Category: Finance

Market forces.

A powerful essay from Paul Gilding.

Having our good friends, Andy and Trish, with us for a few days means, quite rightly, that time with them is top of our list; so to speak.

Thus I want to republish a recent post from Paul Gilding that seems to me to be right on the mark.

But first an apology.  About 10 minutes ago (07:40 US PDT yesterday) I pressed the ‘reblog’ key over on Paul Gilding’s posting in error.  Subscribers to Learning from Dogs will have been sent an email to that reblog and then discovered that I had deleted it, in favour of this approach!

Mr Paul Gilding.
Mr Paul Gilding.

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THE GLOBAL ENERGY MARKET’S MOMENT OF TRUTH

If you want to know what addressing climate change will really be like for business and investors, then take a look at today’s electricity and energy markets. Driven by climate policy, technology development, business innovation, NGO campaigns and investment risk analysis, creative destruction is inflicting itself upon the sector with a vengeance – and the process has just begun.

Value is being destroyed at an incredible scale with just one example being European utilities losing $750 billion in market cap in recent years. Another is the huge losses in value for coal companies and the cancellation of a large number of new coal mining projects around the world as the forecast growth in China and India evaporates. As I argued in my last Chronicle, Carbon Crash Solar Dawn, this is not a temporary market blip but a fundamental shift. Company strategies and business models that have been working for generations are collapsing. In parallel we see the creative side of the process, with new industries being built, entrepreneurs flourishing and massive wealth being created. Now the market is working, as it should, allocating capital to the places where risk and return are best aligned. It is at once a beautiful and brutal process to observe.

This is an important inflection point to acknowledge, with significant implications that should reframe our thinking about these issues.

For a start it means, climate policy and its economic consequences have now shifted from future forecasts to present reality. This reality, with all its brutality for existing businesses, give us important insights into what to expect as the world wakes up to climate change. Business is already waking up to what that means in a market economy – creative destruction unleashed to destroy slow responders.

This suggests that traditional corporate responsibility, which argued sustainability was good for all businesses, is outmoded and not helpful. We have moved into an era of win/lose rather than win/win, and with that, sustainability is shifting from ‘environmentalists vs business’ to ‘business vs business’ as I covered in this earlier Chronicle.

Taken together this means we need to change the way we talk and think about climate change and business. Sustainability is not good for many businesses – in fact it means they’ll have to go out of business. This is what sustainability at its core is all about – things that are unsustainable will stop.

While on the one hand this is blindingly obvious, it is a conversation many in business and politics don’t want to acknowledge. So when the previous Australian government brought in its carbon pricing scheme, it went to great lengths to argue that Australia would still have a healthy coal industry. And President Obama’s new regulations on CO2 emissions in the US power industry are likewise being positioned as being as much about health and air pollution as climate policy.

But as Michael Grunwald argues in this Time Magazine piece on “Obama’s War on Coal” – a phrase used by the coal industry to suggest this is unfair and unreasonable – it’s time to face up to the reality of climate action. It is a war on coal, pure and simple. Grunwald calls it the “just but undeclared war ”. But rather than “just” with its moral overtones, we could simply argue it is “necessary” based on any objective analysis of what’s good for the economy and for society. What is necessary is to move a range of companies out of the economy and replace them.

Coal is first in the firing line. As a major cause of CO2 emissions and with the lack of market support for Carbon Capture and Storage suggesting “clean coal” is either a delusion or at best an expensive PR campaign, coal simply has to go. That means coal companies will go out of business, and then oil companies and gas companies will follow them.

This is not a problem at all for the economy, as they will be replaced with new companies and new industries, which will create new jobs, new wealth and new innovations. But it is a major problem for the incumbents who will cease to exist and for their owners who will lose their money. Unless we have that conversation honestly and openly, we are setting ourselves up for pain and suffering we can easily avoid or at least minimise by thinking through the consequences and being better prepared for their departure.

Of course the best way to minimise the pain would be for fossil fuel companies to transition to new areas of business, to use the great wealth they have created to diversify into sustainable sources of profit. But most of them won’t. It’s not that they couldn’t – it’s just that they won’t. And it’s not just coal but also oil and gas who are, for the most part, in strong denial about what’s coming and so won’t be prepared, as well explained in this article by Giles Parkinson at RenewEconomy.

We shouldn’t be surprised. History shows how rare it is for companies to transform and survive major market and technology shifts. That’s why the average life expectancy of a successful multinational is only 40-50 years. And that’s why the financial markets – who act without ideology based on looking at the data – are rapidly responding. They are stripping value from fossil fuel exposed utilities and the resource companies that provide their fuel. They are also downgrading credit risk, with Barclays recently issuing a warning the investors should no longer see utilities as a “sturdy and defensive subset of the investment grade universe”. The report concluded: “We see near-term risks to credit from regulators and utilities falling behind the solar plus storage adoption curve.” No doubt Deutche Bank considered these risks when they recently announced they wouldn’t consider funding a major new coal port next to Australia’s Great Barrier Reef.

So while the idea of “war on coal” is in some ways an accurate summary of the momentous threats the industry faces from a range of forces that are consciously and deliberately coming after them, we could also just see this as how markets work.

Fossil fuels provide us with energy, but they also destroy value across the economy – by driving climate change, damaging health and increasing costs for taxpayers while imposing unmanageable risks on other companies who rely on a stable climate for their business success. So the market is simply doing its job, pricing in some of these costs using the proxies of regulatory, credit and technology risk.

The market is working …. and fossil fuels are losing.

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Hope you agree with me that it’s a great essay and, also, I hope you followed the links – they are all very interesting.

Those of you who are not familiar with Paul Gilding can find out more about him here.  Plus the following TED Talk by Paul is highly recommended viewing.

Progressing Wisdom – the essay.

What is wisdom?

On May 11th, Patrice Ayme published an essay entitled Science: Progressing Wisdom.  I found it deeply engaging. At the same time, I was frustrated because there was a part of me that wanted to know more about “Patrice”.

For some time, I had known that Patrice Ayme was a nom-de-plume and that his, or her, identity was carefully protected. Still that part of me that wanted to relate to the real person, for want of a better description, still wouldn’t quieten down.  I offered the following comment:

Patrice, you have demonstrated an amazing breadth of knowledge across your many essays. However, I did wonder if you would be happy to declare your educational experience? As in your specialisation at a degree or Doctorate level (I suspect you do hold a PhD!)? Best wishes, Paul

Patrice’s reply, which you are encouraged to read in full, opened, thus:

You are so funny, Paul! You have an Obsession-Compulsion about “qualifications”.

One of my main ideas, idea #956, is that the authority principle is severely abused. People with Philosophiae Doctor have nothing sacred about them. Goebbels had one (in humanities).

Do you think Goebbels’ authority in humanities is to be “declared”? There were even not just PhDs, but Nobel Laureates, who became Nazis, BEFORE Hitler (who had been sent to spy on them).

No doubt Hitler, a simple caporal, and gifted painter (he lived off it), was super-impressed when he met some of the most educated people in the world, and they were Nazis… Full of PhDs.

One should not confuse the message’s content and her bearer.

This site is about learning to think better. That’s why I go back to the basics.

The idea that, say, those with PhDs is Idionomics, are the only ones qualified to speak about idiocy, is, well, idiotic.

Another reader of Patrice’s essay, gmax, said this, in part:

You have to learn to judge knowledge, not just follow oligarchs like a bleating sheep to learn what’s true and what is not.

That really made me sit up and think! For the first time in my life (I’m 70 later this year), I realised that my own ragged educational experience, as offered yesterday, had left in its wake a personal insecurity over my education, and a consequential weakness in evaluating knowledge with me somehow needing to know the identity of anonymous authors. When Patrice wrote, “Please do not hesitate to make it a post, Paul! I was thinking of it myself, but, as it is, right now, I don’t seem to have the time.“, I couldn’t resist.

Here is my essay.

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Wisdom, knowledge and authority.

Abstract: Wisdom requires clarity of knowledge; no more and no less.

On Tuesday evening, Jean and I rented a movie.  We watched the film American Hustle.

american-hustle-poster
The film tells the story of brilliant con man Irving Rosenfeld, who along with his equally cunning and seductive British partner Sydney Prosser is forced to work for a wild FBI agent Richie DiMaso. DiMaso pushes them into a world of Jersey powerbrokers and mafia that’s as dangerous as it is enchanting. Jeremy Renner is Carmine Polito, the passionate, volatile, New Jersey political operator caught between the con-artists and Feds. Irving’s unpredictable wife Rosalyn could be the one to pull the thread that brings the entire world crashing down.

The film has received rave reviews (here’s a typical one in the Guardian newspaper) and was fun to watch; albeit somewhat confusing for much of the first half. At one point towards the end, the hero of the film, Irving Rosenfeld, reflects that, “People see and hear what they want to believe!“.

Bingo!

That is the challenge about accruing wisdom. How to be analytical and wise in learning new thinking and new ideas. In other words, in acquiring knowledge!

If the subject is simple (well on the surface!) as, for example, the effect of the Earth’s gravitational field then that’s fine and dandy.  It’s easy to become wise to the fact that falling off a tall building is likely to kill you.

But take an extremely complex, and highly current matter, that of Planet Earth’s changing climate, and it is extremely difficult for the average person without a scientific background to determine the truth.  Really, when I use the phrase “to determine the truth” in the context of this essay I should have written ‘to gain knowledge‘.

To illustrate that, my good Californian friend of more than 35 years, Dan Gomez, is highly sceptical about climate change as a product of man’s activities.  Recently, I sent him an email with a link to the NBC News report: American Doomsday: White House Warns of Climate Catastrophes. This was Dan’s email reply:

Think about it, Paul.

1. Consider the source and the timing of these new headlines i.e. the left-thinking Obama regime and current unfavorable political challenges.
2. A deflection from mainline issues confronting us today i.e., jobs, economy, healthcare, upcoming elections, Benghazi and IRS political issues.
3. Major opportunity to raise taxes unilaterally without Congress involved.
4. Major opportunity to redistribute corporate wealth from private sector to public sector.
5. Refocus of competitive, free-market energy sector to controlled renewables managed by a few very wealthy political contributors. A lot of money at stake.
6. Man, is empowered via a political party to “save the world” by changing the Weather. The only problem is, there is no solution, no global will and no participants to make anything significant happen i.e., China, Southeast Asia and another billion people scattered about.
7. Euro Zone and USA have already cut CO2 emissions by over 30% each to no avail. In fact, they say it is getting worse after hundreds of billions of dollars already diverted from private sector to public sector with no results. They are now asking for trillions.
8. Average person is not willing to give up his car, nor spend more for battery power (peel back the onion on the battery manufacturing and recycling industry vis a vis CO2 contributions). Much fewer cars, trains, tractors, jets, etc. to make anything work. Sacrifice begins at home.
9. Cows vent 20 times the CO2 emissions in the form of methane than man-made artifacts.  Just saying….
10. Check out the bacteria challenge facing Man. This will help put priorities in order for you.

As always, follow the money and you’ll get your answers…..

I am unable to respond to Dan in an analytical and precise manner. I am not sufficiently knowledgeable to so do. Having an emotional response is fine – but it does not advance my personal wisdom.

On the 6th May, I posted an item that featured a TED Talk by scientist Gavin Schmidt, a climate scientist no less.  His view is that, “You can’t understand climate change in pieces. It’s the whole, or it’s nothing.”  The TED Talk explains how the big picture of climate change illustrates the endlessly complex interactions of small-scale environmental events.

Just a few days ago, Jean and I had the pleasure of a couple of hours at the home of Leon Hunsaker, renowned meteorologist who has claimed that the 1862 Californian flood could happen again.

Leon Hunsaker has done the math, and he thinks Sacramento isn’t prepared for another series of storms like the ones that hit the state in January 1862.
Leon Hunsaker has done the math, and he thinks Sacramento isn’t prepared for another series of storms like the ones that hit the state in January 1862.

Leon lives less than 5 minutes from us here in Southern Oregon. I asked him what he thought of climate change and he said that the planet’s atmosphere was like a large chocolate cake and man’s activities were no more than the icing on the cake.

So there you are: a range of opinions about this particular, potentially very important, subject. Although in my own (emotional) mind the weight of evidence is in favour of the argument that man is having a deepening and worsening effect on our planet.

Take, for example, the report issued yesterday about significant melting of Antarctica’s glaciers now unstoppable. (Patrice has just released an informative post on the subject!)

“People see and hear what they want to believe!” comes immediately back to mind. Dan wants to believe that the planet is going through normal cycles of change.  I want to believe that mankind can make a difference; for the sake of my children and grandson.

Let me turn to the subject of anonymous authors, my Obsession-Compulsion about qualifications!

I have admitted the flaw in my thinking. Here’s the rationale for my change of opinion.

Just two days ago, Tom Engelhardt published his latest TomDispatch, a guest essay by Glenn Greenwald coinciding with the publication of Greenwald’s new book, No Place to Hide: Edward Snowden, the NSA, and the U.S. Security State. In that essay, Glenn Greenwald says:

On December 1, 2012, I received my first communication from Edward Snowden, although I had no idea at the time that it was from him.

The contact came in the form of an email from someone calling himself Cincinnatus, a reference to Lucius Quinctius Cincinnatus, the Roman farmer who, in the fifth century BC, was appointed dictator of Rome to defend the city against attack. He is most remembered for what he did after vanquishing Rome’s enemies: he immediately and voluntarily gave up political power and returned to farming life. Hailed as a “model of civic virtue,” Cincinnatus has become a symbol of the use of political power in the public interest and the worth of limiting or even relinquishing individual power for the greater good.

The world now knows what Glenn Greenwald (and Laura Poitras, the documentary filmmaker) knew long before.  That Snowden’s anonymity was critically important in the run-up to his knowledge being made widely known.

I was convinced. What is important is not the name and identity of the author of knowledge.  What is important is the knowledge itself. No one would deny Snowden’s right to privacy. Indeed, millions of us would opt for email privacy if we fully realised the ease and extent with which our emails, indeed our communications in general, can be intercepted.

Many know that Patrice is a frequent, outspoken voice about the dangers of plutocracy and the slip-sliding away of democracy in the United States. His, or her, personal safety is the highest need of all. Patrice has a perfect right to privacy.

Which leads on to the final, obvious question. If we do not know the identity of the author of knowledge then how can we be certain that the knowledge is valid?

Answer: Through testing!

Of course!

In the best traditions of research, especially scientific research, testing the validity of a claim is the only certain way of determining the validity of knowledge; of being able to derive wisdom from that knowledge.

Let me give you a clear example.

Commercial aviation is incredibly safe. Many countries operate an equivalent to the UK’s Air Accidents Investigation Branch. That UK AAIB website proclaims:

The purpose of the AAIB is:

To improve aviation safety by determining the causes of air accidents and serious incidents and making safety recommendations intended to prevent recurrence
…It is not to apportion blame or liability.

Keith Conradi, Chief Inspector

Critical to that purpose of improving safety (aka improving knowledge) is looking for trends. Any trends or patterns would be impossible to discover without testing and debate.

Thus what makes aviation safer is no different to what makes all of knowledge reliable: the testing of ideas and of the hypotheses behind those ideas. The identity of the author of those ideas, per se, is irrelevant.

Thus it is clear to me, clear now beyond doubt, that wisdom is the application of knowledge disconnected from the person who is the author of that knowledge. One might see it as a marriage of knowledge and intellect. Nothing more and nothing less!

All aspects of wisdom depend on trust, on the confidence that the knowledge is ‘reliable‘. Reliability gained from debate and testing.

Never forgetting that in the final analysis, as Patrice wrote it:

“Nature is the only authority worth respecting always.”

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In every which way that one can imagine, we have to return to the principles of fairness and balance so beautifully demonstrated to man by the breadth of Nature.  We have to embrace Nature’s wisdom.

In other words, we have to learn from dogs!

The loss of democracy, Concluding Part.

Part Two of what is probably just now the most important lesson to be learnt from dogs!

(Part One was published last Friday.)

Last Friday I part-used a recent chilling essay on TomDispatch by Peter Van Buren to illustrate the madness and the associated dangers of how we humans are behaving at present.  Here’s the balance of that essay.

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This Land Isn’t Your Land, This Land Is Their Land

An Empire in Decline (City by City, Town by Town)
By Peter Van Buren

The Most Exclusive Gated Community: U.S. Marine Corps Base, Camp Lejeune, North Carolina

I grew up in a fairly small Ohio town that, in the 1970s, was just crossing the sociological divide between a traditional kind of place and a proper bedroom suburb. Not everyone knew each other, but certain principles were agreed upon. A steak should be one inch thick or more. A good potluck solved most problems. Vegetables were boiled, faith rewarded. Things looked better in the morning. Kids drank chocolate milk instead of Coke. We had parades every Memorial Day and every Fourth of July, but Labor Day was just for barbecues because school began the next day and dad had to get up for work. In fact, that line — “I’ve got to get up for work” — was the way most social events broke up. This isn’t nostalgia, it’s history.

In 2014, you could travel significant parts of the decaying Midwest and not imagine that such a place had ever existed. But turn south on Interstate 95 and look for the signs that say “Welcome to U.S. Marine Corps Base Camp Lejeune,” in Jacksonville, North Carolina. Actually, welcome to almost any U.S. military base outside of actual war zones, where a homogeneous military population and generous government spending (re)creates the America of the glory days as accurately as a Hollywood movie. For a first-time visitor, a military base can feel like its own living museum, the modern equivalent of Colonial Williamsburg.

Streets are well maintained, shaded by tall trees planted there (and regularly pruned) for just that purpose. Road, water, and sewer crews are always working. There are no potholes. There is a single school with a prominent football field, and a single shopping area. The restaurants are long-time Department of Defense franchise partners and there’s always a pizza place with a fake-sounding Italian name. Those creature comforts on such bases in the U.S. and around the world come at a cost to taxpayers of billions of dollars a year.

Some of the places employ locals, some military spouses, some high school kids earning pocket money after school. The kids bag groceries. Everybody tips them; they’re neighbors.

The centerpieces of any base like Camp Lejeune are the Base Exchange and the Commissary. The former is a mini-Walmart; the latter, a large grocery store. Both are required by law not to make a profit and so sell products at near wholesale prices. Because everyone operates on federal property, no sales tax is charged. When a member of a Pentagon advisory board proposed shutting down some of the commissaries across the U.S., a step that would have saved taxpayers about $1.4 billion a year, World War III erupted in Congress and halted the idea.

Over in officers’ housing areas, everyone cuts their lawns, has a garage full of sports equipment and a backyard with a grill. Don’t keep up your assigned housing unit and you’ll hear from a senior officer. People get along — they’re ordered to do so.

The base is the whole point of Jacksonville, the town that surrounds it. The usual bars and strip clubs service the Marines, and Camp Lejeune is close to being the town’s sole employer like that old steel mill in Weirton or the gambling palaces in Atlantic City. The base shares another connection to places like Weirton: as men lost their health in the mills thanks to asbestos and other poisons, so Camp Lejeune’s drinking water was contaminated with trichloroethylene, a known carcinogen, between 1953 and 1987.

There, however, the similarities end.

Unlike the archipelago of American towns and cities abandoned to shrivel and die, the “city” inside Camp Lejeune continues to thrive, since its good times are fully covered by taxpayer money. The 23% of the national budget spent on defense assures places like Camp Lejeune of their prosperity.

The Department of Defense, with 3.2 million employees (albeit not all in uniform) is the world’s largest employer. It makes up more than two percent of the American labor force.

And the military pays well; no scrambling for a minimum wage at Camp LeJeune. With combat pay more or less standard since 9/11 (the whole world being a battlefield, of course), the Congressional Budget Office estimates that the average active duty service member receives a benefits and pay compensation package worth $99,000. This includes a livable pension after 20 years of service, free medical and dental care, free housing, a clothing allowance, and more. In most cases, dependents of service members continue to live on a base in the United States while their husbands or wives, fathers or mothers serve abroad. Unlike in the minimum-wage jobs many other Americans now depend on, service members can expect regular training and skills enhancement and a clear path to promotion. Nearly every year, Congress votes for pay increases. The arguments for military benefits may be clear — many service members lead difficult and dangerous lives. The point is, however, that the benefits exist, unlike in so many corporate workplaces today. The government pays for all of them, while Atlantic City and Weirton struggle to stay above water.

Small Town America in the Big Apple: Spanish Harlem

The number of Americans who have visited Harlem, even for a quick stop at a now-trendy restaurant or music club, is unknown but has to be relatively small. Even many lifetime New Yorkers riding the uptown subway under the wealthy upper east side are careful to hop off before reaching the 116th Street stop. Still, get off there, walk a few blocks, and you find yourself in a micro-economy that, in its own way, has more in common with America of the 1950s than 2014.

There are, of course, no shaded areas along the block I was visiting in what has traditionally been known as Spanish Harlem, no boyish Little League games. But what you do find are locally owned stores with hardly a franchised or corporately owned place in sight. The stores are stocked with a wondrous hodge-podge of what people in the area need, including South American root vegetables, pay-as-you-go cell phones, and cheap school supplies.

These stores could not exist in many other places. They are perfectly adapted to the neighborhood they are in. While the quality of goods varies, prices are wondrously below what similar things cost a half-dozen subway stops away in midtown Manhattan. In the stores, the employees of these family businesses speak the same languages as their mostly Dominican immigrant customers, and those who work there are eager to make suggestions and help you find things.

People actually chat with each other. Customer loyalty is important, so prices are often negotiable. When he discovered that his customer was also his neighbor, one shop owner helped carry purchases upstairs. Another store informally accepted and held package deliveries for neighbors.

The guy selling frozen ices on the sidewalk nearby did not work for a conglomerate and doled out healthy-sized servings to his regulars. He told me that he bought his raw materials in the very grocery store we were camped in front of.

Even at night, the sidewalks here are full of people. I never felt unsafe, even though I obviously wasn’t from the neighborhood. People seemed eternally ready to give me directions or suggest a local eatery I shouldn’t miss. The one established mega-corporate store in the area, a Rent-a-Center charging usurious prices for junk, had no customers inside on the day I visited. The shop next to it, with an impressive array of used TVs and small appliances from unknown Chinese manufacturers, seemed to be doing gangbuster business. The owner shifted among English, Spanish, and some sort of Dominican creole based on the needs of his customers.

Few things here are shiny or new. There are vacant lots, an uncomfortable sight at night. Homeless people, some near naked despite the weather and muttering to themselves, are more prevalent than in Midtown. The streets have more trash. I saw drug deals going on against graffiti-scarred walls. There is a busy methadone clinic on a busy street. Not everyone is the salt of the earth, but local businesses do cater to the community and keep prices in line with what people could pay. Money spent in the neighborhood mostly seems to stay there and, if not, is likely sent home to the Dominican Republic to pay for the next family member’s arrival in town — what economist John Maynard Keynes called the “local multiplier effect.” One study found that each $100 spent at local independents generated $45 of secondary local spending, compared to $14 at a big-box chain. Business decisions — whether to open or close, staff up or lay off — were made by people in the area face-to-face with those they affected. The businesses were accountable, the owners at the cash registers.

The stretch of Spanish Harlem I passed through is a galaxy away from perfect, but unlike Weirton, which had long ago given up, Atlantic City, which was in the process of doing so, or Camp Lejeune, which had opted out of the system entirely, people are still trying. It shows that an accountable micro-economy with ties to the community can still work in this country — at least in the short run. But don’t hold your breath. Target recently opened its first superstore not far away and may ultimately do to this neighborhood what cheap foreign steel imports did to Weirton.

Looking Ahead

I grew up in the Midwest at a time when the country still prided itself on having something of a conscience, when it was a place still built on hope and a widespread belief that a better future was anybody’s potential birthright. Inequity was always there, and there were always rich people and poor people, but not in the ratios we see now in America. What I found in my travels was place after place being hollowed out as wealth went elsewhere and people came to realize that, odds on, life was likely to get worse, not better. For most people, what passed for hope for the future meant clinging to the same flat-lined life they now had.

What’s happening is both easy enough for a traveler to see and for an economist to measure. Median household income in 2012 was no higher than it had been a quarter-century earlier. Meanwhile, expenses had outpaced inflation. U.S. Census Bureau figures show that the income gap between rich and poor had widened to a more than four-decade record since the 1970s. The 46.2 million people in poverty remained the highest number since the Census Bureau began collecting that data 53 years ago. The gap between how much total wealth America’s 1% of earners control and what the rest of us have is even wider than even in the years preceding the Great Depression of 1929. Argue over numbers, debate which statistics are most accurate, or just drive around America: the trend lines and broad patterns, the shadows of our world of regime change, are sharply, sadly clear.

After John Steinbeck wrote The Grapes of Wrath, he said he was filled with “certain angers at people who were doing injustices to other people.” I, too, felt anger, though it’s an emotion that I’m unsure how to turn against the problems we face.

As I drove away from Atlantic City, I passed Lucy the Elephant still at her post, unblinking and silent. She looks out over the Boardwalk, maybe America itself, and if she could, she undoubtedly would wonder where the road ahead will take us.

Peter Van Buren blew the whistle on State Department waste and mismanagement during Iraqi reconstruction in his first book, We Meant Well: How I Helped Lose the Battle for the Hearts and Minds of the Iraqi People. A TomDispatch regular, he writes about current events at his blog, We Meant Well. His book Ghosts of Tom Joad: A Story of the #99Percent has just been published.

Follow TomDispatch on Twitter and join us on Facebook and Tumblr. Check out the newest Dispatch Book, Ann Jones’s They Were Soldiers: How the Wounded Return From America’s Wars — The Untold Story.

Copyright 2014 Peter Van Buren

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Let me pick up a sentence that Peter wrote in his penultimate paragraph.  This one; “I, too, felt anger, though it’s an emotion that I’m unsure how to turn against the problems we face.“

Those feelings of anger are easy to feel and, of course, anger is a legitimate response to the terrible levels of inequity in many societies.   But the answer is clear.  We need to promote the role of integrity, honesty, love and trust in our affairs, from the top to the bottom of the peoples who make up a nation.  As is explained in my sidebar Dogs and integrity,

Dogs:

  • are integrous ( a score of 210) according to Dr David Hawkins
  • don’t cheat or lie
  • don’t have hidden agendas
  • are loyal and faithful
  • forgive
  • love unconditionally
  • value and cherish the ‘present’ in a way that humans can only dream of achieving
  • are, by eons of time, a more successful species than man.

Not a bad model for the future!

The loss of democracy, Part One

Probably just now the most important lesson to be learnt from dogs! (read to the end!)

I have frequently written about the many growing stresses in societies so, in a sense, today’s post is nothing new.  But the power of a recent essay over on TomDispatch was such that I couldn’t ignore it.  Especially as Tom Engelhardt has given me permission to republish it. I’m referring to the essay by Peter Van Buren under the title of Regime Change in America.

However, while that essay is published wholly as one by Tom, I’m going to break it down into two posts; today and next Monday.  Simply because it resonates so strongly with other items that I want to refer to.

But let me get started by offering you Tom’s introduction to Peter Van Buren’s essay.

The old words are on the rebound, the ones that went out in the last century when the very idea of a Gilded Age, and the plutocrats and oligarchy of wealth that went with it, left the scene in the Great Depression. Now, those three classic terms that were never to return (or so it once seemed) are back in our vocabularies. They’ve been green-lighted by society. (If they’re not on SAT tests in the coming years, I’ll eat my top hat.)

Of course, an inequality gap has been widening into an abyss for decades now, but when it comes to the present boom in old-fashioned words that once went with being really, really, obscenely wealthy and powerful, give the Occupy movement of 2011 credit. After all, they were the ones who took what should already have been on everyone’s lips — the raging inequality in American society — out of the closet and made it part of the national conversation. 1%! 99%!

Now, the stats on national and global inequality are everyday fare (and looking worse all the time). Meanwhile, the book of a French (French!) economist about how the U.S. is leading the way when it comes to inequality and possibly creating the basis for a future… yes!… oligarchy of inherited wealth is on the bestseller list and the talk of the town. And if that weren’t enough, a new study out of Princeton University suggests that, as Talking Points Memo put it, “Over the past few decades America’s political system has slowly transformed from a democracy into an oligarchy, where wealthy elites wield most power.” As the two authors of the study write, “The central point that emerges from our research is that economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while mass-based interest groups and average citizens have little or no independent influence.”

In an America where, when it comes to the political system, the Supreme Court has now granted the dollar the full right to speak its mind, and ever more of those dollars can be found in the pockets of… well, not to put a fine point on it, plutocrats, we need a new (that is, old) vocabulary to fit our changing circumstances.

In all of this, one thing missing has been the classic American observer, the keen reporter setting out on the road to catch the new look of a land in pain and misery. Today, TomDispatch aims to remedy that. Peter Van Buren, former State Department whistleblower and author of a new book on American inequality, Ghosts of Tom Joad: A Story of the #99Percent, has been traveling the ever-expanding, ever-rustier Rust Belt taking the temperature of a land with a significant fever. Here’s his account. Tom

But if you think this is an American problem, let me take you back a couple of days to my post that reflected the feeling that it was all getting too much: I just want to throw up! Reason? Because in that post I referred to a recent essay by George Monbiot called The Shooting Party.  Here are the opening chapters (and you will have to go here to read the numbered references):

As the food queues lengthen, the government is giving our money to the super-rich.
By George Monbiot, published in the Guardian 29th April 2014

So now you might have to buy your own crutches, but you’ll get your shotgun subsidised by the state. A few days after False Economy revealed that an NHS group is considering charging patients for the crutches, walking sticks and neck braces it issues (1), we discovered that David Cameron has intervened to keep the cost of gun licences frozen at £50: a price which hasn’t changed since 2001 (2).

The police are furious: it costs them £196 to conduct the background checks required to ensure that shotguns are issued only to the kind of dangerous lunatics who use them for mowing down pheasants, rather than to the common or garden variety. As a result they – sorry we – lose £17m a year, by subsidizing the pursuits of the exceedingly rich (3). The Country Land and Business Association – the armed wing of the Conservative party – complains that it’s simply not fair to pass on the full cost of the licence to the owners of shotguns (4); unlike, say, the owners of passports or driving licences, who are charged on the basis of full cost recovery.

Three days later – on Friday – the government announced that it will raise the subsidy it provides for grouse moors from £30 per hectare to £56 (5). Yes, you read that right: the British government subsidises grouse moors, which are owned by 1% of the 1% and used by people who are scarcely less rich. While the poor are being forced out of their homes through government cuts, it is raising the payments – across hundreds of thousands of hectares – that some owners use to burn and cut the land (helping to cause floods downstream), shoot or poison hen harriers and other predators, and scar the hills with roads and shooting butts (6). While the rest of us can go to the devil, the interests of the very rich are ringfenced.

So with no further ado, back to the first half of Peter Van Buren’s essay.

ooOOoo

This Land Isn’t Your Land, This Land Is Their Land

An Empire in Decline (City by City, Town by Town)
By Peter Van Buren

As America’s new economy starts to look more like the old economy of the Great Depression, the divide between rich and poor, those who have made it and those who never will, seems to grow ever starker. I know. I’ve seen it firsthand.

Once upon a time, I worked as a State Department officer, helping to carry out the occupation of Iraq, where Washington’s goal was regime change. It was there that, in a way, I had my first taste of the life of the 1%. Unlike most Iraqis, I had more food and amenities than I could squander, nearly unlimited funds to spend as I wished (as long as the spending supported us one-percenters), and plenty of U.S. Army muscle around to keep the other 99% at bay. However, my subsequent whistleblowing about State Department waste and mismanagement in Iraq ended my 24-year career abroad and, after a two-decade absence, deposited me back in “the homeland.”

I returned to America to find another sort of regime change underway, only I wasn’t among the 1% for this one. Instead, I ended up working in the new minimum-wage economy and saw firsthand what a life of lousy pay and barely adequate food benefits adds up to. For the version of regime change that found me working in a big box store, no cruise missiles had been deployed and there had been no shock-and-awe demonstrations. Nonetheless, the cumulative effects of years of deindustrialization, declining salaries, absent benefits, and weakened unions, along with a rise in meth and alcohol abuse, a broad-based loss of good jobs, and soaring inequality seemed similar enough to me. The destruction of a way of life in the service of the goals of the 1%, whether in Iraq or at home, was hard to miss. Still, I had the urge to see more. Unlike in Iraq, where my movements were limited, here at home I could hit the road, so I set off for a look at some of America’s iconic places as part of the research for my book, Ghosts of Tom Joad.

Here, then, are snapshots of four of the spots I visited in an empire in decline, places you might pass through if you wanted to know where we’ve been, where we are now, and (heaven help us) where we’re going.

On the Boardwalk: Atlantic City, New Jersey

Drive in to Atlantic City on the old roads, and you’re sure to pass Lucy the Elephant. She’s not a real elephant, of course, but a wood and tin six-story hollow statue. First built in 1881 to add value to some Jersey swampland, Lucy has been reincarnated several times after suffering fire, neglect, and storm damage. Along the way, she was a tavern, a hotel, and — for most of her life — simply an “attraction.” As owning a car and family driving vacations became egalitarian rights in the booming postwar economy of the 1950s and 1960s, all manner of tacky attractions popped up along America’s roads: cement dinosaurs, teepee-shaped motels, museums of oddities, and spectacles like the world’s largest ball of twine. Their growth paralleled 20 to 30 years of the greatest boom times any consumer society has ever known.

Between 1947 and 1973, actual incomes in the United States rose remarkably evenly across society. Certainly, there was always inequality, but never as sharp and predatory as it is today. As Scott Martelle’s Detroit: A Biography chronicles, in 1932, Detroit produced 1.4 million cars; in 1950, that number was eight million; in 1973, it peaked at 12 million. America was still a developing nation — in the best sense of that word.

Yet as the U.S. economy changed, money began to flow out of the working class pockets that fed Lucy and her roadside attraction pals. By one count, from 1979 to 2007, the top 1% of Americans saw their income grow by 281%. They came to control 43% of U.S. wealth.

You could see it all in Atlantic City, New Jersey. For most of its early life, it had been a workingman’s playground and vacation spot, centered around its famous boardwalk. Remember Monopoly? The street names are all from Atlantic City. However, in the economic hard times of the 1970s, as money was sucked upward from working people, Boardwalk and Park Place became a crime scene, too dangerous for most visitors. Illegal drug sales all but overtook tourism as the city’s most profitable business.

Yet the first time I visited Atlantic City in the mid-1980s, it looked like the place was starting to rebound in the midst of a national economy going into overdrive. With gambling legalized, money poured in. The Boardwalk sprouted casinos and restaurants. Local business owners scrambled to find workers. Everyone and everything felt alive. Billboards boasted of “rebirth.”

Visit Atlantic City in 2014 and it’s again a hollowed-out place. The once swanky mall built on one of the old amusement piers has more stores shuttered than open. Meanwhile, the “We Buy Gold” stores and pawnshops have multiplied and are open 24/7 to rip off the easy marks who need cash bad enough to be out at 4 A.M. pulling off their wedding rings. On a 20-story hotel tower, you can still read the word “Hilton” in dirt shadow where its name had once been, before the place was shuttered.

Trump Plaza, a monument to excess and hubris created by a man once admired as a business magician and talked about as a possible presidential candidate, is now a catalog of decay. The pillows in the rooms smell of sweat, the corners of doors are chipped, many areas need a new coat of paint, and most of the bars and restaurants resemble the former Greyhound bus terminal a few blocks away. People covered with the street gravy that marks the homeless wander the casino, itself tawdry and too dimly lit to inspire fun. There were just too many people who were clearly carrying everything they owned around in a backpack.

Outside, along the Boardwalk, there are still the famous rolling chairs. They are comfortable, bound in wicker, and have been a fixture of Atlantic City for decades. They were once pushed by strong young men, maybe college students earning a few bucks over the summer break. You can still ride the chairs to see and be seen, but now they’re pushed by recent immigrants and not-so-clean older denizens of the city. Lots of tourists still take rides, but there’s something cheap and sad about paying workers close to my own age to wheel you around, just a step above pushing dollars into the G-strings of the strippers in clubs just off the Boardwalk.

One of the things I did while in Atlantic City was look for the family restaurant I had worked in 30 years earlier. It’s now a dollar store run by an angry man. “You buy or you leave,” he said. Those were the last words I heard in Atlantic City. I left.

Dark Side of the Moon: Weirton, West Virginia

The drive into Weirton from the east takes you through some of the prettiest countryside in Maryland and Western Pennsylvania. You cross rivers and pass through the Cumberland Gap along the way and it’s easy going into the town, because the roads are mostly empty during typical business hours. There’s nothing much going on. The surrounding beauty just makes the scarred remains of Weirton that much more shocking when you first come upon them. Take the last turn and suddenly the abandoned steel mills appear like a vision of an industrial apocalypse, nestled by the Ohio River.

In 1909, Ernest T. Weir built his first steel mill next to that river and founded what later became the Weirton Steel Corporation. In the decades to come, the town around it and the mill itself were basically synonymous, both fueled by the industrial needs of two world wars and the consumer economy created following the defeat of Germany and Japan. The Weirton mill directly contributed to wartime triumphs, producing artillery shells and raw steel to support the effort, while Weirton’s sons died on battlefields using the company’s products. (A war memorial across the street from the mill sanctifies the dead, the newest names being from the battlefields of Iraq and Afghanistan.)

tomjoadAt its peak, the Weirton Steel Corporation employed more than 12,000 people, and was the largest single private employer and taxpayer in West Virginia. The owners of the mill paid for and built the Weirton Community Center, the Weirton General Hospital, and the Mary H. Weir Library in those glory days. For years the mill also paid directly for the city’s sewers, water service, and even curbside garbage pickup. Taxes were low and life was good.

In the 1970s and early 1980s, however, costs rose, Asian steel gained traction and American manufacturing started to move offshore. For the first time since the nineteenth century, the country became a net importer of goods. Some scholars consider the mid-1970s a tipping point, when Congress changed the bankruptcy laws to allow troubled companies an easier path to dumping existing union contracts and employee agreements. It was then that Congress also invented individual retirement accounts, or IRAs, which were supposed to allow workers to save money tax-free to supplement their retirements. Most corporations saw instead an opportunity to get rid of expensive pensions. It was around then that some unknown steelworker was first laid off in Weirton, a candidate for Patient Zero of the new economy.

The mill, which had once employed nearly one out of every two people in town, was sold to its employees in 1984 in a final, failed attempt at resuscitation. In the end, the factory closed, but the people remained. Today, the carcass of the huge steel complex sits at one end of Main Street, rusting and overgrown with weeds because it wasn’t even cost-effective to tear it down. Dinosaur-sized pieces of machinery litter the grounds, not worth selling off, too heavy to move, too bulky to bury, like so many artifacts from a lost civilization. A few people do still work nearby, making a small amount of some specialty metal, but the place seems more like a living museum than a business.

Most of the retail shops on Main Street are now abandoned, though I counted seven bars and two strip clubs. There’s the Mountaineer Food Bank that looks like it used to be a hardware store or maybe a dress shop. The only still-thriving industry is, it seems, gambling. West Virginia legalized “gaming” in 1992 and it’s now big business statewide. (Nationally, legal gambling revenues now top $92.27 billion a year.)

Gambling in Weirton is, however, a far cry even from the decaying Trump Hotel in Atlantic City. There are no Vegas-style casinos in town, just what are called “cafes” strung along Main Street. None were built to be gambling havens. In fact, their prior history is apparent in their architecture: this one a former Pizza Hut, that one an old retail store with now-blacked out windows, another visibly a former diner.

One sunny Tuesday, I rolled into a cafe at 7 A.M., mostly because I couldn’t believe it was open. It took my eyes a minute to adjust to the darkness before I could make out three older women feeding nickels into slot machines, while another stood behind a cheap padded bar, a cigarette tucked behind her ear, another stuck to her dry lips. She offered me a drink, gesturing to rows of Everclear pure grain, nearly 99% pure alcohol, and no-name vodka behind her. I declined, and she said, “Well, if you can’t drink all day, best anyway that you not start so early.”

Liquor is everywhere in Weirton. I talked to a group of men drinking out of paper bags on a street corner at 8 A.M. They hadn’t, in fact, been there all night. They were just starting early like the cafe lady said. Even the gas stations were stocked with the ubiquitous Everclear, all octane with no taste or flavor added because someone knew that you didn’t care anymore. And as the state collects tax on it, everyone but you wins.

Booze is an older person’s formula for destruction. For the younger set, it’s meth that’s really destroying Weirton and towns like it across the Midwest. Ten minutes in a bar, a nod at the guy over there, and you find yourself holding a night’s worth of the drug. Small sizes, low cost, adapted to the market. In Weirton, no need even to go shopping, the meth comes to you.

Meth and the Rust Belt were just waiting for each other. After all, it’s a drug designed for unemployed people with poor self-images and no confidence. Unlike booze or weed, it makes you feel smart, sexy, confident, self-assured — before the later stages of addiction set in. For a while, it seems like the antidote to everything real life in the New Economy won’t ever provide. The meth crisis, in the words of author Nick Reding in Methland: The Death and Life of an American Small Town, is “as much about the death of a way of life as the birth of a drug.”

The effects of a lifetime working in the mill — or for the young, of a lifetime not working in the mill — were easy enough to spot around town. The library advertised free diabetes screening and the one grocery store had signs explaining what you could and could not buy with SNAP (food stamps, which have been called the Supplemental Nutrition Assistance Program since 2008). The local TV channels were chock-a-block full of lawyers’ ads urging you to call in if you have an asbestos-related illness. A lot of health was left behind in those mills.

There are some nice people in Weirton (and Cleveland, Detroit, or any of the other industrial ghost towns once inhabited by what Bruce Springsteen calls “steel and stories”). I’m sure there were even nicer parts of Weirton further away from the Main Street area where I was hanging out, but if you’re a stranger, it’s sure damn hard to find them. Not too far from the old mill, land was being cleared to make way for a new Walmart, a company which already holds the distinction of being West Virginia’s largest private employer.

In 1982 at the Weirton mill, a union journeyman might have earned $25 an hour, or so people told me. Walmart pays seven bucks for the same hour and fights like a junkyard dog against either an increase in the minimum wage or unionization.

Copyright 2014 Peter Van Buren

ooOOoo

OK, I opened today’s post with the sub-heading “Probably just now the most important lesson to be learnt from dogs!” Let me expand on that.

Dogs, like many other ‘pack’ animals, have a relatively flat hierarchy across their group.  Typically, a wild dog pack numbered upwards of 30 animals although in modern times we have only the African Wild dog left to study.  Nevertheless, the African Wild dog offers mankind the key lesson about cooperation and social equality.  Here’s an extract from a National Geographic article [my emphasis]:

African Wild Dog Lycaon pictus

Known as African wild, painted, or Cape hunting dogs, these endangered canines closely resemble wolves in their pack-oriented social structure. Photograph by Chris Johns
Known as African wild, painted, or Cape hunting dogs, these endangered canines closely resemble wolves in their pack-oriented social structure.
Photograph by Chris Johns

The African wild dog, also called Cape hunting dog or painted dog, typically roams the open plains and sparse woodlands of sub-Saharan Africa.

These long-legged canines have only four toes per foot, unlike other dogs, which have five toes on their forefeet. The dog’s Latin name means “painted wolf,” referring to the animal’s irregular, mottled coat, which features patches of red, black, brown, white, and yellow fur. Each animal has its own unique coat pattern, and all have big, rounded ears.

African wild dogs live in packs that are usually dominated by a monogamous breeding pair. The female has a litter of 2 to 20 pups, which are cared for by the entire pack. These dogs are very social, and packs have been known to share food and to assist weak or ill members. Social interactions are common, and the dogs communicate by touch, actions, and vocalizations.

African wild dogs hunt in formidable, cooperative packs of 6 to 20 (or more) animals. Larger packs were more common before the dogs became endangered.

So back to the domesticated dog.  There are just three ‘roles’ to be found: the female alpha dog, the male beta dog and the omega dog that can be of either gender. Even though in a group of dogs (we have eight here at home) the alpha and beta dogs are dominant and will eat first, there is no question of denying the other dogs in the group access to food, water and love from us humans.

The lesson we must learn from dogs is obvious and there’s no need for me to spell it out!

The second half of Peter Van Buren’s essay will be published here on Monday.

 

I just want to throw up!

Apologies for feeling very dispirited!

Normally, there’s always a selection of bits and pieces in my LfD Blog folder from which to construct a new post.

But yesterday afternoon as I trawled a number of articles and blog sites I ended up feeling sick to the back teeth. Disgusted about the inequalities and injustices that seem to be in the news just now. (I use the word ‘news’ liberally!)

It started with me reading, even before I was out of bed, the latest essay from George Monbiot entitled The Shooting Party.

As the food queues lengthen, the government is giving our money to the super-rich.

Then I went back to re-read an essay from Patrice Ayme that came out on the 22nd called USA: Rich Plutos, Poor People.  Here’s a snippet from there:

Plutocracy is a redistribution of wealth, power, income, from We The People to a small minority of controlling parasites. Plutocracy paralyzes the minds with a warped case of inverted decency. Plutocracy is neither optimal for the society, nor the economy.

Plutocracy affects the USA more than Europe, and the minds, even more than the stomachs. The fact that average Americans feel that they are much better off than in the rest of the world reinforces the plutocratization of the USA. Including astounding tolerance for the amazingly corrupt so called Supreme Court (Supremely plutocratic!).

On to another of Patrice’s essays.  Or more specifically to a comment left by Eugen to a post from Patrice published yesterday.

I would like to share with you my thought about the major defaults of the economic system called “Market economy” or “Capitalism”, or in the language of this blog, the moral deficiency of the system run by Plutocracy.

The major problem of the contemporary economic system on the macro level is that it enabled on one hand to pour into the economy too much financial liquidity at times of boom and overheated economy, by investing too much money in wrong and too expensive assets, and on the other hand at times of bust, when the economy needs liquidity to sustain employment, the system is rather greedy with helping investments in the same assets for even very reduced price. This system a-priory has to cause bust and boom, situations.

The economist since the great depression of 1929-1933 which had disastrous consequences learned from the lesson, and since then the governments and the central banks took as their major task in economy (and be the price whatever it takes), to act as anti bust and boom instrument. This is why they made the economic stimulus of trillions that saved the banks and financial system from total collapse (luckily the collapse came during the time of republican presidency and they couldn’t resist this decision), and the quantitative easing that poured liquidity of government money into the economy as alternative to the private money from banks who stopped to borrow.

So if it is so easy to solve the economic crisis situations, what is the problem? Let the economy run on the waves of bust and boom, and whenever the bust comes the government interferes, and at the times of booms let the boys play and enjoy themselves. If economics would be only about mathematical formulas, probably it could work, but the truth is all the economic decisions have their moral-political aspects. [Ed. My emphasis] And here lies the problem.

Because it is morally and politically very hard to neglect the principle of punish those who do wrong and give tribute to those who has done good. And this is actually what happens when the government comes to rescue the “credit boomers”, the bankers who created a distorted financial system, that channeled the financial and material resources to wrong places to invest in wrong assets, and when the D day came, they did not have to pay the price for their wrong doings. The same happened to those who took the loans, without to ask themselves if and when are they going to pay them back.

These Financiers and their creditors, who get loans of other peoples’ money enjoy free lunch twice. Once when they give and get these loans with knowledge that it will never be repaid, and second time when they enjoy the debt reduction, when the governments come to rescue them.

On the other hand those who use the wealth generated at times of boom to accumulate reserves for the bad times have to pay twice. First time when they restrain their activities during the times of prosperity and reduce by it their profits, second time at times of bust, when still they have to fulfill all their obligations, and get no praise for their responsible behavior in the times of boom.

Of course this system of Boom and Bust causes with each wave a major shift of wealth from one sector to the other, and generally from the decent and responsible entrepreneurs to the irresponsible gamblers, who happen to make bid on other people’s money.

This is one of the reasons why the pension systems are all in deficit, the wages stagnate while the profits and mainly the rewards of corporate managers of publicly traded companies surge.

Isn’t this just unfair?

Then I forget how I ended up on the Animal Spirits blogsite.  But I did.  To read a short essay Sanctions salami tactics.

Sanctions salami tactics

Plutocrats have a certain grudging respect for one another. Naturally, they would like to put each other out of business unless it impacted their own business adversely. So I conclude that Obama’s sanctions are an attempt to isolate Putin from his plutocratic supporters (although perhaps supporters is too strong a word; Putin keeps his plutocrats on a pretty tight leash, just ask Mikhail Khodorkovsky).

But what if under the table the West is inviting Putin’s plutocrats to join them, where the grass is greener and you don’t have old Vlad busting your chops. We’re not going to mention that we’re going to give you a haircut on the way, but are you really ready for the rebirth of the Soviet Union? The London bankers must certainly be for it.

On the other hand, you have the Chinese promising big business… but China’s biggest real estate investor is unloading everything as China replicates the Western real estate bubble and collapse….

It’s tough being a Russian plutocrat these days. It’s tough being a plutocrat anywhere, really, with all this talk that plutocrats are *too* wealthy (and are actually mass murdering their fellow humans with their insatiable greed by hording wealth and depriving others of health care, education and jobs).

Come to America! Come to the UK! Plutocrats rule! This is the subtext of what the Russian plutocrats are hearing.

Finally, an essay published on Naked Capitalism had me reaching for the bowl. It was by Rob Johnson on the Breakdown of Democracy.  Read it.  It included this video.

Published on Apr 26, 2014
Rob Johnson: The influx of additional campaign finance dollars and central bank policies have contributed to the destruction of democratic institutions

That was enough for me.

Couldn’t take any more. Certainly wasn’t feeling inspired and creative.  Just wanted to go out and find a horse to kiss.

Sanity is a warm, loving horse!
Sanity is a warm, loving horse!

Sorry! Hopefully back to being more positively creative tomorrow!

Trust, truth and community, Pt. One.

Reflections on our present world.

Today, and the next two days, I want to offer you three essays under the theme of Trust, truth and community.

As is so often the case, there was a series of outwardly unconnected experiences that seemed, well to my eyes anyway, to speak to a theme.  You will have to wait until Friday to judge whether or not you agree with me!

Trust

This first essay was motivated by two disparate events: One very local and one as far removed from being local as one could imagine.

But first, what do we mean by trust? Roget’s Thesaurus defines the word (in part):

trust noun

Absolute certainty in the trustworthiness of another: belief, confidence, dependence, faith, reliance.

You will recall that just over three weeks ago, we welcomed two horses to our pastures; Ranger and Ben.  Both horses had previously been treated badly by humans, especially Ben who had been starved and beaten by his ex-owners.

In the early days, Ben was very cautious of any sudden movement by me and would back away from any contact from me other than being offered a food treat.

But in just three weeks, Ben has gone a huge way towards trusting Jean and me.

Taken yesterday afternoon.
Taken yesterday afternoon.

oooo

My face is closer than three inches to Ben's nose.
My face is closer than three inches to Ben’s nose.

oooo

Both Ben and Ranger in the background are now very comfortable with Jean and me.
Both Ben and Ranger in the background are now very comfortable with Jean and me.

Now, I don’t know about you, but my guess is that if a human had experienced the degree of cruelty from the hands of another person that these horses had, it would take very much longer than three weeks for that human victim to regain the same level of trust that Ben and Ranger now offer. Indeed, many persons would harbour anger and distrust forever.

That was the local example of trust

Now to the ‘non-local’ example of trust. It involves PayPal.

Not so long ago, Wolf Richter, he of the Testosterone Pit blogsite, published an essay about PayPal’s recently revised privacy policy.  Or as Wolf called it: I Just Got PayPal’s New Absolutely-No-Privacy-Ever Policy

You must read it in full, especially if you are a PayPal user.  Thanks to Wolf, I can offer you his opening paragraphs:

I Just Got PayPal’s New Absolutely-No-Privacy-Ever Policy

TUESDAY, APRIL 1, 2014 AT 1:00AM
Sunday, when people had other things to do and weren’t supposed to pay attention, PayPal sent its account holders an innocuous-sounding email with the artfully bland title, “Notice of Policy Updates.” PayPal didn’t want people to read it – lest they come away thinking that the NSA, which runs the most expansive spying dragnet in history, is by comparison a group of choirboys.

The email started with corporate blah-blah-blah on privacy, that PayPal was “constantly” changing things “to give you more of what you want and improve your experience using us.”

Do read the rest of the essay here. Here’s a comment from a reader of Wolf’s essay, republished with Wolf’s permission:

Concerning: I Just Got PayPal’s New Absolutely-No-Privacy-Ever Policy

I will relate an experience I had regarding Pay Pal that I believe has some relevance to your blog on Pay Pal’s privacy policy.

I am a retired old geezer living in NY State. About 4 years ago I looked at Ebay’s bidding process to place a bid on an item I wanted. However I discovered that I could not make such a bid without subscribing to pay pal. I provided pay pal with the information it required and made my bid. My bid was exceeded by other bids and I did not get the item. My credit card was not used at that time and I never used Ebay or pay pal after that.

Because I did not respond to ongoing emails from the 2 companies I believed that I had no further connection to either of them and that my single failed bid was the end of our relationship.

Then about 2-3 years ago I received a couple of emails from Best Buy: one thanking me for opening a new account, and the other thanking me for purchasing an expensive electronic item.

When I opened up that new Best Buy account I discovered that my address was stated to be in California in care of a person named Pham Pham and that the credit card that was used was one that had recently expired although the number was still in use on a subsequently issued card. I checked all my credit cards online and found that the charge was not pending. I also took some other measures to protect myself. Within hours I received another email from Best Buy cancelling the order because payment was not made by my credit card company.

This incident took a strange turn a couple of days later. Initially I had no idea as to the source of the credit information leak. But then 2-3 days afterwards I received an email from Pay Pal requesting an update of the credit card information in my Pay Pal account. Pay Pal’s email request for updated credit information so soon after the online theft attempt may be just a coincidence, but in my mind there is an undisclosed connection. Of course I have not complied with Pay Pay’s requests. To this day no company has informed me that their accounts were hacked and that my credit information was stolen.

If, when you have read Wolf’s report in full, you feel, as I do, that the time has come to cut the relationship with PayPal then go for it.  Because only a customer base that is ‘voting with their feet’ will deliver the message.

What is that message?

Simply, if organisations want to be trusted by their customers, those organisations must behave with integrity.  Now I am not accusing PayPal of a lack of integrity but it goes beyond that.  It goes to operating with a genuine sensitivity for what is correct. PayPal’s privacy policy is anything but that.  There are parts of their ‘new’ policy that stink of gross insensitivity to their feelings for their customers. Read it in full courtesy of Wolf Richter

Oh, want to know how to close a PayPal account?

To close your Payflow account:

If your partner is PayPal, VeriSign or CyberCash contact PayPal Merchant support at 1-888-883-9770 or via email at payflow-support@paypal.com. Be sure to include your login ID.

If your partner is with a Payflow partner, reseller, or merchant bank you will need to contact the partner, reseller, or bank directly to close your Payflow account.

For additional information, contact PayPal Merchant support at 1-888-883-9770 or via email at payflow-support@paypal.com.

Note: Once your Payflow account is terminated, you cannot access the PayPal Manager or any account data. If you need access to this data, you will be charged a fee.

If you are trying to close your PayPal account and not a Payflow account do the following:
Log in to your PayPal account.
Click Profile at the top of the page.
Click Close Account in the Account Information column and follow the steps listed.

My PayPal account was closed at 15:10 PDT yesterday.

Perhaps PayPal should take note of how humans witness trust offered by our dear animals!

The long heist!

Suddenly, it all makes sense!

“Washing one’s hands of the conflict between the powerful and the powerless means to side with the powerful, not to be neutral.” –Paulo Freire

Dear neighbours, Dordie and Bill, lent us a documentary video to watch on Sunday night.  It was called “HEIST: Who Stole the American Dream?”

As the film’s website explains:

HEIST: Who Stole the American Dream? is stunning audiences across the globe as it traces the worldwide economic collapse to a 1971 secret memo entitled Attack on American Free Enterprise System. Written over 40 years ago by the future Supreme Court Justice Lewis Powell, at the behest of the US Chamber of Commerce, the 6-page memo, a free-market utopian treatise, called for a money fueled big business makeover of government through corporate control of the media, academia, the pulpit, arts and sciences and destruction of organized labor and consumer protection groups.

But Powell’s real “end game” was business control of law and politics. HEIST’s step by step detail exposes the systemic implementation of Powell’s memo by BOTH U.S. political parties culminating in the deregulation of industry, outsourcing of jobs and regressive taxation. All of which led us to the global financial crisis of 2008 and the continued dismantling of the American middle class. Today, politics is the playground of the rich and powerful, with no thought given to the hopes and dreams of ordinary Americans. No other film goes as deeply as HEIST in explaining the greatest wealth transfer of our time. Moving beyond the white noise of today’s polarizing media, HEIST provides viewers with a clear, concise and fact- based explanation of how we got into this mess, and what we need to do to restore our representative democracy.

It’s an incredibly interesting film, but more of that later.  For me, what was stunningly enlightening was at last understanding the powerful forces at work since Lewis Powell published ‘the memo’ back on August 23, 1971.  Because for me over in Britain, the era of the ’70s’ and ’80s’ were incredibly fulfilling.  First, as a salesman for IBM UK – Office Products Division, from 1970 through to 1978, and then forming and managing my own company through to 1986 when I succumbed to an attractive purchase offer.  Then, when my company was sold, taking a few years off cruising a sailboat in the Mediterranean; based out of Larnaca, Cyprus.

Thus I was immune to the global money and power plays, albeit enjoying rising house prices!  Only Lady Luck protected me from the collapse of 2008 in that I had sold my Devon home in early 2007 and was renting.  Then Lady Luck arranging for me to meet Jean in Mexico, Christmas 2007 (we were born 23 miles apart in London) and subsequently moving out to Mexico with Pharaoh in September, 2008, to be with Jean and all her dogs.  Lady Luck’s magic continued in that we came to Merlin, Oregon because we were able to take advantage of a bank-owned property; moving there in October, 2012.

Of course, the scale of the downturn was obvious and there were many instances of people that I knew losing jobs or homes, or both, and generally having a very rough time.

So back to the film.  Here’s the official trailer.

Uploaded on Feb 17, 2012

Please watch the newly updated trailer for “Heist: Who Stole the American Dream?,” the new, explosive documentary from Frances Causey and Donald Goldmacher exposing the roots of the American economic crisis and the destruction of the American dream. Visit www.Heist-TheMovie.com for more information on how to see the feature film and how to Take Action in restoring democracy and economic justice in the United States.

But here’s another thing that now makes sense: The legitimate anger of so many people, especially those who have some insight into what had been taking place.  No, amend that!  What is still taking place!

Just one example of that legitimate anger, that of Patrice Ayme. Just go across and read his blog post of two days ago: American Circus.

My strong recommendation is that you take an evening off and watch the film. Here’s another preview:

Frances Causey, Co-producer & co-director-Heist & Donald Goldmacher, Co-producer & co-director-Heist join Thom Hartmann. Corporate America is the biggest Welfare reciepient in the country – but that wasn’t always the case. The makers of Heist will tell you how organized money has been able to pull off the biggest “Heist” of the American Dream!

The film also concludes by offering many ways in which individuals can take back control of their lives, reinvigorate local communities, actively show that people-power is unstoppable. As it always has been and always will be.

This post started with a quote and I’m going to close with another.

“The day the power of love overrules the love of power, the world will know peace.” -Mahatma Gandhi

Heads I win: Tails you lose!

How the foreclosure crisis was a boon for the super wealthy.

For some time now, must be quite a few years, I have subscribed to Yves Smith’s Naked Capitalism blog.  I do so for a number of reasons.

Thus it was that a few days ago I read with a mixture of anger and disgust an article about the consequences of the foreclosure crisis on the wealthy.  Within a few hours of me requesting by email permission to republish that article on Learning from Dogs came the reply from Yves granting such permission.

Try not to get too angry!

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SUNDAY, OCTOBER 6, 2013

How the Foreclosure Crisis Made the Rich Even Richer

This is Naked Capitalism fundraising week. 53 donors [now well over 400, Ed.] have already invested in our efforts to shed light on the dark and seamy corners of finance. Join us and participate via our Tip Jar or another credit card portal, WePay in the right column, or read about why we’re doing this fundraiser and other ways to donate, such as by check, as well as our current goal, on our kickoff post.

It’s a welcome departure to see Adam Davidson’s weekly column in the New York Times, which usually puts a happy face on how the 1% are winning the class war in America, have a guest writer look at the other side of the story.

Catherine Rampell has a short but compelling piece on how the foreclosure crisis was wealth transfer from lower and middle income families to the rich. Her points are simple: the typical person who lost their home wasn’t a greedhead who bought too much house or refied to buy flat panel TVs and go on cruises (if you hang out with mortgage types, you’ll get a big dose of profligate consumer urban legend). The people who were like that (and there were some) for the most part were in subprime loans that reset in 2007 and 2008 and were in the early wave of foreclosures. The people who’ve lost their homes in later foreclosures were overwhelmingly people who had the bad fortune to buy late in the housing bubble (so when the bust hit, they had negative equity and couldn’t use lower rates to refi into cheaper payments) and took economic hits as a direct result of the crisis (hours cuts and job losses; other people who were hurt were in the more typical “shit happens” categories, like suffering medical problems, with their situation made much worse by their inability to sell or refinance their home).

Rampell’s contribution is to look at the phenomenon of investors, both big and small, and how they’ve bought properties at foreclosure and then flipped them. Separately, Josh Rosner recently released the astonishing statistic: that sales of owner-occupied properties showed only a 1% gain in the last 12 months. The gains that have been driving the indexes were all in investor owned properties. Some flipped to other investors. In hot markets, local investors have been doing “mini-bulks,” acquiring small portfolios to sell to private equity investors, some without renovating them, others with modest fix-ups. Others sold them to homebuyers.

Rampell uses the example of a couple who believed that renting was throwing away their money, and had the bad luck to buy a moderately-priced fixer-upper in early 2007. Each wage earner saw their income drop and unable to get a loan modification, they lost their home. Their $309,000 Seattle home went to an investor for $155,000 in the summer of 2011. That investor just sold it to a homeowner for $290,000, not far below what the hapless couple paid for it. But the new buyer paid all cash.

Rampell tells us:

Of the 87,062 foreclosures in the last five years that were bought by corporate investors and have been flipped, about a quarter were sold for at least $100,000 more than what the investor originally paid, according to [an online real estate listings site] Redfin (Although it’s impossible to know how much investors spent on upgrades or renovations.)….

The boom-bust-flip phenomenon is just one of the most obvious ways that research suggests the financial crisis has benefited the upper class while brutalizing the middle class. Rents have risen at twice the pace of the overall cost-of-living index, partly because middle-class families can’t get the credit they need to buy. That means “landlords can raise rents with impunity,” says Glenn Kelman, chief executive of Redfin. And according to a report by David Autor, the M.I.T. economist, job losses during and after the recession were concentrated in midskilled and midwage jobs, like white-collar sales, office and administrative jobs; and blue-collar production, craft, repair and operative jobs. Employment for higher-skilled workers, on the other hand, has grown substantially.

There is a second way foreclosures have served as a wealth transfer to the capitalist classes. Foreclosures don’t necessarily result in evictions. Banks often leave properties in a “zombie” state, starting foreclosures but not completing them, leaving the owner who thought he was foreclosed on still on the hook for property taxes. Another variant which is much less damaging is to leave the homeowner in place. I recently met an investor who is acquiring homes in Atlanta. The day after he buys a house, he goes to introduce himself to the former homeowner to see if he can work out a deal to keep them in place as tenant. In the overwhelming majority of cases, he can. “They were paying $1100 on their mortgage and the bank wouldn’t give them a mod. I’ll let them rent for $700, which is way above what they’d have gotten if they wrote the principal down to the price at which I bought the house. And I tell the tenants I’d be happy to sell the home to them.” We didn’t discuss details, but it sounded as if he’d be willing to structure rent to own deals (where part of the rent would go to a down payment on the house).

He was clear that his business depended on what he saw as value destroying behavior by banks. He described how he’d recently bought a home and when he went for his usual visit to the house, a well-dressed black man met him and invited him in, saying he’d be out in 30 days and assumed it wasn’t a problem. The new owner saw the house was in impeccable shape. He chatted with the owner a bit and found out he was a bodybuilder with a high-end training business. He asked the homeowner: “You look like you take good care of yourself and the house. You’d been paying on time. What happened?”

The trainer told him that he’d bought the house at the peak of the cycle for $160,000. The house was clearly now worth way less. He tried to get the bank to modify it to a principal balance of $100,000. The bank wouldn’t consider it. “So I bought a house which is comparable to this one for $50,000 and gave this one up.”

In this case, the homeowner had enough cash to arbitrage himself. The investor told me he’d bought the foreclosed home for $40,000. Had the bank cut a deal for $100,000 (and who knows, the homeowner might have accepted a higher number), it would have come out way ahead. But that also assumes that the bank owned the mortgage. It’s pretty much a given that the bank was a servicer, and as we’ve seen again and again, servicers don’t have the incentives or the infrastructure to do mods. So investor in the mortgages lose, homeowners lose. The winners are the banks as inefficient looters (the money they skim off the servicing is chump change relative to the damage done by negligent and predatory servicing) and the investors who profit by picking up the pieces. This is isn’t a well-functioning economic system, it’s rentier capitalism. And it’s looking more and more like a doomsday machine for what remains of the middle class.

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Can’t add anything polite to this!  Except, to say it’s a very long way from integrity!

None so blind as those who cannot see!

A story of a ship is just the tip of the iceberg!

This is the ship:

S.S. Nordic Orion
S.S. Nordic Orion

Just a ship out of many thousands that ply the trade routes across our oceans.  She was built in 2011 and is classified as a bulk carrier.  Her gross tonnage is 40,142 tons.  She is 738 feet long and 105 feet wide.

So what, you may ask?

To answer that question, let me turn to a recent post over on TomDispatch generously offered for republication on Learning from Dogs. (Thanks Tom.)

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Tomgram: Rebecca Solnit, The Age of Inhuman Scale

Posted by Rebecca Solnit at 4:32pm, October 6, 2013.
Follow TomDispatch on Twitter @TomDispatch.

It was the stuff of fantasy, of repeated failed expeditions and dreams that wouldn’t die.  I’m talking about the Northwest Passage, that fabled route through Arctic waters around North America.  Now, it’s reality.  The first “bulk carrier,” a Danish commercial freighter with a load of coal, just traveled from Vancouver, Canada, to Finland, cutting a week off its voyage, skipping the Panama Canal, and even, according to the Finnish steel maker Ruukki Metals, for whom the coal was intended, “reducing its greenhouse gas emissions because of fuel savings.”

When dreams come true, it’s time to celebrate, no?  Only in this case, under the upbeat news of the immediate moment lies a far larger nightmare.  Those expeditions from the fifteenth to the twentieth centuries failed to find the Northwest Passage because Arctic sea ice made the voyage impossible.  There simply was no passage.  No longer.  Thanks to global warming, the melting of ice — glaciers are losing an estimated 303 billion tons of the stuff annually worldwide — staggers the imagination.  The Greenland ice shield is turning into runoff ever more rapidly, threatening significant sea level rise, and all of the melting in the cold north has, in turn, opened a previously nonexistent Northwest Passage, as well as a similar passage through Russia’s Arctic waters.

None of this would have happened, as the prestigious Intergovernmental Panel on Climate Change pointed out in its latest report, if not for the way the burning of fossil fuels (like that coal the Nordic Orion took to Finland) has poured carbon dioxide into the atmosphere.  In other words, we created that Arctic passage and made it commercially viable, thus ensuring that our world, the one we’ve known since the dawn of (human) time, will be ever less viable for our children and grandchildren.  After all, the Arctic with its enormous reservoirs of fossil fuels can now begin to be opened up for exploitation like so much of the rest of the planet.  And there can be no doubt about it: those previously unreachable reserves will be extracted and burned, putting yet more CO2 into the atmosphere, and anyone who tries to stop that process, as Greenpeace protestors symbolically tried to do recently at an oil rig in Arctic Russia, will be dealt with firmly as “pirates” or worse.  That dream of history, of explorers from once upon a time, is now not just a reality, but part of a seemingly inexorable feedback loop of modern fossil-fuel production and planetary heating, another aspect of what Michael Klare has grimly termed the Third Carbon Age (rather than a new Age of Renewables).

If we don’t need a little perspective on ourselves and our world now, then when? Fortunately, TomDispatch regular Rebecca Solnit is here to offer us both that perspective and some hope for what we can do in the face of well-funded climate denialism and fossil-fuel company boosterism. Tom

Bigger Than That 
(The Difficulty of) Looking at Climate Change 
By Rebecca Solnit

Late last week, in the lobby of a particularly unglamorous downtown San Francisco building, a group of passionate but polite activists met with a bureaucrat who stepped forward to hear what they had to say about the fate of the Earth. The activists wanted to save the world.  The particular part of it that might be under their control involved getting the San Francisco Retirement board to divest its half a billion dollars in fossil fuel holdings, one piece of the international divestment movement that arose a year ago.

Sometimes the fate of the Earth boils down to getting one person with modest powers to budge.

The bureaucrat had a hundred reasons why changing course was, well, too much of a change. This public official wanted to operate under ordinary-times rules and the idea that climate change has thrust us into extraordinary times (and that divesting didn’t necessarily entail financial loss or even financial risk) was apparently too much to accept.

The mass media aren’t exactly helping. Last Saturday, for instance, the New York Times gave its story on the International Panel on Climate Change’s six-years-in-the-making report on the catastrophic future that’s already here below-the-fold front-page placement, more or less equal to that given a story on the last episode of Breaking Bad. The end of the second paragraph did include this quote: “In short, it threatens our planet, our only home.” But the headline (“U.N. Climate Panel Endorses Ceiling on Global Emissions”) and the opening paragraph assured you this was dull stuff. Imagine a front page that reported your house was on fire right now, but that some television show was more exciting.

Sometimes I wish media stories were organized in proportion to their impact.  Unfortunately, when it comes to climate change, there is not paper enough on this planet to properly scale up a story to the right size.  If you gave it the complete front page to suggest its import, you would then have to print the rest of the news at some sort of nanoscale and include an electron microscope for reading ease.

Hold up your hand. It’s so big it can block out the sun, though you know that the sun is so much bigger. Now look at the news: in column inches and airtime, a minor controversy or celebrity may loom bigger than the planet. The problem is that, though websites and print media may give us the news, they seldom give us the scale of the news or a real sense of the proportional importance of one thing compared to another.  And proportion, scale, is the main news we need right now — maybe always.

As it happens, we’re not very good at looking at the biggest things. They may be bigger than we can see, or move more slowly than we have the patience to watch for or remember or piece together, or they may cause impacts that are themselves complex and dispersed and stretch into the future. Scandals are easier.  They are on a distinctly human scale, the scale of lust, greed, and violence. We like those, we understand them, we get mired in them, and mostly they mean little or nothing in the long run (or often even in the short run).

A resident in a town on the northwest coast of Japan told me that the black 70-foot-high wave of water coming at him on March 11, 2011, was so huge that, at first, he didn’t believe his eyes. It was the great Tohoku tsunami, which killed about 20,000 people. A version of such cognitive dissonance occurred in 1982, when NASA initially rejected measurements of the atmosphere above Antarctica because they indicated such a radical loss of ozone that the computer program just threw out the data.

Some things are so big you don’t see them, or you don’t want to think about them, or you almost can’t think about them. Climate change is one of those things. It’s impossible to see the whole, because it’s everything. It’s not just a seven-story-tall black wave about to engulf your town, it’s a complete system thrashing out of control, so that it threatens to become too hot, too cold, too dry, too wet, too wild, too destructive, too erratic for many plants and animals that depend on reliable annual cycles. It affects the entire surface of the Earth and every living thing, from the highest peaks to the depths of the oceans, from one pole to the other, from the tropics to the tundra, likely for millennia — and it’s not just coming like that wave, it’s already here.

It’s not only bigger than everything else, it’s bigger than everything else put together.  But it’s not a sudden event like a massacre or a flood or a fire, even though it includes floods, fires, heat waves, and wild weather.  It’s an incremental shift over decades, over centuries.  It’s the definition of the big picture itself, the far-too-big picture. Which is why we have so much news about everything else, or so it seems.

To understand climate change, you need to translate figures into impacts, to think about places you’ll never see and times after you’re gone. You need to imagine sea level rise and understand its impact, to see the cause-and-effect relations between coal-fired power plants, fossil-fuel emissions, and the fate of the Earth. You need to model data in fairly sophisticated ways. You need to think like a scientist.

Given the demands of the task and the muddle of the mainstream media, it’s remarkable that so many people get it, and that they do so despite massive, heavily funded petroleum industry propaganda campaigns is maybe a victory, if not enough of one.

Four months ago, two bombers in Boston murdered three people and injured hundreds in a way spectacularly calculated to attract media attention, and the media obeyed with alacrity. Climate change probably fueled the colossal floods around Boulder, Colorado, that killed seven people in mid-September, but amid the copious coverage, it was barely mentioned in the media. Similarly, in Mexico, 115 people died in unprecedented floods in the Acapulco area (no significant mention of climate change), while floods reportedly are halving Pakistan’s economic growth (no significant mention), and 166 bodies were found in the wake of the latest Indian floods (no significant mention).

Climate change is taking hundreds of thousands of lives in Africa every year in complex ways whose causes and effects are difficult to follow. Forest fires, very likely enhanced by climate change, took the lives of 19 firefighters facing Arizona blazes amid record heat waves in July.  Again, climate change generally wasn’t the headline on that story.

(For the record, climate change is clearly helping to produce many of the bigger, more destructive, more expensive, more frequent disasters of our time, but it is impossible to point to any one of them and say definitely, this one is climate change.  It’s like trying to say which cancers in a contaminated area were caused by the contamination; you can’t, but what you can say is that the overall rise in cancer is connected.)

Not quite a year ago, a climate-change-related hurricane drowned people when superstorm Sandy hit a place that doesn’t usually experience major hurricane impact, let alone storm surges that submerge amusement parks, the New York City subway system, and the Jersey shore. In that disaster, 148 people died directly, nearly that many indirectly, losses far greater than from any terrorist incident in this country other than that great anomaly, 9/11. The weather has now become man-made violence, though no one thinks of it as terrorism, in part because there’s no smoking gun or bomb — unless you have the eyes to see and the data to look at, in which case the smokestacks of coal plants start to look gun-like and the hands of energy company CEOs and well-paid-off legislators begin to morph into those of bombers.

Even the civil war in Syria may be a climate-change war of sorts: over the past several years, the country has been hit by its worst drought in modern times. Climate and Security analyst Francesco Femia says, “Around 75 percent of [Syrian] farmers suffered total crop failure, so they moved into the cities. Farmers in the northeast lost 80 percent of their livestock, so they had to leave and find livelihoods elsewhere. They all moved into urban areas — urban areas that were already experiencing economic insecurity due to an influx of Iraqi and Palestinian refugees. But this massive displacement mostly wasn’t reported. So it wasn’t factoring into various security analyses. People assumed Syria was relatively stable compared to Egypt.”

Column Inches, Glacial Miles

We like to think about morality and sex and the lives of people we’ve gotten to know in some fashion. We know how to do it. It’s on a distinctly human scale. It’s disturbing in a reassuring way.  We fret about it and feel secure in doing so. Now, everything’s changed, and our imaginations need to keep pace with that change. What is human scale anyway? These days, after all, we split atoms and tinker with genes and can melt an ice sheet. We were designed to think about human-scale phenomena, and now that very phrase is almost as meaningless as old terms like “glacial,” which used to mean slow-moving and slow to change.

Nowadays glaciers are melting rapidly or disappearing entirely, and some — those in Greenland, for example — have gushing rivers of ice water eating through their base. If the whole vast Greenland ice sheet were to melt, it could raise global sea levels by 23 feet.

We tend to think about climate change as one or two or five things: polar ice, glaciers melting, sea-level rise, heat waves, maybe droughts. Now, however, we need to start adding everything else into the mix: the migration of tropical diseases, the proliferation of insect pests, crop failures and declining crop yields leading to widespread hunger and famine, desertification and flooded zones and water failures leading to mass population shifts, resource wars, and so many other things that have to do with the widest systems of life on Earth, affecting health, the global economy, food systems, water systems, and energy systems.

It is almost impossibly scary and painful to contemplate the radical decline and potential death of the oceans that cover 70% of the Earth’s surface and the dramatic decrease of plankton, which do more than any other type of organism to sequester carbon and produce oxygen — a giant forest in microscopic form breathing in what we produce, breathing out what we need, keeping the whole system going. If you want to read something really terrifying, take a look at the rise of the Age of Jellyfish in this review of Lisa-Ann Gershwin’s book Stung!: On Jellyfish Blooms and the Future of the Ocean. Maybe read it even if you don’t.

Only remember that like so much about climate change we used to imagine as a grim future, that future is increasingly here and now. In this case, in the form of millions or maybe billions of tons of jellyfish proliferating globally and devouring plankton, fish eggs, small fish, and bigger creatures in the sea we love, we know, we count on, we feed on, and now even clogging the water-intake pipes of nuclear power plants. In the form of seashells dissolving in acidic waters from the Pacific Northwest to the Antarctic Ocean. In the form of billions of pine-bark beetles massacring the forests of the American West, from Arizona to Alaska, one bite at a time.

It’s huge. I think about it, and I read about it, following blogs at Weather Underground, various climate websites, the emails of environmental groups, the tweets of people at 350.org, and bits and pieces of news on the subject that straggle into the mainstream and alternative media. Then I lose sight of it. I think about everything and anything else; I get caught up in old human-scale news that fits into my frameworks so much more easily. And then I remember, and regain my sense of proportion, or disproportion.

The Great Wall, Brick by Brick

The changes required to address climate change are colossal, but they are made up of increments and steps and stages that are more than possible. Many are already underway, both as positive changes (adaptation of renewable energy, increased energy efficiency, new laws, policies, and principles) and as halts to destruction (for example, all the coal-fired plants that have not been built in recent years and the Tar Sands pipeline that, but for popular resistance, would already be sending its sludge from Alberta to the Gulf of Mexico). The problem is planetary in scale, but there is room to mitigate the worst-case scenarios, and that room is full of activists at work. Much of that work consists of small-scale changes.

As Sierra Club Executive Director Michael Brune put it last week, “Here’s the single most important thing you need to know about the IPCC report: It’s not too late. We still have time to do something about climate disruption. The best estimate from the best science is that we can limit warming from human-caused carbon pollution to less than 3.6 degrees Fahrenheit — if we act now. Bottom line: Our house is on fire. Rather than argue about how fast it’s burning, we need to start throwing buckets of water.”

There are buckets and bucket brigades. For example, the movement to get universities, cities, churches, and other entities to divest their holdings of the top 200 fossil-fuel stocks could have major consequences. If it works, it will be achieved through dedicated groups on this campus or in that city competing in a difficult sport: budging bureaucrats. It’s already succeeded in some key places, from the city of Seattle to the national United Church of Christ, and hundreds of campaigns are underway across the United States and in some other countries.

My heroes are now people who can remain engaged with climate change’s complex and daunting facts and still believe that we have some leeway to determine what happens. They insist on looking directly at the black wall of water, and they focus on what we can do about the peril we face, and then they do it. They do their best to understand scale and science, and their dedication and clarity comes from connecting their hearts to their minds.

I hear people who are either uninformed or who are justifying disengagement say that it’s too late and what we do won’t matter, but it does matter, because a rise in the global temperature of two degrees Celsius is going to be very, very different from, say, five degrees Celsius for almost everything living on Earth now and for millennia to come. And there are still many things that can be done, both to help us adapt to the radical change on the way and to limit the degree of change to which we’ll have to adapt. Because it’s already risen .8 degrees and that’s been a disaster — many, many disasters.

I spent time over the last several months with the stalwarts carrying on a campaign to get San Francisco to divest from its energy stocks. In the beginning, it seemed easy enough. City Supervisor John Avalos introduced a nonbinding resolution to the Board of Supervisors, and to everyone’s surprise it passed unanimously in April on a voice vote. But the board turned out only to have the power to recommend that the San Francisco Retirement Board do the real work of divesting its vast holdings of fossil-fuel stocks. The retirement board was a tougher nut to crack.

Its main job, after all, is to ensure a safe and profitable pension fund and in that sense, energy companies have, in the past, been good investments. To continue on such a path is to be “smart about the market.” The market, in the meantime, is working hard at not imagining the financial impact of climate change.

The failure of major food sources, including fishing stocks and agricultural crops, and the resultant mass hunger and instability — see Syria — is going to impact the market. Retirees in the beautiful Bay Area are going feel it if the global economy crashes, the region fills with climate refugees, the spectacularly productive state agricultural system runs dry or roasts, and the oceans rise on our scenic coasts. It’s a matter of scale.  Your investments are not independent of nature, even if fossil-fuel companies remain, for a time, profitable while helping destroying the world as humanity has known it.

Some reliable sources now argue that fossil-fuel stocks are not good investments, that they’re volatile for a number of reasons and due to crash. The IPCC report makes it clear that we need to leave most of the planet’s fossil fuel reserves in the ground in the coming decades, that the choice is either to fry the planet or freeze the assets of the carbon companies. Activists are now doing their best to undermine the value of the big carbon-energy corporations, and governments clued in to the new IPCC report will likely join them in trying to keep the oil, gas, and coal in the ground — the fossil fuel that is also much of the worth of these corporations on paper. If we’re lucky, we’ll make them crash. So divesting can be fiscally sound, and there is a very strong case that it can be done without economic impact. But the crucial thing here isn’t the financial logistics of divestment; it’s the necessity of grasping the scale of things, understanding the colossal nature of the problem and the need to address it, in part, by pressuring one small group or one institution in one place.

To grasp this involves a feat of imagination and, I think, a leap of faith: a kind of conviction about what matters, about living according to principle, about understanding what is too big to be seen with your own eyes, about correlating data on a range of scales. A lot of people I know do it. If we are to pull back from the brink of catastrophe, it will be because of their vision and their faith. You might want to thank them now, and while your words are nice, so are donations. Or you might want to join them.

That there is a widespread divestment movement right now is due to the work of a few people who put forth the plan less than a year ago at 350.org. The president has already mentioned it, and hundreds of colleges are now in the midst of or considering the process of divesting, with cities, churches, and other institutions joining the movement. It takes a peculiar kind of genius to see the monster and to see that it might begin to be pushed back by small actions — by, in fact, actions on a distinctly human scale that could still triumph over the increasingly inhuman scale of our era.

Hold up your hand. It looks puny in relation to the sun, but the other half of the equation of scale is seeing that something as small as that hand, as your own powers, as your own efforts, can matter. The cathedral is made stone by stone, and the book is written word by word.

If there is to be an effort to respond to climate change, it will need to make epic differences in economics, in ecologies, in the largest and most powerful systems around us. Though the goals may be heroic, they will be achieved mostly through an endless accumulation of small gestures.

Those gestures are in your hands, and everyone’s. Or they could be if we learned to see the true scale of things, including how big we can be together.

Rebecca Solnit writes regularly for TomDispatch, works a little with 350.org, and is hanging out a lot in 2013 with the newly arrived Martin, Thyri, Bija Milagro, and Camilo, who will be 80 in the unimaginable year of 2093. Her most recent book is The Faraway Nearby.

Follow TomDispatch on Twitter and join us on Facebook or Tumblr. Check out the newest Dispatch book, Nick Turse’s The Changing Face of Empire: Special Ops, Drones, Proxy Fighters, Secret Bases, and Cyberwarfare.

Copyright 2013 Rebecca Solnit

oooOOOooo

So back to me! And the blindness of present-day society.

Or try cause and effect.

One of many causes ...
One of many causes …

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.... and the effect ....
…. and the effect ….

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Interesting times!

The power in these words.

Day three of recognising the passing of 400 ppm atmospheric CO2.

In nearly four years of writing for Learning from Dogs, I can’t recall devoting three days of posts to a single subject. To put that into context, today’s post is number 1,683 since the first one was published on July 15th, 2009; not all of them from the brain of yours truly by any means you understand!

Today, I’m going to feature a recent essay written by George Monbiot finishing up three days of ‘reporting’ on the deeply disturbing, but fully anticipated, news that the planet’s atmosphere has reached a concentration of 400 ppm CO2.

Last Monday, I published What legacy do we wish to leave for others?

Then yesterday, a post under the title of 400 ppm, as the BBC reported it.  I closed with a reference to a remark made by Professor Sir Brian Hoskins, director of the Grantham Institute for Climate Change at Imperial College London; the remark being “A greater sense of urgency was needed.“

I wrote that those wishy-washy words were pathetic.  That we needed the sort of words that George Monbiot penned a few days ago in the Guardian newspaper.  There it was entitled “Climate milestone is a moment of symbolic significance on road of idiocy“.

But I think the title that Mr. Monbiot chose to use on his own blog was far more apt: Via Dolorosa.  (Note that I haven’t formally requested permission to republish the essay but trust that the following is acceptable to both Mr. Monbiot and the Guardian newspaper.)

Here’s how it opened:

Via Dolorosa

May 10, 2013

Corruption and short-termism are pushing us along the path of sorrows.

By George Monbiot, published on the Guardian’s website, 10th May 2013

The records go back 800,000 years: that’s the age of the oldest fossil air bubbles extracted from Dome C, an ice-bound summit in the high Antarctic. And throughout that time there has been nothing like this. At no point in the pre-industrial record have concentrations of carbon dioxide in the air risen above 300 parts per million. 400 is a figure that belongs to a different era.

The difference between 399 and 400ppm is small, in terms of its impacts on the world’s living systems. But this is a moment of symbolic significance, a station on the Via Dolorosa of environmental destruction. It is symbolic of our collective failure to put the long term prospects of the natural world and the people it supports above immediate self-interest.

The symbolic significance of the planet’s atmospheric concentrations of CO2 passing 400ppm  is that, I hope, with all the hope that my heart can summon up, it will bring us back from the brink.  Then one ponders about this possibility as Monbiot’s next paragraph unfolds:

The only way forward now is back: to retrace our steps along this road and to seek to return atmospheric concentrations to around 350 parts per million, as the 350.org campaign demands. That requires, above all, that we leave the majority of the fossil fuels which have already been identified in the ground. There is not a government or an energy company which has yet agreed to do so.

“not a government or an energy company … has yet agreed to do so.”

I’m going to repeat that again, with emboldening; “not a government or an energy company … has yet agreed to do so.”

In fact, one could reasonable argue that having any hope for a turning back is utterly naive. Look what the essay goes on to say:

Just before the 400-mark was reached, Shell announced that it will go ahead with its plans to drill deeper than any offshore oil operation has gone before: almost three kilometres below the Gulf of Mexico.

A few hours later, Oxford University opened a new laboratory in its department of earth sciences. The lab is funded by Shell. Oxford says that the partnership “is designed to support more effective development of natural resources to meet fast-growing global demand for energy.” Which translates as finding and extracting even more fossil fuel.

The European Emissions Trading Scheme, which was supposed to have capped our consumption, is now, for practical purposes, dead. International climate talks have stalled; governments such as ours now seem quietly to be unpicking their domestic commitments. Practical measures to prevent the growth of global emissions are, by comparison to the scale of the challenge, almost non-existent.

As an example of the scale of the hypocrisy in which we are all immersed, last week’s The Economist magazine carried a full-age advertisement from Chevron on page 5 under the banner of ‘Protecting The Planet Is Everyone’s Job – We agree‘ and going on to explain:

We go to extraordinary lengths to protect the integrity of the places where we operate.  Places all over the world, like Australia’s Barrow Island.  It’s home to hundreds of native species of wildlife, including wallabies, ospreys, and perenties.

We’ve been producing energy on the island for more than 40 years, and it remains a Class A Nature Reserve.

Didn’t take me two moments to find this image:

Barrow Island, Australia.  Taken from the Chevron Australia website.
Barrow Island, Australia. Taken from the Chevron Australia website.

To my mind this advertisement completely misses the point; deliberately or otherwise.  Chevron and all other oil producing companies in the world are endangering the future of the entire planet by continuing to ‘produce energy’, aka oil.  Period. Full stop.

Or to put it in the words of George Monbiot’s essay:

The problem is simply stated: the power of the fossil fuel companies is too great. Among those who seek and obtain high office are people characterised by a complete absence of empathy or scruples, who will take money or instructions from any corporation or billionaire who offers them, and then defend those interests against the current and future prospects of humanity. This new mark reflects a profound failure of politics, worldwide, in which democracy has quietly been supplanted by plutocracy. Without a widespread reform of campaign finance, lobbying and influence-peddling and the systematic corruption they promote, our chances of preventing climate breakdown are close to zero.

Thus the final sentence in GM’s essay carries a deep sadness.

So here we stand at a waystation along the road of idiocy, apparently determined only to complete our journey.

http://www.monbiot.com

Why are we not seeing, hearing and reading words of a similar weight and power from just about every ‘opinion maker’ in the world?

Why not?  Why not?