Sunday, May 23, 2010

Economic history in 10 minutes, by Richard Heinberg

"...Today we still enjoy vestiges of the gift economy, notably in the family. We don’t keep close tabs on how much we are spending on our three-year-old child in an effort to make sure that accounts are settled at some later date; instead, we provide food, shelter, education and more as free gifts, out of love. Yes, parents enjoy psychological rewards, but (at least in the case of mentally healthy parents) there is no conscious process of bargaining, in which we tell the child, "I will give you food and shelter if you repay me with goods and services of equivalent or greater value."

"...Here is all of economic history compressed into one sentence: As societies have grown more complex, larger, more far-flung and diverse, the tribe-based gift economy has shrunk in importance, while the trade economy has grown to dominate nearly every aspect of people’s lives, and has expanded in scope to encompass the entire planet.

With more and more of our daily human interactions based on exchange rather than gifting, we have developed polite ways of being around each other on a daily basis while maintaining an exchange-mediated social distance. This is particularly the case in large cities, where anonymity is fostered also by the sheer numbers of people one sees from day to day. In the best instances, we still take care of one another—through government programs and private charities. We still enjoy some of the benefits of the old gift economy in our families and churches. But increasingly, the market rules our lives. Our apparent destination in this relentless trajectory toward expansion of trade is a world in which everything is for sale, and all human activities are measured by and for their monetary value..."

Economic history in 10 minutes

Oil, Disaster, and the Second Great Depression

During the first Great Depression, The United States endured a period of devastating drought and severe dust-storms (partly the result of over-farming) which helped to exacerbate the instability of the already troubled economy and suffering of its people. Today America has its own disaster swirling around the shores of the Gulf of Mexico as it continues its slide into another Great Depression. Meanwhile, most people continue to be oblivious to this fact, drunk on the numbing effects of irrelevant television and clueless journalism. This time the implications are worse given both the scale of the Global Depression and the extent of the oil disaster.

After recovering from the first depression, America's supplies of abundant oil helped thrust it onto the world stage as a preeminent super-power. Maintaining that position has come at the price of many "low intensity" wars and struggles around the globe, most of them today centered around the all-important-to-industrial-society and energy-dense resource - oil. In the early 1970's, the U.S. peaked in the production of oil and has been on the decline ever since. It enjoyed the prestige of being the largest producer of oil but ever since has come to rely on other sources around the world increasingly in order to fuel the labyrinth of the machine. That machine, with no real head steering it other than corruption, greed, and the thirst for ever more capital, has up to this point gone relatively unchallenged, throwing itself into the role of arrogant bully as well as gluttonous consumer.

Nature is a challenge that can not simply be "overcome".

As easy sources of oil become harder and harder to come by, it is forced to stretch itself into territories where technology is relatively untested, such as the deep waters of our oceans several thousand feet below the surface. The BP disaster looks to rival all previous oil disasters, with the exception of the Persian Gulf spill, which it could eventually surpass if the leak is not contained. According to energy awareness advocate Matthew Simmons, it simply can not be contained ever, period.

If the reality of resource depletion and corporate excess was not enough to stir the machine into tailspin, an ecological disaster and further shock to the economy will certainly not help either. To top it off, in realization of how risky off-shore drilling really is, not only to ecology but investors and insurers alike, new oil discoveries will remain expensive. Yet the temptation to continue drilling in far-removed places will be high given our thirst and our unwillingness to change the present course unless outright forced to do so.

How many oil disasters will it take to actually wake up?

There are many alternative plans right now, but most of them do not include the utter necessity to change our current lifestyle and re-orient ourselves towards self-sustaining and earth-first style communities. This means altering our social relations in more natural and free arrangements and giving up many of the material luxuries that have come to give us fleeting pleasures in our imprisoned and mentally impoverished lives. Since there are no easy replacements for oil and gas, we must plan for decentralized, local communities that do not rely on automobiles and the convenience of processed and transported foods.

Reality is a tough seabird to swallow.


I have no doubt that this will fail to happen until society actually breaks apart and we have no other choice but to pick up the pieces and make important changes at the most basic levels. Until then, our self-serving governments and corporations will continue on their destructive paths, lining their pockets while exploiting nature, until they eventually become extinct like all civilizations before them.

"Yes, the oil spewing up from the floor of the Gulf of Mexico in staggering quantities could prove one of the great ecological disasters of human history. Think of it, though, as just the prelude to the Age of Tough Oil, a time of ever increasing reliance on problematic, hard-to-reach energy sources. Make no mistake: we’re entering the danger zone. And brace yourself, the fate of the planet could be at stake." ...continued: The relentless pursuit of extreme energy

Thursday, January 29, 2009

Capitalism, Consumerism, and Waste

Tricksters alter a construction sign in Austin to warn about zombies on a morning when there happens to be no apparent worker bees of capital and labor in sight.

"...if the previously created productive forces, are periodically destroyed.” Or, as David Harvey puts it, since capital is always in danger of being choked by overproduction and overaccumulation, it must continually resort to “violent paroxysms” of “the devaluation, depreciation, and destruction of capital.” Specifically, this is what happens on a major scale in moments of economic crisis. But on a minor or “molecular” level, the conjunctive subject or consumer is itself always in crisis — and it can only alleviate this situation by indulging in another round of shopping, purchasing, and consuming."

Tuesday, January 6, 2009

Max Keiser, Financial Anarchist?

Max encourages the use of financial tactics against companies that are not environmentally friendly or are otherwise negative to the world, through boycott and shorting their stocks, then taking the profits and putting it back into environmental causes (explained here: http://www.youtube.com/watch?v=VqmEXUiklJ0)

His website is: http://www.karmabanque.com



The corporate criminal syndicate in washington and the financial collapse:

Monday, November 24, 2008

Native blood: the truth behind the myth of `Thanksgiving Day'

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Available as an MP3 recording. Click on the picture above.

By Mike Ely

It is a deep thing that people still celebrate the survival of the early colonists at Plymouth — by giving thanks to the Christian God who supposedly protected and championed the European invasion. The real meaning of all that, then and now, needs to be continually excavated. The myths and lies that surround the past are constantly draped over the horrors and tortures of our present.

Every schoolchild in the United States has been taught that the Pilgrims of the Plymouth Colony invited the local Indians to a major harvest feast after surviving their first bitter year in New England. But the real history of Thanksgiving is a story of the murder of indigenous people and the theft of their land by European colonialists–and of the ruthless ways of capitalism.

* * *

In mid-winter 1620 the English ship Mayflower landed on the North American coast, delivering 102 exiles. The original native people of this stretch of shoreline had already been killed off. In 1614 a British expedition had landed there. When they left they took 24 Indians as slaves and left smallpox behind. Three years of plague wiped out between 90 and 96 per cent of the inhabitants of the coast, destroying most villages completely.

The Europeans landed and built their colony called “the Plymouth Plantation” near the deserted ruins of the Indian village of Pawtuxet. They ate from abandoned cornfields grown wild. Only one Pawtuxet named Squanto had survived–he had spent the last years as a slave to the English and Spanish in Europe. Squanto spoke the colonists’ language and taught them how to plant corn and how to catch fish until the first harvest. Squanto also helped the colonists negotiate a peace treaty with the nearby Wampanoag tribe, led by the chief Massasoit.

These were very lucky breaks for the colonists. The first Virginia settlement had been wiped out before they could establish themselves. Thanks to the good will of the Wampanoag, the settlers not only survived their first year but had an alliance with the Wampanoags that would give them almost two decades of peace.

John Winthrop, a founder of the Massahusetts Bay colony considered this wave of illness and death to be a divine miracle. He wrote to a friend in England, “But for the natives in these parts, God hath so pursued them, as for 300 miles space the greatest part of them are swept away by smallpox which still continues among them. So as God hath thereby cleared our title to this place, those who remain in these parts, being in all not 50, have put themselves under our protection.”

The deadly impact of European diseases and the good will of the Wampanoag allowed the settlers to survive their first year.

In celebration of their good fortune, the colony’s governor, William Bradford, declared a three-day feast of thanksgiving after that first harvest of 1621.

How the Puritans stole the land

Early North America as Native peoples and Europe settlers collide

But the peace that produced the Thanksgiving Feast of 1621 meant that the Puritans would have 15 years to establish a firm foothold on the coast. Until 1629 there were no more than 300 settlers in New England, scattered in small and isolated settlements. But their survival inspired a wave of Puritan invasion that soon established growing Massachusetts towns north of Plymouth: Boston and Salem. For 10 years, boatloads of new settlers came.

And as the number of Europeans increased, they proved not nearly so generous as the Wampanoags.

On arrival, the Puritans and other religious sects discussed “who legally owns all this land. ”They had to decide this, not just because of Anglo-Saxon traditions, but because their particular way of farming was based on individual–not communal or tribal–ownership. This debate over land ownership reveals that bourgeois “rule of law” does not mean “protect the rights of the masses of people.”

Some settlers argued that the land belonged to the Indians. These forces were excommunicated and expelled. Massachusetts Governor Winthrop declared the Indians had not “subdued” the land, and therefore all uncultivated lands should, according to English Common Law, be considered “public domain.” This meant they belonged to the king. In short, the colonists decided they did not need to consult the Indians when they seized new lands, they only had to consult the representative of the crown (meaning the local governor).

The colonists embraced a line from Psalms 2:8. “Ask of me, and I shall give thee, the heathen for thine inheritance, and the uttermost parts of the earth for thy possession.” Since then, European settler states have similarly declared god their real estate agent: from the Boers seizing South Africa to the Zionists seizing Palestine.

The European immigrants took land and enslaved Indians to help them farm it. By 1637 there were about 2000 British settlers. They pushed out from the coast and decided to remove the inhabitants.

The shining City on the Hill

Where did the Plymouth and Massachusetts colonies of Puritan and “separatist” pilgrims come from and what were they really all about?

Governor Winthrop, a founder of the Massachusetts colony, said, “We shall be as a City upon a Hill, the eyes of all people are upon us.” The Mayflower Puritans had been driven out of England as subversives. The Puritans saw this religious colony as a model of a social and political order that they believed all of Europe should adopt.

The Puritan movement was part of a sweeping revolt within English society against the ruling feudal order of wealthy lords. Only a few decades after the establishment of Plymouth, the Puritan Revolution came to power in England. They killed the king, won a civil war, set up a short-lived republic, and brutally conquered the neighbouring people of Ireland to create a larger national market.

The famous Puritan intolerance was part of a determined attempt to challenge the decadence and wastefulness of the rich aristocratic landlords of England. The Puritans wanted to use the power of state punishment to uproot old and still dominant ways of thinking and behaving.

The new ideas of the Puritans served the needs of merchant capitalist accumulation. The extreme discipline, thrift and modesty the Puritans demanded of each other corresponded to a new and emerging form of ownership and production. Their so-called “Protestant Ethic” was an early form of the capitalist ethic. From the beginning, the Puritan colonies intended to grow through capitalist trade–trading fish and fur with England while they traded pots, knives, axes, alcohol and other English goods with the Indians.

The New England were ruled by a government in which only the male heads of families had a voice. Women, Indians, slaves, servants, youth were neither heard nor represented. In the Puritan schoolbooks, the old law “honour thy father and thy mother” was interpreted to mean honoring “All our Superiors, whether in Family, School, Church, and Commonwealth.” And, the real truth was that the colonies were fundamentally controlled by the most powerful merchants.

The Puritan fathers believed they were the Chosen People of an infinite god and that this justified anything they did. They were Calvinists who believed that the vast majority of humanity was predestined to damnation. This meant that while they were firm in fighting for their own capitalist right to accumulate and prosper, they were quick to oppress the masses of people in Ireland, Scotland and North America, once they seized the power to set up their new bourgeois order. Those who rejected the narrow religious rules of the colonies were often simply expelled “out into the wilderness.”

The Massachusetts colony (north of Plymouth) was founded when Puritan stockholders had gotten control of an English trading company. The king had given this company the right to govern its own internal affairs, and in 1629 the stockholders simply voted to transfer the company to North American shores–making this colony literally a self-governing company of stockholders!

In US schools, students are taught that the Mayflower compact of Plymouth contained the seeds of “modern democracy” and “rule of law.” But by looking at the actual history of the Puritans, we can see that this so-called “modern democracy” was (and still is) a capitalist democracy based on all kinds of oppression and serving the class interests of the ruling capitalists.

In short, the Puritan movement developed as an early revolutionary challenge to the old feudal order in England. They were the soul of primitive capitalist accumulation. And transferred to the shores of North America, they immediately revealed how heartless and oppressive that capitalist soul is.

The birth of the `American way of war'

European colonists attack the Pequot village

In the Connecticut Valley, the powerful Pequot tribe had not entered an alliance with the British (as had the Narragansett, the Wampanoag, and the Massachusetts peoples). At first they were far from the centers of colonization. Then, in 1633, the British stole the land where the city of Hartford now sits–land which the Pequot had recently conquered from another tribe. That same year two British slave raiders were killed. The colonists demanded that the Indians who killed the slavers be turned over. The Pequot refused.

The Puritan preachers said, from Romans 13:2, “Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation.” The colonial governments gathered an armed force of 240 under the command of John Mason. They were joined by a thousand Narragansett warriors. The historian Francis Jennings writes: “Mason proposed to avoid attacking Pequot warriors which would have overtaxed his unseasoned, unreliable troops. Battle, as such, was not his purpose. Battle is only one of the ways to destroy an enemy’s will to fight. Massacre can accomplish the same end with less risk, and Mason had determined that massacre would be his objective.”

The colonist army surrounded a fortified Pequot village on the Mystic River. At sunrise, as the inhabitants slept, the Puritan soldiers set the village on fire.

William Bradford, Governor of Plymouth, wrote: “Those that escaped the fire were slain with the sword; some hewed to pieces, others run through with their rapiers, so that they were quickly dispatched and very few escaped. It was conceived they thus destroyed about 400 at this time. It was a fearful sight to see them thus frying in the fire…horrible was the stink and scent thereof, but the victory seemed a sweet sacrifice, and they gave the prayers thereof to God, who had wrought so wonderfully for them.”

Mason himself wrote: “It may be demanded…Should not Christians have more mercy and compassion? But…sometimes the Scripture declareth women and children must perish with their parents…. We had sufficient light from the word of God for our proceedings.”

Three hundred and fifty years later the Puritan phrase “a shining city on the hill” became a favorite quote of conservative speechwriters.

Discovering the profits of slavery

This so-called “Pequot war” was a one-sided murder and slaving expedition. Over 180 captives were taken. After consulting the bible again, in Leviticus 24:44, the colonial authorities found justification to kill most of the Pequot men and enslave the captured women and their children. Only 500 Pequot remained alive and free. In 1975 the official number of Pequot living in Connecticut was 21.

Some of the war captives were given to the Narragansett and Massachusetts allies of the British. Even before the arrival of Europeans, Native peoples of North America had widely practiced taking war captives from other tribes as hostages and slaves.

The remaining captives were sold to British plantation colonies in the West Indies to be worked to death in a new form of slavery that served the emerging capitalist world market. And with that, the merchants of Boston made a historic discovery: the profits they made from the sale of human beings virtually paid for the cost of seizing them.

One account says that enslaving Indians quickly became a “mania with speculators.” These early merchant capitalists of Massachusetts started to make genocide pay for itself. The slave trade, first in captured Indians and soon in kidnapped Africans, quickly became a backbone of New England merchant capitalism.

Thanksgiving in the Manhattan Colony

In 1641 the Dutch governor Kieft of Manhattan offered the first “scalp bounty”–his government paid money for the scalp of each Indian brought to them. A couple years later, Kieft ordered the massacre of the Wappingers, a friendly tribe. Eighty were killed and their severed heads were kicked like soccer balls down the streets of Manhattan. One captive was castrated, skinned alive and forced to eat his own flesh while the Dutch governor watched and laughed. Then Kieft hired the notorious Underhill who had commanded in the Pequot war to carry out a similar massacre near Stamford, Connecticut. The village was set fire, and 500 Indian residents were put to the sword.

A day of thanksgiving was proclaimed in the churches of Manhattan. As we will see, the European colonists declared Thanksgiving Days to celebrate mass murder more often than they did for harvest and friendship.

The Conquest of New England

By the 1670s there were about 30,000 to 40,000 white inhabitants in the United New England Colonies–6000 to 8000 able to bear arms. With the Pequot destroyed, the Massachusetts and Plymouth colonists turned on the Wampanoag, the tribe that had saved them in 1620 and probably joined them for the original Thanksgiving Day.

In 1675 a Christian Wampanoag was killed while spying for the Puritans. The Plymouth authorities arrested and executed three Wampanoag without consulting the tribal chief, King Philip.

As Mao Tsetung says: “Where there is oppression there is resistance.” The Wampanoag went to war.

The Indians applied some military lessons they had learned: they waged a guerrilla war which overran isolated European settlements and were often able to inflict casualties on the Puritan soldiers. The colonists again attacked and massacred the main Indian populations.

When this war ended, 600 European men, one-eleventh of the adult men of the New England Colonies, had been killed in battle. Hundreds of homes and 13 settlements had been wiped out. But the colonists won.

In their victory, the settlers launched an all-out genocide against the remaining Native people. The Massachusetts government offered 20 shillings bounty for every Indian scalp, and 40 shillings for every prisoner who could be sold into slavery. Soldiers were allowed to enslave any Indian woman or child under 14 they could capture. The “Praying Indians” who had converted to Christianity and fought on the side of the European troops were accused of shooting into the treetops during battles with “hostiles.” They were enslaved or killed. Other “peaceful” Indians of Dartmouth and Dover were invited to negotiate or seek refuge at trading posts–and were sold onto slave ships.

It is not known how many Indians were sold into slavery, but in this campaign, 500 enslaved Indians were shipped from Plymouth alone. Of the 12,000 Indians in the surrounding tribes, probably about half died from battle, massacre and starvation.

After King Philip’s War, there were almost no Indians left free in the northern British colonies. A colonist wrote from Manhattan’s New York colony: “There is now but few Indians upon the island and those few no ways hurtful. It is to be admired how strangely they have decreased by the hand of God, since the English first settled in these parts.”

In Massachusetts, the colonists declared a “day of public thanksgiving” in 1676, saying, “there now scarce remains a name or family of them [the Indians] but are either slain, captivated or fled.”

Fifty-five years after the original Thanksgiving Day, the Puritans had destroyed the generous Wampanoag and all other neighboring tribes. The Wampanoag chief King Philip was beheaded. His head was stuck on a pole in Plymouth, where the skull still hung on display 24 years later.

The descendants of these Native peoples are found wherever the Puritan merchant capitalists found markets for slaves: the West Indies, the Azures, Algiers, Spain and England. The grandson of Massasoit, the Pilgrim’s original protector, was sold into slavery in Bermuda.

Runaways and rebels

But even the destruction of Indian tribal life and the enslavement of survivors brought no peace. Indians continued to resist in every available way. Their oppressors lived in terror of a revolt. And they searched for ways to end the resistance. The historian MacLeod writes: “The first `reservations’ were designed for the `wild’ Irish of Ulster in 1609. And the first Indian reservation agent in America, Gookin of Massachusetts, like many other American immigrants had seen service in Ireland under Cromwell.”

The enslaved Indians refused to work and ran away. The Massachusetts government tried to control runaways by marking enslaved Indians: brands were burnt into their skin, and symbols were tattooed into their foreheads and cheeks.

A Massachusetts law of 1695 gave colonists permission to kill Indians at will, declaring it was “lawful for any person, whether English or Indian, that shall find any Indians traveling or skulking in any of the towns or roads (within specified limits), to command them under their guard and examination, or to kill them as they may or can.”

The northern colonists enacted more and more laws for controlling the people. A law in Albany forbade any African or Indian slave from driving a cart within the city. Curfews were set up; Africans and Indians were forbidden to have evening get-togethers. On Block Island, Indians were given 10 lashes for being out after nine o’clock. In 1692 Massachusetts made it a serious crime for any white person to marry an African, an Indian or a mulatto. In 1706 they tried to stop the importation of Indian slaves from other colonies, fearing a slave revolt.

Celebrate?

Looking at this history raises a question: Why should anyone celebrate the survival of the earliest Puritans with a Thanksgiving Day? Certainly the Native peoples of those times had no reason to celebrate.

The ruling powers of the United States organised people to celebrate Thanksgiving Day because it is in their interest. That’s why they created it. The first national celebration of Thanksgiving was called for by George Washington. And the celebration was made a regular legal holiday later by Abraham Lincoln during the civil war (right as he sent troops to suppress the Sioux of Minnesota).

Washington and Lincoln were two presidents deeply involved in trying to forge a unified bourgeois nation-state out of the European settlers in the United States. And the Thanksgiving story was a useful myth in their efforts at U.S. nation-building. It celebrates the “bounty of the American way of life,” while covering up the brutal nature of this society.

[Mike Ely is a participant in the Kasama Project, where several of his other historical writings are available.]

Looking at the edge of the cliff

The ponzi scheme that is behind the consumerist driven American empire is starting to vividly unravel and has been unraveling for some time, even as so many people still claim, and actually believe, that "nothing has really changed" --because on the surface every day reality still looks relatively the same for most people, not including auto industry workers, new truck dealers, and all the poor souls in the financial and mortgage industry, for instance --and expect things to bounce back "any time now". Meanwhile the behemoth pile of toxic debt still lurks overhead waiting to finally tumble and kick up a whole lot of dust in the faces of the First World simultaneously as oil prices have fallen almost to the low lows we saw back before 2003 that helped to enable all our gluttonous habits and expenditures and will perhaps be a final short tease before disaster. But what we are seeing is a momentary reaction in an irrational and confused market-place. Some ups and downs are going to be expected..

The global economy is mostly contracting, save for places like the UAE and other oil rich nations. Demand for oil has fallen, consumers are spending less, and businesses are starting to close their doors. Meanwhile, the value of stocks and paper money is now or soon will be disappearing. The other side of the equation of the oil based economy is that oil has become scarce. So the wealth that has allowed us to live in luxury is already starting to slip between our fingers like the sand in so many oil rich deserts.

It's only a matter of time before the price of oil jumps back up again (probably with the driving season next year). Don't be suprised to see $4 gasoline again--and higher as America's "liquidity" in investments is hindered and countries start exporting less oil to our doorsteps with time. Perhaps all of the recent pirate activity in the news will be the harbinger of energy conflicts to come - a sort of Mad Max on the seas struggle in which individuals or countries struggle to procure more of the drug that had spawned the 20th century.

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Here's a clip of James Howard Kunstler in a CBC special report about our oil addicted society and some of the things that will change (with Spanish subtitles!). Every time I travel through the countryside some of the more simplified and ranshackle places I see act like a potential lens into the future: http://www.youtube.com/watch?v=gPqHtWNI6kU