Saturday, June 25, 2016

Master of Puppets


Master of Puppets

Stick me in a confessional and ask the question: Sir, if you had the authority, would you forbid smoking in America? You'd get a solemn and contrite, Yes. Solemn because I would be violating my secular commitment to the free marketplace. Contrite, because my relative indifference to tobacco poison for so many years puts me in something of the position of the Zyklon B defendants after World War II.

These folk manufactured the special gas used in the death camps to genocidal ends. They pleaded, of course, that as far as they were concerned, they were simply technicians, putting together chemicals needed in wartime for fumigation. Some got away with that defense; others, not.

Those who fail to protest the free passage of tobacco smoke in the air come close to the Zyklon defendants in pleading ignorance.


By J.M. Hamilton 6-25-2015

Finger tips don’t fail me now.

A lot has transpired in the last two weeks, since I wrote my last piece on the late – greatest - Muhammad Ali.   We now have the presumptive nominees for the two major parties, Mr. Trump and Mrs. Clinton; we’ve had another domestic terrorist utilize a weapon designed for war on the revelers at an Orlando gay nightclub.

Nearly eclipsing all this in real time, across the pond, the citizens in Britain told the elite establishment of the E.U. to go to hell.  The elite, of course, globally, have been telling the 99% to go to hell for years, in the form of:  bank bailouts; plutocratic bailouts (both largely funded by central bank debt & money printing); co-opting and owning, allegedly, democratic governments; co-opting and owning - and threatening w/ litigation - the fourth estate; exporting middle class jobs to third world hell holes – via free trade; and while pigging out at the government trough, largely via tax breaks, insisting upon austerity for the 99%.

The elite’s hypocrisy has not gone unnoticed; and so the brave citizens of Great Britain beat back the disinformation and fear campaign, conducted by the establishment and their tools – the political class, and told the U.K. and Euro-toffs to sell their tired act elsewhere.  The ripple effects of the referendum are just beginning to be felt in bourses around the world, to the tune of a hundred billion or more of equity blown away in the blink of an eye (for the 400 hundred world's wealthiest people, alone).  And coming soon, expect more European countries to abandon The Project, and w/ good reason, the EU/ECB has failed the citizens of Europe, while enriching an elite few.  (This doesn't mean the elite and the E.U. won't seek retribution against their former British subjects.)

But the elite don’t always lose, and they are used to both winning and having their way on nearly everything under the sun.  The chair of Chicago based CME Group (a commodities, derivatives & swaps bourse), Mr. Duffy, and his executive crew, rejoiced recently that the two U.S. lead nominees, Hills & Trump, will be perfect establishment tools, and, all campaign rhetoric to the contrary, will be highly useful to Wall Street and the U.S. financial sectors.  Mr. Duffy, some may remember, had the conjones to call out Mr. Obama a few years back.  The POTUS complained that CME, and speculators, jacked up the prices of commodities (food & fuel) on millions of Americans…. Essentially, obtaining a parasitic free ride off the staples of life.  Mr. Duffy didn’t take kindly to these facts.

The plutocracy, of course, is distrustful of any politician that their money cannot purchase, and so we find neocons, the business elite, and CME Group lining up behind Mrs. Clinton, the dream GOP candidateMr. Trump is rougher around the edges (often saying things that many Republicans only say behind closed doors), and presents a challenge and independence that the robber barons don’t fancy; but as the The Donald is a product of the establishment, he too, is expected to fall into line, all campaign rhetoric notwithstanding.  The do-gooder, and truly independent, Senator Sanders, has been eliminated, under questionable primary circumstances (turns out the vote has not been fully counted in California, and some counties continue to flip Mr. Sanders way).  Given that much of the U.S. vote is now tallied by computers, and we’ve come to learn that computers are highly hackable and prone to human manipulation…. The electoral process in the U.S., sadly, becomes easy fodder for conspiracy theorist, and the rationale and the sane.  Not so in Britain, where the ballots for the aforementioned referendum were hand counted.  But I digress.

With the conservative business community, and war profiteers & jingoist, lining up behind Hillary, it does make one wonder, why are Dems and liberals attracted to Mrs. C?  Clearly, the Democratic party, under Clintonian policies and Obama’s stewardship, has lurched hard right, post-Reagan.  Tax havens for the wealthy, government service for the plutocracy, free trade agreements that usurp courts and national sovereignty, a mass incarceration & surveillance state (largely privatized), war w/out end…. Why the Dems have co-opted GOP policy, except for a thin veneer of social justice (which they generally have to be dragged, kicking & screaming, to adopt). 

If the business of America used to be business, under the current Washington environment, the business of American government is pandering to cartels, monopolies, lobbyist, and trade association’ diktats.

The GOP’s blind deference to trade association edicts was on full display in the wake of the Orlando gay nightclub shooting.  The GOP, which repeats NRA talking points, blamed the nightclub shooting on terrorism, and not the killing tool of the rampage, easily obtainable military grade assault rifles.  With dozens killed and maimed, the American public had to bear witness to the double-standard of Republican leadership praying solemnly for the victims (a group, gays, that the GOP largely disdains), while filling their pockets with NRA cash and campaign contributions.  If there ever was a lap dog to moneyed interests, these are the people:  The House Republicans.

The NRA, all pretense about representing the rights of gun owners aside, is another trade association.  Trade associations are entities that represent the economic and political interests of the various cartels and monopolies that, largely, make up the American economy.  If anyone in our government cared to enforce the Sherman Antitrust Act, or fight collusion and unfair trade practices, trade associations would be the place to start.  But the enforcement agencies and mechanisms are woefully underfunded by design, and the respective agencies’ leadership usually trips in from the revolving door.  The American public should not expect antitrust enforcement anytime soon, under either political party.  To his credit, President Obama's administration has tackled some of the larger mergers, as of late.

So the freak show the American public was treated to this week: the master of puppets, the NRA, calling the tune, while Congress dances on marionette strings.  Trade associations and corporate lobbyist own, operate, and often write the legislation for the Congress of the United States.   They provide the talking points for congresspersons, and yet, these associations are unelected, unassailable, and unaccountable to anyone, but the oligarchy.  Well known examples include, but certainly are not limited to:  the International Swaps & Derivatives Association; the now defunct, Tobacco Institute; the aforementioned, National Rifle Association; the American Petroleum Institute; and the National Cable & Telecommunications Association.  Master of government sock puppets, one and all.

What’s J.M. got against American business, my readers might ask? 

Absolutely nothing, when business is regulated to insure plenty of competition, and said business manufactures helpful and safe products & services.  And in particular, JMH appreciates businesses, and management teams, that respect government’s need to regulate and intervene in markets to protect the American public’s general welfare, and to eliminate and/or mitigate predatory monopolistic pricing behavior.  You know, the very behavior that Adam Smith and F.A. Hayek warned us about, and the concentrating behavior – if allowed unchecked – industries have a tendency to metastasize into, the creation of cartels and monopolies.

As it stands, however, we now have trade associations representing an oligarchy, that owns and operates our government for their own personal gain and interests, and in a manner that – in many instances – is entirely inimical to American society’s interests.  Some of these products, for example coal & petroleum, are as outdated as the buggy whip, while other products – military grade assault rifles – are as dangerous to the commonweal, as cigarettes.

Who profits from these dangerous and outdated products?  
Answer:  An elite few.

Who picks up the social costs for the mayhem that ensues? 
Answer:  Why the social costs are mopped up and suffered by the American taxpayer, or financed by the Fed’s printing presses.

Hence, the problem with allowing patients to proscribe their own medicine, or allowing inmates to run the asylum… or plutocrats to run our government: there are no checks and balances.  The commonweal is obliterated, and in some instances, the public rejects the nihilism wreaked upon them by the ownership class.  See Brexit.





Not to belabor the point, but Mr. Buckley’s analogy between the 20th Century’s American tobacco industry, and I.G. Farben’s manufacturing of Zyclon B immediately comes to mind.   That is to say, there were a lot of “good” Nazis and their leadership, who were just following orders and manufacturing Zyclon B, while a race of men was put to death.  Likewise, a lot Americans, knowingly, were given a premature death sentence by the American Tobacco Institute, and the Congress of the United States – for many years – just stood by.

I.G. Farben and the Nazis attract particular derision and scorn, rightfully so, because of their singular attack upon a specific race of men.  But does the indiscriminate killing of men and women by Big Oil, Big Tobacco, and the gun industry make their horrific crimes on humanity any less catastrophic or repugnant?  Are the killings and premature deaths caused by these products any less galling, or are they more galling still, because they are driven by the profit motive and are highly preventable?

Ah, the perils of our crony U.S. government, bought and paid for by a ruling business oligarchy.  Will U.S. citizens be “good” Nazis, or like the British, will we stand up and fight for democracy, freedom, popular sovereignty, and the common good?  Judging from our current presidential nominees, it appears that we have chosen the former.

Stay tuned.


Copyright JM Hamilton Publishing 2016

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