Thursday, April 14, 2016

Explaining the Panama Papers, or, Why Does a Dog Lick Himself?










By Slavoj Žižek On 4/7/16 at 4:01 AM






The only truly surprising thing about the Panama Papers leak is that there is no surprise in them: Didn’t we learn exactly what we expected to learn from them? Yet, it’s one thing to know about offshore bank accounts in general, and another to see concrete proof. It’s like knowing that one’s partner is fooling around on you—one can accept the abstract knowledge of it, but pain arises when one learns the steamy details. And when one gets pictures of what they were doing.… So now, with the Panama Papers, we are saddled with some of the dirty pictures of financial pornography of the world’s rich, and we can no longer pretend that we don’t know.

Back in 1843, the young Karl Marx claimed that the German ancien regime “only imagines that it believes in itself and demands that the world should imagine the same thing.” In such a situation, to put shame on those in power becomes a weapon itself. Or, as Marx goes on, “the actual pressure must be made more pressing by adding to it consciousness of pressure, the shame must be made more shameful by publicizing it.”

This is our situation today: We are facing the shameless cynicism of the existing global order, whose agents only imagine that they believe in their ideas of democracy, human rights, etc., and through moves like WikiLeaks and the Panama Papers disclosures, the shame—our shame for tolerating such power over us—is made more shameful by publicizing it.

A quick look at the Panama Papers reveals a standout positive feature and a standout negative feature. The positive one is the all-embracing solidarity of the participants: In the shadowy world of global capital, we are all brothers. The Western developed world is there, including the uncorrupted Scandinavians, and they shake hands with Vladimir Putin. And Chinese President Xi, Iran and North Korea are also there. Muslims and Jews exchange friendly winks—it is a true kingdom of multiculturalism where all are equal and all different. The negative feature: the hard-hitting absence of the United States, which lends some credence to the Russian and Chinese claim that particular political interests were involved in the inquiry.

So what are we to do with all these data? The first (and predominant) reaction is the explosion of moralistic rage, of course. But what we should do is change the topic immediately, from morality to our economic system: politicians, bankers and managers were always greedy, so what is it in our legal and economic system that enabled them to realize their greed in such a big way?

From the 2008 financial meltdown onward, public figures from the pope downward bombard us with injunctions to fight the culture of excessive greed and consummation. As one of the theologians close to the pope put it: “The present crisis is not a crisis of capitalism, but the crisis of morality.” Even parts of the left follow this path. There is no lack of anti-capitalism today: Occupy protests exploded a couple of years ago, and we are even witnessing an overload of the critique of the horrors of capitalism: books, newspaper in-depth-investigations and TV reports abound on companies ruthlessly polluting our environment, on corrupted bankers who continue to get fat bonuses while their banks have to be saved by public money, of sweat shops where child work overtime.

There is, however, a catch to all this overflow of critique: what is as a rule not questioned is the democratic-liberal frame of fighting against these excesses. The explicit or implied goal is to democratize capitalism, to extend the democratic control onto the economy, through the pressure of the public media, government inquiries, harsher laws, and honest police investigations. But the system as such is not questioned, and its democratic institutional frame of the state of law remains the sacred cow even the most radical forms of this “ethical anti-capitalism” like the Occupy movement do not touch.

The mistake to be avoided here is best exemplified by the story—apocryphal, maybe—about the Left-Keynesian economist John Galbraith: before a trip to USSR in the late 1950s, he wrote to his anti-Communist friend Sidney Hook: “Don’t worry, I will not be seduced by the Soviets and return home claiming they have Socialism!” Hook answered him promptly: “But that’s what worries me—that you will return claiming the USSR is NOT socialist!” What worried Hook was the naïve defense of the purity of the concept: if things go wrong with building a Socialist society, this does not invalidate the idea itself, it just means we didn’t implement it properly. Do we not detect the same naivety in today’s market fundamentalists?

When, during a TV debate in France a couple of years ago, the French intellectual Guy Sorman claimed that democracy and capitalism necessarily go together, I couldn’t resist asking him the obvious question: “But what about China today?” Sorman snapped back: “In China there is no capitalism!” For the fanatically pro-capitalist Sorman, if a country is non-democratic, it simply means it is not truly capitalist, but practices its disfigured version, in exactly the same way that for a democratic Communist Stalinism was simply not an authentic form of Communism.

The underlying mistake is not difficult to identify—it is the same as in the well-known joke: “My fiancée is never late for an appointment, because the moment she is late she is no longer my fiancée!” This is how today’s apologist of market, in an unheard-of ideological kidnapping, explain the crisis of 2008: It was not the failure of the free market that caused it, but the excessive state regulation, i.e., the fact that our market economy was not a true one, that it was still in the clutches of the Welfare State. The lesson of the Panama Papers is that, precisely, this is not the case: Corruption is not a contingent deviation of the global capitalist system, it is part of its basic functioning.

The reality that emerges from the Panama Papers leak is of class division, and it’s as simple as that. The papers demonstrate how wealthy people live in a separate world in which different rules apply, in which legal system and police authority are heavily twisted and not only protect the rich, but are even ready to systematically bend the rule of law to accommodate them.

There are already many Rightist liberal reactions to the Panama Papers putting the blame onto the excesses of our Welfare State, or whatever remains of it. Since wealth is so heavily taxed, no wonder owners try to move it to places with lower taxes, which is ultimately nothing illegal. Ridiculous as this excuse is, this argument has a kernel of truth, and it makes two points worth noting. First, the line that separates legal from illegal transactions is getting increasingly blurred, and is often reduced to a matter of interpretation. Second, owners of the wealth who moved it to offshore accounts and tax havens are not greedy monsters, but individuals who simply act like rational subjects trying to safeguard their wealth. In capitalism, you cannot throw out the dirty water of financial speculation and keep the healthy baby of real economy. The dirty water effectively is the bloodline of the healthy baby.

One should be not afraid to go to the end here. The global capitalist legal system itself is, in its most fundamental dimension, corruption legalized. The question of where crime begins (which financial dealings are illegal) is not a legal question but an eminently political question, one of power struggle.

So why did thousands of businessman and politicians do what is documented in the Panama Papers? The answer is the same as that of the old vulgar riddle-joke: Why do dogs lick themselves? Because they can.







Tuesday, April 12, 2016

Paul Krugman's Deranged Attack on Bernie Sanders
























National Public Radio Disregards the Facts about Hillary Clinton








Did Sanders Lie About Clinton’s Oil Money? NPR Factchecker Can’t Be Bothered to Check








When media outlets check the facts, it’s supposed to be in the first sense Google‘s dictionary offers for the word “check” :

1. examine (something) in order to determine its accuracy….

But sometimes media seem more intent on carrying out the second meaning of the word:

2. stop or slow down the progress of (something undesirable).

That’s the approach that NPR‘s Peter Overby (4/1/16) seemed to take when he wrote a “factcheck” about a controversy involving Hillary Clinton and fossil fuel money. Online, NPR displayed a video clip of an encounter between Hillary Clinton and a Greenpeace activist:

The activist,  Eva Resnick-Day, says: “Thank you for tackling climate change. Will you act on your words and reject future fossil fuel money in your campaign?” To which Clinton responds:

I do not have—I have money from people who work for fossil fuel companies. I’m so sick. I’m so sick of the Sanders’ campaign lying about me. I’m sick of it.

Resnick-Day, who says she was “genuinely shocked” by Clinton’s response, states she is “in no way affiliated with the Sanders campaign.” NPR‘s Overby does quote Sanders spokesperson Michael Briggs, though—with Overby characterizing the quote as the Sanders campaign taking the opportunity “to pounce on Clinton”:

The truth is that Secretary Clinton has relied heavily on funds from lobbyists working for the oil, gas and coal industry.

So the factchecker’s job is to determine whether Clinton is right to say that she just gets money from people who work for fossil fuel companies, and that the Sanders campaign is lying about this, or whether the Sanders campaign is actually correct in saying that she relies heavily on funds from fossil-fuel lobbyists—right?

See, that’s why you don’t have a job at NPR.

Overby’s job, as he interprets it, is just to confirm that Clinton was indeed accurate in saying she accepts money from people who work for fossil-fuel companies:

The Center for Responsive Politics, parsing Federal Election Commission reports, finds that workers in the oil and gas industries have given Clinton $307,561 so far — compared to, say, $21 million from the securities and investment industry, or $14.4 million from lawyers and law firms.

Put another way, the oil and gas money is two-tenths of 1 percent of Clinton’s $159.9 million overall fundraising.

If there’s an “implication that dirty energy has got her on a string,” Overby observes, “campaign finance data suggest it wouldn’t be much of a string.”

But what about “lobbyists working for the oil, gas and coal industry”—isn’t that what Sanders is supposed to be lying about, to the point of making Hillary Clinton sick? To give him credit, Overby is good enough to tell us what he isn’t telling us:

The industry total here doesn’t include lobbyists with fossil-fuel clients, and it doesn’t do what the Republican opposition research group America Rising did: include corporate money to the Clinton Foundation. The presidential campaign cannot raise corporate money.

Well—why not include lobbyists with fossil-fuel clients, since that is what the Sanders campaign, like other critics, was explicitly talking about? According to Greenpeace, Clinton has gotten “$1,465,610 in bundled and direct donations from lobbyists currently registered as lobbying for the fossil fuel industry.” That’s quite a bit more string.

And corporations can’t give directly to campaigns, but they can give to Super PACs that support campaigns. Greenpeace cites “$3,250,000 in donations from large donors connected to the fossil fuel industry to Priorities Action USA, a Super PAC supporting Secretary Clinton’s campaign.”

That works out to $5 million altogether. It’s hard to say what the going rate for buying a presidential candidate is, but unlike Overby, I wouldn’t refer to Clinton’s fossil-fuel-industry contributions as “paltry.”

And even though Overby warns you away from looking at the Clinton Foundation—because it’s the sort of thing a “Republican opposition research group” would do—you don’t need to go to a middleman; the Clinton Foundation lists its donors on its website. There you can learn that the Foundation has received at least $10 million from Saudi Arabia; at least $5 million from Kuwait, as well as from oil-refining billionaire Mohammed H. Al-Amoudi; at least $1 million from ExxonMobil, natural gas-producer Cheniere Energy, Qatar, Oman, United Arab Emirates, the Dubai Foundation, “Friends of Saudi Arabia,” etc.

Those are the facts. NPR did its best to stop or slow them down.



Jim Naureckas is the editor of FAIR.org. You can follow him on Twitter: @JNaureckas.








Hillary Clinton responds to a question about fossil fuels. (image: Greenpeace via Salon)

Hillary Clinton is “so sick of the Sanders campaign lying about me.” And NPR‘s factchecker is so sick of having to decide whether or not Sanders’ campaign is actually lying about Clinton. (image: Greenpeace via Salon)











Paul Krugman Goes off the Deep End







Sanders Annoys Democratic Establishment


https://consortiumnews.com/2016/04/11/sanders-annoys-democratic-establishment/


By Rick Sterling

When Republicans are in the White House, columnist Paul Krugman and The New York Times sometimes sound pretty good. But when someone starts seriously and effectively challenging core assumptions and values of our political economic system, the progressive veneer quickly vanishes. This is demonstrated in Paul Krugman’s attack on the Bernie Sanders campaign in his “Sanders Over the Edge” editorial.

Krugman does not hold back. Bernie supporters and Bernie himself are described by Krugman as intolerant, cultish, shallow, vague, without substance, lacking character and values, dishonest, short on ethics, really bad, petulant and self-righteous. Wow.

Krugman’s diatribe deserves scrutiny and lampooning. The purpose seems to be to ridicule, threaten and warn Sanders to get back in line. Instead, progressives may intensify their support for Sanders and tell Krugman to get his facts straight. Here are some key falsehoods in the Krugman attack:

Krugman dismisses Sanders’ call to “break up the big banks” and suggests the financial giants did not cause the economic crash; the problem was “predatory lending” by smaller outfits such as Countrywide Financial. This analysis is nonsense and contradicts what Krugman himself has said in the past. The predatory lenders were minor players in the process. The loans would never have been issued if they were not being bought up and bundled together into collateral debt obligations (CDOs) and other “products” by major financial institutions such as Goldman Sachs. They were the ones driving the operation not the individual lenders.

Krugman goes on to claim Sanders does not have any specific proposals and that “going on about big banks is pretty much all Mr. Sanders has done” and “absence of substance beyond slogans seems to be true of his positions across the board.” This is untrue, easily confirmed by looking at the Sanders website. Sanders has called for a tax on Wall Street speculation/trading, dramatic changes in the tax code, increasing the minimum wage to $15 per hour, canceling detrimental trade accords and imposing individual penalties for corporate crime. These are clear and specific with similar details in virtually every policy area.

Krugman claims Sanders and supporters were ‘just plain dishonest’ when they accused Clinton of receiving substantial funding from the fossil fuel industry. Krugman relies on the establishment “fact checks” of the Times, The Washington Post and NPR. However those “fact checks” have been refuted by Fairness and Accuracy in Reporting which confirms that Clinton did in fact receive substantial funding as claimed by Sanders. The FAIR title gives the essence: “NPR Fact Checker can’t be bothered to check.”

Krugman gets really worked up because Sanders issued a “rant” suggesting Mrs. Clinton may not be “qualified” to be President after taking so much funding from Wall Street and supporting recent and past U.S. foreign aggression and intervention which has backfired badly.

Krugman says Sanders is “really bad on two levels” — “imposing a standard of purity “ and raising the specter that Sanders supporters may not happily support Clinton as the “strong favorite for the Democratic nomination.”  This is the core message from Krugman, a warning to Sanders to get back on the establishment bus.

Krugman thinks it is hopelessly purist to expect a President who will not take the country into new wars and sustain illegal coups such as in Honduras. Many Sanders supporters know about Clinton’s role in Honduras, Libya and beyond, probably better than Krugman. That’s why some will not transfer their votes to her.

Is Krugman not aware of the reason for Sanders’s success? Sanders is calling for radical transformation in the economy, criminal justice, health-care, education and foreign policy. He is publicly saying this needs to be done with a populist “political revolution.” He is winning huge support with that message and because many see him as sincere and authentic, not a normal politician. That is clearly troubling to Krugman and the Times.

The New York Times has endorsed Hillary Clinton and their candidate is in jeopardy. This may be contributing to escalating attacks on Bernie and whitewashes of Hillary.

[For more on this topic, see the Young Turks for a video take-down of Krugman and his attack on Sanders.

Rick Sterling is base in the San Francisco Bay Area and writes primarily on international issues.