
Adam Smith, that political thinker
who was in favour of the free market, so we are told, berated “merchants and
manufacturers”, who went on to use the state for their own interests, so Smith
said. In chapter IV in the Wealth of Nations, he writes:
Actually,
Smith was never in favour of the free market, which we are presented with. These “merchants and manufacturers” in
today’s world would not be merchants and manufacturers but transnational
corporations and concentrated private power. The sorts of people who idolise
Smith today evidently never read him. If they did, they would know that if he were
alive today he would be regarded as a dangerous radical. He would, no doubt, be spewing blood at the
emergence of the free market.
Deregulation, lower taxation (for
the rich) and privatisation was, in a nutshell, Thatcherism. In Naomi Klein’s
book about free market fundamentalism, the
Shock Doctrine, she presents a very ugly picture of countries adopting this
fascist framework. These include Chile,
Iraq, Argentina, South Africa, Russia, Poland, South Korea, even the United
States. This model was adopted in Chile
under Augusto Pinochet. He was a fascist,
openly so, who overthrew the Marxist democrat, Salvador Allende, in a military
coup, aided and abetted by the U.S.
“Make the economy scream”, Nixon said of Chile. This “economic miracle” people speak of in
referring to Chile is a myth of sorts.
American journalist Greg Palast writes:
In 1970, 20% of Chile's population lived
in poverty. By 1990, the year "President" Pinochet left office, the
number of destitute had doubled to 40%. Quite a miracle.
Pinochet did not destroy Chile's economy
all alone. It took nine years of hard work by the most brilliant minds in world
academia, a gaggle of Milton Friedman's trainees, the Chicago Boys. Under the
spell of their theories, the General abolished the minimum wage, outlawed trade
union bargaining rights, privatized the pension system, abolished all taxes on
wealth and on business profits, slashed public employment, privatized 212 state
industries and 66 banks and ran a fiscal surplus.
Freed of the dead hand of bureaucracy,
taxes and union rules, the country took a giant leap forward ... into
bankruptcy and depression. After nine years of economics Chicago style, Chile's
industry keeled over and died. In 1982 and 1983, GDP dropped 19%. The
free-market experiment was kaput, the test tubes shattered. Blood and glass
littered the laboratory floor. Yet, with remarkable chutzpah, the mad
scientists of Chicago declared success. In the US, President Ronald Reagan's
State Department issued a report concluding, "Chile is a casebook study in
sound economic management." Milton Friedman himself coined the phrase,
"The Miracle of Chile." Friedman's sidekick, economist Art Laffer,
preened that Pinochet's Chile was, "a showcase of what supply-side
economics can do."
According
to Naomi Klein “In 1974, inflation reached 375 percent-the highest rate in the
world and almost twice the top level under Allende.” It was only in 1988, fifteen years after
Pinochet seized power that the economy stabilised. So real economic growth was not seen until
Pinochet had been President for well over ten years. It was the “Chicago boys”, at the University
of Chicago, where Milton Friedman oversaw much of the bloodshed in Chile. Later, Thatcher would refer to Friedman as a
“freedom fighter”. A “freedom fighter”
for private, tyrannical power perhaps.
The fascist economic model Chile
adopted laid the groundwork for others to follow. In the 1980s, Russia followed
the model with economic advisors, such as Jeffrey Sachs. Janine R. Wedel of Nation writes:
This is
free market fanaticism to put it mildly.
These corporate elites have this totalitarian monopoly upon which entire
societies work under a certain framework.
These Company Executive Officials (CEOs) have only two choices for their
business model: to maximise their profits or leave the company altogether. To maximise their profits they do various
reprehensible things. For example, they
are quite content to employ sweatshop labour and pay their workers an absolute
pittance; the working conditions themselves are so despicable that not even a
Milton Friedman could even justify them. Another example of state protection
roughly translated into capitalism. All
these major companies are able, through criminal state law, in repugnant free
market societies, to avoid paying vast amounts of taxes; many of these private
tyrannies pay less than 1 percent tax.
When the
British government wish to implement policies concerning these colossal
companies, they must regulate themselves.
Self-regulation is an interesting phrase but is often
unscrutinised. The government can make
no decisions concerning these powerful tyrannies, thus asking their permission
before implementing policies, which concern them. This ought to surprise no one because such
practices go on for such a sustained period.
This goes on while economic warfare is waged on everybody else.
Banking
institutions are notoriously the worst offenders. These banks are nothing more
than rackets and cartels. Some of these banks operating in the city of London
have been known to have committed criminal acts so serious that it has even
reached the mainstream media; that is rare. Therefore, these many-monied
institutions are given two options after having been “found out” after
committing serious acts of fraud: they can either spend the rest of their lives
in prison or pay a fine, not out of their own pocket but out of the pockets of
others. The choice is inevitable. Only a
madman would choose the former option.
Even after the disgraceful practices are disclosed to the wider public
fraud continues nonetheless. Incidentally, banking is one of the top professions where psychopathy
is prevalent.
Oil is
also another area where criminal actions occur, and as is the case with banking
cartels, this is widely known. After the
First World War or the Great War, as it was known seven major oil companies
known as the “Seven Sisters”, devised a plan between themselves in a perverse
capitalist objective. These companies
were:
● Gulf Oil (United States):
● Royal Dutch Shell (Netherlands/United Kingdom)
● Standard Oil of California (SoCal) (United States)
● Standard Oil of New Jersey (Esso) (United States):
● Texaco (United States)
● Standard Oil Co. of New York (Socony) (United States)
Emine Dilek writes:
Their vision was that the
production zones, transport costs, sales prices – everything would be agreed
and shared. And so began a great cartel, whose purpose was to dominate the
world, by controlling its oil.
Soon, other biggest oil companies
joined them in the plot. Now, they were known as the Seven Sisters: Exxon,
Shell, BP, Mobil, Texaco, Gulf and Chevron...
At the end of the First World War,
through signed treaties, France and Britain divided up the Middle East that was
taken over from the Ottoman Empire. American oil companies were enraged. An
American oil broker, Kalouste Gulbekian, came up with a solution. The plan was
to create a red zone around the oil rich areas of the Middle East, and form a
new oil company to equally own shares. The company was called Iraq Petroleum
Company.
Oil filled lands were bought from
the land owners without disclosing the riches their lands were hiding
underneath the ground. Governments of the countries, such as the Shah (king) of
Iran, were bought and paid for by the oil companies through bribes and other
forms of political and military support guarantees.
Oil companies became more powerful
than governments. Delivery of the oil also was such a crucial matter that in
USA or Britain no one could become a President unless they guaranteed the smooth
delivery of the oil to the refineries and sellers.
Oil companies were so dominant
that they set the rules in every aspect of the oil production, its export and
prices. Together with covert agencies of USA and British Governments, they have
helped create and support the monarchies in Iran and Saudi Arabia, toppled
democratically elected leaders who refused to be bribed, opposed the creation
of OPEC and profited from the Iran-Iraq war, leading to the ultimate
destruction of Saddam Hussein and Iraq.
BP has a wicked
history concerning these matters; I cite two examples. During the time of the Red Line Agreement it
was Venezuela which became the world's’ leading oil producer; after the second
world war, the dynamics of strategic power and interests changed: it was Saudi
Arabia which overtook Venezuela the decades that followed this, with furtive
deals with the U.S which allowed America to control oil reserves in the Middle
East. In 1952 disaster struck the
western world: Gamal Abdel Nasser ruled over Egypt for almost two decades,
during that time he committed one particular major crime: he overthrew the yoke
of western imperialism and instead opted for Arab nationalism.
Before and during Nasser’s first few
years in power, parts of the region were in turmoil. In Iran, there was a spate
of demonstrations by a popular uprising.
Mohammad Mossadegh led this movement.
The main reason for the protests was the oil giant, BP. They were literally controlling vast amounts
of the Iranian economy, at the behest of the British government. In 1953, when
Mossadegh was Prime Minister of Iran, he nationalised Iranian oil. The response was inevitable; the British
government, backed up by their ally in North America, overthrew Mossadegh and
subjected Iran to a savage nightmare.
Fifty years later BP were at it
again. It was against another enemy of
the west, Muammar Gaddafi, the Libyan revolutionary or “mad dog”, if we listen
to Ronald Reagan long enough. Tony
Blair, during that time, was the British Prime Minister, which is
significant. During talks with Gaddafi
he decided the Libyan would relinquish his chemical weapons then he would “do
business” with him. Roughly translated
as opening up the markets in Libya. BP
were once again, accruing huge profits in these somewhat clandestine
deals. It was not so long after this
period that Al Baset Al-Megrahi was released from prison for one of the worst
terrorist atrocities in the 1980s. The
lengths BP have gone to in order to accrue stupendous profits is quite
astonishing.
Other major oil companies tell a
similar story. However, one other area
of repugnancy is the fast-food cancer factories such as McDonalds, Burger King,
Pizza Hut, Domino's Pizza Hut, KFC, as well as many others. Again, these companies have one key
objective: to maximise their profits, in fact their objective is two-fold. The other objective is to gain control over
markets, thus creating smear campaigns in putting smaller competitors out of
business altogether. This “junk” food which these sub-cultural, sub-human,
inhumane factories operate under giving people all sorts of dietary problems
and health dilemmas, including cancers, heart-attacks, strokes, and a whole
array of other terrible conditions. All
this is for financial profit. Nevertheless,
one should not be so surprised because after all, we live in a world of the
free market and any sort of morality seems miles away in the distant
hills.
Globalisation is an interesting
term, and it ought to be tackled. A
great deal of people have written about this matter, coming to debate it from a
range of different angles. One man that wrote about it was Vladimir Lenin. Nevertheless,
in Lenin’s lifetime-he died in 1924-capitalism in comparison to today’s world
was incomparable in terms of private power.
Enmeshed in this globalised sort
of terror is the public relations industry which Walter Lippmann and Edward
Bernays wrote about, and public relations is synonymous with propaganda, and
propaganda ties in with the entertainment industry, which is essentially the
public relations industry anyway. It is
corporate private power that advertises throughout the entire industry. It also goes through sport, all forms of
popular culture and so on. All
advertising, or rather, what is referred to as advertising, ought not to exist.
It ought not to exist because it is crypto corporate fascism, and we are forced
to watch this obscenity. With marketing,
they remove all other cultures and replace them with infantile, unrelenting
defecation.
But, why? Well it has different
functions of course. In the media, it
creates better selling power; it helps to depoliticise and pacify people. It
de-intellectualises the individual, and so long as they are following these
puerile, irrational, frivolous trends, such as spectator sports, following a
person or perhaps a group of them like a religious fanatic, they are out of
harm's way. They are not thinking about
the things they ought to be thinking about and of course all of this is
rationalised. This nonsense creeps into
serious journals, it is even spoken by highly respected professors in
educational establishments, it is on the high street, in shops, at the
workplace, even on the street. This
barbarity is inescapable. Yet when one mentions Herbert Marcuse, Edward Herman
or Erich Fromm, they are laughed at, branded as extremists, and told they ought
not to exist.
Never mind Aristotle’s insights,
Beckett’s absurdity, Steinbeck’s humanity, Homer’s picturesque poetry, John
Stuart Mill’s liberalism or anything of the sort. Now, we are told we must forget all this
insignificant indulgence. Instead, you
must not be a dinosaur and become a “modern man”, and think “business”;
everything else ought not to exist at all.
For business is the new way. If
there is no profit in this or that then it really ought not to be done; what
good will come of it?
The rules of the game have changed,
so to speak. Now, even CEOs appear on
television shows, encouraging their viewers to engage in real principles: the
avarice of financial greed and a lust for “free enterprise”, and not much else
besides. The person who reads Sophocles
or Heinrich Boll is a danger, a danger to this whole ideology. Thinking outside of this spectrum is strictly
forbidden, and for having such iconoclast beliefs, you must be eliminated from
airing your insidious and tiresome views; there is no opportunity to speak in
the mainstream media; you are eliminated.
This is a model, which has been hideously successful. The career liberal journalists would rather
close their vacuous mouths and do as they are told.
This is intolerable; nevertheless,
it appears indomitable. What is this
called? It is clearly a form of
totalitarianism. Nevertheless, it goes
far beyond even that. When private
concentrated power controls many aspects of our peculiar lives, and in this
abominable way, it is a fundamentalist sort of fascism; that is not to be
mocked at. Fascism, many people believe,
are Hitler’s gas chambers, Stalin’s gulags, and so on. Political fascism not only exists but there
is financial, as well as fiscal. For it
eliminates entire sections of society, of every society. People call Hitler a fascist; Lenin a
socialist; Thatcher, a conservative and Pinochet a benevolent dictator. They are all fascists.
For at the heart of their ideology
is free market fundamentalism. In fact,
Lenin was perhaps a more virulent free market villain than Thatcher ever
was. So in Britain, the U.S, Germany,
Spain, Italy, Portugal, and much of the world have political parties with a
single thing in common: they all are part of a fascist ideology because they
stick to the free market economic model.
This is seen as rational governance; it should not be.
A
great number of eminent people today have their heroes, heroines and
inspirations like Milton Friedman, Jeffrey Sachs and others. However, these same people do not worship, or
at least do not claim to worship figures such as General Franco, Heinrich
Himmler or Pol pot. Yet the only
difference is that the economic fascists like have not been found out.
We
live in an age now where people feel the inescapable need to hide their
perverse acts and views because it is not tolerated by modern society, and
inevitably the public relations industry is geared to protect the “ethical”
companies and “green” corporations, and so on.
When people vent their ire and tempers-it is inevitably at political
power and not private power. For private power is well protected and their
repugnant crimes are largely hidden, and so people become unaware of such
practices. The propaganda model, which
protects these criminal acts, has even metamorphosed the legacy of Adam Smith,
as we have seen. Big business and private unelected tyrannies are the order of
the day, nothing else will do.
30th March-6th April 2014
This is the second part of essays on 'crime'...see my previous post for the first part. The third part will be posted shortly.