Blog on the Run: Reloaded

Friday, December 9, 2016 9:45 am

“I saw how it was, and I was ready.”

Last in a series

First installment
Second installment
Third installment
Fourth installment
Fifth installment
Sixth installment
Seventh installment
Eighth installment

To sum up: We live in a fascist nation in which a fascist leader just stole a presidential election and is installing some not just unqualified but also malignant people into positions of power. We are in grave danger of tipping into autocracy. Nothing’s going to be done about the stolen election, and the media almost certainly won’t be much help going forward. So who will?

Nobody. Nobody is going to help, as Athenae pointed out in a different context two years ago:

No one is coming to save you. Repeat after me. Nobody is coming to save you. So save your own goddamn motherfucking glorious selves. Think about the freedom of that. Think about the way it unties you, shoves you off the cliff, and trusts you to fly.

It’s up to you. I talk about this all the time in my offline and online lives, in my life: If you give a shit about something you are the one who is morally obligated to act, so spare me your peroration on how you’d show up at the protest if only the other people there were dressed the way you wanted them dressed. Spare me the opinion columns about the wars you think other people’s children should fight, the wars you yourself have such a good reason for not fighting. …

Stop WAITING. For God’s sake, stop being disappointed when no one comes. Stop hating everybody else for being stupid and trivial and obsessed, stop hating the technology at your disposal, stop hating the world you live in for not being the world you want to live in, and stop being so goddamn willing to let yourself off the hook.

Work HARDER. Get better. Get up.

Yes, we will have to do this ourselves. We don’t know how and can’t imagine why, but that’s because America seems to have an enervating fondness for the “Great Man” theory of history. That’s a huge obstacle to what must happen right now, as Megan Carpentier writes:

Liberals should stop asking whether Donald Trump—or his chief strategist and the former head of Breitbart, Steve Bannon—is a Nazi. Not because the employees of Trump’s son-in-law and adviser said so in an embarrassing paean to the “zealous Zionist” who has Trump’s ear, or even because, like one high school history teacher and Holocaust expert in Northern California, you could be forced into retirement. No, the reason to resist the temptation to whether our president elect and his ghastly racist retinue are bona fide Nazis is that it’s the wrong question, and it’s always been the wrong question. …

The Nazis gained power in Germany through democratic elections and maintained it through maintaining the support of a plurality, if not a true majority, of Germans well into the 1940s. Thus, the question isn’t whether Trump and his ilk are Nazis; it’s whether Americans are, or would be willing to accept it if they were.

On one level, Americans’ obsession with whether various leaders are more or less like actual Nazi leaders speaks volumes about the failures of the American educational system: our approach to history, for better and mostly for worse, stems from the nineteenth century Great Man philosophy of history. Under this view of things, all historical change is a project reserved for our leaders; the rest of us are just drawn along in their wake with little agency or responsibility.

The “with little agency or responsibility” disclaimer ought to ring a few bells here. That’s the underlying philosophy that allows white Americans to evade responsibility for the institution of slavery and the long-term harm it has created for African Americans by saying that their ancestors never enslaved anyone. If we conceive of our leaders as the only (or primary) agents of history or change, then the rest of us need to own up to the systemic injustices that our actions uphold—or, indeed, to any of the changes our chosen leaders impose and we accept.

But history is lived and influenced by more than just “Great Men”; going along to get along is as much a choice as taking to the streets to protest (and possibly risking your life to do so).

As Pogo famously observed, we have met the enemy and he is us. We got us into this. And there’s no cavalry coming; we are going to have to get us out. So what should we do? The short answer is: resist. There is, of course, a longer answer.

Let’s start by defining where we want and need to be. That, to me, is a United States of America devoted to the promises it made and the checks it wrote to itself in 1776 and 1787. A country that is prepared for war but works for peace at home and abroad. A country that does the public’s business where the public can see it, values its people over its property, and is at least moving toward living in harmony with nature rather than exploiting it. A country where decisions are based on science and facts. A country where all lives really do matter,  where equal protection under the law is a real thing and not just a joke that the powerful snicker at over cocktails.

A country that, for fuck’s sweet sake, is not a fascist autocracy.

The Americans who will lead that country won’t be born in my lifetime or yours, but we need to start the work right now. We need both short-term tactics and long-term strategies, because the challenges we face are both short-term (global warming, overpopulation) and long-term (eradicating prejudice, attenuating greed).

And the most important short-term tactic is opposing Donald Trump by any means necessary. As I’ve noted, he is the single most unqualified candidate ever to be elevated to the presidency:

On July 7, the presumptive Republican presidential nominee, Donald J. Trump, met privately with House Republicans near the Capitol. I was present as chief policy director of the House Republican Conference. Mr. Trump’s purpose was to persuade the representatives to unite around him, a pitch he delivered in a subdued version of his stream-of-consciousness style. A congresswoman asked him about his plans to protect Article I of the Constitution, which assigns all federal lawmaking power to Congress.

Mr. Trump interrupted her to declare his commitment to the Constitution — even to parts of it that do not exist, such as “Article XII.” Shock swept through the room as Mr. Trump confirmed one of our chief concerns about him: He lacked a basic knowledge of the Constitution.

There is still deeper cause for concern. Mr. Trump’s erroneous proclamation also suggested that he lacked even an interest in the Constitution. Worse, his campaign rhetoric had demonstrated authoritarian tendencies.

He had questioned judicial independence, threatened the freedom of the press, called for violating Muslims’ equal protection under the law, promised the use of torture and attacked Americans based on their gender, race and religion. He had also undermined critical democratic norms including peaceful debate and transitions of power, commitment to truth, freedom from foreign interference and abstention from the use of executive power for political retribution.

There is little indication that anything has changed since Election Day.

That is to say, the dangers of fascism and autocracy he poses, from recession to nuclear war, threaten not just our well-being but also our lives and those of our children and those yet unborn.

Trump appears to this layman to be a textbook example of someone with narcissistic personality disorder. Because I am a layman, I could be completely wrong about this (and most non-lay people would refuse to diagnose at a distance, for that matter), but boy howdy, does he match up with the symptoms. And there are a lot of things you need to know about people like Trump with narcissistic personality disorder, as Medium contributor N. Ziehl explains:

1) [Narcissistic personality disorder] is not curable and it’s barely treatable. [Trump] is who he is. There is no getting better, or learning, or adapting. He’s not going to “rise to the occasion” for more than maybe a couple hours. So just put that out of your mind.

2) He will say whatever feels most comfortable or good to him at any given time. He will lie a lot, and say totally different things to different people. Stop being surprised by this. While it’s important to pretend “good faith” and remind him of promises, as Bernie Sanders and others are doing, that’s for his supporters, so *they* can see the inconsistency as it comes. He won’t care. So if you’re trying to reconcile or analyze his words, don’t. It’s 100% not worth your time. Only pay attention to and address his actions.

3) You can influence him by making him feel good. There are already people like [chief counsel-designee Steve] Bannon who appear ready to use him for their own ends. The GOP is excited to try. Watch them, not him. President Obama, in his wisdom, may be treating him well in hopes of influencing him and averting the worst. If he gets enough accolades for better behavior, he might continue to try it. But don’t count on it.

4) Entitlement is a key aspect of the disorder. As we are already seeing, he will likely not observe traditional boundaries of the office. He has already stated that rules don’t apply to him. This particular attribute has huge implications for the presidency and it will be important for everyone who can to hold him to the same standards as previous presidents.

5) We should expect that he only cares about himself and those he views as extensions of himself, like his children. (People with NPD often can’t understand others as fully human or distinct.) He desires accumulation of wealth and power because it fills a hole. (Melania is probably an acquired item, not an extension.) He will have no qualms *at all* about stealing everything he can from the country, and he’ll be happy to help others do so, if they make him feel good. He won’t view it as stealing but rather as something he’s entitled to do. This is likely the only thing he will intentionally accomplish.

6) It’s very, very confusing for non-disordered people to experience a disordered person with NPD. While often intelligent, charismatic and charming, they do not reliably observe social conventions or demonstrate basic human empathy. It’s very common for non-disordered people to lower their own expectations and try to normalize the behavior. DO NOT DO THIS AND DO NOT ALLOW OTHERS, ESPECIALLY THE MEDIA, TO DO THIS. If you start to feel foggy or unclear about this, step away until you recalibrate.

7) People with NPD often recruit helpers, referred to in the literature as “enablers” when they allow or cover for bad behavior and “flying monkeys” when they perpetrate bad behavior on behalf of the narcissist. Although it’s easiest to prey on malicious people, good and vulnerable people can be unwittingly recruited. It will be important to support good people around him if and when they attempt to stay clear or break away.

8) People with NPD often foster competition for sport in people they control. Expect lots of chaos, firings and recriminations. He will probably behave worst toward those closest to him, but that doesn’t mean (obviously) that his actions won’t have consequences for the rest of us. He will punish enemies. He may start out, as he has with the NYT, with a confusing combination of punishing/rewarding, which is a classic abuse tactic for control. If you see your media cooperating or facilitating this behavior for rewards, call them on it.

9) Gaslighting — where someone tries to convince you that the reality you’ve experienced isn’t true — is real and torturous. He will gaslight, his followers will gaslight. Many of our politicians and media figures already gaslight, so it will be hard to distinguish his amplified version from what has already been normalized. Learn the signs and find ways to stay focused on what you know to be true. Note: it is typically not helpful to argue with people who are attempting to gaslight. You will only confuse yourself. Just walk away.

10) Whenever possible, do not focus on the narcissist or give him attention. Unfortunately we can’t and shouldn’t ignore the president, but don’t circulate his tweets or laugh at him — you are enabling him and getting his word out. (I’ve done this, of course, we all have… just try to be aware.) Pay attention to your own emotions: do you sort of enjoy his clowning? do you enjoy the outrage? is this kind of fun and dramatic, in a sick way? You are adding to his energy. Focus on what you can change and how you can resist, where you are. We are all called to be leaders now, in the absence of leadership.

I’ll talk more in a bit on what that leadership might look like.

It’s hard to say what’s worst about Trump or most dangerous about him (although that whole unassisted-nuclear-war thing is a strong contender), but I think what is most fundamentally un-American about him is his bigotry and that of those with whom he surrounds himself. Yeah, yeah, I know, racism is as American as apple pie, but it also is most fundamentally at odds with the vision and the ideals expressed in our founding documents — all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness; that no state shall deny to any person within its jurisdiction “the equal protection of the laws,” etc.

And if we are to reach our long-term goals for this country, we must therefore address bigotry as a huge obstacle to those goals and as a huge part of the makeup of the person who has stolen the Oval Office and the people who surround him — and who voted for him. And to address it, we cannot allow ourselves to live in denial about it.

Accordingly, I wanted to share something Tess Rafferty said not long after the election. Her perspective, I think, is essential to our national progress in general and dealing with Trump in particular:

You voted for Trump – I am tired of trying to see things your way while you sit in your holier-than-thou churches/white power meetups, refusing to see things mine. Did I just lump you in with white supremacists? No, you did that to yourselves. You voted for the same candidate as the KKK. You voted for a candidate endorsed by the KKK. For the rest of your life, you have to know that you voted the same way as the KKK. Does that feel good to you? Here’s a hint – it really shouldn’t, especially if you call yourself a Christian.

I’m tired of pussy footing around what offends your morals while couching what offends mine, because racism, misogyny, homophobia, and xenophobia offend mine.

Let me say it right here – if you voted for Trump, I do think you are a racist. I do think you’re homophobic. I do think you’re a misogynist. Racism, and homophobia, and misogyny are all a spectrum, and you’re on it. You might not be a ‘cheering while a black man gets lynched’ racist, but boy, did you just sell them the rope and look the other way. …

I tried to be polite, but now I just don’t give a damn, because let’s be honest, we don’t live in polite America anymore. We live in ‘grab ‘em by the pussy America now. So thank you for that, being polite was exhausting. …

So now’s the time you might want to see things from my side. Because, if we’re all going to have to be friends after this, imagine me having to be polite and having to respect your vote to take away my rights and freedoms and those of my friends, while we fight desperately to try to hang onto them, because that is what you did. …

Being racist isn’t the same as liking Dire Straits. This isn’t the same as just disagreeing about musical tastes. Being racist is always racist, and if you voted for Trump, you’re racist.

Rafferty speaks my mind: If you voted for Trump, then you are a racist, a sexist, a homophobe, a xenophobe. (And, yes, in case anyone reading this wonders, you can quote me on this. And if you voted for a third-party candidate? I have a position on that, too.) Yeah, as Rafferty says, it’s a spectrum, and despite the denials of bigots we’re all on it somewhere. But if you voted for Trump, you’re on it at a spot that is fundamentally incompatible with this country’s highest ideals, and I want nothing to do with you.

But, besides acknowledging that bigotry and refusing to tolerate it, what else can we do?

If it makes you feel any better, that question has been tossed around for a bit. Of all people, Robert Kagan, who’s something of a neocon and therefore not presumably all that opposed to fascism, saw it coming when he wrote in May:

But what [Trump] has tapped into is what the founders most feared when they established the democratic republic: the popular passions unleashed, the “mobocracy.” Conservatives have been warning for decades about government suffocating liberty. But here is the other threat to liberty that Alexis de Tocqueville and the ancient philosophers warned about: that the people in a democracy, excited, angry and unconstrained, might run roughshod over even the institutions created to preserve their freedoms. As Alexander Hamilton watched the French Revolution unfold, he feared in America what he saw play out in France — that the unleashing of popular passions would lead not to greater democracy but to the arrival of a tyrant, riding to power on the shoulders of the people.

O hai, as cats say on the Internet.

And while Kagan didn’t specifically set out to say what we should do, he did break down into categories what he thought our politicians, at least, were likely to do, and so far he ain’t been wrong:

In such an environment, every political figure confronts a stark choice: Get right with the leader and his mass following or get run over. The human race in such circumstances breaks down into predictable categories — and democratic politicians are the most predictable. There are those whose ambition leads them to jump on the bandwagon. They praise the leader’s incoherent speeches as the beginning of wisdom, hoping he will reward them with a plum post in the new order. There are those who merely hope to survive. Their consciences won’t let them curry favor so shamelessly, so they mumble their pledges of support, like the victims in Stalin’s show trials, perhaps not realizing that the leader and his followers will get them in the end anyway.

A great number will simply kid themselves, refusing to admit that something very different from the usual politics is afoot. Let the storm pass, they insist, and then we can pick up the pieces, rebuild and get back to normal. Meanwhile, don’t alienate the leader’s mass following. After all, they are voters and will need to be brought back into the fold. As for Trump himself, let’s shape him, advise him, steer him in the right direction and, not incidentally, save our political skins.

What these people do not or will not see is that, once in power, Trump will owe them and their party nothing. He will have ridden to power despite the party, catapulted into the White House by a mass following devoted only to him.

And yet Democrats can — indeed, must — resist. As David Faris writes at TheWeek.com, it’s time for Democrats to fight (at least figuratively) dirty:

So after the GOP’s unapologetic, eight-year incineration of America’s surviving governing norms, the Democrats have a stark choice. One option is to continue to be the party of decent government and compromise, and ride into power every eight or 12 years to clean up the GOP’s mess. And indeed, all available signals from Chuck Schumer, Bernie Sanders, and Elizabeth Warren — the de facto leaders of what little remains of the institutional Democratic Party — suggest that they intend to cooperate dutifully with their new GOP overlords when the opportunity to accomplish something meaningful presents itself.

That this is the first instinct of the Democratic Party even after a crushing, incomprehensible defeat is actually kind of admirable. The urge to minimize the damage in defense of the public interest is broadly shared, and understandable. It must make many Democrats proud to support a party that truly believes in the public good, even at the expense of winning.

On the other hand, no. It’s time for Democrats to say no. To everything.

Democrats must comprehend, at long last, what is being done to them by the Republican Party. The Democratic negotiating position on all issues put before them while they are in the House and Senate minority for at least the next two years should be very simple: You will give us Merrick Garland or you may go die in a fire.

Not only that, but they should do what they should have done the day Antonin Scalia died: Make it clear that the next time the Democrats control the Senate while the Republican Party controls the presidency, whether that is in 2019 or 2049, there will be an extraordinarily high price to pay for what just transpired. The next Republican president facing divided government will get nothing. This president will run the entire federal government by himself. Zero confirmations. No judges, not even to the lowliest district court in the country. No Cabinet heads. No laws. Budgets will be approved only after prolonged and painful crises. Whoever this GOP president is, he or she will be forced to watch while their presidency and everything they hoped to achieve in government is burned down while the Democrats block the fire hydrant and laugh.

And Democrats should be confident knowing that American voters will never, ever hold them accountable for it. On the contrary, they will almost certainly be rewarded with sweeping power.

It helps that the Republicans — led by a man who rage-tweets fake news in the middle of the night — are about to embark on a long voyage of turning every single thing they touch into garbage. There should be no Democratic fingerprints whatsoever on the coming catastrophe. Democrats must not give the imprimatur of legitimacy to the handsy Infowars accolyte who is about to take the oath of office. Not to get some highways built. Not to renegotiate NAFTA. Not to do anything.

At long last, Democrats must learn from their tormenters: Obstruct. Delay. Delegitimize. Harass. Destroy. Above all: Do. Not. Help. This. Man. Govern.

How might such a massive resistance effort be organized? For one thing, it will take a huge amount of grass-roots pressure on Democratic lawmakers from voters. (Of course, pretty much any progressive initiative requires that, but this will require EVEN MORE of it.) But it will need something else, too: Real leadership in Washington. Jeet Heer, a senior editor at The New Republic, has an excellent idea for how Democrats can best resist the worst of what Trump and the GOP will try to do: create the U.S. equivalent of the head of the opposition party in a parliamentary system, and put U.S. Sen. Elizabeth Warren, D-Mass., in that role.

That position, Heer says, could organize and coordinate Democratic opposition to Trump and the GOP in a way that no current, formally empowered Democrat can (Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi, say). Moreover, Heer says, that person should be Warren because no one else in the party combines focus, policy credentials, and a demonstrated willingness to fight. Schumer won’t fight, and Bernie Sanders is returning to Congress not as a Democrat who could be the voice of the party but as an independent who is a critic of it.

And Heer didn’t say this, but I will: Pelosi already is suspect to many in the grassroots for not having impeached George W. Bush over torture and warrantless domestic wiretapping. A lot of Democrats simply don’t believe she has the moral fiber for the role, not to mention the stomach for the kind of total war that will be required, let alone the organizing, messaging, and inspirational skills such a war will require. (And a word about that war: Democrats need to wake up and realize that Republicans have been fighting it since 1994. They’re in it whether they want to be or not, and as Faris noted above, they need to get right out of the habit of bringing a knife to a gunfight.)

Heer sees it working like this:

With her sharp, relentless, and often funny criticism of Trump, Warren has already stepped up to the plate as the party’s most stalwart voice. If the Democrats could invent a way to formalize her role, it would make her all the more effective.

One path might be for Schumer and Pelosi to get the congressional Democrats and party leaders together for a private meeting where they agree that Trump needs to be opposed as relentlessly and ruthlessly as Mitch McConnell’s congressional Republicans opposed Obama. In this new scenario, Schumer and Pelosi would play the role of party whips, strategizing the opposition to policy proposals and obnoxious nominations while keeping the votes in line to make sure Democrats don’t defect or turn into Trump collaborators—Vichy Democrats. But these are essentially behind-the-scenes tasks. Warren, by contrast, could be given a title (Chief Presidential Critic? Democratic Opposition Leader? Shadow President?) and be tasked with going out to the media and laying out the party’s talking points.

As Chief Presidential Critic (or whatever title the Democrats conjure), Warren could take on the crucial task of message-discipline. As Rich Yeselson, a writer for Dissent and other left-of-center journals, notes, “The biggest problem for the Democrats versus the Republicans in getting out a message is that there is not nearly the level of coordination. This may become different in the age of Trump, but the GOP has been agit-prop excellent in having all of its top players ‘on message’ and saying the same thingobviously, eliminating Obamacare is a classic example and there are many others.”

Warren would be the go-to person when the media wants the Democratic Party’s response to Trump’s latest words and actions; other politicians and surrogates would take their cues from her. She would take the lead on setting and articulating the party’s talking points, while Pelosi and Schumer work to whip Democrats in Congress. Warren would give the party the tough-but-appealing face, and voice, it so badly needs. And grassroots Democrats could, and would, amplify her voice—they’d have someone to rally around, to point to as their key anti-Trump champion.

I would add that this role also is particularly suited to Warren inasmuch as she has by and large said she has no intention of seeking the White House. (Yeah, I know, things can change — and has there ever been a senator who didn’t look in the mirror at least once and see a president looking back? — but that’s what she says now.) Further, she could assume it while still being the party’s Most Valuable Player in the Senate. It’s a lot to ask of her, but if she embraces the role, I think she’s up to it.

What else can Senate Democrats do? Apparently a number of them are thinking hard about delaying and dragging out the confirmation process on Trump’s Cabinet and sub-Cabinet appointees, either because of legitimate questions about his appointees (of which there are oh, so many) or just as payback for the Republicans’ having refused to hold hearings and a vote on President Obama’s last Supreme Court nominee, Merrick Garland.

Senate Democrats can’t block Trump’s appointments, which in all but one case need only 51 votes for confirmation. But they can turn the confirmation process into a slog.

Any individual senator can force Senate Majority Leader Mitch McConnell to hold procedural votes on nominees. Senior Democrats said a series of such votes are likely for many of Trump’s picks.

Democrats could conceivably force up to 30 hours of debate for each Cabinet nominee, which would be highly disruptive for a GOP Senate that usually works limited hours but has big ambitions for next year. The minority could also stymie lower-level nominees and potentially keep the Senate focused on executive confirmations for weeks as Trump assumes the presidency and congressional Republicans try to capitalize on their political momentum.
Reasonable people in the center and on the left can disagree on exactly how many Trump nominees should be filibustered outright, but I think everyone can agree on Jeff Sessions for attorney general. As for the rest, unless they are mainstream people with clear expertise in the field — and at this writing, none is — they need to be grilled like a fresh-caught salmon. And I think requiring 30 hours of debate on every single confirmable position is merely the karma that refusing hearings on Merrick Garland deserves. I try not to be a petty person, but frankly, not being petty hasn’t gotten the good guys very far.
But there’s another good reason to drag things out, too: A growing number of Trump voters are experiencing buyer’s remorse. Trump’s favorability rating is the worst of any president-elect at this point in the transition since Gallup started asking the question. Even among Republicans, support for repealing Obamacare has fallen almost 30 percent just since the election. Delay would buy us crucial time: The longer the administration and the Senate are tied up with getting nominees confirmed, the more time we have to build opposition to Trump’s policies and those of the Republican Congress.
And even minority leaders in Congress can request the Government Accountability Office, Congress’s nonpartisan investigative arm, to look into various Executive Branch activities once the policy makers get seated. Whether anything gets done with the results is another matter, but at least the information would be out there for voters to see.
So those are some of the things Congressional Democrats can do to resist. But what can we do?
Let’s start with what we shouldn’t do: violence. Self-defense is one thing, and some of Trump’s backers in the past year have acted in ways that certainly justified self-defense. But unprovoked violence in protest of any political leader is morally wrong. If you’re prepared to go that route, you had better be prepared to fight to dissolve the political bands which have connected you with the American people and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle you. Also, you had better be prepared to hang if you lose. Besides, as Slate writer Jamelle Bouie observed:

The simple truth is that reaction feeds on disorder. And when there are legitimate means to stop Trump, you’re just as likely to cause a backlash in favor of his effort by forsaking them to attack his supporters. (At the risk of tripping Godwin’s law, German Communist violence against ultra-right targets in the 1932 elections didn’t stop Hitler and his enablers as much as it emboldened and enabled them.) If anything, Trump wants violent attacks on his supporters. Don’t give them to him.

Which is to say that, yes, we can open the box labeled violence, but consider this: There’s little guarantee we’ll be able to close it and almost none that we’ll prevail in the end.

But, yes, we must resist. Consider this concession speech:

Thank you, my friends. Thank you. Thank you. We have lost. We have lost, and this is the last day of my political career, so I will say what must be said. We are standing at the edge of the abyss. Our political system, our society, our country itself are in greater danger than at any time in the last century and a half. The president-elect has made his intentions clear, and it would be immoral to pretend otherwise. We must band together right now to defend the laws, the institutions, and the ideals on which our country is based.

Obviously, Hillary Clinton did not deliver that speech. But she should have, argues Masha Gessen in The New York Review of Books. Gessen maintains that some important falsehoods, including some Hillary Clinton included in the concession speech she actually did give, are preventing us from responding appropriately to Trump.

For one thing, Gessen writes, Clinton elided the distinction between civil resistance and insurgency, which Gessen calls “an autocrat’s favorite con, the explanation for the violent suppression of peaceful protests the world over.” For another, Gessen writes, Clinton, President Obama, and all the other political leaders who said conciliatory things after Trump’s Electoral College victory are refusing to grasp the reality of what is before us, instead embracing:

… the pretense that America is starting from scratch and its president-elect is a tabula rasa. Or we are: “we owe him an open mind.” It was as though Donald Trump had not, in the course of his campaign, promised to deport US citizens, promised to create a system of surveillance targeted specifically at Muslim Americans, promised to build a wall on the border with Mexico, advocated war crimes, endorsed torture, and repeatedly threatened to jail Hillary Clinton herself. It was as though those statements and many more could be written off as so much campaign hyperbole and now that the campaign was over, Trump would be eager to become a regular, rule-abiding politician of the pre-Trump era.

But Trump is anything but a regular politician and this has been anything but a regular election. Trump will be only the fourth candidate in history and the second in more than a century to win the presidency after losing the popular vote. He is also probably the first candidate in history to win the presidency despite having been shown repeatedly by the national media to be a chronic liar, sexual predator, serial tax-avoider, and race-baiter who has attracted the likes of the Ku Klux Klan. Most important, Trump is the first candidate in memory who ran not for president but for autocrat—and won.

Gessen points out that she has lived in autocracies much of her life and has spent her career writing about Putin and Russia. So she probably is better situated than many to offer advice on how to survive autocracy. They are, in brief:

  1. Believe the autocrat; he means what he says.
  2. Do not be taken in by small signs of normalcy.
  3. Do not count on institutions to save you.
  4. Be outraged.
  5. Don’t make compromises.
  6. Remember the future.

Regarding No. 1, Donald Trump has been remarkably clear about his bigoted, autocratic aims. He also is the world’s best example of narcissistic personality disorder and all the misery that that entails for people around him and the people he is scheduled to govern. He is a liar of world-historical proportions, but he has made one campaign promise that I believe we all can take to the bank: “I will never change.”

Regarding No. 2, and relatedly, Trump will occasionally moderate his extreme statements or even contradict them. One cannot be fooled. For example, he has called the legality of same-sex marriage “settled law.” Does that mean LGBTQ people who wish to marry can relax? Hardly. The right to an abortion is even more settled, and yet he has pledged to appoint Supreme Court justices who will vote to overturn the case that legalized it. Are we to believe those same justices would not overturn the ruling that legalized same-sex marriage? Indeed, after watching the Supreme Court practically beg for cases that would enable it to gut the Civil Rights Act, are we to believe that Trump-appointed justices, aided and abetted by the likes of John Roberts, Sam Alito and Clarence Thomas, would not beg for the chance to ban same-sex marriage once again? Yeah, no.

Regarding institutions, I’ve already dismissed the likelihood that the news media will be any help. Congress already has been gutted — Trump once said that he could shoot someone down in the middle of Fifth Avenue and people would applaud him for it; now, he could do it and the GOP-controlled House would not impeach him for it, either. And if they’re not going to impeach him for that, they won’t impeach him for his many conflicts of interest, or for torture, or anything else. Might our courts help us? Maybe, but we’ve already gotten a look at the list of jurists from which Trump has said he would appoint, and they appear to be enablers of autocracy, not opponents of it. And keep in mind, there were lawyers up to their eyeballs in the decision at the Wannsee Conference to liquidate European Jewry as well as the Bush 43 administration’s justification of torture.

As for No. 4, outrage is no trouble now. But how will it be in a month, or a year? “Outrage fatigue” is real. And yet, with Trump and his allies in charge of the White House, Congress and, soon, the Supreme Court, he will be able to move quickly and far. The outrages will be many, yet they must all be called out and not ignored, because each one will be damaging, perhaps lethally, to some of our fellow Americans.

And No. 5, don’t make compromises? This is an issue on which Gessen has special insight:

I grew up knowing that my great-grandfather smuggled guns into the Bialystok ghetto for the resistance, which staged an armed uprising there in August 1943. As an adult, researching a book about collaboration and resistance, using my own family history, I found out why my great-grandfather had been in a position to arm the resistance: he was one of the leaders of the Bialystok Judenrat, the Nazi-appointed Jewish council that ran the ghetto.

My great-grandfather’s story was at once an extreme and a typical example. Criminal regimes function in part by forcing the maximum number of subjects to participate in the atrocities. For nearly a century, individuals in various parts of the Western world have struggled with the question of how, and how much, we should engage politically and personally with governments that we find morally abhorrent.

With the election of Donald Trump—a candidate who has lied his way into power, openly embraced racist discourse and violence, toyed with the idea of jailing his opponents, boasted of his assaults on women and his avoidance of taxes, and denigrated the traditional checks and balances of government—this question has confronted us as urgently as ever.

As Kagan noted above, compromise is useless: Trump and his followers will get you in the end anyway. And Tom Levenson, posting at Balloon Juice, adds:

I’m convinced Gessen is correct.  More, I believe her demand that we make the moral choice first, and then pursue whatever particular tactic seems most likely to embody that choice, will be the most effective, as well as the right thing to do.  A Democratic response to Trump that says we can make this work a little better enshrines Trumpism, and all the vicious GOP assumptions as the ground on which such matters get decided.  One that says “No. This is wrong.  Democrats will oppose, not mitigate…” is the one that creates a real choice going forward on the ground on which we want to fight.

Finally, Gessen wrote, remember the future. True, nothing lasts forever, but as I said above, none of now living will see the end of U.S. fascism. That doesn’t mean it’s not worth fighting. And Trump and his followers are worth fighting if we value the kind of country the United States has always said it strives to be — even if it takes a long time, even if we’re not around to see his ilk vanquished. We do some things not because they’re practical or easily achievable, but because they are the right thing to do.

So where are we now? Like the protagonist in my friend Andy’s story in the first installment, we’ve gone somewhere we’ve never been, someplace miserable, where suffering is a feature rather than a bug and from which there may be no return. And as in the story, and as noted in earlier posts, some very, very unpleasant people are now in charge.  And if you’ve read this far, I hope that, like that narrator, you see how it is, and that you are ready.

And where are we going from here? That, my friends, we will each of us have to decide on our own. I can’t speak for “we,” only for myself. I’ve read a lot about life in autocracies, and one recurring theme is that you have to remember what “normal” is like because the pressure to forget normal will be intense. So I see part of my job as reminding whatever audience I might have of what “normal” is like, to stand up against the pressure to forget — to forget the Constitution, to forget the Golden Rule, to forget simple human decency. I also see part of my job as to witness, to tell you what I see going on and what I think it means.

Unfortunately, we know from other autocracies that there will be enormous explicit and implicit pressure to go along to get along, sometimes from the people closest to us in the world. Under this regime, going along will certainly mean legal discrimination on the basis of religion, race, sexual orientation/identity and other bases. It might well mean ethnic cleansing and even genocide. And I imagine that all the best people will just go along. That is, Pastor Martin Niemöller reminds us, how it worked in Nazi Germany:

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

Yeah, all the best people went along to get along. But I’ve never been one of the best people. If they come first this time for, say, the Muslims, we must respond: Not this time, motherfuckers.

Gessen says, “It is essential to maintain one’s capacity for shock” — not surprise, because nothing this gang would do would surprise me or her — but shock, which implies a sense of moral offense. And that is essential, because what Trump and his supporters are up to is nothing if not immoral. Going along to get along will mean violating two of the West’s most important principles: the equal-protection clause of the 14th Amendment and Christ’s Second Great Commandment. I won’t, can’t do that. I will not betray my country, my faith nor, through either, my fellow Americans. The martyred anti-Nazi theologian Dietrich Bonhoeffer said that if we go along to get along, “God will not hold us guiltless,” and he was right. Gessen urged us to make the moral choice first, and so I have: I see how it is, and I am ready.

Accordingly, I say to Donald Trump: You and your supporters can say whatever you like and try whatever you think you can get away with. But I’m out: As for me and my house, we will serve the Lord.

Saturday, December 3, 2016 9:54 pm

Knowing fascism when you see it; or, If the jackboot fits — Part 2

Eighth in a series

First installment
Second installment
Third installment
Fourth installment
Fifth installment
Sixth installment
Seventh installment

When we left off last, we had just reviewed the question of whether, by Mussolini’s definition, the U.S. is a fascist system. I concluded that it isn’t, but I also thought Mussolini’s perspective on what fascism was wasn’t necessarily the only one with which we should concern ourselves. Another important perspective to consider is an essay written more than 20 years ago by the Italian postmodern novelist and critic Umberto Eco, perhaps best known for the novel “The Name of the Rose.” Eco had been active in the Resistance as a child during World War II and was there for the liberation of Italy by the Americans. In 1995, Eco wrote an essay for The New York Review of Books in which he posited the characteristics of what he called Ur-Fascism, or Eternal Fascism. Of them he writes, “These features cannot be organized into a system; many of them contradict each other, and are also typical of other kinds of despotism or fanaticism. But it is enough that one of them be present to allow fascism to coagulate around it.” (emphasis added) In other words, as few as one of these features could lead to fascism.

I’ll list his 14 features, and we’ll talk about each in terms of whether and how it applies to the U.S.

1.The Cult of Tradition: Eco elaborates:

In the Mediterranean basin, people of different religions (most of them indulgently accepted by the Roman Pantheon) started dreaming of a revelation received at the dawn of human history. This revelation, according to the traditionalist mystique, had remained for a long time concealed under the veil of forgotten languages—in Egyptian hieroglyphs, in the Celtic runes, in the scrolls of the little known religions of Asia.

This new culture had to be syncretistic. Syncretism is not only, as the dictionary says, “the combination of different forms of belief or practice”; such a combination must tolerate contradictions. Each of the original messages contains a silver of wisdom, and whenever they seem to say different or incompatible things it is only because all are alluding, allegorically, to the same primeval truth.

As a consequence, there can be no advancement of learning. Truth has been already spelled out once and for all, and we can only keep interpreting its obscure message.

One can argue that this applies to the U.S. The country’s founding documents — primarily the Federalist papers, the Declaration of Independence and the Constitution — often are treated by Americans as a revelation. And, yes, they’re sometimes contradictory, most obviously in the original sin of this country, combining aspirations toward freedom with institutionalization of slavery (and native genocide, and denial of rights to most women). And, yes, to some Americans — perhaps most notably the late Supreme Court justice Antonin Scalia — truth already has been spelled out once and for all. Other interpretations, even — indeed, perhaps, particularly — in the light of new historical and scientific discoveries, are irrelevant.

Do all Americans think this way? Of course not. But many do, and some of them hold or are about to hold real power.

2) The rejection of modernism. Eco notes that while Nazi Germany was proud of its scientific, technological and industrial advances, its culture was a much more ancient strain of Blut und Boden (blood and earth) and sees the Enlightenment as “the beginning of modern depravity.” Similarly, much of the U.S., including many now in power, have rejected efforts by the country to cash checks the country wrote to itself in 1776 and 1787, and while some of the conservative movement’s opposition to, say, the notion of global warming is driven purely by economic gain and political convenience, a nontrivial part is based on the absolute rejection of science, or, as Eco describes it, irrationalism.

3) Embrace of action for action’s sake and denigrating thought and reflection. Action is seen as beautiful in itself, particularly when undertaken without prior reflection and even when reflection might give us an edge on our adversaries. This trend is exemplified, in Trump’s embrace of torture even though professional interrogators find it generally unproductive and perhaps even leading to false information. Eco writes:

Thinking is a form of emasculation. Therefore culture is suspect insofar as it is identified with critical attitudes. Distrust of the intellectual world has always been a symptom of Ur-Fascism, from Goering’s alleged statement (“When I hear talk of culture I reach for my gun”) to the frequent use of such expressions as “degenerate intellectuals,” “eggheads,” “effete snobs,” “universities are a nest of reds.”

The U.S. conservative movement has been anti-intellectual for at least the past 50 years. Today, as I write, the current target on Twitter is #liberalelites. (Some people who value thought and reflection are embracing that hashtag while posting such things in response as, “If expecting that my POTUS [president of the United States] is better-educated and better-informed than me makes me #liberalelite, so fucking be it.”

4) Rejection of analytical criticism. Remember in Item 1 when Eco said that a fascist culture must not just incorporate things from different sources but also tolerate contradictions? The problem this creates, of course, is that analytical criticism exposes and highlights contradictions. As Eco puts it:

The critical spirit makes distinctions, and to distinguish is a sign of modernism. In modern culture the scientific community praises disagreement as a way to improve knowledge. For Ur-Fascism, disagreement is treason.

This characteristic might help explain a phenomenon discovered in recent years by researchers: When people believe something false and are exposed to correct information that exposes that falsity, they often cling to the false belief even more tightly:

Facts don’t necessarily have the power to change our minds. In fact, quite the opposite. In a series of studies in 2005 and 2006, researchers at the University of Michigan found that when misinformed people, particularly political partisans, were exposed to corrected facts in news stories, they rarely changed their minds. In fact, they often became even more strongly set in their beliefs. Facts, they found, were not curing misinformation. Like an underpowered antibiotic, facts could actually make misinformation even stronger.

This bodes ill for a democracy, because most voters — the people making decisions about how the country runs — aren’t blank slates. They already have beliefs, and a set of facts lodged in their minds. The problem is that sometimes the things they think they know are objectively, provably false. And in the presence of the correct information, such people react very, very differently than the merely uninformed. Instead of changing their minds to reflect the correct information, they can entrench themselves even deeper.

“The general idea is that it’s absolutely threatening to admit you’re wrong,” says political scientist Brendan Nyhan, the lead researcher on the Michigan study. …

Most of us like to believe that our opinions have been formed over time by careful, rational consideration of facts and ideas, and that the decisions based on those opinions, therefore, have the ring of soundness and intelligence. In reality, we often base our opinions on our beliefs, which can have an uneasy relationship with facts. And rather than facts driving beliefs, our beliefs can dictate the facts we chose to accept. They can cause us to twist facts so they fit better with our preconceived notions. Worst of all, they can lead us to uncritically accept bad information just because it reinforces our beliefs. This reinforcement makes us more confident we’re right, and even less likely to listen to any new information. And then we vote.

Sound like the U.S. to you? Sounds like it to me.

5) Fear of difference: 

Besides, disagreement is a sign of diversity. Ur-Fascism grows up and seeks for consensus by exploiting and exacerbating the natural fear of difference. The first appeal of a fascist or prematurely fascist movement is an appeal against the intruders. Thus Ur-Fascism is racist by definition.

Slavery is often described as America’s original sin, but racism underlay slavery and made it possible, as Ta-Nehisi Coates and others have pointed out. Every fascist movement — indeed, every American populist movement — sooner or later (and usually sooner) advances and grows by exploiting fear of The Other. The presidental campaign just past differed from other recent campaigns only the explicitness of Trump and followers of his such as Steve Bannon.

6) Appeal to a frustrated middle class:

Ur-Fascism derives from individual or social frustration. That is why one of the most typical features of the historical fascism was the appeal to a frustrated middle class, a class suffering from an economic crisis or feelings of political humiliation, and frightened by the pressure of lower social groups. In our time, when the old “proletarians” are becoming petty bourgeois (and the lumpen are largely excluded from the political scene), the fascism of tomorrow will find its audience in this new majority.

As I’ve noted before, polling data strongly suggests that racial animus was the primary driver of political support for Trump (see characteristic 5 above) and also shows that enough affluent people supported him to suggest that economic frustration also was not a main driver. Yes, there is some frustration, and it does have real causes — real wages haven’t grown, for example, and although nominal unemployment is now under 5 percent, demand for labor still hasn’t risen enough to boost labor-force participation to pre-recession levels. But the American conservative movement opposed the Voting Rights Act of 1965, has opposed periodic reauthorizations of the act since, and as noted in the second installment of this series, it has fought to keep the very young, the very old, recently naturalized citizens and especially minorities from voting. So, yes, America, this is you.

7) Obsession with a plot:

To people who feel deprived of a clear social identity, Ur-Fascism says that their only privilege is the most common one, to be born in the same country. This is the origin of nationalism. Besides, the only ones who can provide an identity to the nation are its enemies. Thus at the root of the Ur-Fascist psychology there is the obsession with a plot, possibly an international one. The followers must feel besieged. The easiest way to solve the plot is the appeal to xenophobia. But the plot must also come from the inside: Jews are usually the best target because they have the advantage of being at the same time inside and outside. In the US, a prominent instance of the plot obsession is to be found in Pat Robertson’s The New World Order, but, as we have recently seen, there are many others.

Again, Eco wrote in 1995; more recently, Trump and other prominent Republicans including white nationalists have made targets out of not only Jews, but also African Americans, Mexicans, immigrants generally, and particularly Muslims.

8) The followers must feel humiliated by the ostentatious wealth and force of their enemies:

When I was a boy I was taught to think of Englishmen as the five-meal people. They ate more frequently than the poor but sober Italians. Jews are rich and help each other through a secret web of mutual assistance. However, the followers must be convinced that they can overwhelm the enemies. Thus, by a continuous shifting of rhetorical focus, the enemies are at the same time too strong and too weak. [Remember, as noted in characteristic 1, contradictions are embraced.] Fascist governments are condemned to lose wars because they are constitutionally incapable of objectively evaluating the force of the enemy.

Yep, that’s us, and I worry that Trump and his “brain trust” to date are incapable of objectively evaluating any enemy, be it ISIS or climate change.

9) Life is permanent warfare:

For Ur-Fascism there is no struggle for life but, rather, life is lived for struggle. Thus pacifism is trafficking with the enemy. It is bad because life is permanent warfare. This, however, brings about an Armageddon complex. Since enemies have to be defeated, there must be a final battle, after which the movement will have control of the world. But such a “final solution” implies a further era of peace, a Golden Age, which contradicts the principle of permanent war. No fascist leader has ever succeeded in solving this predicament.

By one calculation, the U.S. has been “at war” for 233 of the 240 years of its history. Most Americans might disagree with that assessment, either through ignorance or because they do not accept certain types or scales of military operations as “war.” (We’re flying air combat missions in Syria, now, for example, but are we at war in Syria now? Certainly the people on the other end of our bombs would say so.) What is true, however, is that the Framers’ fears of a standing army have been ignored since at least the Civil War, and inarguably since World War II, and that the military-industrial complex against which President Dwight D. Eisenhower warned us in his 1961 farewell address is more powerful than ever. Trump’s cavalier attitude toward the use of nuclear weapons will make all Americans — indeed, all the world — less safe, a fact voters chose to ignore.

10) Popular elitism:

Elitism is a typical aspect of any reactionary ideology, insofar as it is fundamentally aristocratic, and aristocratic and militaristic elitism cruelly implies contempt for the weak. Ur-Fascism can only advocate a popular elitism. Every citizen belongs to the best people of the world, the members of the party are the best among the citizens, every citizen can (or ought to) become a member of the party. But there cannot be patricians without plebeians. In fact, the Leader, knowing that his power was not delegated to him democratically but was conquered by force, also knows that his force is based upon the weakness of the masses; they are so weak as to need and deserve a ruler. Since the group is hierarchically organized (according to a military model), every subordinate leader despises his own underlings, and each of them despises his inferiors. This reinforces the sense of mass elitism.

Welp, the U.S. scores here not only in popular elitism but also in aristocratic elitism, inasmuch as modern Republicans have indeed evinced contempt for the weak, not only in attitude but also in policy. To want to repeal Obamacare — even some Republicans are now admitting that “replace” is a joke — means being OK with the fact that millions of Americans will once again be uninsured and that, as a result, thousands of them will die prematurely.

11) A cult of the hero, inextricably bound with a cult of death:

In such a perspective everybody is educated to become a hero. In every mythology the hero is an exceptional being, but in Ur-Fascist ideology, heroism is the norm. This cult of heroism is strictly linked with the cult of death. It is not by chance that a motto of the Falangists was Viva la Muerte (in English it should be translated as “Long Live Death!”). In non-fascist societies, the lay public is told that death is unpleasant but must be faced with dignity; believers are told that it is the painful way to reach a supernatural happiness. By contrast, the Ur-Fascist hero craves heroic death, advertised as the best reward for a heroic life. The Ur-Fascist hero is impatient to die. In his impatience, he more frequently sends other people to death.

Some on the left would argue that Memorial Day alone is a U.S. practice that ties in with this characteristic of fascism. I think that’s a reach and that this characteristic has not been a characteristic of America, by and large. And I can’t point to anything Trump has said or promised to do that qualifies. But, again, Trump’s remarks about nuclear weapons should chill us.

12) A culture of machismo:

Since both permanent war and heroism are difficult games to play, the Ur-Fascist transfers his will to power to sexual matters. This is the origin of machismo (which implies both disdain for women and intolerance and condemnation of nonstandard sexual habits, from chastity to homosexuality). Since even sex is a difficult game to play, the Ur-Fascist hero tends to play with weapons—doing so becomes an ersatz phallic exercise.

*U.S. raises hand* I mean, just Google “war on women.” Moreover, Trump has pledged to appoint Supreme Court justices who will overturn Roe v. Wade, the case that established a constitutional right to an abortion for women. He has been less aggressive in challenging LGBTQ rights, calling the constitutionlity of same-sex marriage “settled law,” but there’s no reason he couldn’t appoint justices who would overturn Obergefell v. Hodges, the same-sex marriage case, and little reason to suspect that he wouldn’t.

13) Selective populism:

Ur-Fascism is based upon a selective populism, a qualitative populism, one might say. In a democracy, the citizens have individual rights, but the citizens in their entirety have a political impact only from a quantitative point of view—one follows the decisions of the majority. For Ur-Fascism, however, individuals as individuals have no rights, and the People is conceived as a quality, a monolithic entity expressing the Common Will. Since no large quantity of human beings can have a common will, the Leader pretends to be their interpreter. Having lost their power of delegation, citizens do not act; they are only called on to play the role of the People. Thus the People is only a theatrical fiction. To have a good instance of qualitative populism we no longer need the Piazza Venezia in Rome or the Nuremberg Stadium. There is in our future a TV or Internet populism, in which the emotional response of a selected group of citizens can be presented and accepted as the Voice of the People.

Because of its qualitative populism Ur-Fascism must be against “rotten” parliamentary governments. One of the first sentences uttered by Mussolini in the Italian parliament was “I could have transformed this deaf and gloomy place into a bivouac for my maniples”—“maniples” being a subdivision of the traditional Roman legion. As a matter of fact, he immediately found better housing for his maniples, but a little later he liquidated the parliament. Wherever a politician casts doubt on the legitimacy of a parliament because it no longer represents the Voice of the People, we can smell Ur-Fascism.

Oh, hi! We like to talk a good game about the American public and its power in elections, but making that argument means confronting at least two significant problems: 1) About half of Americans don’t take part, and 2) One major party has made disenfranchisement the central part of its plan for survival; 3) Gerrymandering, particularly by the GOP, has been perfected to the point at which voters do not now select their representatives, but representatives select their constituents. Thus it has come to pass, as Eco said, that “citizens do not act; they are only called on to play the role of the People.”

Moreover, we’ve had throw-the-bums-out congressional elections in recent years in 2002, 2006, 2008, 2010, and 2014, benefitting both major parties. But Trump’s pledge to “drain the swamp” was the simplest, clearest call of 2016, and already he is populating his cabinet (as noted in the fifth installment of this series) with some of the very alligators he campaigned against.

14. Ur-Fascism speaks Newspeak:

Newspeak was invented by Orwell, in 1984, as the official language of Ingsoc, English Socialism. But elements of Ur-Fascism are common to different forms of dictatorship. All the Nazi or Fascist schoolbooks made use of an impoverished vocabulary, and an elementary syntax, in order to limit the instruments for complex and critical reasoning. But we must be ready to identify other kinds of Newspeak, even if they take the apparently innocent form of a popular talk show.

“You’re fired!”, anyone?

So, by my count, we’re 14-for-14 on fascism characteristics as identified by Eco, which makes some of his closing words even more important:

We must keep alert, so that the sense of these words will not be forgotten again. Ur-Fascism is still around us, sometimes in plainclothes. It would be so much easier, for us, if there appeared on the world scene somebody saying, “I want to reopen Auschwitz, I want the Black Shirts to parade again in the Italian squares.” Life is not that simple. Ur-Fascism can come back under the most innocent of disguises. Our duty is to uncover it and to point our finger at any of its new instances—every day, in every part of the world. Franklin Roosevelt’s words of November 4, 1938, are worth recalling: “I venture the challenging statement that if American democracy ceases to move forward as a living force, seeking day and night by peaceful means to better the lot of our citizens, fascism will grow in strength in our land.” Freedom and liberation are an unending task.

* * *

I also wanted to see how the U.S. stacks up against Lawrence Britt’s “14 Characteristics of Fascism,” published in the Spring 2003 edition of Free Inquiry magazine — after 9/11 and as the U.S. was invading Iraq. Britt, a political scientist, compared Hitler (Germany), Mussolini (Italy), Franco (Spain), Suharto (Indonesia), and Pinochet (Chile), and found 14 traits those regimes had in common. They are:

  1. Powerful and Continuing Nationalism
    Fascist regimes tend to make constant use of patriotic mottos, slogans, symbols, songs, and other paraphernalia. Flags are seen everywhere, as are flag symbols on clothing and in public displays. 
  2. Disdain for the Recognition of Human Rights
    Because of fear of enemies and the need for security, the people in fascist regimes are persuaded that human rights can be ignored in certain cases because of “need.” The people tend to look the other way or even approve of torture, summary executions, assassinations, long incarcerations of prisoners, etc. 
  3. Identification of Enemies/Scapegoats as a Unifying Cause
    The people are rallied into a unifying patriotic frenzy over the need to eliminate a perceived common threat or foe: racial , ethnic or religious minorities; liberals; communists; socialists, terrorists, etc. 
  4. Supremacy of the Military
    Even when there are widespread domestic problems, the military is given a disproportionate amount of government funding, and the domestic agenda is neglected. Soldiers and military service are glamorized. 
  5. Rampant Sexism
    The governments of fascist nations tend to be almost exclusively male-dominated. Under fascist regimes, traditional gender roles are made more rigid. Opposition to abortion is high, as is homophobia and anti-gay legislation and national policy. 
  6. Controlled Mass Media
    Sometimes to media is directly controlled by the government, but in other cases, the media is indirectly controlled by government regulation, or sympathetic media spokespeople and executives. Censorship, especially in war time, is very common. 
  7. Obsession with National Security
    Fear is used as a motivational tool by the government over the masses. 
  8. Religion and Government are Intertwined
    Governments in fascist nations tend to use the most common religion in the nation as a tool to manipulate public opinion. Religious rhetoric and terminology is common from government leaders, even when the major tenets of the religion are diametrically opposed to the government’s policies or actions. 
  9. Corporate Power is Protected
    The industrial and business aristocracy of a fascist nation often are the ones who put the government leaders into power, creating a mutually beneficial business/government relationship and power elite. 
  10. Labor Power is Suppressed
    Because the organizing power of labor is the only real threat to a fascist government, labor unions are either eliminated entirely, or are severely suppressed . 
  11. Disdain for Intellectuals and the Arts
    Fascist nations tend to promote and tolerate open hostility to higher education, and academia. It is not uncommon for professors and other academics to be censored or even arrested. Free expression in the arts is openly attacked, and governments often refuse to fund the arts. 
  12. Obsession with Crime and Punishment
    Under fascist regimes, the police are given almost limitless power to enforce laws. The people are often willing to overlook police abuses and even forego civil liberties in the name of patriotism. There is often a national police force with virtually unlimited power in fascist nations. 
  13. Rampant Cronyism and Corruption
    Fascist regimes almost always are governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect their friends from accountability. It is not uncommon in fascist regimes for national resources and even treasures to be appropriated or even outright stolen by government leaders. 
  14. Fraudulent Elections
    Sometimes elections in fascist nations are a complete sham. Other times elections are manipulated by smear campaigns against or even assassination of opposition candidates, use of legislation to control voting numbers or political district boundaries, and manipulation of the media. Fascist nations also typically use their judiciaries to manipulate or control elections

As you can see, there’s some overlap with Eco’s list, but that’s not really important. What’s important is how many of these conditions obtained in the U.S. even before Donald Trump’s election.

Nos. 1, 4, 5, 8, 9, 10, 11, and 12 were pervasive even before 9/11. Since then, Nos. 2, 3, 6, 7, 13, and 14 have come into play or grown more powerful. Once again, we’re 14-for-14, and slated to become even more of a fascist state once Trump and his cronies assume power in January.

Which, finally, leaves us the question of what to do about it. I’ll address that next, in (whew) the final installment of this series.

 

Thursday, May 15, 2014 12:18 pm

Stressing the country out; or, Tim Geithner should have been fired about umpty-‘leven years ago

Tim Geithner, the guy President Obama inexplicably put in charge of the bank bailouts, has a new book out called “Stress Test.” (The term derives from the laughably phony “tests” endangered large banks were put through to see whether they had so many crap assets on their books that they needed to be liquidated; the fix was in, so not one large bank was broken apart of liquidated. Instead, we gave them bazillions of taxpayers’ dollars which they spent on bonuses for themselves instead of lending money to businesses to create jobs.)

The consensus seems to be — unsurprisingly, to me — that it sucks. Particularly, it’s incoherent where it’s not downright dishonest. The Washington Center for Equitable Growth rounds up some of the responses:

Glenn Hubbard:

About housing… I must say I split my side in laughter because Tim Geithner personally and actively opposed mortgage refinancing…. And now he’s claiming this would be a great idea…

David Dayen:

The guy who handed hundreds of billions of dollars over to banks with basically no strings attached [was] suddenly worried about fairness when homeowners get a break on their mortgage payments…. Even as he says in the book “I wish we had expanded our housing programs earlier,” he completely contradicts that to Andrew Ross Sorkin, saying [that his own] statement is “unicorny”…

Amir Sufi and Atif Mian:

Multiplying $700 billion by 0.18 gives us a spending boost to the economy in 2009 of $126 billion, which is 1.3% of PCE, 10 times larger than the estimate Secretary Geithner asserted in his book. So Mr. Geithner is off by an order of magnitude…

Economist Brad DeLong concludes:

In the “real world” Geithner did have full control over the GSEs and the FHA–because Paulson nationalized them in the summer of 2008.

In the “real world” Geithner submits his recommendation that Glenn Hubbard be nominated as head of the FHFA to President Obama on January 21, 2009, it is approved by the senate in February 2009, and thereafter there are no constraints on technocratic use of FHFA and the GSEs to rebalance the housing sector and aggregate demand.

Geithner should not say “I wanted the FHFA to act but I did not have the authority to get the FHFA to act” and at the same time say “having the FHFA act would have made no difference”; Geithner should to say “you cannot blame me because of the constraints” when we know that it was his own actions and inactions made those constraints.

Look: Tim Geithner did much better as a 2009-2010 finance minister than any of his peers. Look: the stress tests worked, and worked very well. (I disagree — Lex.) Look: Christina Romer and company say that if you need a bank rescued in 48 hours, Tim Geithner is your man. But the purpose of Stress Test is to explain to us what Tim Geithner thought and why he thought it, and thus why he did what he did.

And in Stress Test, on housing policy, he doesn’t.

Thursday, March 1, 2012 2:30 am

The vampire squid and the hurricane

Matt Taibbi, who normally writes for Rolling Stone, daytripped over to the new fthebanks.org site today to announce:

There are two things every American needs to know about Bank of America.

The first is that it’s corrupt. This bank has systematically defrauded almost everyone with whom it has a significant business relationship, cheating investors, insurers, homeowners, shareholders, depositors, and the state. It is a giant, raging hurricane of theft and fraud, spinning its way through America and leaving a massive trail of wiped-out retirees and foreclosed-upon families in its wake.

The second is that all of us, as taxpayers, are keeping that hurricane raging. Bank of America is not just a private company that systematically steals from American citizens: it’s a de facto ward of the state that depends heavily upon public support to stay in business. In fact, without the continued generosity of us taxpayers, and the extraordinary indulgence of our regulators and elected officials, this company long ago would have been swallowed up by scandal, mismanagement, prosecution and litigation, and gone out of business. It would have been liquidated and its component parts sold off, perhaps into a series of smaller regional businesses that would have more respect for the law, and be more responsive to their customers.

But Bank of America hasn’t gone out of business, for the simple reason that our government has decided to make it the poster child for the “Too Big To Fail” concept. Because it is considered a “systemically important institution” whose collapse would have a major, Lehman-Brothers-style impact on the economy, two consecutive presidential administrations have taken extraordinary measures to keep Bank of America in business, despite a staggering recent legacy of corruption schemes, many of which were simply overlooked by regulators.

This is why the question of whether or not Bank of America should remain on public life support is so critical to all Americans, and not just those millions who have the misfortune to be customers of the bank, or own shares in the firm, or hold mortgages serviced by the company. This gigantic financial institution is the ultimate symbol of a new kind of corruption at the highest levels of American society: a tendency to marry the near-limitless power of the federal government with increasingly concentrated, increasingly unaccountable private financial interests.

The inevitable result of that new form of corruption is this bank, whose continued, state-supported existence should naturally outrage all Americans, be they conservative or progressive.

My position on this is to kill ’em all and let God the FDIC sort ’em out, because by any honest accounting standard not a damn one of our big banks, with the possible exception of JPM, is solvent and they’re all a clear and present danger to the country’s economic well-being. And BAC is a serial felon besides. Lord, if we’ve got to have a death penalty, let’s start using it on TBTF banks.

(h/t: Jill)

Thursday, October 20, 2011 8:57 pm

Letter to Scott Nolan, general manager, WDAV-FM, re: Lisa Simeone UPDATE: … and his reply

UPDATE 2: Please click on the link below and join me in thanking President Quillen for doing the right thing. If you’d also like to thank her for making Davidson look good in the process, that’s fine, but I won’t insist on it. ;-)

UPDATE: DAMN. I had no sooner hit “send” on that email and begun copying and pasting it into the blog here when Scott Nolan called me.

Long story short, I am delighted to report that he, the station and the college are doing all the right things here for all the right reasons. They’ve reviewed the terms of their contract with NPR to provide content — i.e., the opera show Simeone produces. They have concluded that the college is in compliance with every stipulation of that contract, and they’re going to ignore the national media and keep doing what they’re doing.

It is a good day to be a Wildcat.

(As you might expect, I bcc’ed a lot of people on that email. I’ll be letting them know about this conversation immediately.)

* * *

cc: Dr. Carol Quillen, president, Davidson College

Scott:

As a Davidson College alumnus and former employee of WDAV-FM during its critical early years as a high-powered broadcast outlet, I was more than a little dismayed to learn that NPR was “in conversations with WDAV about how they [sic] intend to handle” Lisa Simeone.

Here’s some free advice from someone with decades of experience in media and PR: You don’t. You listen politely to NPR, you then tell its representative to take a flying flip at a rolling doughnut and you let Ms. Simeone keep doing what she’s doing for WDAV without interruption or hassle. (If nothing else, I’m sure my late father, Class of ’52, founding member of the WDAV advisory board and a board member at Opera Carolina for about two decades, would appreciate it. He’d have loved her show, I think.)

There are so many things wrong about this situation that it’s difficult to know where to start. Fortunately, that’s exactly the kind of situation where I’ve eaten, professionally speaking, for the past 30 years.

First, if I understand the situation correctly (and I might not; I’ve seen conflicting reports in major media outlets), Lisa Simeone is a freelancer for WDAV and has no direct, formal relationship whatever with NPR anymore. That being the case, then absent any written agreement between the station and her with respect to how she will conduct herself off the air, the station simply has no jurisdiction — no moral, legal or ethical standing to tell her what she can and cannot say, what groups she can and cannot participate with, whom she can and cannot represent besides WDAV. If, going forward, the station finds it valuable to control that conduct, it is welcome to attempt to reach a contractual arrangement with her on that point and to attempt to compensate her accordingly. She, of course, is free to tell you to go to hell, and if you’re foolish enough to try to achieve that goal, then for reasons that have nothing to do with politics and everything to do with my having been a freelancer off and on for much of my career, I sincerely hope she does.

Second, although there are no true First Amendment issues here as no government agency is involved so far as I know, Davidson College and every college and university worth the name has a strong interest in defending freedom of expression, particularly unpopular expression. One of the unfortunate side effects of the evolution of the American economy from one based on manufacturing to one based on knowledge — and, therefore, frequently on relationships — is that otherwise rational people can and do sever perfectly productive professional relationships because overentitled jackasses get a bad case of butthurt over something someone said or wrote or blogged or tweeted about them. The academy, of all our institutions, ought to be the one that stands up and points out both the impracticality and the immorality of shutting down unpopular speech. If you have a problem with that, you’re welcome to seek employment in the for-profit sector. I hear it’s hiring. Oh, wait.

Third, moving from the general to the particular, what, exactly, is it of which Ms. Simeone stands accused? Depending on which news account you read, she’s guilty of being a “spokeswoman” or “organizer” for Occupy Wall Street — again, on her own time, separate and apart from her work for WDAV. Unfortunately, neither NPR nor anyone else has bothered to explain exactly what that even means, let alone why it’s a bad thing. Moreover, from everything I’ve read or heard about Occupy Wall Street and its offshoots (including first-hand accounts from my brother and sister-in-law in Raleigh, friends here in Greensboro, friends in New York and other participants), one of its defining characteristics is that anyone who wants to be can be an “organizer” or “spokesperson” for the movement. It’s a consensus movement, not a hierarchical one. While that might not bode well for its political effectiveness, it also makes defining moral and ethical transgressions on the part of any one participant problematic when we’re talking about an act of speech as opposed to, say, defecating on a police car. Put another way, the terms are meaningless. Two nights ago, as a joke, I created the Twitter hashtag #LWS — Liquidate Wall Street. (This was before Bloomberg Business News broke the story that Bank of America intends to try to stick taxpayers with a looming $53 TRILLION loss on its derivatives; in 24 hours, Liquidate Wall Street evolved with no effort on my part from joke to logical policy proposal, but that’s a different subject altogether.) Does my having created that hashtag make me an “organizer” or “spokesman” for the Liquidate Wall Street movement? If so, neither I nor the movement appear to be deriving much benefit.

Finally, I would point out something that I hope already has become obvious to you in your dealings with NPR: In matters relating to politics — a subject on which its news coverage purports to have some expertise — NPR cannot find its own ass with both hands and a flashlight. It has mishandled every major story of the past decade related to important political issues, from war crimes to the economy, health care to regulation. Probably not coincidentally, it has failed to recognize that it is facing ongoing, coordinated political attacks from one and only one side of the aisle that are bent on destroying it because they are bent on destroying accountability journalism entirely. I have been a registered Republican since 1978, but even I am not blind to this phenomenon, nor do I care for the likely national consequences if this effort succeeds. NPR is blind, willingly or otherwise, but you need not let your affiliation with the network blind you, too.

What you do, or choose not to do, is up to you. But you need to understand that your actions and those of the college in whose name you operate will be watched carefully and interpreted in the context of the values for which this country and Davidson College purport to stand.

Best,

Hooper “Lex” Alexander IV ’82
Greensboro, NC
www.lexalexander.net

Wednesday, October 19, 2011 8:36 pm

I’m old enough to remember when they wanted to be the best bank in the neighborhood

Filed under: Evil,I want my money back. — Lex @ 8:36 pm
Tags: ,

Now, they just want to crap all over everything. Bank of America, getting ready to screw you again, even harder:

Bank of America, hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.

The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.

“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

Yeah, we should, but bankster politicians of both parties (Mel Watt, I’m lookin’ at you) have put the kibosh on that.

So, how bad is this? Yves Smith at Naked Capitalism offers some perspective:

The reason that commentators like Chris Whalen were relatively sanguine about Bank of America likely becoming insolvent as a result of eventual mortgage and other litigation losses is that it would be a holding company bankruptcy. The operating units, most importantly, the banks, would not be affected and could be spun out to a new entity or sold. Shareholders would be wiped out and holding company creditors (most important, bondholders) would take a hit by having their debt haircut and partly converted to equity.

This changes the picture completely. This move reflects either criminal incompetence or abject corruption by the Fed. Even though I’ve expressed my doubts as to whether Dodd Frank resolutions will work, dumping derivatives into depositaries pretty much guarantees a Dodd Frank resolution will fail. Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral. It’s well nigh impossible to have an orderly wind down in this scenario. You have a derivatives counterparty land grab and an abrupt insolvency. Lehman failed over a weekend after JP Morgan grabbed collateral.

But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No Congressman would dare vote against that. This move is Machiavellian, and just plain evil.

I invented the #LWS (LiquidateWallStreet) hashtag on Twitter yesterday as a goof. Less than 24 hours later, we’ve officially arrived at the point at which an American taxpayer could burn down a Bank of America facility and plausibly claim self-defense.

(h/t: Fec)

Tuesday, February 8, 2011 8:14 pm

Want to see something you won’t see on a big bank’s balance sheet?

Filed under: We're so screwed — Lex @ 8:14 pm
Tags: , ,

Voila! A housing market even worse than in the Depression:

Along with the snow and cold, November brought continued declines in home values. In fact, the Zillow Home Value Index has now fallen 26% since its peak in June 2006. That’s more than the 25.9% decline in the Depression-era years between 1928 and 1933.

November marked the 53rd consecutive month of home value declines, with the Zillow Home Value Index (ZHVI) falling 0.8% from October to November, and falling 5.1% year-over-year.

But wait! Some good news!

Foreclosures, however, took a tumble in November, with fewer than one out of every 1,000 homes being foreclosed.

Awesome! That’s way down!

Unfortunately, that is an effect of the bank moratoriums that took place after the robo-signing issues came to light. Foreclosures are expected to rise again once that effect wears off.

Oh.

Crud.

Now, you might think that a housing market this bad would mean that a lot of mortgages that are listed as “assets” on various balance sheets are only assets if, by “assets,” we mean, “instruments worth half or less of what we say they’re worth.” And you would be correct. However, the banksters got to Congress and so Congress got to the FAAB and so now banks and their accountants are allowed to lie about how big their assets are and stay in business, rather than being liquidated in orderly fashion with their executives, stockholders and bondholders made to take the haircut.

In the financial Super Bowl, the refs are all being paid off. And you, mon ami, are not a ref.

Thursday, January 13, 2011 8:58 pm

Capitalism ain’t what it used to be

Filed under: Evil,I want my money back.,We're so screwed — Lex @ 8:58 pm
Tags:

Certainly not in the finance sector, where, as Yves Smith of Naked Capitalism observes, when the external costs of the banking system’s crises are added up honestly, they significantly outpace global banks’ total assets. In other words, although no one’s saying as much (well, besides maybe Smith and me), taxpayers are keeping our largest banks alive artificially. The zombies bank among us:

So a banking industry that creates global crises is negative value added from a societal standpoint. It is purely extractive.

The reality is that banks can no longer meaningfully be called private enterprises, yet no one in the media will challenge this fiction. And pointing out in a more direct manner that banks should not be considered capitalist ventures would also penetrate the dubious defenses of their need for lavish pay. Why should government-backed businesses run hedge funds or engage in high risk trading, or for that matter, be permitted to offer lucrative products that are valuable because they allow customers to engage in questionable activities, like regulatory arbitrage or tax evasion? The sort of markets that serve a public purpose should be reasonably efficient and transparent, which implies low margins for intermediaries.

By any honest accounting, most if not all large global banks are insolvent and should be liquidated. Instead, your taxes are going to keep them on life support and keep their CEOs pampered.

This is where a principled opposition to eliminationist rhetoric, although always necessary, becomes a tad burdensome.

 

Monday, May 24, 2010 11:42 pm

“Regulations don’t work if the underlying structure of an industry … got us into trouble in the first place.”

Filed under: Evil,I want my money back.,We're so screwed — Lex @ 11:42 pm
Tags:

Ayup. So it was in health care, and so it is in bankstering. And yet the Democrats are all dancing around like they’ve actually accomplished anything valuable:

First, although the Senate bill seeks to avoid the “too big to fail” problem by pushing failing banks into an “orderly” bankruptcy-type process, this regulatory approach isn’t enough. The Senate roundly rejected an amendment that would have broken up the biggest banks by imposing caps on the deposits they could hold and their capital assets.

You do not have to be an algorithm-wielding Wall Street whiz-kid to understand that the best way to prevent a bank from becoming too big to fail is preventing it from becoming too big in the first place. The size of Wall Street’s five giants already equals a large percentage of America’s gross domestic product.

That makes them too big to fail almost by definition, because if one or two get into trouble — as they did in 2008 — their demise would shake the foundations of the financial system, even if there were an “orderly” way to liquidate them. Because traders and investors know they are too big to fail, these banks have a huge competitive advantage over smaller banks.

Another crucial provision left out of the Senate bill would be to change the structure of banking by resurrecting the Depression-era Glass-Steagall Act and force banks to separate commercial banking (the classic function of connecting lenders to borrowers) from investment banking.

Here, too, the bill takes a regulatory approach instead. It includes a provision barring banks from “proprietary trading,” or making market bets with their own capital. Even if this regulation were tough enough (and the current Senate bill requires various delays and studies before it’s applied), it would not erode the giant banks’ monopoly over derivatives trading, adding to their power and inevitable “too big to fail” status.

Which brings us to the third structural idea, advanced by Senator Blanche Lincoln. She would force the banks to do their derivative trades in entities separate from their commercial banking.

This measure is still in the bill, but is on life-support after Paul Volcker, Tim Geithner, and Fed chair Ben Bernanke came out against it. Republicans hate it. The biggest banks detest it. Virtually every major Wall Street and business lobbyist has its guns trained on it. Almost no one in Washington believes it will survive the upcoming conference committee.

But it’s critical. … Requiring banks to do derivative trading in separate entities would force them to raise extra capital. But if such trading is so useful, banks should foot the bill, not taxpayers.

After what we have experienced in the past three years, the point of any financial “reform” should be to ensure that what happened cannot happen again. What has cleared the Senate does not do that and, unless a lot of unlikely changes happen, what is sent to the White House for President Obama’s signature will not, either.

Congratulations, America: You’ve just signed on to hundreds of billions more in subsidies to the banksters.

Friday, May 7, 2010 9:10 pm

You want free markets? You can’t handle free markets!

Filed under: Hold! Them! Accountable! — Lex @ 9:10 pm
Tags: ,

John Cole for the win:

Here’s a revolutionary idea — why don’t we get rid of the [damage] limit altogether! If BP or Exxon cuts corners and makes a hash of things, and they cause 60 billion dollars worth of damage, they are on the hook for the whole 60 billion dollars! And if they can’t pay for the whole bill, the company is liquidated, the shareholders get wiped out, and the company ceases to exist.

Why don’t we give that a shot? And don’t tell me it is because no one will then undertake oil drilling. Of course they will! They’ll just pass on the costs to the consumer. And should being really careful and safe cost too much money, then it might just make other forms of energy look cheaper by comparison, and spur investment in those energy types.

So how about it? No more immunity, no more corporate welfare, no more subsidizing industries that don’t even pay a damned penny in taxes in the US anymore. Exxon had billions in profit last year, and paid not one penny in taxes. I’d bet BP is in the same boat or close to it, so why should they make tons of money and force us to pay for their mistakes, especially when their mistakes were likely caused by attempts to make more money and underpay for the safety of their well.

We’ll just have to make our corporate persons pull themselves up by their bootstraps. It’s the American way, after all.

Don’t forget the death penalty when they kill people.

Wednesday, February 17, 2010 11:08 pm

Quote of the day: reloaded

Filed under: I want my money back. — Lex @ 11:08 pm
Tags: ,

Paul Volcker lays down what I and many others only wish were the law:

“If a big non-bank institution gets in trouble and threatens the whole system, there ought to be some authority that can step in, take over that organization and liquidate it or merge it — not save it. It’s called euthanasia, not a rescue.”

Bonus: Some people who know what they’re talking about agree with him.

Thursday, June 18, 2009 9:14 pm

“First of all, generally speaking, when one apologizes for having done a bad thing (like for instance destroying the world economy), it is good form to wait at least until the end of the sentence to start bragging again.”

Filed under: I want my money back. — Lex @ 9:14 pm
Tags: , ,

Goldman Sachs CEO Lloyd Blankfein is really, really sorry that his company just somehow got swept up in the events that led to the current economic crisis. Really:

While we regret that we participated in the market euphoria and failed to raise a responsible voice, we are proud of the way our firm managed the risk it assumed on behalf of our clients before and during the financial crisis.

Tell it to my 401k, you schmuck.

Matt Taibbi brazenly dares to point out that Goldman’s role was actually, well, a little more involved than that:

Really, Lloyd? You “participated” in the market euphoria? You didn’t, I don’t know, cause the market euphoria? By almost any measurement, Goldman was a central, leading player in the subprime housing bubble story. Just yesterday I was talking to Guy Cecala at Inside Mortgage Finance, the trade publication that tracks statistics in the mortgage lending industry. He said that at the height of the boom, in 2006, Goldman Sachs underwrote $76.5 billion in mortgage-backed securities, or 7% of the entire market. Of that $76.5 billion, $29.3 billion was subprime, which is bad enough — but another $29.8 billion was what’s called “Alt-A” paper. Alt-A mortgages are characterized, mainly, by crappy documentation and lack of equity: no income verification, no asset verification, little-to-no cash down. So while “only” 38% of the mortgage-backed securities Goldman underwrote were subprime, more than three-fourths of their securities were what is called “non-prime,” i.e., either subprime or Alt-A. …

These [lousy] mortgages … would never have been possible had not someone devised a method for selling them off to secondary buyers. No local bank is going to keep millions of dollars worth of Alt-A mortgages on its books, because no sensible company lends out money to very risky customers and actually keeps those loans on its balance sheet.

So this system depended almost entirely on banks like Goldman finding ways to … chop the mortgages up into little bits, repackage them as mortgage-backed securities … and sell them to unsuspecting customers on the secondary market. … Next thing you know, a bunch of teachers in Holland are betting their retirement nest eggs on a bunch of meth-addicted “homeowners” in Texas and Arizona.

This isn’t really commerce, but much more like organized crime: it was a gigantic fraud perpetrated on the economy that wouldn’t have been possible without accomplices in the ratings agencies and regulators willing to turn a blind eye. …

I’ve been saying that last bit for some time. Glad to know that someone who knows significantly more about this than I do agrees with me.

But wait! There’s more!

Second of all, what is particularly obnoxious about this phrase is that Goldman is bragging about the fact that it actually made money while it was pumping the economy full of explosive leverage. … Goldman’s continual bragging about its mortgage hedges is one of the more obnoxious phenomena in the recent history of Wall Street, given that it was selling this [garbage] by the ton during that same period.

And it wasn’t just selling lousy mortgage-backed securities, either. It also was killing other companies and putting a screwing for the ages on the American taxpayer in the process:

AIG’s death spiral was triggered not so much by its bets going sour, but by companies like Goldman that demanded that AIG put up cash to show its ability to pay. These collateral calls were what killed AIG last September, and Goldman was one of those creditors pulling the trigger: what makes this fact even more obnoxious is that ex-Goldmanite Henry Paulson then stepped in and green-lighted an $80 billion taxpayer bailout. Ultimately another ex-Goldmanite named Ed Liddy was put in charge of AIG, and Goldman ended up getting paid 100 cents on the dollar for its AIG debt. So basically Goldman helped kill AIG, necessitating a federal bailout, after which time it got paid off handsomely for bets that it certainly would not have been paid off completely for had AIG simply been liquidated.

Go read the whole thing, not-safe-for-work language and all. And the Blankfeins of the world wonders why there’s still a small but persistent segment out there calling for the whole freakin’ finance industry to be nationalized….

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