief economist at the World Bank's Moscow office.“

Defenders of the Russian capitalist model argue not only that it isn't broken but that it doesn't need fixing. Only China's economy is expanding faster, they note. Besides, say the optimists, oligarchs have moderated their hard-boiled approach to business. But skeptics remain. “With Russia's kind of growth, it's hard to convince people that business and banking reforms are urgent,” says Stephen Jennings, chief executive officer of Renaissance Capital, a leading Moscow-based investment bank.

Fridman is often cited as a paragon of the evolving oligarch. “He played some rough games earlier in his career,” says Marshall Goldman, a Harvard University economics professor whose recent book, The Piratization of Russia: Russian Reform Goes Awry, offers a scathing vision of buccaneer capitalism. “But nowadays he looks like one of the more enlightened entrepreneurs.”
Nothing better illustrates Fridman's progress from notoriety to celebrity than his dealings with his new partner, U.K. oil giant BP. Even though BP once sued Fridman for seizing valuable petroleum fields for which the British company had paid close to a half-billion dollars, this past June BP signed a deal to pay $6.15 billion — the largest foreign investment in post-Communist Russia's history — for half of Fridman's TNK, which controls the same oil fields. Between these two bookends is a rough-and-tumble saga about “learning to do business in Russia — the hard way,” says Robert Dudley, the BP vice president who has been named chief executive officer of the joint venture, TNK-BP.

Speech before the Los Angeles World Affairs Council on March 12, 1999:

Dimitri K. Simes
President, The Nixon Center
Author, After the Collapse: Russia Seeks Its Place as a Great Power

Russian robber barons were not builders. Russian robber barons were manipulators who knew how to build connections which would allow them to privatize on the cheap without paying almost anything, and then they would immediately open bank accounts in Switzerland. Thus, they were taking money from the country, and because of that they were very afraid to have any one as Russian president who was not one of them. From that standpoint, Yeltsin was a deal. He had presided over the privatization; he could be counted upon to protect their interests. These same people who were Yeltsin’s official advisors were in charge of major networks. You’d have the money going from Russian central bank, to private banks, and the private banks would immediately give the money to Yeltsin’s campaign. There was really no difference between the Russian state treasury and Yeltsin’s personal campaign chest. That’s how those elections were conducted.

The Decision to restructure to a Market Economy was made by Soviet Intellectuals

Soviet intellectuals studied both their economy and that of the West closely and made a conscious decision for change. Once the decision to change to a market economy was made, these same intellectuals had little to say about the actual restructuring:

When I [Fred Weir] came here seven years ago at the outset of perestroika, there was very little belief in socialism among the generation dubbed the golden children. These sons and daughters of the Communist party elite had received excellent educations, had the best that the society could give them, and only aspired to live like their Western counterparts. Many had high positions in the Communist Party, but were absolutely exuberant Westernizes, pro-capitalists, and from very early in the perestroika period, this was their agenda.... People who thought they were going to be the governing strata in a new society are [now] losing their jobs, being impoverished and becoming bitter. The intellectuals, for instance—whose themes during the Cold War were intellectual freedom, human rights, and so on—had a very idealized view of Western capitalism. They have been among the groups to suffer the most from the early stages of marketization as their huge network of institutes and universities are defunded.53

Those golden children of the communist elite are undoubtedly quite silent as they gaze at their once proud country lying prostrate at the feet of imperial capital. The population of Russia has been falling at the astounding rate of 800,000 a year, birth rates have plummeted to the lowest in the world, and only 1-in-4 children are born healthy. There are dramatic increases in the number of children born with physical and mental impairment, disease is rampant, and the average lifespan of Russian men has fallen from 65 years to 58, below that of Ghana.54

Sale of the Century by Chrystia Freeland is a highly recommended masterly study on the collapse of Russia after the breakup of the Soviet Union.55 However, as a correspondent for the Financial Times when doing her research, the author focuses only on finance and politics and ignores other crucial factors. Ignored were: basic economics, Russia’s highly motivated labor ready to make the transition to capitalism as addressed above by Fred Weir, the National Endowment for Democracy’s funding and management of Yeltsin’s election, the American election specialists orchestrating of that election,r the Harvard Institute for International Development’s advising Russia’s “young reformers” throughout that collapse, and how the massive imports of consumer products both collapsed the economic multiplier and sucked the wealth out of Russia.

Without the economic multiplier as money from wages circulates, a country essentially has no economy. Yet, while intending to document the full history of the attempt to restructure the Russian economy, the author fails to notice that the “young reformers” paid no attention to primary production in Russia. These neophytes were so immersed in classical Western philosophy that they thought all there was to establishing capitalism was to create rich capitalists by giving title of valuable resource industries and banks to a few “oligarchs,” who, without a doubt, pulled off one of the greatest thefts of social wealth in history.

In the West, preventing the rise to political power of labor is a primary consideration. Thus the highly motivated “golden children” (the latest generation of leaders) who were ready to restructure Russia’s economy were never given the opportunity. Instead, the neophyte agents of capitalism (the “Young Reformers”) were intent on the obviously impossible job of telescoping the 70 years of the age of American robber barons into less than 10 years. The “golden children” running Russia’s economy wanted to restructure to capitalism and would have understood how to do so. But labor in charge of any part of an economy is anathema to theorists of Western philosophy. So the only people offered a serious opportunity to buy Russia’s productive industries for a fraction of its true value were the new “oligarchs” with no experience in running any part of the Russian economy. Without any background on running industries or much of anything else, these oligarchs were expected to become the leading capitalists of Russia.

No country has ever developed under the principles imposed upon post Soviet Russia. In fact, economic protections for the developed world are all in place and functioning and no wealthy nation would consider subjecting their economies to such harsh economic medicine as was imposed on Russia. To double, triple, and quadruple prices while shutting down industry right and left and destroying consumer savings would be taught as a recipe for disaster in any economics class.

The easiest way to understand the failure of the restructuring of the Russian economy is by outlining a sensible restructuring plan:

(1) The massive savings of Russian citizens should have been protected;

(2) Industry and media shares should have been distributed to all citizens;s

(3) modern consumer product industries should have been built, the bonds to be repaid from profits (the workers being owners would help insure those profits);

(4) until those industries were established and the economy competitive, import restrictions should have stayed in force;

(5) as fast as those modern industries came on stream, Russia’s obsolete huge factories would have reduced production and shut down in stages;

(6) an inescapable society monthly collection of landrent, as per Chapter 24, should have been placed into law, including royalties on natural resources such as oil, minerals, timber, and communications spectrums;

(7) citizens should have received title to their homes through paying landrent taxes in monthly payments (they had massive savings with which to do that);

(8) farmers, businesses and industry should also have been given title to their land with the legal responsibility of paying landrent to society;

(9) locally owned banks (better yet credit unions) should have been put in place to fund consumers, farmers, and producers;

(10) and, with those massive consumer savings and financing available, retailers would spring up automatically and this would be the ideal moment to establish an efficient distribution system as per Chapters 27 and 28.

There are many other factors to consider but the above would have been the foundation of a workable restructure plan. Subtle monopolization of technology is the biggest barrier. Virtually any successful restructure plan must provide access to technology, resources and markets and Russia’s massive resources could have been bartered for that technology as opposed to its current hemorrhaging to the West. Patent licensing could have been imposed by law. This is accepted as legal in international law, was being tested in court with AIDS drugs in South Africa, and the major drug companies capitulated rather than go to trial.

The reason these suggestions were not followed is obvious, labor would have ended up with enormous wealth and political power. If they had been given the chance, those egalitarian trained and idealistic “golden children” could have established democratic-cooperative-(superefficient)-capitalism as opposed to today’s dependency on the periphery of imperial-centers-of-capital. If that had happened, the secret that no power-structure in the imperial centers had yet given their citizens full rights would have been exposed.

See:

Back in the USSR

Oligarchs

Tymoshenko 'Evita'of the Ukraine


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Sunday, April 01, 2007

No Joke

The Alberta B.C. Free Trade agreement; TILMA came into effect today! It is modeled on NAFTA.

The Council of Canadians has denounced the pact as an intrusion on provincial political rights. It warns, for example, that it could stymie B.C. Premier Gordon Campbell's ambitious new environmental plan.

The agreement gives businesses and individuals the right to sue either province if they find that any regulation or government policy "restricts or impairs" investment.

Governments in the two provinces see the deal as a blueprint for other provinces wanting to remove interprovincial trade barriers.

The council is also warning that a trade, investment and labour agreement between B.C. and Alberta could negatively affect municipalities.

It says school boards and health and social service agencies could also be stripped of protection by private investors wanting to put profit before regulations.

Pickard, the council's regional organizer for B.C., says that unfortunately, TILMA is not an April fool's joke.

The B.C. and Alberta governments are selling the agreement as a way to erase trade barriers.

But Pickard says it was signed without public consultation or legislative debate.

"TILMA has very powerful provisions that will allow companies to challenge and overturn important municipal bylaws," Pickard said in a statement.




See

Labour

Unions

Temporary Workers


NAFTA

AFL






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Palm Sunday April Fools Day


How appropriate that the Divine Fool is celebrated today both because it is April Fools Day and Palm Sunday.

Radical Theologin Harvey Cox wrote a whole book on the divine fool.

The Feast of Fools: A Theological Essay on Festivity and Fantasy (1969),

One of the Protestants who has addressed festivals is Harvey Cox who argued that human beings are “essentially festive and ritual creatures” (1969, 8; cf. Browning 1980). As homo festivus and homo fantasia, human beings express festivity and fantasy through festival as a form of “theatre of the body.” Cox argues that with the march of secularization and the continued rejection of festivity “Christianity has often adjusted too quickly to the categories of modernity” (Ibid. 15), and with this, important facets of what it means to be human are neglected. As a result, Cox believes that there is a real need for Christianity in the West to develop a theology of festivity


An article from that book was published back in the early Seventies in Playboy, I read it for the articles back then, which included an illustration one rarely sees; Jesus Laughing.

And, what else, the symbol of Christ that best symbolizes this theology is "Christ the Harlequin" (as in The Parable, New York World's Fair 1966), who personifies festivity and fantasy in an age that has almost lost both.


Perhaps because as a divine fool he was high.

The Feast of Fools, known also as the festum fatuorum, festum stultorum, festum hypodiaconorum, or fête des fous , are the varying names given to popular medievalfestivals regularly celebrated by the clergy and laity from the fifth century until the sixteenth century in several countries of Europe, principally France, but also Spain, Germany, England, and Scotland. A similar celebration was the Feast of Asses.

The central idea seems always to have been a brief social revolution, in which power, dignity and impunity is briefly conferred on those in a subordinate position. In the view of some, this makes the medieval festival a successor to the Roman Saturnalia.

In the medieval version the young people, who played the chief parts, chose from among their own number a mock pope, archbishop, bishop, or abbot to reign as Lord of Misrule. Participants would then "consecrate" him with many ridiculous ceremonies in the chief church of the place, giving names such as Archbishop of Dolts, Abbot of Unreason, Boy Bishop, or Pope of Fools. The protagonist could be a boy bishop or subdeacon, while at the Abbey of St Gall in the tenth century, a student each December 13 enacted the part of the abbot. In any case the parody tipped dangerously towards the profane. The ceremonies often mocked the performance of the highest offices of the church, while other persons, dressed in different kinds of masks and disguises, engaged in songs and dances and practiced all manner of revelry within the church building.


I highly recommend Harvey Cox's work which in many ways compliments Bakhtin's work on the subversive nature of the Carnival and the role playing of the Fool.

"The carnival was not only liberating because for that short period the church and state had little or no control over the lives of the revellers—although Terry Eagleton points out this would probably be 'licensed' transgression at best—but its true liberating potential can be seen in the fact that set rules and beliefs were not immune to ridicule or reconception at carnival time; it 'cleared the ground' for new ideas to enter into public discourse. Bakhtin goes so far as to suggest that the European Renaissance itself was made possible by the spirit of free thinking and impiety that the carnivals engendered."


The Carnivale and Feast of Fools became recuperated in post Renaissance society as comedie della art, and play festivals like the Fringe, which exists world wide and is a popular summer festival here in Edmonton, reflect the same anarchic festivus that one would see at carnival or the earlier Fool's Feasts.


And we see the modern Carnival not only during Mardi Gras but with Feast of Fools that is the Burning Man festival. As pointed out in this article by John Morehead, whose blog is well worth perusing for it's writings on alternative religious movements..

"Burn, Baby, Burn, Christendom Inferno: Burning Man and the Festive Immolation of Christendom Culture and Modernity"

Second and related to the context of counter-modernity and counter-Christendom, Burning Man expresses itself within a cultural context that exhibits a decidedly post-modern and post-Christendom approach to spirituality. Christianity continues to play a significant role in American culture, and may have been the dominant religion in America and the Western world in the past, but in recent decades there has been a “declining influence of religion – particularly Christianity” (Heelas & Woodhead 2005, 1). This has come about through a secularization of the West which in turn has led to a spiritual re-enchantment[1] process. This re-enchantment involves the preference for spirituality rather than religion, and is characterized by an emphasis upon an individualized, subjective, and eclectic spiritual quest. In this environment of the post-modern spirituality seeker, Christianity is perceived negatively as a dogmatic institution rather than a vibrant spirituality whose adherents have often failed to live up to the moralizing they present to the culture. In reaction, many Burning Man participants have either rejected Christianity outright, or consider it of no consequence as a viable option in creating a spirituality suited for the challenges of the twenty-first century


[1] Christopher Partridge explores the ramifications of the re-enchantment thesis in The Re-Enchantment of the West, vol. 1 (London & New York: T & T Clark International, 2004).

Since the play is the thing, we can see that since the earliest days of Christendom the Easter pageant played a significant role in society, as we know by way of the York Guilds which in a gift economy share their surpluses by holding feasts and a two week series of plays, it comes full circle, with the sacrificed god being the fool king.

If the power of the King/Church/State lay in divine right, the power of the people lay in the fool king whom they crowned. It is why in the movie Andre Rublev, about the icon painter, the opening scene has a village fool crucified for making fun of the priests. It too was produced in 1969 when Cox published his book.
Only by learning to laugh at the hopelessness around us can we touch the hem of hope. Christ the clown signifies our playful appreciation of the past and our comic refusal to accept the spectre of inevitability in the future. He is the incarnation of festivity and fantasy. (Harvey Cox 1969, 142)


Jesus as Fool, is a subversion on the classic church iconography of the slain and resurrected lord. For as Harliquen, fool, clown, he is life giver, alive, part of the meme of a living humanity. Not an icon but a living force. For the truth of his sacrifice is that life goes on.

Thus the religious heresies originating in Gnosticism that arose during the transition from the Catholic and Orthodox Empires to Protest-ism were about this spirit.

What if it is possible to awaken to a profound state of oneness and love, which the Gnostic Christians symbolized by the enigmatic figure of the laughing Jesus?


What the sacrifice originally meant was ironically the end of sacrifice. Which is why the religion of Christianity began with Agape feasts hidden away in caves and grotos, where all could be equal. The slave religion was about the end of sacrifice, the end of all sacrifice, not only of animals, but of people and of freedom.


Godspell: A Musical Based on the Gospel According to St Matthew (1973)


The portrayal of Jesus as a clown may have been offensive to some, however this reviewer found it to be refreshing, the clown communicates joy while communicating the seriousness of the gospel message. He reminds us that the gospel is a message of great joy and humility, love and peace, of triumph and victory. However in saying that there are some aspects that don't fit with our understanding, for instance the betrayal scene, Jesus kisses Judas. Then it does finish with a question hanging over it, that being, why no resurrection scene? Or maybe there was, perhaps the grand finale represents the risen Jesus, carried lifted high into the crowded streets, it gives a sense of inclusiveness, that somehow Jesus lives on in each one of us.


Jesus the fool returns again and again as a radical revolutionary icon for popular spirituality and its heresies, in opposition to the institutions of Christianity.

THE ENIGMA OF SANCTITY
The Flowers of St Francis 1950

Still, theologian Harvey Cox saw the Sixties' counterculture as a reclamation of facets of humanity eclipsed by the rise of technological society — essentially, Rossellini's jester side of man. In his book the Feast of Fools: A Theological Essay on Festivity & Fantasy, Cox idenfied certain aspects of the youth revolt - the recovery of celebration and imagination — not just with a hunger for for wholeness, but vital to both psychological health and, significantly, to being able to have compassion for the oppressed of the world. A capacity for being able to imaginatively "put themselves in other shoes" was prerequisite for the developed nations to be able to have understanding and compassion for those oppressed and different than themselves.

Here we see why Rossellini takes this "jester side" so seriously and so centrally: his offering of St. Francis as a model for conflict-weary Europe isn't a simple-minded Utopian vision, a rejection of private property and reduction to begging (that begs the question "begging from whom?"), but a recovery of that sense of play and imaginative identification with others that makes people more valuable than efficiency, and the "abnormality" of the Other less prone to threaten and result in conflict. The mere existence of the jester is a check on the hubris of power in both ruler and system. In his book, Cox cites an essay by Leszek Kolakowski titled, "The Priest and the Jester":
The philosophy of the jester is a philosophy which in every epoch denounces as doubtful what appears as unshakeable; it points out the contradictions in what seems evident and incontestable; it ridicules common sense into the absurd — in other words, it undertakes the daily toil of the jester's profession along with the inevitable risk of appearing ludicrous.
The jester is the quintessence of the carnival spirit, and just as the jester's cap is pants worn on the head, carnival turns upside-down the values by which the world is typically run. Carnival mocks the pretensions of permanence and power, defies the illusions of the masses. No wonder the faith of Francis has been described as a "carnivalized" Christianity: his topsy-turvy insistence that Perfect Joy is found in suffering, his irrational love for everything and everybody, his scandalous rejection of all the world holds dear — power, property, status, etc. Technically, of course, this is Christianity, for which the adjective "carnivalized" is required only when it forgets its own scandalous identity. Yet the upsidedowness of a faith whose God is born in a stable, the meek inherit the earth, and whose secrets are given to children and fools is all too easily domesticated, and even the court of Christ himself would seem to require its own jester.

was more than a juggler. He was also a poet, singer, all-around entertainer. The Indeed, Francis referred to himself as "the jester of God," and the Italian title of Rossellini's film is Francesco, giullare di Dio — "Francis, God's Jester". The Italian term refers to a French one, jongleur — whence comes "juggler" — but the jongleurjongleur was in fact more earthy than the troubadour: the Latin joculator means "joker", and Francis's joculatores Domini ("ministrels of God") were renowed for putting on a good show when they pulled into a town to preach. Francis's name and terms point to France, home to a Medieval love cult which, though eventually declared heretical and wiped out, left a deep and permanent mark on European culture. So much of what we know as "love in the Western world" finds its source in this flamboyantly romantic vision, including the veneration of an ideal lady — whether Dante and his Beatrice, or St. Francis and his "Lady Poverty."


Today there is the reinvention of the feast of fools, not only in the neo-pagan movement, or the Burning Man festival but in the far left as well. Paul Goodman and other Marxist Freudians talked about humans being playful, that the alienation of work under capitalism was that it meant that it was labour, as in slavery, drudgery rather than fun, playfulness. A Little Eros For Valentine's Day

Since Cox wrote his book in the sixties, the search for this human playful utopia continues.

I was involved with one utopia called Minnesota Experimental City. It was in an era when in the United States there was a lot of utopian thinking. Harvey Cox’s book, The Secular City, was an all time best seller that told us that as soon as we get rid of symbol and myth, get enough guitar players and good architects and civil rights workers, the Kingdom will have come.4 Three years later he was back with a better book called The Feast of Fools.5 These were written just before New York burned and Detroit burned and Watts burned, just before the U.S. committed troops to Vietnam, just before everything went bad. But we were building Minnesota Experimental City. Fifty-eight corporations put up four million dollars for our study. Buckminster Fuller – Mr. Twenty-First Century – was on the panel; Harrison Brown (Lyndon Baines Johnson’s doctor, head of the Mayo Clinic); and then they salted it with a few humanists who would ask the human questions.

We were to build a city – utopia – of two hundred and fifty thousand people. It had to be at least seventy-five miles from any other urban centre. It would be built around a branch of the University of Minnesota; 3M and all the other big firms would have a base there. We thought through everything. It’s cold up there, how are you going to play tennis all year, and how are you going to keep people from arthritis cramps? Well, Buckinster Fuller said, "nothing to it, we build a one mile square plastic dome." How do we get on with pollution? Well, we owe you a ride on an elevator in a building, so we owe you horizontal transportation in our Minnesota Experimental City. You get to the edge, and we’ll take care of you from there.



Situationism was a game of revolution and revolutionaries at play in the Sixties. So it makes sense that the recuperation of their radical politics should, like the surrealists before them, end on the stage. For once the world of 1968 was their stage today they are the play.

The meta-play is an example of Reflectionism through performance. Professor Steve Mann of the University of Toronto, who invented EyeTap to literally mediate monocultural reality, proposes: ï¾…Reflectionism as a new philosophical framework for questioning social values. The Reflectionist philosophy borrows from the Situationist movement in art and, in particular, an aspect of the Situationist movement called d←tournement, in which artists often appropriate tools of the "oppressor" and then resituate these tools in a disturbing and disorienting fashion. Reflectionism attempts to take this tradition one step further, not only by appropriating the tools of the oppressor, but by turning those same tools against the oppressor as well. I coined the term "Reflectionism" because of the "mirrorlike" symmetry that is its end goal and because the goal is also to induce deep thought ("reflection") through the construction of this mirror. Reflectionism allows society to confront itself or to see its own absurdity. The participants of the meta-play who do not wish to see themselves in the mirror (thus confronting themselves) quickly turn away, but are left with the lingering image of grotesque ugliness, which will haunt them until a profound internal resolution is reached. Drawing upon traditional folly, but appearing in a disenchanted post-modern society, the concept of The Fool is resurrected, challenging and satirizing oppressors in order to cause reflection on their positions, attitudes, and worldviews. Harvey Cox describes the Foolï¾’s perennial message in his 1969 The Feast of Fools: A Theological Essay on Festivity and Fantasy: It is the eternal message of The Fool, who takes the stage whenever greed, arrogance, authority, pride and sycophancy lay claim to the public headspace. These are the acts of real fools, without which The Fool would be useless and mute. The Fool is a looking-glass. She is male and female, he is human and animal, they are one moment immersed in the workaday routine and the next overturning the norms of daily life. When we play The Fool, we are The Other, strangers who are in this world but not entirely of it. The ancient term Narrenfreiheit means "freedom of the fool." That freedom reminds us that in a moment of ecstasy we can sweep away the illusion of so much of what we endure. The Fool breaks the trail; the revolutionaries follow. Those who participate, reflect, and achieve the モmoment of ecstasy,ï¾” will soon realise that playing the Fool is not only one of the most satisfying and liberating experiences they will ever encounter, but is also an urgent direct action to reclaim the public headspace. To counter the oppressive and ubiquitous corporate monoculture that is so prevalent in late capitalist society, culture jamming through performance may well be the only solution to cause reflection, hence shattering a dystopic corporate reality. The idea will, I sincerely hope, spread like a virus until such a time whereby all human beings are free to express and play without fear of reprisal, are free from oppression and exploitation of all sorts, and are truly equal to one another.


See:

Jesus

Gnostic

Paganism


April Fools

Judas the Obscure

For a Ruthless Criticism of Everything Existing

New Age Libertarian Manifesto

Another Prehistoric Woman

My Favorite Muslim

Antinominalist Anarchism

Marxism and Religion




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