Beggaring Student Life

Why do we have a public education system? Why have youth gain college educations? We have forgotten the basics because of an obsession with money, specifically “not paying” for “socialism.” I do some venting on this theme in this latest article.

Beggaring Student Life
http://www.swans.com/library/art18/mgarci38.html

Recalling William Somerset Maugham’s account of his flight from France in 1940 led me into a reflection of the corrosive barrenness of the Libertarian view, as championed today by Ron Paul, a contender for the Republican presidential nomination.

Letter #2, “Being Attentive”
http://www.swans.com/library/art18/letter233.html

The 50% US GDP Heist, OWS and GIABO

Many of you will be very interested in the financial scandals that led to the 2008 economic collapse, and its social repercussions which include OWS (Occupy Wall Street). I have expanded some comments on this topic, which I posted at the Unrepentant Marxist blog, and present them here. I am posting this because it includes links to 2 video presentations (the first in three parts), which I think you will find interesting. The first 3-part video is of Christopher Hedges speaking to Harvard students, and the second video is Episode 217 of the Keiser Report, a regular commentary on the “Global insurrection against banker occupation, GIABO.”

Both of these video presentations suggest directions OWS can take, or evolve into, in answer to the question of “what next for OWS?”

For those who have not followed the financial news, the Keiser Report discusses: the recent scandal of MF Global, the European financial crisis and secret Franco-German machinations within the Fiscal World War III on the Continent (“Überdebten”), and the explosive revelations of the Bloomberg Freedom-of-Information suit to release Federal Reserve data on its secret multi-trillion-dollar lending (half the US GDP) to the insolvent big banks in 2008. The banks made $13B in profits “processing” these loans from the Federal Reserve (backing up the banks’ toxic worthless subprime “assets”), and which they distributed mostly as bonuses within their ranks. Al Capone only owned a few wards of Chicago, but these Wall Street banks managed to snag half the US GDP. Sustained moral outrage by the public would be a good thing, far more than just OWS; where is it?

Today, I finished reading Tony Judt’s book Ill Fares The Land (Penguin, 2010).

I highly recommend this book to everyone, and especially to anyone participating in the Occupy Movement (particularly the student-age contingent) and/or sympathetic to OWS aspirations. Judt’s book is like a blending of Keiser Report data into a Hedges exhortation to arrive at a seamless exegesis of this moment in history. This book is the moral equivalent in our time to Thomas Paine’s “Common Sense” in 1776. Would that it was as widely read and taken to heart.

Christopher Hedges at Harvard on OWS:

Part 1: http://youtu.be/AlR9rMrYuHU
Part 2: http://youtu.be/ugU6ELwbi_o
Part 3: http://youtu.be/SKSUfCG7ax4

or

(for part 1: http://www.youtube.com/watch?v=AlR9rMrYuHU)
(for part 2: http://www.youtube.com/watch?v=ugU6ELwbi_o)
(for part 3: http://www.youtube.com/watch?v=SKSUfCG7ax4)

Thanks to Louis Proyect for posting these video links at: http://louisproyect.wordpress.com/2011/11/29/chris-hedges-speaks-at-harvard-on-ows/

To complement these Hedges videos, listen to this Keiser Report (below) on the toxic entwining of:

— the Banksters (who are insolvent but want “unlimited” public bailouts with which to give themselves bonuses and build up big hoards of cash so as to keep gambling, instead of spreading capital throughout the economy, stimulating it and creating jobs — the economic purpose of commercial banks),

— the US Congress (which wants to spend more than available revenue), and

— the Federal Reserve (which is interested in enabling both pathologies to the tune of $7.77T — equal to 50% of the US GDP!!! — lent to the banks in secret before Congress created the one-tenth as large relief program, TARP).

The value and failings of OWS are commented on by guest Denninger near the end of this Keiser Report episode.

At the beginning of the program, Keiser and Herbert are discussing the latest financial scandal, of an investment firm (headed by a former New Jersey governor) that stole customer money. Brokers are not supposed to dip into customer accounts to make up their own gambling losses (especially when near $1B). This only works as comedy when done by W. C. Fields, in the Great Depression era film “The Bank Dick.” (The same title for a movie about banks today would convey a different connotation, which Fields probably intended as a double entendre.)

The Keiser Report commentators would like to see OWS take a more specific focus onto financial industry reform, which would require revising attitudes about federal oversight and monetary policy; and we know this economic concern would necessarily have to expand to include progress in reforming campaign financing, a.k.a. the corruption of Congress.

Chris Hedges, like Bill Moyers his elder contemporary, came out of divinity school and passed through journalism, so in their third chapter of life they preach to large secular congregations through the airwaves, and their sermons are based on moral principles. This is not a criticism:

“It is the gap between the inherently ethical nature of public decision-making and the utilitarian quality of contemporary public debate that accounts for the lack of trust felt towards politics and politicians…humans need a language in which to express their moral instincts.” — Tony Judt

The ideal follow-on political movement to OWS would combine the energy of moral outrage with a utilitarian specificity on financial reform (e.g., financial market taxes, banking reform, consumer & student debt relief, much more legal prosecution of fraud related to the 2008 financial collapse), similar to the reform movement represented by the Pecora Commission in 1932-1934. (My initial comments along these lines appeared in the UM blog at: http://louisproyect.wordpress.com/2011/10/05/the-people-cry-out-against-the-new-great-depression/)

So, from Hedges I see the message to OWS being “get mad as hell.” From Keiser and company I see the message to OWS being “now that you’re good and hot, focus your fire into a laser beam to burn through the stranglehold of bankster fraud.”

See Episode 217 here (mislabeled direct link):
http://rt.com/programs/keiser-report/episode-216-max-keiser/

or

E217 at:
http://rt.com/programs/keiser-report/

GIABO is Max Keiser’s acronym for the idea of a global financial war between “banks,” or massive finance capital in speculation, and the commons within each sovereign state, also known by various labels: the welfare state, social democracy (Tony Judt), conviviality (Ivan Illich), or the social contract (MG,Jr).

An interesting presentation on the “European Debt Crisis In Eight Graphs” is given in the following article, which includes discussion and analysis:

http://www.washingtonpost.com/blogs/ezra-klein/post/the-european-debt-crisis-in-eight-graphs/2011/12/01/gIQAsmR5GO_blog.html?wprss=ezra-klein

From the above article one can see that in Europe the war is between Northern European banks and Southern European (Ireland counts as “southern” because it is Catholic) social democracies. The “banker occupation” of a country is called “austerity.”

World War III is a post-nuclear financial war for control of the commons, globally.

A National Students’ Recovery Bank

Many self-occupied people are growing apprehensive about the potential disruption of their business activities, their family routines, and their leisure by the massed marches and encampments of the Occupy Wall Street, and now Occupy Public Spaces movement. Let’s just call it the Occupy Movement, or OM (“Om manipadme hūm”).

It is obvious that much of the energy and vibrancy of the OM comes from its young adult participants. Many of these are students, or former students, who have painful amounts of debt for education loans, which are difficult to pay off since good-paying skilled employment is not widely available. The laws establishing the federally-funded student loan programs prevent student borrowers from shedding this debt by declaring bankruptcy, so these debts are albatrosses (The Rime of the Ancient Mariner) aborting careers or impeding their progress.

It is my belief that such debt should be cancelled, or at least partially cancelled and refinanced on much easier terms. This is, after all, what was done to “recover” the Savings and Loan Industry (1989) and the commercial banking industry (2008) after their respective bankruptcies. This same model was applied in Europe earlier this fall to stabilize the currency (the Euro): German Chancellor Angela Merkel forged an agreement with the European banks to write off 50% of the Greek debt, in exchange for recapitalizing these banks from the public coffers (mainly German) for the remainder.

Would cancelling student loan debt, or refinancing it on much gentler terms, solve Occupy Wall Street? That is to say “make it go away” as so many ruffled as-yet-uninundated petty bourgeois wish? No, but it would address the problems of a sizable portion of those in the OM. The complete solution to making the OM history is to undo thirty years of neo-liberalism. If one were to try to put that goal into a list of “action items” or “demands” it would stretch beyond the horizon, certainly one of the reasons the people of the OM have not been willing to be corralled by a few specific demands. What’s wanted is a transformation of political economy worldwide, and that must begin with a major shift of global public consciousness: how we think about society, economics, and “progress.”

Still, our inability to solve the root problem of generating popular prosperity globally, and quickly, should not prevent us from solving one small local manifestation of that problem, since we can. In this spirit, I propose the establishment of a National Students’ Recovery Bank, and I make my case in the following article.

A National Students’ Recovery Bank
21 November 2011
http://www.swans.com/library/art17/mgarci33.html

I believe this is a matter of inter-generational solidarity, and I hope you find the idea worthwhile enough to recommend it to others.