Showing posts with label Author: Keith. Show all posts
Showing posts with label Author: Keith. Show all posts

Thursday, March 26, 2009

Reverse Robin Hood (Posted by Keith) by Keith

This piece by Jeffrey Sachs is good explaination of  the latest bank plan.  

Obama’s bank plan could rob the taxpayer

By Jeffrey Sachs

Published: March 25 2009 23:14 | Last updated: March 25 2009 23:14

The Geithner-Summers plan, officially called the public/private investment programme, is a thinly veiled attempt to transfer up to hundreds of billions of dollars of US taxpayer funds to the commercial banks, by buying toxic assets from the banks at far above their market value. It is dressed up as a market transaction but that is a fig-leaf, since the government will put in 90 per cent or more of the funds and the “price discovery” process is not genuine. It is no surprise that stock market capitalisation of the banks has risen about 50 per cent from the lows of two weeks ago. Taxpayers are the losers, even as they stand on the sidelines cheering the rise of the stock market. It is their money fuelling the rally, yet the banks are the beneficiaries.

The plan’s essence is to use government off-budget money to overpay for banks’ toxic assets, perhaps by a factor of two or more. This is done by creating a one-way bet for private-sector bidders for the toxic assets, then cynically calling it “private sector price discovery”. Consider a simple example: a toxic asset with face value of $1m pays off fully with probability of 20 per cent and pays off $200,000 with probability of 80 per cent. A risk-neutral investor would pay $360,000 for this asset.

Along comes the government and says it will finance 90 per cent of the investor’s purchase and, moreover, do so as a non-recourse loan. Non-recourse means the government’s loan is backed only by the collateral value of the toxic asset itself. If the pay-out is low, the loan is defaulted and the government ends up with the low pay-out rather than full repayment of the loan.

Now the investor is prepared to bid $714,000 (with rounding) for the same asset. The investor uses $71,000 of his/her own money and $643,000 of the government loan. If the asset pays off in full, the investor repays the loan, with a profit of $357,000. This happens 20 per cent of the time, so brings an expected profit of $71,000. The other 80 per cent of the time the investor defaults on the loan, and the government ends up with $200,000. The investor just breaks even by bidding $714,000, as we would expect in a competitive auction.

Of course, the investor has systematically overpaid by $354,000 (the bid price of $714,000 minus the market value of $360,000), reflecting the investor’s right to default on the loan in the event of a poor pay-out of the toxic asset. The overpayment equals the expected loss of the government loan. After all, 80 per cent of the time (in this example) the government loses $443,000 (the $643,000 loan minus the $200,000 repayment). The expected loss is 80 per cent of $443,000, equal to $354,000.

The idea of “private sector price discovery” is therefore flim-flam. There would be price discovery if the government’s loan had to be repaid whether or not the asset paid off in full. In that case, the investor would bid $360,000. But under the Geithner-Summers plan the loan is precisely designed to be a one-way bet, for the purpose of overpricing the toxic asset in order to bail out the bank’s shareholders at hidden cost to the taxpayers.

The banks could be saved without saving their shareholders – a better deal for taxpayers and without the moral hazard of rescuing shareholders from the banks’ bad bets. Most simply, the government could provide loans to buy the toxic assets on a recourse basis,therefore without the hidden subsidy. Alternatively, the plan could give the taxpayers an equity stake in the banks in return for cleaning their balance sheets. In cases of insolvency, the government could take over the bank, the much dreaded nationalisation, albeit temporary. At the end of the Bush administration, Congress voted for the $700bn (€517bn, £479bn) troubled asset relief programme (Tarp) on the assurance the taxpayer would get fair value for money (for example, by taking equity stakes in the rescued banks). The new plan does not offer that.

Tim Geithner, Treasury secretary, and Lawrence Summers, director of the White House national economic council, suspect that they cannot go back to Congress to fund their plan and so are raiding the Federal Reserve, the Federal Deposit Insurance Corporation and the remaining Tarp funds, hoping that there will be little public understanding and little or no congressional scrutiny. This is an inappropriate institutional use of the Fed, the FDIC and the Tarp. Mr Geithner and Mr Summers should at the very least explain the true risks of large losses by the government under their plan. Then, a properly informed Congress and public could decide whether to adopt this plan or some better alternative.

Jeffrey Sachs is director of The Earth Institute at Columbia University

Saturday, March 21, 2009

Class Struggle Heats Up, Bankers on the Ropes, Geithner Must Resign (Keith) by Keith

Today's Financial Times has the banner headline "Banker fury over tax 'witch-hunt." The article has quotes from dismayed bankers: 

"Introducing this 90 per cent tax is like taking the the fiannce industry out the back and shooting it." --London Bank Exedcutive 

"The tax measures will send the U.S. back to the stone age." 
-Frankfurt Banker 

"It is like a McCarthy witch-hunt"
Wall St. banker (who deosn't know much about history)

"The is the most profoundly anti-American thing I have ever seen."
-Wall St. Banker 

the quotes show Financial Capital is starting to swaet and they are taking a lot of punishment, we must make sure that Obama doesn't lose the will to take the fight to the end. Geithner must be our target, he is financial capital's the weak link. 

Tim Geithner, the Treasury Secretary and former Goldman Sachs exec, and sturdy ally of financial capital is under increasing pressure to resign. The Financial Times and the Financial Capitalist class for which they speak have been defending Geithner (last week the FT wrote an editorial defending Geithner and today McCain came out asking the country to give Geithner a chance).  

We should go all out against Geithner but we must combine the demand that he resign  with the demand that his successor not have a history in the finacial sector, -- someone like Eliot Spitzer (As Client #9 Spitzer is out but we need someone like him) or Paul Krugman. 


Wednesday, March 18, 2009

Class Struggle and AIG (Posted by Keith) by Keith

Eliot Spitzer, the “disgraced” former Governor of New York  (he was caught with an expensive prostitute but he was “caught” as a part of the class struggle—he had been going after financial capitalist before it became a congressional past time, and they brought him down in a scandal) published this essay in Slate.com this week.  Although he speaks about “insiders” rather than the financial capitalist he points out the relationship between AIG and Goldman Sachs.   Goldman Sachs is basically merged with the U.S. state and have their tentacles all over Obama’s administration.  An immediate task is to defeat the financial class within the Obama administration.  Jim wrote a nice essay about some of the class struggles within the Obama administration. 


Here is the Spitzer article:

The Real AIG Scandal

It's not the bonuses. It's that AIG's counterparties are getting paid back in full.

By Eliot Spitzer

Everybody is rushing to condemn AIG's bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG's counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?

For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman's collapse, they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG's trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.

It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure. The payments to AIG's counterparties are justified with an appeal to the sanctity of contract. If AIG's contracts turned out to be shaky, the theory goes, then the whole edifice of the financial system would collapse.

But wait a moment, aren't we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes—income taxes to sales taxes—to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won't be laid off. Why can't Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn't we already give Goldman a $25 billion capital infusion, and aren't they sitting on more than $100 billion in cash? Haven't we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn't they have accepted a discount, and couldn't they have agreed to certain conditions before the AIG dollars—that is, our dollars—flowed?

The appearance that this was all an inside job is overwhelming. AIG was nothing more than a conduit for huge capital flows to the same old suspects, with no reason or explanation.

So here are several questions that should be answered, in public, under oath, to clear the air:

What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?

Was it already known who the counterparties were and what the exposure was for each of the counterparties?

What did Goldman, and all the other counterparties, know about AIG's financial condition at the time they executed the swaps or other contracts? Had they done adequate due diligence to see whether they were buying real protection? And why shouldn't they bear a percentage of the risk of failure of their own counterparty?

What is the deeper relationship between Goldman and AIG? Didn't they almost merge a few years ago but did not because Goldman couldn't get its arms around the black box that is AIG? If that is true, why should Goldman get bailed out? After all, they should have known as well as anybody that a big part of AIG's business model was not to pay on insurance it had issued.

Why weren't the counterparties immediately and fully disclosed?

Failure to answer these questions will feed the populist rage that is metastasizing very quickly. And it will raise basic questions about the competence of those who are supposedly guiding this economic policy.

Monday, March 16, 2009

Zizek against protest mode (Posted by Keith) by Keith



Here is Zizek critiquing protest mode. He doesn't use the term protest mode. The interview is a few years old but he makes the point well. Of course he doesn't put forth a strategy or any tactics for a struggle for power either. 

Saturday, February 28, 2009

Technological Change and the Revolutionary Process (Keith) by Keith

The work of the inventor and futurist Ray Kurweil was a part of our discussion in a study group in New Brunswick. (We hope to stream our study groups on line soon so that comrades outside of town can particpate too).   Here is a talk that Kurweil gave on "technology's acceralating power."


On this blog and in our practical work we have been developing the theory of revolutionary democray in a way we think is unusual among the left, we eagerly look to the future,  instead of the past. We are not critics of counsmer culture and consumption so much as we are fighting for better as well as more opportunities for consumption. We are more interetsed in productive process that have a future rather than preserving the past. 

In previos posts I argued that What is revolutionay about the working class is that workers are best able to bring down the system and today these workers are in high tech sectors of the economy.  We have also argued that the most advanced communications technology provides the scaffolding of revolutionary democratic orgainzation and enhanbces its possibilities.  Understanding technological change and its social effects is crucial for develping revolutionary democratic stratgey and tactics. 

This talk by Kurzweil raises a number of questions which it would be worth investigating further. Here are the ones that jumped out at me:

Kurzweil early in the talk says "humanity is a technology creating animal" and throughout the talk he erradicates the distinction between natural history and social history.  
Is there no difference between political/social/cultural history and natural history (evolution)? 

Kurzweil says: "price performance” improve continuously. In other words the price of technology continously declines. This is pretty easily explained by Marx's value theory. But it is impossible to explain with modern bouregois economic theory which argues prices are determined by individual subjective preferences. 

How does bourgeosie or neoclassical economics (the less deragatory term), and Kurzweil understand improved "price performance"? (Also what he calls the 40-50% defaltion rate-- which is price deflation. He also inadvertently mentions teh radical increase in teh rate of exploitation. Worker productivity in the U.S.rose from $30 per/hour to $150 per/hour) 

Is Kurweil aware of the incapablity of his theory with theories of price formation in neoclassical economics? How are the conradictions resolved ideologically? Are there openings to create division between the technocratic classes and neocalssical economics here?

Kurzweil speaks about the laws of technological evolution. What are these laws? How are they enforced? Kurzweil mentions competition (it is not clear if the laws are enforced by competition in this talk. If so, that would be Marx's basic view, but it is only under capitalist social relations that competition is orgianzed and universalized). Kurzweil seems to argue that technologival change is a given rather than a social product. 

Kurzweil use the trem "research pressure." Where does this pressure come from?

In our study group we also discussed some of the questions raised by rapid technological change in the context of Marx's theory of tendency for the rate of profit to fall. Simply stated: the amount of human labor in each commodity is reduced by technological innovations which develop labors productivity. This causes the price of the commodity to fall and th3 rate of profit to decline. Here is a paragraph from the Grundrisse where Max talks about technological changed and the end of capitalism. 

"To the degree that labour time -- the mere quantity of labour -- is posited by capital as the sole determinant element, to that degree does direct labour and its quantity disappear as the determinant principle of production -- of the creation of use values -- and is reduced both quantitatively, to a smaller proportion, and qualitatively, as an, of course, indispensable but subordinate moment, compared to general scientific labour, technological application of natural sciences, on one side, and to the general productive force arising from social combination [Gliederung] in total production on the other side -- a combination which appears as a natural fruit of social labour (although it is a historic product). Capital thus works towards its own dissolution as the form dominating production."

So I would also ask what are the barriers that capitalist social relationships pose to the development technology and labors' productive power and how can we find ways to explain the obstacles posed by capitalism?

It would be great if we can begin a discussion here, and do further research, discuss it at study group, write it up notes from the discussion as a blog post for those who can't make it to study cirle. 



Monday, February 23, 2009

Sean Penn "You Commie Homo Lovin' Sons of Guns" (Keith) by Keith

Sean Penn took the fight for equal rights to the Oscars last night. The highlight of the evening. "Those who voted for the ban on gay marriage should reflect on their great shame..."


Sunday, February 22, 2009

BankStrike (Keith) by Keith

Some comrades in Vermont have started a site called "BankStrike." Their idea seems close to what we are talking about. The site is well put togther. I sent them an e-mail hopefuly we can connect. Check it out.

Friday, February 20, 2009

Pirate Bay Piracy Trial (Keith) by Keith

This is a press release from: The Bureau for Piracy and The Pirate Bay via the internets.

The trial against The Pirate Bay that started three days ago in Stockholm, Sweden is one of the most important issues of our time. Our adversaries basically wants to close down internets and remodel it into something similar of a sodamachine serving entertainment. During the trial, the prosecutor together with a coterie of representatives for a disabled business model will put up a tacky theater by telling stories designed to convince the court that The Pirate Bay infact is a menace to society.

What differs this trial from most earlier trials is that everything in and surrounding it will whirl round and round in diverse channels of communication; to be discussed, reinterpreted, copied and critizised. Every crack in their appeal will be penetrated by the gaze of thousands upon thousands of eyes on the internets, in all the channels covering the trial. Old cliches from the antipiracy lobby wont stick. You won’t be able to say stuff like, ”you can’t compete with free” or ”filesharing is theft” without a thousand voices making fun of you.

We will create numerous scenes where quite different plays will take place. In local channels like spectrial.bloggy.se where the immediate physical surroundings of the court are being discussed. ”Which cafés nearby will give us connection?” ”How can we get electricity to the bus?” But also in international channels like Twitter, where right now the torrent of information is being translated into fifteen different languages. Translations and coverage being made by ordinary users of internets. Volunteers sign up to make trial-tourist guides to the surroundings, drive the bus or hook up audio. People fly in from far away countries to cover the trial and tell the world their video story of the Sweden they see.

Here all participants are potential actors in the Spectrial. Our channels form a meltingpot of reporting and engagement.

 Our communication around the spectacle aims in no way towards an objective report on an external chain of events. Rather, the trial is a hub around which a whole new network of actors is instigated. Neither is the spectacle a question of old media against digital, social medias. Our social medias include a paper fanzine and a 32 year old bus, connecting us and others physically.

It’s not about the protocols nor the technology. It’s about using these to create new congregations, where anyone is invited and anyone can find their role, build new scenes and make their own performances.

The future is built by us. Us who participate in conversations. The future is built by us who explore how information and performativity is coming together. To refuse a debate and still expect to be able to charge consumers is since long a closed door. To also try and outlaw certain types of conversations is downright disgraceful.

The coverage of the trial is not unique in these qualities. More and more areas see the creation of conversations on and the exploration of new stances on culture and cultural economy. A gigantic collective exploration has set sails. Every route differs from the other. But they have one thing in common: The industry interests that the state is representing are never present in these conversations. This is why they wont be part in building the future.

maintain hardline kopimi


Tuesday, February 17, 2009

Pirate Bay, Copyright, and the End of the Market (Keith) by Keith

Today’s Financial Times reports the opening of the trial of the Pirate Bay website in Stockholm. The Financial Times calls the comrades who run the site, “the most notorious and defiant individuals in the world of file sharing.”  Not only is the site accused of hosting bit torrent tracker files that allow peer to peer file sharing, the site is often used as a platform to, in the words of the FT, “campaign against copyright, advocating that media industries should create new business models rather than try to prevent copying. “

This is a crucial issue for revolutionary democracy because it touches on cultural production, and knowledge production two crucial arenas for the development of working class power, organization, and consciousness.

The first thing to notice is the way that capitalist social relations impede on the further development of the “productive forces.” (The “productive forces” were a shorthand way that Marx used to talk about the productive power of social labor; are ability to produce a certain amount of wealth in a certain amount of time). The market has become a completely useless way to distribute these various forms of information (music, software, scientific research). The market does not facilitate the distribution or production of this information but instead impedes it, and the attempts to keep labor’s productive powers within the confines of market relations and bourgeois property relations is a significant fetter on further development.

The market acts as a rationing mechanism (only those with the ability to pay have access to goods and services distributed by a market) but p2p technology means that there is no longer a need for this rationing mechanism because the information doesn’t need to be rationed, there is no scarcity, there is only abundance.

The only real question facing revolutionary democracy, which should take its stand clearly on the side the of p2p and free information is how to financially support the artists, scientists, and workers who actually create these various forms of information. 

Friday, February 13, 2009

Hip Hop is Dead, Long Live Hip Hop (Keith) by Keith



Humor can be a excellent source of critical power. The Saturday Night Live/ T-Pain sketch "I'm on a Boat" reveals a number of developments. A certain form of hip hop has been completely exhausted so that it is now just an easily reproduced shell that can carry any content... that is why the SNL video is so funny, it takes what was once a very advanced and difficult to reproduce cultural form and uses it to deliver absurd content. The video also reveals new developments in US racial constructs-- the video intensely mocks standard mainstream hip hop tropes without being racist. 

The shell of the hip hop form exploited in the snl/t-pain sketch also reveals something about how the capitalist production process develops in general and around the arts and culture in particular. Marx explains that the capitalist production process has two major phases of development. The first he calls the "formal subsumption of labor to capital" and the second he calls "the real subsumption of labor to capital." 

Take the example of shoe making. Shoe making begins as an artisan craft. Individuals make shoes-- there is no division of labor: a shoe maker produces the whole shoe by themselves.  Under the formal subsumption the capitalist gathers all the shoe makers together and puts them under one roof. The shoe makers continue working as before, each worker makes the shoe from beginning to end, only now the capitalist takes the completed shoes and sells them. Sometimes this is called "commodification."  Commosification is not really the problem in terms of art. The real problem is the real subsumption of labor to capital.

The real subsumption of labor comes next, in this phase the capitalist takes control of the production process itself.  The capitalist watches how the shoes are made and then institutes a division of labor. The division of labor de-skills the workers, so that each one is only responsible for a limited aspect of the overall process. The division of labor is the first step in mechanization and this allows the capitalist to start to replace workers with machines.

The same thing happens with cultural production. Most cultural production begins with individual artists creating their work. Capital may then commodify the product and sell it. Take an extreme example. Bob Dylan developed his craft for years playing coffee houses and practicing. Capital only sells his music but they do not control the way it is produced. Sometime this is called "artistic control." But take someone like Tiffany or Britney Spears, they are not individually talented they are not even artists they are just a cog in the machine. They labor under the real subsumption of labor to capital and the capitalist controls the production process. Their music is not artistic production it is capitalist production. 

You can usually tell when an artist has been really subsumed because their music sucks and odd things happen like orchestras appearing on country records.  Duke Elington famously commmented that there are only two kinds of music: good and bad. The difference is often in how that music is created and produced.

The SNL sketch shows that mainstream hip hop has been subsumed by capital. The song "I'm on a boat" just takes a song template for the capitalist production process and exposes it by inserting absurd lyrics. SNL has done serious artists a favor by striking a blow against the legitimacy of that template and they have opened a door for serious hip-hop artists to enter.


Thursday, February 12, 2009

Futurism and the End of Capitalism (Keith) by Keith

The Financial Times has published a number of commentaries on Ray Kurzweil and the “singularity”. The FT columnist takes a standard conservative view of radical change but it is interesting that the FT is covering these developments with such regularity. This relatively intense coverage is because Kurzweil research is a part of the central contradiction of capitalism: rising productivity of labor manifests in a falling rate of profit. In other words the systems development brings about its demise. At a moment of intense crisis like now, the need to dramatically increase the productive power of labor is felt along with the danger of that increase.

For a very long time socialists, radicals, and Marxists asserted that the main contradiction of capitalism is between private ownership and socialized production. The idea here is that workers work together to produce the wealth of the whole society but ownership of the means of production and therefore the power to appropriate that wealth lies with a private few. The problem with this old view is that there is nothing specific to capitalism about this contradiction (so it isn’t a part of capitalism’s essence), slavery and feudalism also had private appropriation of socialized production.
.
The central contradiction of capitalism is expressed in the law of the tendential fall in the rate of profit. The contradiction was expressed by Marx this way: “The rising productivity of labor is manifest in a falling rate of profit.” That is why Marx says the only insurmountable barrier to capital accumulation is capital itself.

In Marx’s mature work the falling rate of profit is the essence of his crisis theory. The falling rate of profit is an expression of labor’s productive power outstripping capitalist social relations and a falling rate of profit crisis can only be solved through socialist revolution or destruction on a mass scale (like world war), in other words the falling rate of profit expresses the limits to capital. There is no solution to this kind of crisis within the exiting social relationships.

So on the one hand rising labor productivity undermines capitalist social relationships and on the other hand rising labor productivity is the essence of capitalist social development, capitalist compete with each other and at the heart of that competition is technological and organizational innovations that increase the productive power of labor (more social wealth –use values—are produced with less human labor), but paradoxically this results in the long run in a falling rate of profit.

Kurzweil’s new university will function within capitalist social relationships and for a time any successes towards dramatic technological innovations can be utilized by capitals to increase their competitive advantages. But in the long run these social relationships will become increasingly felt as fetters to further development and the barrier of these social relationships will compel more and more people to the camp of revolutionary democracy. One of our mid term tasks is to develop the our understanding of this contradiction and our ability to popularize it so that people working in other fields (like Kurweil himself) can understand it.

Wednesday, February 4, 2009

Debtors Union (Keith) by Keith

A Debtors Union: Main Street’s Solution to the Financial Crisis

The economic crisis is in essence a debt crisis. For all the economic complexity involved in the details it basically easy to understand. There are way too many pieces of paper that supposedly entitle their holders to social wealth and there is not enough of that wealth to meet all those claims. Debt is just a promise to pay in the future what one does not have today. There are simply way too many of these promises and no way that they can all be paid.

In order for our society to get out of this crisis much of this debt has to be “forgiven.” In other words the creditors who lent the money have to accept that they are not going to be paid back and they will have to take the loss. This is no sin nor is it a crime. It is a part of the risk which lenders take and which, according to their economic theories, entitles them to profit. It also entitles them to lose. That is what “risk” means. The crisis continues because they won’t accept that they lost.

Once they take the loss the economy will start to move forward again. The crisis is continuing because the banks who loaned the money don’t want to accept the loss.

The bailouts are designed so that the banks do not have to accept the loss. Instead of the banks taking the hit, the government will borrow money to be paid back by our future tax dollars and they will give this money to the banks to make up for the losses they should have taken. That is a solution to the crisis but not the only one.

Instead of asking Washington to bailout people instead of banks, or asking the government to help Main St, instead of Wall St. we should just help ourselves, and solve this crisis by forming a union of debtors.

A debtors union is open to all who are indebted—credit cards, car loans, mortgages, student loans, medical bills etc. and once we organize ourselves we can refuse to pay and organize a mass default and force the debt to be written off, or we could decide to renegotiate the debt at a steep discount maybe twenty cents on the dollar. That will be for the union members to decide for themselves. In any event, we can take our destiny into our hands --Let’s “bailout” ourselves, lets “recapitalize” ourselves, lets get out of debt!

Artificial Intelligence and the revolutionary process (Keith) by Keith

The Financial Times reported on Feb 3rd that the futurist Ray Kurzweil will be opening a research institution with backing form Google and Nasa (private/public partnership). Kurzweil is pointing out, perhaps unwittingly and among other things, that in the foreseeable future, human labor will be so productive (with the aid of machines) that it will be possible to produce, with little to no environmental damage, an abundance of social wealth. The interesting thing politically is that as society approaches what Kurweil calls the “singularity” capitalism will enter into deeper and deeper crisis because the capitalist social relations will be in increasing conflicts with these developments. The rapidly increasing productivity of labor has the effect of driving down the costs of commodities and in circuitously this development causes profit rates to fall. Profit is the reason for capitalist production and so without profits the system will grind to a halt. Capitalist social relationships will have to be completely abolished before “new era of civilization” envisioned by Kurweil can come into existence. Here is the article:

Google and Nasa back new school for futurists
By David Gelles in San Francisco
Published: February 3 2009 05:02 | Last updated: February 3 2009 05:02
Google and Nasa are throwing their weight behind a new school for futurists in Silicon Valley to prepare scientists for an era when machines become cleverer than people.
The new institution, known as “Singularity University”, is to be headed by Ray Kurzweil, whose predictions about the exponential pace of technological change have made him a controversial figure in technology circles.
Google and Nasa’s backing demonstrates the growing mainstream acceptance of Mr Kurzweil’s views, which include a claim that before the middle of this century artificial intelligence will outstrip human beings, ushering in a new era of civilisation.
To be housed at Nasa’s Ames Research Center, a stone’s-throw from the Googleplex, the Singularity University will offer courses on biotechnology, nano-technology and artificial intelligence.
The so-called “singularity” is a theorised period of rapid technological progress in the near future. Mr Kurzweil, an American inventor, popularised the term in his 2005 book “The Singularity is Near”.
Proponents say that during the singularity, machines will be able to improve themselves using artificial intelligence and that smarter-than-human computers will solve problems including energy scarcity, climate change and hunger.
Yet many critics call the singularity dangerous. Some worry that a malicious artificial intelligence might annihilate the human race.
Mr Kurzweil said the university was launching now because many technologies were approaching a moment of radical advancement. “We’re getting to the steep part of the curve,” said Mr Kurzweil. “It’s not just electronics and computers. It’s any technology where we can measure the information content, like genetics.”
The school is backed by Larry Page, Google co-founder, and Peter Diamandis, chief executive of X-Prize, an organisation which provides grants to support technological change.
“We are anchoring the university in what is in the lab today, with an understanding of what’s in the realm of possibility in the future,” said Mr Diamandis, who will be vice-chancellor. “The day before something is truly a breakthrough, it’s a crazy idea.”
Despite its title, the school will not be an accredited university. Instead, it will be modelled on the International Space University in Strasbourg, France, the interdisciplinary, multi-cultural school that Mr Diamandis helped establish in 1987

Tuesday, January 20, 2009

Marx To Lincoln Revisited on the Occassion of Obama's Inauguration (Keith) by Keith

To celebrate the inauguration of Barack Obama as the first Afro-American President in the United States I thought it would be fun to post the congratulatory message written by Karl Marx and sent by the First International to Abraham Lincoln on the occasion of his second inauguration.

Address of the International Working Men's Association to Abraham Lincoln, President of the United States of America

Sir:

We congratulate the American people upon your re-election by a large majority. If resistance to the Slave Power was the reserved watchword of your first election, the triumphant war cry of your re-election is Death to Slavery.

From the commencement of the titanic American strife the workingmen of Europe felt instinctively that the star-spangled banner carried the destiny of their class. The contest for the territories which opened the dire epopee, was it not to decide whether the virgin soil of immense tracts should be wedded to the labor of the emigrant or prostituted by the tramp of the slave driver?

When an oligarchy of 300,000 slaveholders dared to inscribe, for the first time in the annals of the world, "slavery" on the banner of Armed Revolt, when on the very spots where hardly a century ago the idea of one great Democratic Republic had first sprung up, whence the first Declaration of the Rights of Man was issued, and the first impulse given to the European revolution of the eighteenth century; when on those very spots counterrevolution, with systematic thoroughness, gloried in rescinding "the ideas entertained at the time of the formation of the old constitution", and maintained slavery to be "a beneficent institution", indeed, the old solution of the great problem of "the relation of capital to labor", and cynically proclaimed property in man "the cornerstone of the new edifice" — then the working classes of Europe understood at once, even before the fanatic partisanship of the upper classes for the Confederate gentry had given its dismal warning, that the slaveholders' rebellion was to sound the tocsin for a general holy crusade of property against labor, and that for the men of labor, with their hopes for the future, even their past conquests were at stake in that tremendous conflict on the other side of the Atlantic. Everywhere they bore therefore patiently the hardships imposed upon them by the cotton crisis, opposed enthusiastically the proslavery intervention of their betters — and, from most parts of Europe, contributed their quota of blood to the good cause.

While the workingmen, the true political powers of the North, allowed slavery to defile their own republic, while before the Negro, mastered and sold without his concurrence, they boasted it the highest prerogative of the white-skinned laborer to sell himself and choose his own master, they were unable to attain the true freedom of labor, or to support their European brethren in their struggle for emancipation; but this barrier to progress has been swept off by the red sea of civil war.
The workingmen of Europe feel sure that, as the American War of Independence initiated a new era of ascendancy for the middle class, so the American Antislavery War will do for the working classes. They consider it an earnest of the epoch to come that it fell to the lot of Abraham Lincoln, the single-minded son of the working class, to lead his country through the matchless struggle for the rescue of an enchained race and the reconstruction of a social world.

Signed on behalf of the International Workingmen's Association, the Central Council:
Longmaid, Worley, Whitlock, Fox, Blackmore, Hartwell, Pidgeon, Lucraft, Weston, Dell, Nieass, Shaw, Lake, Buckley, Osbourne, Howell, Carter, Wheeler, Stainsby, Morgan, Grossmith, Dick, Denoual, Jourdain, Morrissot, Leroux, Bordage, Bocquet, Talandier, Dupont, L.Wolff, Aldovrandi, Lama, Solustri, Nusperli, Eccarius, Wolff, Lessner, Pfander, Lochner, Kaub, Bolleter, Rybczinski, Hansen, Schantzenbach, Smales, Cornelius, Petersen, Otto, Bagnagatti, Setacci;
George Odger, President of the Council; P.V. Lubez, Corresponding Secretary for France; Karl Marx, Corresponding Secretary for Germany; G.P. Fontana, Corresponding Secretary for Italy; J.E. Holtorp, Corresponding Secretary for Poland; H.F. Jung, Corresponding Secretary for Switzerland; William R. Cremer, Honorary General Secretary.

Tuesday, January 6, 2009

Green Economy Organizing (Posted by Keith) by Keith

This essay, featuring Van Jones and "Green Jobs for the Ghetto" was published in this week's New Yorker Magazine. Although he is very caught up in advocacy politics there are some interesting ideas here about vision and organizing.

Greening the Ghetto
by Elizabeth Kolbert
A few months ago, Van Jones, the founder and president of a group called Green for All, went to visit New Bedford, Massachusetts. His first stop of the day was the public library, where someone had assembled an audience of about thirty high-school dropouts. They leaned back in their chairs, hands in the pockets of their oversized sweatshirts. A few appeared to be stoned.

Jones, who is forty, is tall and imposing, with a shaved head and a patchy goatee. He wears rimless glasses and favors dark clothing. On this particular day, he was wearing a black turtleneck, black jeans, black boots, and a charcoal jacket. He was introduced by a community organizer and aspiring rapper, who described him as “a leader with answers,” a “genius from the hood, similar to our own,” and a youthful version of Barack Obama. When it was his turn to speak, Jones rejected the lectern that had been set up for him, saying that it reminded him too much of college.

“I love Barack Obama,” he said. “I’d pay money just to shine the brother’s shoes. But I’ll tell you this. Do you hear me? One man is not going to save us. I don’t care who that man is. He’s not going to save us. And, in fact, if you want to be real about this—can y’all take it? I’m going to be real with y’all. Not only is Barack Obama not going to be able to save you—you are going to have to save Barack Obama.”
Read the rest here.

Thursday, October 9, 2008

Four Causes of the Economic Crisis (Keith) by Keith

This is a preliminary analysis of the current crisis. It requires more research but I put it forward as an attempt to start a serious discussion about the nature of the crisis and how revolutionary democracy should organize in it.

The Four Causes of the Economic Crisis


There are four main causes of the economic crisis: 1. the war in Iraq, 2. the Bush tax cuts, 3. the falling rate of profit in the “real economy” (or, in other words, the productive sector of the economy), and 4. the flow of foreign and domestic investment capital into the financial markets.

In what follows we will look at these four causes individually and then, since capitalism is a dynamic system, try to look at all of these issues interacting simultaneously. “In the final analysis,” as they used to say, capitalism is the cause of the crisis. And to understand the crisis and how revolutionary democracy can organize economically, socially, culturally, and politically to solve the crisis we will have to deepen our understanding of capitalism’s laws of motion.

1. Falling rate of Profit


U.S. auto maker General Motors along with Ford Motors has been on the verge of bankruptcy since the 1990s. They are one example of a general and well known trend--the loss of manufacturing jobs to outsourcing and technological innovation. During the 1990’s lower profit rates in manufacturing sector of the economy meant that capital started to move to other sectors of the economy in search of higher profits. Capital always goes to where the profits are the highest. The greed is a function of the way the system works. If you were a capitalist and you didn’t seek higher profits you would lose your capital.

During the 1990’s there was tremendous investment in the new economy – especially Information Technology. Stock prices of companies like Amazon.com rose dramatically although they had yet to make a profit. The flow of capital into the new economy created a “bubble.” A bubble just means that the price of some asset, in this case IT stocks, rises above what it is really worth (how to figure out what something is “really worth” is a long story). The dotcom bubble, as it was known, burst. Lots of capital was lost. But the remaining capital needed to find a profitable place for investment. Because the productive sectors of the economy -- traditional manufacturing and the new high tech sector -- were experiencing declining profit rates capital began moving to the financial sector.

The flow of investment capital into the financial sector instead of the productive sector is the heart of the problem. New value is created in the productive sector. When a financial capital loans money to productive capital part of the new value created by the productive capital goes to the financial capitalist as interest (or dividends). But if the productive sector is under resourced then new value is not created in the necessary quantities to meet all of the interest claims. This is the heart of the problem.

After the dotcom bubble capital popped capital flowed out of the productive sector and into the financial sector in search of higher profits. The financial sector responded to this lack of profitable places to put capital in the productive sector (or as it is sometimes called: the real economy) by creating new “financial instruments” – like mortgaged backed securities, credit default swaps, and derivatives. The banks and other financial institutions looked for creative ways to lend money – sub-prime mortgages, interest only mortgages, adjustable rate mortgages, car loans, and consumer credit. . Instead of the productive sector producing new wealth, the financial sector was busy creating new claims on old wealth. Capital was not invested productively it was invested to speculate, to gamble on the production of future wealth.

2. Bush’s tax cuts
The dotcom bubble burst soon after Bush took control of the white house at time when the Federal government was running budget surpluses. These surpluses could have been used to do the work that private investment capital in search of the highest profits could not do: re-building infrastructure—like crumbling bridges and tunnels, arcane public transit systems, universal broad band access, researching alternative fuels, repairing the environment etc.

Instead Bush cut taxes for the wealthiest people in the country arguing that by giving money back to private capital they would in turn invest it in the economy. They did. As investors they sought the highest rate of return. The financial sector had the highest rates of return and now even more capital flowed into the financial sector. All of the problems and imbalances that were created by falling profit rates in the productive sector were exacerbated by the new flood of capital entering the financial markets as a result of the tax cuts. To maintain profit rates new financial instruments must be developed, more risks must be taken. The result more risky bets, more complex financial products and a starving of the productive sectors of the economy where real wealth is produced. Bush, by pushing the tax rate to artificially low levels, in effect subsidized the financial sector at a time when it needed the exact opposite medicine -- a heavy tax that could redirect capital into the productive sector.

3. Foreign Capital
With Bush’s tax cuts effectively subsidizing the financial sector foreign capital in search of higher profits floods in. China, Europe, and the Middle East capitals are buying U.S. debt and investing in the financial sector, again exasperating all of the problems mentioned earlier. More risky loans, more bets, bets on top of bets, insured bets on top of bets on top of bets.

The profit rate in the financial sector is booming. CEO’s of financial institutions are paid inconceivable salaries 20 to 70 million dollars a year in bonuses alone. These flows of foreign capital exacerbate the distortions in the economy between the financial and productive sector, and between foreign and domestic production and exchange process. The artificially high rates of profit undermined the “real economy” making it impossible to do things like: re-building infrastructure, researching alternative fuels or climate change.

4. The War in Iraq

The center-left economist Joseph Stiglitz estimates the war in Iraq will cost the U.S. 3 trillion dollars (or 3,000 billion, a little more than four bailouts). Financing the war is an immense burden on U.S. workers. Wars are not productive expenditures; they waste tremendous resources. The war is so expensive its costs outstrips the productivity of U.S. workers and paying for it requires heavy borrowing by the U.S. government primarily from foreign capital. This creates immense debts to foreign capital.

Governments often borrow money to spend on projects in the expectation that the investment will produce some economic benefit that will make it possible to repay the loan. The architects of the war in Iraq calculated that by opening the Iraqi market to U.S. capital and gaining access to Iraqi oil the costs of the war would be offset. The main problem with their calculations is the time frame. They expected the war to be over and the benefits to be flowing. Instead the war is increasingly costly. Even worse it is clear enough that the U.S. has been defeated in the war. The financial crisis is one more signal that the war in Iraq is lost. The question of the war deserves it own treatment. But it is a significant cause of the current meltdown.

5. Putting it all together

The crisis appears to be a financial crisis -- a crisis in the financial markets, and if you listen to politicians and other commentators they raise the concern that the crisis will spread to the “real economy.” The problem with their analysis is that the crisis originated in the real economy, in the lack of profitable opportunities for investment in the productive sectors of the economy. Unless the crisis in the real economy is addressed the crisis will continue. In a minute I will try to show why only revolutionary democracy can solve the crisis in the real economy. But first let’s try to understand the exact nature of this crisis now that we have determined its causes.

What is this crisis about? The Great Depression of the 1930’s was an over-production/under-consumption crisis. Remember in the Grapes of Wrath, the capitalist farmers burn the peaches that have been picked by the migrant workers in order to get the prices up. There is too much supply and no demand (no demand backed by the ability to pay). When there is supply but no demand then prices fall. This is a crisis for a system that is based on the exploitation of labor and the realization of profits based on that exploitation. If profits cannot be made than the system does not work. It is important to remember that this is a social problem. The workers and their tools still exist and can be used to make things people need but they lie idle because profits cannot be made. The problem is with the way that work is organized.
This current crisis is different then the Great Depression. It is the exact opposite: the great depression was under-consumption/over-production, but this crisis is under-production/over-consumption. Let’s think about how it works. The flood of capital into the financial sector of the economy created a credit bubble that is bursting. In a useful work, The Trillion Dollar Meltdown by Charles R. Morris, writes,

"Here is a crude gauge of the credit bubble. Not long ago, the sum of all financial assets-- stocks, bonds, loans, mortgages, and the like, which are claims on real things--were about equal to global GDP. Now they are approaching four times global GDP. Financial Derivatives have a notional value of 10 times global GDP."


What does that mean? Stocks, bonds, loans, mortgages, etc, are “claims.” If I have a stock or bond I have a piece of paper that entitles me to something “real.” GDP is a rough measurement of the value of all goods and services produced. When the claims --i.e., stocks, bonds, loans, etc, -- are roughly equal to GDP the system is in balance. The situation described by Morris in the above shows the system is out of balance. There are more claims then real wealth. There are about four claims for every single real unit of wealth. So, three out of four claims are worthless!!! That is the crisis. Whose claim is good and whose claim is worthless is the question that Federal Reserve and the Treasury are trying to answer. But they cannot pose the question right, and even if they could the problem is deeper.

The claims are “bundled” together. So the paper that represents the claim doesn’t represent just one claim that can be devalued, it represents many different claims and ties them together so if one goes down the toilet then they all go. In addition, those pieces of paper have been insured so if they are devalued that triggers a new claim, and on top of it people have bet on the value of the claim. So all of those claims are deeply intertwined and entangled. The whole financial system is going to go down. It is possible that a few banks will be able to absorb the losses and buy up the smaller banks but it is unlikely.

The bailout and other measures taken by the Fed and the Treasury continue to exacerbate the problem (which is why they are not working). The bailout and lowering interest rates just continues the same dynamic of pushing capital into the financial sector when what needs to happen is capital must be removed from the financial sector and put into the productive sector so that real value can be produced and we can literally work our way out of the crisis by producing real value. Only revolutionary democratic control over financial institutions can make that happen, and simultaneously transform they way we work and organize that work.

6. Conclusion
This is essentially a crisis about the way that production is organized by private investment acting according to market signals (looking for high profits). We must continue to struggle for revolutionary democratic control over every aspect of the society. If this crisis continues to worsen the tempo of the struggle will increase rapidly. Lenin remarked that at times history moves very slowly and at others ten years can pass in a few days. In other posts we have discussed the need for workers to take over boards of directors and to struggle locally for political power as a part of a long term revolutionary process. The crisis highlights an additional arena of struggle. We must struggle for control over investment. The first step is to nationalize the banks, insurance companies (especially health insurers), and other financial institutions, and to put them under democratic control.

Nationalizing the banks is not enough as they will just fall under the control of the Federal Reserve and the Treasury. We must create revolutionary democratic institutions to oversee investment and we must develop the analysis to make investment effective in doing two things simultaneously: 1. developing the productive power of labor (by allying with progressive capital in the new economy against the forces of the old economy and reaction) 2. We must develop the productive forces in ways that transform exploitative and oppressive social relations. This may mean things like prioritizing investment in the Afro-American nation or creating special investment funds over-seen by democratically elected representatives of oppressed peoples in the U.S. We will want to fund productive capitalists and worker co-operatives in things like the research and development of alternative energies and green technologies, rebuilding infrastructure and public transportation. We will have to build the revolutionary democratic organization necessary to decide these issues. What this crisis makes clear is that the market cannot organize investment effectively and if it is not decided by the market it must be decided democratically or else we will be walking down roads that lead to fascism.

An Obama victory is among the most pressing tasks at hand. Four more years of Bush policies will exacerbate this crisis in unforeseeable ways and most likely produce an open fascism. An Obama victory will make possible a “new” new deal which will open up many possibilities for revolutionary democracy to transform and revolutionize the society. Crisis are combinations of dangers and opportunities. The opportunities for revolutionary democracy are immense. Let’s make the most of them.

Monday, July 28, 2008

Newspaper Hawkers and Websites: A Plan to Build a Revolutionary Democratic Movement in the U.S. (Keith) by Keith

One of the great curiosities of the revolutionary left is the newspaper hawker. At every protest, at every progressive and radical conference they appear. Trotskyites outside (they are never invited inside, -- apparently they have no manners) with insufferable papers like The Workers Vanguard, or The Militant. Inside crusty old “new left” Maoists, and their unwitting youthful acolytes, push the latest edition of Revolution with insights from their maximum leader. To sell these papers you must be disciplined, you need guts, and a tolerance for abuse—most of the people who you try to sell the paper to refuse it. You must be prepared to hear “no.”

I was once one of those sad hawkers with my newspaper. I didn’t sell one the established papers like The Challenge, FightBack, or the People’s Weekly World. My secret communist cell published our own newspaper. That’s why I can explain this curiosity—the newspaper hawker and their newspaper—to you, dear reader, I was once a newspaper hawker myself.

The newspaper, that marvel of 19th century communication technology, which is today breathing its last gasps under the weight of new communications technology, somehow remains the preferred vehicle for the communication of revolutionary news and analysis by all manner of Marxian sects, why? Because in an important little essay entitled: “Where to Begin,” and in a follow up pamphlet called: What is to be done, V.I. Lenin said a newspaper was necessary to unite the revolutionaries and to organize the impending insurrection. Our modern revolutionaries read Lenin’s essay like a cookbook recipe—what is to be done? Just add water. Lenin’s plan was brilliant in 1901 and we have much to learn from it, but only if we update the plan for the twenty-first century.

First and foremost newspapers are no longer cutting edge communications technology. Secondly, the new technology, most notably the internet, can not be considered in isolation from new forms of social organization. The newspaper and the vanguard party built in the course of writing, editing, publishing, and distributing that newspaper are organizational, communicative, and cultural forms that correspond to one another, and the level of development of the productive forces. In other words, newspapers and top down vanguard parties go together, but they are completely out-dated forms. To use them today is like using a typewriter instead of word processing, or a television with rabbit ears instead of cable.

Although the newspaper is increasingly anachronistic many organizers, allies, and revolutionary groups still use newspapers and plenty of people still read them. We are in the middle of a transition from one era to another. How long that transition will take no one can predict. We must find ways to unite with progressives, revolutionaries, and workers still using newspapers. But newspapers can no longer play the role of collective organizer that Lenin envisioned.
Since Lenin’s essays there have been a number of revolutions in communications technology: telephone, radio, cinema, television, and the internet. Revolutionaries have missed nearly all of them.

But what is even worse, or sadder, is that all of these revolutionary groups with newspapers have retained the aspects of Lenin’s essays that are no longer relevant: the newspaper and top down organization, while they ignore entirely the most important elements of Lenin’s plan.

Lenin shows that political organization is built around communication technology. He insists that the newspaper is not just for news it is a “collective organizer” The newspaper, according to Lenin, is supposed to do much more than report the news—the paper is supposed to be a place for revolutionaries to communicate with one another, to explain their practice to one another, to share experiences, and resources, to debate and argue out ideas and analysis—and in this process revolutionary unity is built, revolutionary culture is developed, revolutionary practice begins to become coordinated, and revolutionary organization is expanded. Most of the sects use their newspaper as self-promotion, they rarely have open discussions and certainly never discuss their practice in a serious way so that it can be critiqued and improved upon. They are more interested in maintaining their little sects as small businesses that can fund the careers of a few so-called leaders.

How can we put Lenin’s plan into effect with modern communication technology and organizational forms? Lenin called for a single newspaper to unite all the small local groups. Today we have all sorts of small local groups and their websites and they are connected through links. But what we need is a radically open website where it is easy and simple to contribute and where the value of a contributions is weighed not be an editorial board or moderator but by our fellow revolutionary democrats. The technology is now available, some of it is used on websites like “DailyKos,” , so that readers of a web page can “vote” on which articles and essays are most useful. Those with the most votes appear at the top of the web page and become the most read. In this way the site moderates itself. Posts that are disruptive will slide to the bottom of the page in the same way.

We need a website, that can unite all the local forces based on principle of revolutionary democracy that allows everyone full access. But openness and democracy are not just principles they are necessities. Openness and democracy are expedients. If we are to build the movement and transform this society we need the unrestrained and self-directed energy and creativity of the majority of people. Currently, no site on the left is this open, most retain the trappings of the 20th century: top down organization (moderators, and editors who determine content).

To get the project off the ground will require a commitment from organizers who are building dual power locally in numerous cities. We propose that Piratecaucus.com act as a bridge between now and the future open website we are proposing. To that end we are opening its space initially to organizers we have had direct personal contact with until the site gets out of the cradle and is ready for the harsher, even if ultimately more productive, environment of radical openness.



Appendix 1: Excerpts from Lenin’s Where To Begin
In our opinion, the starting-point of our activities, the first step towards creating the desired organisation, or, let us say, the main thread which, if followed, would enable us steadily to develop, deepen, and extend that organisation, should be the founding of an All-Russian political newspaper. A newspaper is what we most of all need; without it we cannot conduct that systematic, all-round propaganda and agitation, consistent in principle, which is the chief and permanent task of Social-Democracy in general and, in particular, the pressing task of the moment, when interest in politics and in questions of socialism has been aroused among the broadest strata of the population. Never has the need been felt so acutely as today for reinforcing dispersed agitation in the form of individual action, local leaflets, pamphlets, etc., by means of generalised and systematic agitation that can only be conducted with the aid of the periodical press. It may be said without exaggeration that the frequency and regularity with which a newspaper is printed (and distributed) can serve as a precise criterion of how well this cardinal and most essential sector of our militant activities is built up. Furthermore, our newspaper must be All-Russian.

If we fail, and as long as we fail, to combine our efforts to influence the people and the government by means of the printed word, it will be utopian to think of combining other means, more complex, more difficult, but also more decisive, for exerting influence. Our movement suffers in the first place, ideologically, as well as in practical and organisational respects, from its state of fragmentation, from the almost complete immersion of the overwhelming majority of Social-Democrats in local work, which narrows their outlook, the scope of their activities, and their skill in the maintenance of secrecy and their preparedness. It is precisely in this state of fragmentation that one must look for the deepest roots of the instability and the waverings noted above. The first step towards eliminating this short-coming, towards transforming divers local movements into a single, All-Russian movement, must be the founding of an All-Russian newspaper.

Lastly, what we need is definitely a political newspaper. Without a political organ, a political movement deserving that name is inconceivable in the Europe of today. Without such a newspaper we cannot possibly fulfill our task—that of concentrating all the elements of political discontent and protest, of vitalising thereby the revolutionary movement of the proletariat. We have taken the first step, we have aroused in the working class a passion for “economic”, factory exposures; we must now take the next step, that of arousing in every section of the population that is at all politically conscious a passion for political exposure. We must not be discouraged by the fact that the voice of political exposure is today so feeble, timid, and infrequent. This is not because of a wholesale submission to police despotism, but because those who are able and ready to make exposures have no tribune from which to speak, no eager and encouraging audience, they do not see anywhere among the people that force to which it would be worth while directing their complaint against the “omnipotent” Russian Government. But today all this is rapidly changing.

There is such a force—it is the revolutionary proletariat, which has demonstrated its readiness, not only to listen to and support the summons to political struggle, but boldly to engage in battle. We are now in a position to provide a tribune for the nationwide exposure of the tsarist government, and it is our duty to do this. That tribune must be a Social-Democratic newspaper. The Russian working class, as distinct from the other classes and strata of Russian society, displays a constant interest in political knowledge and manifests a constant and extensive demand (not only in periods of intensive unrest) for illegal literature. When such a mass demand is evident, when the training of experienced revolutionary leaders has already begun, and when the concentration of the working class makes it virtual master in the working-class districts of the big cities and in the factory settlements and communities, it is quite feasible for the proletariat to found a political newspaper. Through the proletariat the newspaper will reach the urban petty bourgeoisie, the rural handicraftsmen, and the peasants, thereby becoming a real people’s political newspaper.

The role of a newspaper, however, is not limited solely to the dissemination of ideas, to political education, and to the enlistment of political allies. A newspaper is not only a collective propagandist and a collective agitator, it is also a collective organiser. In this last respect it may be likened to the scaffolding round a building under construction, which marks the contours of the structure and facilitates communication between the builders, enabling them to distribute the work and to view the common results achieved by their organised labour.
With the aid of the newspaper, and through it, a permanent organisation will naturally lake shape that will engage, not only in local activities, but in regular general work, and will train its members to follow political events carefully, appraise their significance and their effect on the various strata of the population, and develop effective means for the revolutionary party to influence these events. The mere technical task of regularly supplying the newspaper with copy and of promoting regular distribution will necessitate a network of local agents of the united party, who will maintain constant contact with one another, know the general state of affairs, get accustomed to performing regularly their detailed functions in the All-Russian work, and test their strength in the organisation of various revolutionary actions.

This network of agents[1] will form the skeleton of precisely the kind of organisation we need—one that is sufficiently large to embrace the whole country; sufficiently broad and many-sided to effect a strict and detailed division of labour; sufficiently well tempered to be able to conduct steadily its own work under any circumstances, at all “sudden turns”, and in face of all contingencies; sufficiently flexible to be able, on the one hand, to avoid an open battle against an overwhelming enemy, when the enemy has concentrated all his forces at one spot, and yet, on the other, to take advantage of his unwieldiness and to attack him when and where he least expects it. Today we are faced with the relatively easy task of supporting student demonstrations in the streets of big cities; tomorrow we may, perhaps, have the more difficult task of supporting, for example, the unemployed movement in some particular area, and the day after to be at our posts in order to play a revolutionary part in a peasant uprising. Today we must take advantage of the tense political situation arising out of the government’s campaign against the Zemstvo; tomorrow we may have to support popular indignation against some tsarist bashi-bazouk on the rampage and help, by means of boycott, indictment, demonstrations, etc., to make things so hot for him as to force him into open retreat. Such a degree of combat readiness can be developed only through the constant activity of regular troops. If we join forces to produce a common newspaper, this work will train and bring into the foreground, not only the most skillful propagandists, but the most capable organisers, the most talented political party leaders capable, at the right moment, of releasing the slogan for the decisive struggle and of taking the lead in that struggle.

In conclusion, a few words to avoid possible misunderstanding. We have spoken continuously of systematic, planned preparation, yet it is by no means our intention to imply that the autocracy can be overthrown only by a regular siege or by organised assault. Such a view would be absurd and doctrinaire. On the contrary, it is quite possible, and historically much more probable, that the autocracy will collapse under the impact of one of the spontaneous outbursts or unforeseen political complications which constantly threaten it from all sides. But no political party that wishes to avoid adventurous gambles can base its activities on the anticipation of such outbursts and complications. We must go our own way, and we must steadfastly carry on our regular work, and the less our reliance on the unexpected, the less the chance of our being caught unawares by any “historic turns”.

Sunday, July 20, 2008

Building Neighborhood Committees, Canvassing, and Winning (Keith) by Keith

These are some notes on organizing in New Brunswick but I think that they may be useful to others who are thinking about dual power and seizing power locally.

We must build neighborhood committees if we are going to win on election day and if we are to build a lasting revolutionary democratic movement in New Brunswick. In many ways the committees will be one of the most important outcomes of the whole campaign. Below I put down some notes on building the committees and the crucial role they will play on election day with Get Out the Vote.

The universal task of all neighborhood committees’ is to get out the vote. Beyond that each committee will develop organically, based on the concerns and issues faced by the citizens in that neighborhood. In some neighborhoods parking is the main issue, in others police violence and gang activity, and other neighborhoods have issues that will only emerge as citizens meet and talk. As people come together and feel their collective power, other issues and possibilities, that are presently beyond their imaginative capacity and ours, will emerge. In other words they will change the conditions and themselves and thereby make new possibilities.

Our biggest challenge at the present moment and the key to winning election day is getting these neighborhood committees off the ground. The committees are an organizational structure so to understand what kind of structure we need we must first understand the practice or activity the committees will engage in. Again much of the activity will be determined by the committees themselves, but one activity that we know will be asked of all committees will be getting out the vote on election-day. So we can build structure around that task, and then allow other practices and organizational forms to develop organically based on the needs of the citizens in the groups.

When we knock on a door we may be talking to a neighborhood leader, or a future neighborhood leader (or a national leader in embryo!). We should offer each person the highest level of participation and work down. This is especially important in Latino/a neighborhoods. We will need to find bi-lingual people who can organize Spanish speakers. Additionally, Revolutionary Democracy recognizes all residents as citizens and therefore they have full rights and freedom to participate regardless of their “status.” So while they cannot vote in November they will be able to vote in their neighborhood committee.

A key component of our campaign must be building neighborhood committees as the basis for our anti-machine local revolutionary democratic movement and the canvas is the place to get them started. Ideally each committee will be made up of five or more registered voters. The chair of the committee will be responsible for making sure that all committee members vote on election day. Mobilizing the group on election day will take preparation, that preparation is the basis of the committees initial existence.

Recruiting neighborhood leaders while canvassing

When canvassing we come across people who are natural leaders of the neighborhoods, people others turn to for help, or people who command respect. If these people, for example, tell other to sign a petition they are listened too. When canvassing we should try to get these people to become leaders of a neighborhood committee. We have to lay out the whole vision with them. We are trying to transform this city in a democratic way. We want schools that provide the best education for our children and makes it possible for the kids to do whatever it is they want to, their background and the school system should not be a limitation but an advantage. We want the schools to be community centers and recreation centers that provide job training and job placement. We want professional police who help the community end gang violence instead of encouraging it. And so on (we can talk vision stuff in another essay). The point is that we lay out the dream and then we lay out the path that leads from here to there. The path is the ward campaign. We can explain neighborhood committees, how they will function to discuss neighborhood issues and how they will function in relation to a real democratic city council.

Then we explain how to build the committee: Do you know 3 or more people you can register to vote or who are registered? Can you hold a meeting to explain the campaign? what we are doing? and how we will be counting on them to come out and vote on election day? Can you stay in regular contact with your committee? That is minimal. The committee’s can do much more, but that is a start. At this level of organizing it is all face to face, ultimately this networks include elements of friendship. You can invite a potential committee chair to Sunday dinner and hook them more deeply into the campaign. The idea is to get them close to the campaign and also feel ownership so that they willing to take initiatives to help develop it. We can help with the initial meetings and send organizers. Building trust and friendship will be crucial.

Recruiting neighborhood leaders at Public Meetings

When we hold a public meeting it is important to lay out the vision of a democratic city, and then link the ward campaign to that vision. The next step is to explain the role of neighborhood committees, what the job of the committee chair will be and ask people to volunteer to host a first meeting. Again, the first meeting can be your brother, your cousin, your momma and neighbor and your sister’s friend, start with whatever is doable and build-- something is better than nothing. Whoever it is we have to get together explain the campaign and how to vote for it and the role of the committee on election day. The more resources we can provide so that people take ownership over the process and their committees and develop them creatively according to the needs of their neighborhood the more we will build revolutionary democratic power.

Thursday, April 10, 2008

Obama 2008: By Any Means Necessary (Keith) by X.

I know Jeremiah Wright… Well, I never met him, but I know his ideas, he is a part of the American political left. Nothing he said outraged me, or even upset me. I agreed with a lot of it, and disagreed with some of it. If we were to meet in person I imagine we would get along just fine, and we probably could do some good work together. Obama had to distance himself from his pastor in order to remain a viable candidate -- a smart move. Gary Wills, writing in the May 2008 NY Review of Books, pointed out that Abe Lincoln, who Obama invoked when announcing his own candidacy, was associated with John Brown and the “radical” abolitionists. Like Obama, Abe had to distance himself in public from the “extremists.” But the abolitionists remained the left wing of Lincoln’s coalition, and although he publicly disavowed them (gently) he was secretly and indirectly connected to them.

About 100 hundred years later, in 1968, Robert Kennedy’s candidacy for president represented a similar coalition. His brother, John Kennedy’s election marked the achievement of full citizenship for Catholic (Irish and Italian) workers (that’s why Kennedy’s picture hangs in all those Irish bars). Bobby Kennedy continued to lead those “white” workers and he was bringing them into an alliance with the Civil Rights Movement (Kennedy was meeting and marching with two of its most prominent leaders, Dr. King and Caesar Chavez). In other words, Kennedy’s campaign was a next phase in the Civil Rights struggle. But the assassination of Malcolm X in 1965 and the FBI repression of the left made it difficult for a left wing to get into that coalition and soon King and Kennedy would also be murdered.

These assassinations sent most left wing forces in the United States into a disorientating tailspin that we have yet to recover from. If it were 1968, Hilary would be Hubert Humphrey, McCain would be Nixon, and Obama would be Bobby Kennedy. Some of our friends on the left have asked us to “Recreate ’68.” Yes, but let’s not repeat the blind rage, instead let’s do it over and send Humphrey and Nixon packing. So, we must build a John Brown, Malcolm X, Jeremiah Wright bloc— a left bloc allied to but independent from Obama’s campaign.

Malcolm X drew center-left forces like King closer to himself and led them, but after Malcolm’s assassination left wing forces pushed liberals and center-left forces away and into the hands of the right. Obama’s campaign is the potential rebirth of the Kennedy-King Coalition. And it is time for the radical left to do what Malcolm would have done—get into the coalition as an independent force, consolidate a left wing and build a liberal and left coalition to stomp the war loving right wing in this country while building our own independent left movement.

We have a couple of immediate basic tasks: Obama must be the Democratic Party candidate—By Any Means Necessary. We should plan to camp right outside of Denver during the Democratic Party’s Convention and hold anti-war demonstrations and our own left convention. If right wing Democrats try to force Hilary-Herbert Humphrey-Clinton on us we march on the convention and make sure Obama gets the nomination--By Any Means Necessary. In November, we must make sure Obama defeats the war criminal John McCain. And finally, after the election, we must be prepared to convene anywhere in the country (Florida, Ohio etc.) to make sure that the Supreme Court does not decide the contest.

Some of our fellow leftists have been very critical of Obama. The problem with their criticism is that they want Obama to be a leftist. He is not a leftist, he is a representative of the progressive, democratic wing of the capitalist class and he is making an appeal to workers of all nationalities to support him. Obama is a liberal. He is a center-left candidate. He is a part of the mainstream of the Democratic Party. We are the left! It is time we got back in the game.

Friday, March 28, 2008

Protests are Fine, but Power is Better (Keith) by X.

In 1996 the New Brunswick the police murdered Carolyn “Sissy” Adams in the middle of the night. Local organizers (the group at the time was called the New Jersey Freedom Organization (NJFO) learned of the murder and released a flyer that hit the street before the morning newspapers calling for a demonstration that evening. Thousands of people turned out and the crowd grew as we marched through the city. We marched onto the highway and shut down the courts for the evening, it was thrilling and we made lots of radical demands like an “all elected civilian police control board” (still a good project). But we didn’t really know what to do next. So we called for another rally... surprise, surprise, there were a lot less people at the second rally. We still didn't know what to do so we went on to call for another rally, although we could see the writing on the wall and had the good sense to call it a “vigil.” We were, like much of the left today, stuck in protest mode. After discussions, thinking, and more practice we started to draw lessons. We concluded that protests are very limited if they are not linked up with a movement building revolutionary democratic organization of people working and deciding together and struggling seriously for political power -- school boards, dog catcher, PTA, student government, City Council, whatever, as long as it is piece by piece and step by step building and growing a revolutionary democratic movement, building dual power and undermining the power of the bourgeois state. BTW, the national anti-war movement is stuck in protest mode—the demonstrations started very large, just like our initial demonstration, but they keep getting smaller and smaller. This is probably a predictable pattern. An initial large rally in protest of whatever heinous act perpetuated by the bourgeoisie against the people, and increasingly smaller rallies as the people increasingly realize nothing will come of these protests. The people are right, of course, we must organize for revolutionary democratic power.

Protests can be an excellent way to build a movement, but protest mode is an excellent way to destroy a movement. “Protest Mode” makes demands on the “powers that be” but never organizes to take power. Before the war in Iraq began, millions of people participated in demonstrations of protest in the United States and throughout the world. Despite these protests the war started and continues. The problem is relatively simple. The people currently in power, Democrats and Republicans, work for the same rich people, the same corporations (well different corporations—but they all work for corporations) and they will continue to make war regardless of protest.

Protest mode is stuck, then, either in this realization, or the fallacy of benevolence. The fallacy of benevolence fails to realize there isn’t anyone to protest to. The people who run our local, state, and federal government are not good people with the wrong facts. They know exactly what they are doing-- the people that fund their campaigns profit immensely by making the world hell. They can’t be convinced to do otherwise. They must be removed from power. Others stuck in protest mode can’t think of anything else to do. So they organize more “militant” protests: die-ins, fist-shaking, smash the windows of corporate buildings, overturn Fox-New vans, confront the police, or the most militant of all: get arrested! You would only allow yourself to be captured, handcuffed, and jailed if you believe in the ultimate benevolence of the system. We shouldn’t, we should know that it is a malicious system that will not stop war and murder until it is revolutionized.

The question is this: if the people in power will not end the war then we need new people in power. If the Democrats and Republicans both work for corporations who should we put in power? The answer is: US!!!! Not “us” as in “ourselves” narrowly conceived. We need to put representatives of the diverse trends of the revolutionary democratic mass movement in political office. We must transform the way we choose candidates and we must take special precautions to hold them accountable to the decisions of the movement.

In bourgeois representative democracy leaders are elected who are supposed to make decisions that the masses of people can’t understand—that’s why there is always more focus on their character and personality rather than issues of substance. They are “enlightened representatives.” Representatives of the revolutionary democratic movement, on the other hand, actually serve the demands of the masses of people directly and one of their key tasks in office is to breakdown all the undemocratic structures of the bourgeois state, so that representation gives way to direct democracy. We are not confronting the state (protest mode) we are taking the state and transforming it.

This is the revolutionary path, the revolutionary process. We must organize to take power wherever we can put our hands on it—school boards, student governments, student newspapers, PTAs, City Councils, state legislators, governors and so forth. We must transform the way we choose our candidates and the ways that we hold them accountable, there will be no sell out. As we win local power we can connect with others who have also organized successfully. A protest is great if it is linked to a movement struggling for power, then we are not protesting the powers that be, but organizing to take power. Taking power little by little is the essence of the revolutionary process and we can start now.

In New Brunswick, NJ we analyzed our history of practice and the way that local government is organized. In order to win local power, we concluded, we must organize first to transform the local electoral system from one where candidates are elected “at-large” to one where candidates are elected in “wards”--neighborhood by neighborhood—so each neighborhood can elect their own representatives and people power can defeat the power of money. This will radically democratize the city. Corporations rely on the suppression of democracy to wage war. The ward campaign will begin to reverse this so that anti-war sentiment and other projects of the majority of the country will be realized.

Winning the campaign—that is transforming the electoral system of the city from an at-large system to a ward based system—is necessary if we are to win seats in the local government and revolutionize that power. But the most important aspect of the campaign is the development of a mass revolutionary democratic movement—people working together and deciding together. We must concentrate on building the movement and deepening the level of democratic participation of more and more people.

The war in Iraq will not end until the people are organized as a power to end it. The ward campaign is a crucial step on the road to revolutionary democratic power. By democratizing the city we can propose and agitate for laws that will bring the war to an end. We can pass laws that require anti-recruiters to be stationed at all army recruitment posts to ensure that potential recruits are told the truth about the war, we can propose a lie tax so that army recruitment stations must pay higher property taxes, we can close the recruitment stations, or make it illegal to recruit in high schools. We can refuse to enforce the patriot act and other undemocratic measures of the so-called war on terror. We can create a liberated territory of amnesty for all military personnel who refuse to fight, and whatever other real measures we can develop backed by the power of organized people to end the war and revolutionize the society.