spin the pistol

Well, there will be another round of Russian Roulette tomorrow. The protest against the insane bailout, one might have noticed, has been a young affair. The crowd that just lost their 401 k shit are an older bunch. Finally, we've reached a red state level where the gain/loss equation is clearly on the side of doing anything to keep the pain away.

Since I am poor as shit and have nothing at stake, here, I can just watch this for the sheer drama of it. The bailout bill was given such an ominous aura that it multiplied the effect that would happen once it was knocked down. I can't imagine that the markets will calm down in Asia, or in the U.S. tomorrow. Which is why I think there might be an extraordinary executive order coming.

... And in other news, I sent IT a find on You Tube which I knew would go straight to her heart - a pig in a 1908 interjecting himself into a softcore tease, or at least the hidden version of Mallarme's L'apres-midi d'un faune that begins: "Le Cochon:
Ces nymphes, je les veux perpétuer."
Well, our favorite Wiltshire goth philosopher proceeds to perpetuer a few archetypes herself. Check it out!

Click click

Bush couldn't persuade the Republican party to pull the trigger. The bailout is dead - at least for today. If the GOP had pulled the trigger, that would be the end of the party in the Red States. The reps understand this. The Bush bubble has finally become impervious even to the faux reality it has spun for itself.

These fucker, these fuckers, go ahead Nicky. It's gonna be all right. Put an empty chamber in that gun. Shoot Nicky, shoot shoot!

I, the substitute

“In einer höheren Phase der kommunistischen Gesellschaft, nachdem die knechtende Unterordnung der Individuen unter die Teilung der Arbeit, damit auch der Gegensatz geistiger und körperlicher Arbeit verschwunden ist; nachdem die Arbeit nicht nur Mittel zum Leben, sondern selbst das erste Lebensbedürfnis geworden; nachdem mit der allseitigen Entwicklung der Individuen auch ihre Produktivkräfte {8} gewachsen und alle Springquellen des genossenschaftlichen Reichtums voller fließen - erst dann kann der enge bürgerliche Rechtshorizont ganz überschritten werden und die Gesellschaft auf ihre Fahne schreiben: Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen!”

In a higher phrase of communist society, after the slavish subordination of the individual to the division of labor, and thus, also, to the opposition of mental and physical labor has disappeared; after labor has become not only a means to life, but even the first of need of life [sondern selbst das erste Lebensbedürfnis geworden]. after the productivity of the individual has grown along with his all around development, and all the springs of social wealth flow fully – only than can we surpass the narrow horizon of bourgeois rights and society can write on its banner: from each according to his abilities, to each according to his needs!”

Marx took this irresistible phrase from Louis Blanc. In the History of the Revolution of 1848, Blanc, a Saint-Simonian, wrote:

Weakness is the creditor of force; ignorance, of instruction. The more a man can do (peut), the more he ought to: and this is the sense of those beautiful worlds of the Gospel: that the first among you must be the servant of the others. From whence, the axiom: from each, according to his capabilities (facultés). This is the obligation.

But, with the capabilites, man has received needs from nature: intellectual needs, moral and physical ones; needs of the heart, of intelligence, of sense, of imagination. Thus, by what means may each fill the function in which nature created him, if social institutions which weigh on him make a barrier to the complete development of his being, in refusing him the satisfaction of needs inherent to his particular organization? From whence – in the limits of common resources, and in taking the word needs in the largest and most noble of acceptations – this axiom, which corresponds to the first and completes it: to each according to his needs. This is the right.” (148)

Droit and Recht, by the way, don’t translate well into English, which lexically distinguishes between the law and right in such a way that ‘rights’ doesn’t carry the load of connotations that the translator would like to imply.

Traditionally, this phrase has been analyzed from the distributive side. The “to each according to his needs” seems to give us a principle of fairness for our economic system – while from each according to his capabilities, or abilities – Fahigkeiten or facultés – sinks into the texture of everyday modern life, a revolutionary demand, perhaps, to make to a semi-feudal order that would condemn the child to follow the parent, but nowadays a commonplace, which we have no need to worry about.

Li does worry, though. For in sweeping away the traditional compulsions, the industrial-market system also sweeps away the craftsman’s attachment to the craft, the farmer’s attachment to the fields – putting in its place the demands of abstract labor. Whether in a market society or in a socialist command and control society, the bond between the person and the labor undergoes a weird dialectic – on the one hand, the person is freed to do what he or she wants, and on the other hand, the bond of affection to one’s chosen faculty becomes so dependent on either market forces or the planning of the state that, in effect, the laborer becomes interchangeable. That interchangeable entity has a name, now: human capital. The momentary intensification the individual, to use Marx’s word, the liberation from feudal bonds, passes quickly into the bonds of a collectivity that can, ideally, shuffle the individual from one situation to another – making this or that skill obsolete, shuttering an economic sector, mobilizing the masses to work on this or that task. It makes one wonder about the slogan on the banner.

I, the substitute – this could be written on the tombstone erected above the individual’s individual moment. To go from one slogan to another. LI wants to bring together the substitute and transgression – to go back to Foucault’s essay. Which we will, hopefully, do soon.

Takeo-chan at one

A year ago, more or less, a son, Takeo, was born to our far flung correspondent, Mr. T, and his lovely wife, Mrs. K., a renowned Gotham jewelrymaker. Takeo has done some amazing things since then. For instance, he has exponentially increased the number of his neural connections. Takeo made this decision as a sort of species friendly gesture towards all humanity. At two, which is the age of genius, he will decide that he’s gone too far, and start pruning the synapses. It is the age of tragedy, two – looking around, the child discovers that his species decision has landed him among a buncha dumb apes – adult humans, in short. With a sigh, the two year old begins the intense and lifelong process of becoming as shortwitted as the rest of us.

But there is that year of genius! And Takeo-chan is going to spend it perfecting his dance moves.

ding dong the witch is dead, the wicked witch

... the wicked witch
ding dong, the wicked witch is dead!

Thank god for Republicans.
They did what the Dems should have done in 2002. They told Bush to go fuck himself. Granted, the Republicans have delusional ideas about what is causing the implosion on Wall Street, but they aren’t so deluded that they can’t see that the investor class that benefited from the massive credit “market” dysfunctions that brought about the crash are proposing to solve it by – giving themselves a lot of money.

As I pointed out, the solution involves a lot of money going from the Red states to the Blue states, inverting what happened during the S and L crisis. Unsurprisingly, people in the Red states don’t like that. Unsurprisingly, big business, the mainstay of the Republican party, does like it.

The status quo ante is dead. Ho ho ho!

Floyd Norris's column this morning is an essential read for all you fans of the coming (r)(d)(ecession)(epression).

ps - it is a commonplace of liberal vituperation to compare Bush to Hitler, a stupid and pointless comparison. But there is one area where it seems to fit - just as Hitler, in his last days, decided to take Germany down with him in one sweeping Gotterdammerung, apparently Bush decided he'd do the same thing with the Republican Party. For of course, the Republican Party will be toast forever, with its own constituency, if it calmly passed this giveaway. Germany surrendered, and the GOP has decided to cut Bush and let him float alone. What this means is that the corporate party is now, out of sheer survival instinct, defying its patrons. I have no idea if that signals the breakup of the party into the Churchlady Party and the Carlyle Party - but it surfaces a strain that has always been there, which could only be closed over by electoral success. My guess is the Carlyle party will have to blink.

My beyond

In A Preface to Transgression, Foucault’s 1963 essay on Bataille, Foucault discusses the at the time Utopian hopes vested in the seeming fall of sexual taboos. And he expresses something rather marvelous.

... sexuality is a fissure – not one that surrounds us as the basis of our isolation or individuality, but one that marks the limit within us and designates us a limit.

Perhaps we could say that it has become the only division possible in a world now emptied of objects, beings and spaces to desecrate. Not that it profers any new content for our age-old acts; rather, it permits a profanation without object, a profanation that is empty and turned inward upon itself and whose instruments are brought to bear on nothing but each other. Profanation in a world which no longer recognizes any positive meaning in the sacred – is this not more or less what we may call transgression?” [Sorry, I could only find the English translation by Bouchard and Simon]

Li takes this, and indeed the whole essay, as a marker, from which we can measure our own dialectical leaps that, collectively, express our idea of the relationship of the happiness norm and the eclipse of the human limit; two moments that mutually condition one another. If at one time I, too, took, took transgression as the way to dissolve personal structures that stood in the way of what Bataille called Pure Happiness, I now see it from a different point of view, one that is much more skeptical of the entire project of happiness.

By chance, when I was in Mexico, I seemed to get into a lot of discussions about Foucault. R. was reading Veyne’s book on Foucault, and we had a long and rather clumsy argument about Foucault’s relativism (R. being against that interpretation, I being for it, but regretting the terms in which such arguments are usually cast). And then I met a professor who was conducting a seminar on Foucault, and we discussed what I consider to be Foucault’s arbitrary principle in Les Mots et Les Choses, which is that a period could be characterized by one episteme only – which I think is a Duchampian rule, something that exists in order for one to create a new kind of picture of an object, but cannot be defended outside of that realm). Finally, I talked a lot with my friend M. about the lack of any discussion of “discovery” as a mot du savoir in Foucault. To me, this is tied in to the treatment of Europe as a closed system from the baroque to the 19th century. To really look at discovery as the key to an episteme would be to see the tight tie between imperialism and knowing. All of my caveats, however, are not meant to jettison Foucault, but to get my bearings in relation to him, get a useful sense of the limits of someone who is looking at the same period I am, with some of the same assumptions.

“A world that no longer recognizes any positive meaning in the sacred” – this came about in some way that we hear about only on the margins of the early work. Because Foucault wanted to emphasize discontinuity, because he wanted to free himself from the tiresome tropes of the dialectic, he chose this route. There was a price, however, and it is interesting that as he came back to sexuality as a continuing theme in the end. That the human limit is within us, wrenched from its sacred correlate, in a sense orphaned, without a vocabulary of its own, or a conceptual scheme – an impulse, an instinct that has to cloth itself in metaphors borrowed from a past that is in conflict with the history that validates its very position, its interiority, its integrity, this is the puzzle that I’ve been working on. The larger question that faces the critique of the happiness culture is: is it even possible to carry through this critique without recourse to the sacred, without infusing the conceptual structure one uses with borrowings, and thus debts, to the religious?

Now, of course, my utopian idea is that this is possible. The possibility is realized in the performance of the critique, but – my position, the positive possibility of a position, is definitely rooted in Bataille’s impossible. My own use of an ironically magical and hermetic vocabulary is a not wholly successful way to express my intuition.

This may be why I feel such a kinship to Foucault’s project, since I feel like the “lunar” starting point, the sense people had that Foucault was inhuman, has to do with an assumption that was rooted in impossibility. If, now, I end up on the other side of that impossibility, if I refuse the path to “pure happiness” – that last sentiment that Bataille could not give up – well, maybe that is because my impossible is beyond happiness – the only truly radical beyond, in my opinion. The Archimedean point for overturning the modern order. This conviction I will, of course, scrupulously disguise in my book to come – since I don’t want to be rejected so easily. I will smile, smile, and be a villain still.

Primer for the day

Let’s do a little primer.
Let’s bracket the idea, for a moment, that collateralizing securities and layering contractual bets on these securities – derivatives – only exist as rentseeking instruments, ie, have no productive economic use. What, then, is the justification for them? The only possible justification is that they ameliorated risk, so that lenders, who would otherwise not be able to afford more hazardous loans, are able to make them. And what is the signal for the lenders that the risk is well spread? The signal is prices. So, the only justification for the derivative market, and for the off the books market in collateralized securities, is that they can smooth out the price of risk.

Given this, ask yourself: why, then, does it turn out that nobody can price out these instruments?

The answer is that this is an institutional failure. Unlike the stock exchange, which transparently represents the price of stocks for all buyers and sellers to see, the pricing system for risk and “insurance” on risk, bizarrely, is institutionally dispersed, and thus systematically opaque.

If – as with a heavy heart, LI thinks will be the case – some type of bailout is attempted that doesn’t address the institutional failure, we will simply watch the greatest disappearing act ever performed, dwarfing Houdini’s legendary vanishing elephant routine.

So, congress should insist that any bailout bill carries with it mandatory institutional reforms. The two things can’t be disconnected. That the Treasury, absurdly, proposes to price the securities “by hand” tells us all we need to know about the ridiculousness of the current system. The OTC system is in ruins. There must be an open and instituted exchange through which all instruments must pass. There could even be more than one. But to pass this bill and continue the OTC system is utter folly. This “crisis” is much like the gold ring crisis of 1876, except that the corrupt officials in Grant’s administration were violating the law, while this bold faced robbery sticks up the nation and demands to be legalized. The least we can demand is that the pricing system be radically revamped.