Water pistol juntas

Lately, I've been thinking of this post, which I wrote in 2011

When looking at the story of capitalism and the rise of the European powers, it is striking to see forms of organization appear on the periphery before they migrate to the center. For instance, the work discipline of the factory in 19th century England seems to replicate forms of work discipline created for the sugar 'factories' in the West Indies of the 17th century. In 19th century England, the work discipline was imposed on 'free labor', and in Jamaica, it was imposed on slaves. Yet, if we look away from the changes implied by this transformation of the working agent, we see a continuity of form, or at least the production of an organizational form that can be transposed.  And, unlike serf labor in Central Europe, for instance, this slave labor is relatively free of the codes that define its rights and hedge in the transmission of property and title by the owners.

A similar movement from the periphery to the center seems to be happening in the counter-revolution that is now occuring in all developed countries. What happened to the LDCs in the 80s - the less developed countries - is now being served up to the Developed Countries. It is an interesting mix of fiction and terror.

The eighties are the 'lost decade' in Latin America because they are the decade in which the program of the Washington Consensus, as it came to be know, were imposed on Latin American counties. The weapon by which they were lashed into this madness was debt - combined of course with the military regimes that had been put in place in the sixties and seventies as part of the U.S.'s cold war strategy. And the result of the WC was a major drop in the living standards of the majority of the population, and an end, almost, to growth. While the 50s and the 60s saw tremendous growth in Latin America, and an uneven but perceptible distribution of more wealth to the wage and working class, in the 80s this stopped dead. What emerged in the nineties were 'good countries', like Mexico, that devoted the government to obeying the banks, notably IMF. The IMF model, however, suffered a severe blow when Argentina refused to go along with the usual medicine in 2000, and the U.S. grip on the region began to loosen.

Well, the Washington consensus has migrated, at last, to the developed world. The whole world is now being held up by bankers holding waterpistols to our head. And this threat without a real weapon - for no developed state really needs to obey the bankers, who after all have no police force to arrest it (unlike the Latin American states, where the U.S. could whip up a junta in a heartbeat) - is, to the general amazement of the non-numb among us, being obeyed to the last tittle and jot. 

In the 80s, the police were, in effect, the developed nations. However, beginning, perhaps, with Bush in 2000, the Developed Nations have given birth to the smokeless coup. This coup does not involved armed might - it involves merely taken unelected institutions, such as a court of a central bank, and making them the center of a completely undemocratic seizure of political power, on behalf of the wealthiest people on earth. There aren't, we should remind ourselves, too many wealthy people. And yet the police of every Developed country on earth have been toiling away for wealthy people and locking up demonstrators, cracking down on any demonstration of discontent, and raiding any leaks of information inconvenient to the establishment. The resistence to all of this has been tame beyond reckoning. The self-policing extends all the way up through the discourse - nobody who writes for a major paper or magazine, or who broadcasts, ever couches the new Washington Consensus junta society in terms that would offend your average civics class teacher. 

What would such terms be? Well, for instance, we would start saying: who is all this money owed to? And: can't we simply upset those bankers by taking away their money, one two three, without a by your leave. If sovereign debt is such a problem, we could easily raise the money to pay it by slapping, say, one hundred percent taxes on all bond transactions, and we can use that money to buy the bonds. And absurd solution to an absurd political situation - not an economic one. The question of debt is a question of class. The political class and the financial elite are one, united, and they drive our politics in ways that advantage the financial elite, who use money loaned them, by the governments, to loan money back to the governments. Oh, not directly - rather, by propping up the financial service sector's enterprises, we prop up the places where the bodn dealers work and trade.  

The debt issue is, then, one of those fictions that bear such weight because they serve the interest of a certain power. It isn't that the establishment doesn't believe in its fiction - much as the Aztec priest definitely believed that it was necessary to cut out the heart of a prisoner to appease the gods and continue the course of the world, the elite believe it is necessary to cut out the heart of the middle class to appease the abstract God of Debt, to whom we owe so much. My solution is the radical one of the Lord's prayer - in which we have prettified and made metaphoric the common sense suggestion that we forgive debt every day. Debt. Which is as material as the feeling of the edge of a coin. Forgiving debt is the heart of civilization. And - in this age of the internet, where all that is money has become bytes - it is divinely easy to do it. It is always the sovereign who actually enforces laws to force debters to pay creditors. When the power of the sovereign is calmly and cooly taken from the hands of the people and invested in the hands of ex employees of Goldman Sachs, they switch sides - from being the borrowers for the people, they become the creditors for the banks. 

This is, obviously, going to be a lost decade for the Developed countries. But I'm hopeful that the new Junta order will be, at best, short lived. The arithmatic that counts is not how much debt is owed, but the ratio of the creditor population to the debtor population. I'd keep my eye on the latter, for, given the logic of the counterrevolution we are seeing, the time is approaching when the the banker's water pistol will be jerked out of his hand and turned upon him. And, magically, in that moment it will become a real pistol, with a heft and insistance that will change the power relationship all, all at once.