UNITED? Not so much…

UNITED?  Not so much…

“The moral to be drawn from this dangerous nightmare situation is a simple one:  Don’t let it happen.  It depends on you.”

- George Orwell

By J.M. Hamilton (4-22-2017)

In George Orwell’s masterpiece 1984, Mr. Orwell describes a totalitarian state run by a ruling oligarchy and a dictator.  The antagonist in the book tells Winston what the fate of the world has in store: "If you want a vision of the future, imagine a boot stamping on a human face - forever."

Authoritarian or totalitarian regimes run by oligarchy, it’s all the same: a vicious assault on individual and personal freedoms, and hegemonic control over the economy and political arena.  All around the globe democracy is in retreat, and often it is the West who has done the greatest harm to freedom and democracy, by propping up dictatorships.

Oligarchy is not limited to dictatorships like Russia, however, but oligarchy can be found here in the United States, in advocacy groups and trade associations, like the Business Roundtable and The U.S. Chamber.  Thanks to the Citizens United decision, these institutions (aka the oligarchy) have unfettered control over both political parties in the United States, the President, and similar institutions exist in Europe, if not w/in the E.U. governing body, itself.

The Oligarchy, globally, knows that money equals power, and with large sums of money they can purchase entire governments or reign w/in said governments.  Barring that, the oligarchy has set up extra-judicial & supranational courts (via free trade agreement), run by and for multinational interests.  Large sums of money are most easily accumulated w/in markets dominated by cartels and monopolies --- the antithesis of capitalism (true capitalism is best defined by competition and many competing entrants into the marketplace, all the better to keep monopolistic/monopsony powers & wealth in check).

Throughout the U.S., sector after sector within the economy has all too often been dominated by cartel and monopoly.  As that has occurred, an imperial CEO has arisen, along w/ their cadre of C-Suite generals.  Within these suites limited or little dissent is tolerated, group think often abounds, boards are often co-opted and in bed with management, chairmanships are often awarded to the CEOs, themselves, and yes, even shareholder's rights have come under attack.  Multinationals love dictatorships, because instead of bribing an entire legislative body, they only have to purchase a single individual.  Which might explain the oligarchy’s negative disposition towards democracy, the least evil of all alternative forms of government.

These cartels are interested in several things: profits, return on equity, stock appreciation, market concentration, top line growth, and management compensation (not necessarily in that order).  Personal freedom, employee welfare, democratic institutions, societal strength & cohesion, customer satisfaction, and the wellbeing of nation states do not enter into the corporate equation, except as possible disrupters to profits…. If any of these things become disruptive enough to the bottom line or create stock volatility, they must be addressed, contained, and controlled.

In short, Mr. Orwell’s oligarchy has arrived, and the sound heard around the globe is that of humanity being stomped.  Let’s look at some recent examples.

1)  Earlier this month United Airlines – a member of the Airline cartel – used jackbooted thugs to drag a paying customer off an aircraft.  The CEO, Mr. Munoz, failed to recognize the gravity of the situation, initially, and implied that the paying customer was the problem.  After United’s stock tanked, losing close to a billion in market cap, Mr. Munoz suddenly found his humanity and on the third try, apologized to the passenger.  The airline cartel has been treating customers like cattle for years, with more extreme seating configurations, less personal space, and extra charges for everything under sun (excepting – so far – oxygen).  Give these bastards time and they’ll find a way to charge us for the air we breathe at 40,000 feet.  And the silver lining – no, unfortunately, not an updated airline passenger bill of rights – but recent word that Mr. Munoz will not be awarded United’s coveted chairman’s role.  Seems the board either didn’t like Mr. Munoz’s recent behavior, or more likely, said behavior’s impact upon the stock valuation.

2)  Fox News’s Bill O’Reilly – not only has a huge ego – but apparently quite an appetite for the ladies in the office.  Mr. O’Reilly’s body count grew so high, and the allegations piled up so fast, that advertising revenue took a hit, as major corporations and multinationals abandoned Mr. O’Reilly and his show.  Several months ago Roger Ailes, the former chairman of Fox News, resigned over similar allegations.  Mr. Murdoch, the owner, finally decided to cut his losses, and with a neat $25 million severance package, showed Mr. O’Reilly the door (like United, the NY Times reported that Fox's stock had slipped 6%).  Mr. O’Reilly was, of course, known for his right-wing punditry and was clearly aligned w/ the establishment and the oligarchy.  The very same establishment and oligarchy that believes money equals freedom of speech, which in turn allows them to purchase entire governments.  Upon learning of Mr. Bill’s behavior, the 99% urged corporate sponsors to abandon his show, or face possible boycott.  It was then that Mr. O’Reilly proclaimed boycotts (aka voting w/ one’s wallet) to be “un-American.”  Therefore, billionaires buying democracies and governments with their money is “American,” and yet, Americans using their purses and wallets to vote in the market place is “un-American.”  Interesting.

3)  Mr. Jamie Dimon, CEO of fabled J.P. Morgan, said in his annual shareholder letter this year that something is wrong with America, and specifically, he lamented the plummeting number of publicly traded companies on the stock exchange (presumably as bad for America and investors).  What Mr. Dimon failed to mention (as pointed out by JMH previously, & Bloomberg’s Gadfly column) is Wall Street banks have played an outsized role in the M&A activity that: has crushed the U.S. economy; stagnated worker wages; led to ever growing wage & wealth inequality; and created consolidation in industry after industry.  Wall Street, of course, profits mightily by promoting their M&A expertise & guidance, earns underwriting fees from leveraged debt issuance, and then, profits from said debt’s returns.  Mr. Dimon is correct to worry about the drop in the number of publicly traded companies; and now, it would only be proper – and intelligent – for him to recognize Wall Street banking’s role in the formation of economy crippling cartels & monopolies.

There’s no end to the oligarchy’s madness.  Our government has literally become run by a profit center ethos, during a Neo-gilded Age.  Time constraints forbid JMH from affording too many more examples, but there are plenty more.  For instance, Lockheed has sold the nation a trillion dollar - plus - albatross, called the F-35.  After continuous delays in development, this lemon is not combat ready (and may never be), but arguably poses a threat to our national security by redistributing funds to Lockheed’s monopolistic coffers, instead of directing money to the women and men who place their lives in harm’s way & serve the U.S.  Bloomberg recently publishing a piece explaining that the fighter, conceivably, could be hacked.  Sadly, the money wasted on the F-35 could have been allocated towards paying down the national debt, or directed to the one in five U.S. children living in poverty.  

Even a trillion dollars is not chump change.

The newly proposed United seat configuration; time to take off the gloves?

It didn’t take our new President long to drop his populist mask, Mr. Trump is one very frustrated billionaire and never dreamed, apparently, that government could be so challenging.  Having failed on his economic agenda of gutting Obamacare - so as to afford tax cuts for the wealthy - he’s turned to issuing EOs (executive orders) by the bushel.  POTUS Trump appears highly attracted to dictators and authoritarian types, whom also legislate by decree.

Mr. Trump’s cabinet is made of billionaires and multi-millionaires, and the aforementioned Business Roundtable and U.S. Chamber, along w/ many multinational CEOs, clearly have Mr. Trump’s ear.  Sounds a lot like oligarchy to me.

Hence, an entire cavalcade of EOs establishing industry deregulation studies, or expressing the POTUS’ desire to begin deregulation for:  Big Pharma; Wall Street Banking; Gun manufacturers; Internet service providers; Coal & Big Oil; Tax inversions for the oligarchy (that’s where companies flee offshore, leaving the 99% to pay multinational taxes); Ending the orderly liquidation of banks, so that Wall Street remains TBTF; et al.

While some of these deregulation plans may require Congress’s assistance/complicity (see an important Politico piece on the Congressional Review Act), POTUS could also unwind existing regulation through inaction, slowing down a pending regulation process via his cabinet appointees, and failing to fight for existing regulations contested w/in the courts.

How these deregulation plans help Mr. Trump’s political base, by passing social costs onto the consumer & taxpayer – while further enriching the oligarchy – isn’t quite clear.  For example, Mr. Trump ran for office by pointing out the evils of Wall Street.  By eliminating the resolution authority of the government, how exactly does another round of bank bailouts help the taxpayer or our national debt?  How does gutting Dodd-Frank help Americans, or small & mid-sized banks, if it isn’t replaced w/ Glass Steagall.  One wonders how Americans feel about their privacy being invaded & sold by cell phone and internet service cartels?  Placing guns into the hands of the mentally challenged appears to be another winner for gun manufacturers, but probably sets Americans up for the next Newtown massacre.  You can’t make this up… these are some of the changes/proposals contained w/in Mr. Trump’s EOs.  Big carbon getting a pass on polluting America's air & water?  

There's no regulatory bridge that the Trump administration isn't willing to burn.

Interestingly, some members of the MSM, and so-called left of center news organizations, have heralded Mr. Trump’s about-face (and Goldman $ach’s Mr. Gary Cohn’s rise w/in the administration), as growth and a return to “normalcy.”  The very establishment “normalcy” that has brought the nation war w/out end, Wall Street bank bailouts, tax cuts for the oligarchy, decreased assistance and services for those Americans in need, and a national debt that – at last count – exceeds GDP by a ratio of 105%.

Trump rightfully vilified China during his campaign, and promised to hold a protectionist Sino-oligarchy to account; but now our fearless leader appears to be frittering that position away – likely at the behest of US multinationals, who exploit Chinese slave labor – in return for China placing a leash upon its pitbull, North Korea.

We certainly do live in interesting times.  If you listen carefully, in the distance, we can hear the oligarchy’s hobnailed boots stomping away upon the global stage.  Or, as Mr. Orwell put it, stamping away upon humanity's face.

If the examples above show Americans anything, it’s not to count on our government, or oligarchy owned politicians, or the ballot.  Instead cast your votes at the cash register or through boycott(s).  It’s the only thing our rulers - the oligarchy - respond to.

Copyright JM Hamilton Publishing 2017