Survival+ 7: Simulacrum and the Politics of Experience
April 3, 2009
Simulacrum and the Politics of Experience
Just as our "solutions" are shaped by how we frame "the problem," our understanding of our world is shaped by a "politics of experience" created by our cultural milieu, education, mass media and government.
As noted in the excerpt from R.D. Laing above, the key feature of "the obvious" is its elusiveness. Thus we don't consciously formulate the notion that what we buy and own defines our "true self;" that notion is like air, everywhere around us and thus not in our conscious awareness.
"The politics of experience" is by definition not selected or consciously chosen; it is precisely the invisible assumptions we live by which are so unconscious that we cannot even recognize them as anything but "obvious" without great effort.As an example, consider the work of author Douglas Rushkoff. Rushkoff's reply to an interview question on the pervasive consequences of ubiquitous marketing reveals how media/marketing has created an unquestioned "politics of experience" in which one's identity and sense of self is constructed almost entirely by what one buys:
Children are being adultified because our economy is depending on them to make purchasing decisions. So they're essentially the victims of a marketing and capitalist machine gone awry. You know, we need to expand, expand, expand. There is no such thing as enough in our current economic model and kids are bearing the brunt of that. ... So they're isolated, they're alone, they're desperate. It's a sad and lonely feeling. ...
The net effect of all of this marketing, all of this disorienting marketing, all of the shock media, all of this programming designed to untether us from a sense of self, is a loss of autonomy. You know, we no longer are the active source of our own experience or our own choices. Instead, we succumb to the notion that life is a series of product purchases that have been laid out and whose qualities and parameters have been pre-established.
As Laing also described, the past "politics of experience" is largely inaccessible to us for the same reason we cannot discern how unobvious our own "obvious" truly is: the assumptions were so deep and elusive that contemporaneous accounts never even mention them, and thus histories are blind as well except by extrapolation of what was considered worthy of comment.
An excellent analogy to this problem can be found in the common Mississippi river barge of the 19th century. So common was this mode of river transport that no one bothered to fashion a drawing of one or count them. They literally vanished without a trace simply because they were too ubiquitous to elicit notice. Recently a few representatives have been exhumed from the mud; these forgotten artifacts are our only evidence of what was once unremarkable but vitally important.
Thus is it difficult for us to register how drastically our experience has changed over time. What seems "normal" and "obvious" to us—the constant bombardment of marketing, the financial stress of over-indebtedness, the insecurity of employment, the reliance on powerful psychotropic prescription medications to "get through life"—are actually artifacts of an obviously destructive set of assumptions and values.
Individuals pursue their livelihoods in this peculiar state of unawareness in which they are unaware of what they are unaware of, and unaware of the consequences of the "obvious" incentives and assumptions that underpin their sense of identity and seemingly "conscious" choices.
Consider a mortgage broker or salesperson. In the real world, their compensation depends on persuading a "consumer" (a word loaded with subtle assumptions and incentives) to take on more debt to acquire a good or service.
This individual is not consciously seeking to overburden another individual with too much debt, but this is the net result of what's "normal" and "obvious" in the salesperson "doing their job" and the "consumer" setting out to achieve what he/she has internalized as "happiness" or "success:" a bigger house, a nicer car, a faster computer, a trendier outfit, a top-notch personal trainer, etc.
As we explore the elusive qualities of our common "obvious" experience, we must differentiate between the mostly unconscious actions of most of us and the carefully plotted conscious actions of those seeking to influence our experience for specific gain.
For instance, most elected officials do not set out to be evil or to acquire wealth and power at the expense of others; most are well-meaning people who are attracted to the power of office but also to the notion of doing some good or serving their community.
Since running for office requires vast sums of money, they find that listening to those willing to donate large sums to their campaign makes sense. Once these lobbyists and representatives of the Plutocracy have aired their concerns and interests in various specifics, it only makes sense for the elected official to pay attention to their concerns.
And since the long-term consequences of satisfying the donors—national insolvency—is safely in the future, then it "obviously" makes sense to tend to the business at hand, which is getting re-elected and juggling all the competing demands of various well-funded interest groups.
The average voter—and how many citizens actually cast a ballot? Some 40% on average?—has little interest in most of the complexities of governance, and so the elected official need not trouble themselves with their views other than auto-responses to the usual "noise" of "fringe" issues: cruelty to pets, some foreign policy imbroglio, etc.
Thus "just doing my job" and pursuing "what's obvious" can lead to the reinforcing crises we now face. In the politics if our collective experience, we're all simply doing what was obvious as officials, employees, consumers and voters.
But there is another class of citizenry for whom "the obvious" is an invitation to conscious manipulation.
For example: the first project of "the Powers That Be" is to deny the existence of The Powers That Be via a sustained propaganda campaign touting the great opportunities, justice and equality of our society and economy. The goal is to shape our interpretation of our experience into a politically pliable complacency which leaves the powers and influence of the Plutocracy safely unquestioned and even unseen.
The "politics of experience" which operates at a very subconscious level includes all the myths, incentives and assumptions which form our worldview.
Here is another example: "the rugged individual" myth that is core to American society has many positive elements—for instance, the ideal of individual responsibility for one's life and actions—but it also works to mask political and financial overreach by the plutocracy/Powers That Be by cloaking large-scale movements of vast profits and power as the disconnected workings of unrelated individuals.
For example, the "politics of experience" of the subprime mortgage meltdown was presented by the Mainstream Media as the fault of irresponsible/greedy subprime borrowers. Then, as the U.S. government funneled hundreds of billions of dollars in bailout funds to save the Plutocracy from losses, the full extent of the corruption, greed, recklessness and fraud within the banking/mortgage plutocracy was revealed.
The "politics" behind that interpretation was revealed as a clever masking of the true cause: a Plutocracy operating without regard for laws or regulations and unhindered by political oversight. Please read Fiasco: The Inside Story of a Wall Street Trader and Greed, Fraud & Ignorance: A Subprime Insider's Look at the Mortgage Collapse for fuller accounts of the chicanery, greed and blatant disregard for law and risk.
The Mainstream Media (MSM), a highly centralized, corporate-owned structure, is a key player in shaping the politics of experience, as described in Manufacturing Consent: The Political Economy of the Mass Media. I have covered this topic many times, most recently in Our Schizophrenic Media and Garbage In, Garbage Out.
One key concept/mechanism in the politics of experience that we need to understand is how simulacrum are consciously presented as the "real thing" to protect the elites' power and privileges.
Simulacrum is defined as "an insubstantial form or semblance of something."
Consider how the word "capitalism," with its powerful invocations of free markets, capital freely risked, transparency, entrepreneurship, etc., is constantly deployed to mask crony capitalism, which fundamentally undermines all the key elements of true capitalism.
Thus the crony capitalism on display when stupendous government bailouts are sunk into a handful of Plutocracy strongholds is masked by explanations that "we're doing this to save capitalism."
Capitalism does not require government to borrow a trillion dollars and throw it into the coffers of the Plutocracy. What is being presented as "capitalism" by the Plutocracy and its MSM minions is in fact only a simulacrum of capitalism, a sham representation decorated with just enough shreds of resemblance to the real thing to fool the unwary.
Another key job of the MSM is to distract the populace from the political realities with endless entertainments, just as the Roman Empire provided the citizens of Rome with free bread and fully 175 days a year of free public entertainment.
So our national "politics of experience" serves three explicit goals:
Provide a superficially plausible simulacrum of justice, opportunity, equality, capitalism, good governance, etc., so the unskeptical/credulous will comply with the wishes of The Powers That Be and blame themselves (or a carefully chosen "other group") for whatever is awry in their communities.
Offer up a cornucopia of compelling distractions via mindless "entertainments" and a broadcast media presenting a nonstop diet of "crimes, cops and docs" and a simulacrum of meaning and authenticity via social networks. Please see my book Weblogs & New Media: Marketing in Crisis for more on the superficiality of social networking. Lastly, offer up a politically potent entertainment of divisive finger-pointing and rancor which works to create superficially appealing "us and them" ideologies.
Construct a simulacrum of authenticity bound and defined by consuming, buying and presenting an attractive avatar in the media, i.e. a simulacrum of authority, "coolness" or celebrity which creates a sham "Infrastructure of Self" in a politics of experience dominated by hollow social networks, consuming/shopping and celebrity worship.
Meaning is achieved by one's outward appearance, either in physical trappings like clothing and cars, or via online avatars which project a simulation of "value" via popularity (how many "friends" do you have?), coolness (more "valuable" than character or accomplishment in a media organized to sell something 24/7), authority (how many university degrees do you have?) and "authenticity" (what do you own which is in scarcity or which has yet to be co-opted by marketers?)
Propaganda as Conscious Manipulation of the Politics of Experience
Though "propaganda" does not fully cover all that I mean by the politics of experience (which includes assumptions which are largely subconscious and subliminal, i.e. "the obvious"), it is nonetheless extremely important to understand how education actually makes one more vulnerable to carefully crafted marketing/propaganda. A classic text on the subject is Propaganda: The Formation of Men's Attitudes by Jacques Ellul.
Book reviewer Alexei Proussakov summarized what we need to look out for in his Amazon review of Age of Propaganda: The Everyday Use and Abuse of Persuasion:
Peoples' data-processing capabilities are limited. In the information-dense world people are unable to critically review all the information they receive. In order to be adequate to the situation, they resort to so-called heuristics, simple cues or rules for solving the problem. Heuristics are based on peoples' previous experience in similar situations.
Although relying on heuristics is sometimes a useful way of dealing with the onslaught of the decision-rich environment, basing our decisions primarily on heuristics can present some problems. First, heuristic cues that we possess may be false. Furthermore, a rule may be appropriate in certain situations but be misapplied in others. Another serious problem is that heuristics can be easily faked and manipulated. Knowledge of heuristics enables propagandists to control peoples' course of action.
The authors did a research of propaganda techniques and set four stratagems of persuasion:
1. You create favorable climate for the message (called pre-persuasion). You subtly outline what picture has to be drawn in the end. Here you decide what way thoughts and perceptions of the audience will be shaped and channeled. Having established right basis for further discourse you secure the results you seek. At this stage you should identify some statements as axioms, i.e. `what everyone takes for granted' and `what everyone knows'. You attribute labels (positive or negative) to objects of further discussion, put black-or-white colors in non-disputable way. You use generalities to depict the situation - they are usually so ambiguous that you may change their meanings in the future. You use rumors and gossips.
2. You create a `source credibility', i.e. establish a favorable image in the eyes of the audience. The message must come from `experts' or `unbiased' and, of course, personally attractive communicators. Try to switch on the self-persuasion mechanism of the audience.
3. You create a message that focuses the target's attention and thoughts on exactly what you want them to think about. Research has identified at least five conditions that are likely lead to heuristics. Heuristics are most likely to be used when people do not have time to think carefully about the issue, when they are so overloaded with information that it becomes impossible to process it fully, or when they believe that the issues at stake are not very important. Heuristics are also used when people have little other knowledge or information on which to base a decision and when a given heuristics comes quickly to mind as they are confronted with a problem.
4. You create an emotion of the target that will help you channel thoughts of audience in right direction. Fear appeals are most effective when they raise high levels of fear and suggest a doable and effective response (the authors also explain why sometimes fear does not work). Guilt: once we are filled with guilt, our thoughts and behavior are directed towards ridding ourselves of this feeling that's where propagandists take advantage of us. Feeling of obligation and indebtedness: large initial request and immediate concession by the requester invokes the norm of reciprocity -we concede. Feeling of commitment based on our desire to be self-consistent.
For example, to `soften up' the target you make him involved in a much smaller aspect of the action. This serves to commit the individual to `the case'. Once people are thus committed, the likelihood of their complying with the larger request increases. Another way is to show uniqueness of the offer (scarcity sells). Use the `minimum group paradigm': You are on my side (never mind that I created the terms); now act like it and do what we say.
Let us now move from the forces which power trends, reversals and phase shifts to those which power cycles of history.
NOTE: My computer/web time continues to be extremely limited; my apologies for the inability to respond to emails for the next few weeks.
Friday, April 03, 2009
Survival+ 6: The Politics of Experience
April 2, 2009
What Is "The Politics of Experience"?
The human mind makes sense of the chaotic jumble of sensory experiences and internal mental states by assembling explanatory narratives—what we also call "stories." To the believer, the "story" "explains" how things work. In pre-scientific cultures, many such stories were not simply wrong but injurious. Thus we have cultures in which it is believed that pregnant women shouldn't eat much. While we in advanced economies like to think of ourselves as above this sort of "superstition-passing-as-causal explanation," we also have cultures today in which living animals are considered "things" more or less equivalent to inanimate rocks and economies which believe "the market" is always efficient and rational.
What if those narratives also contain hefty doses of injurious superstition? To those who see living animals as commodities, then extirpating them for financial gain is "obvious" and indeed "natural." To those who believe in the ontological (i.e. inherent or a priori) efficacy and rationality of "the market," then the pricing of the last ten wild tuna on Earth via the auction block is entirely "obvious" and "natural." The notion that the eradication of a species might have some value not calculated by "the market" is sacrilege and suppressed with the same fanatic fervor as any interfaith challenge to religious authority.
Politics is consent, persuasion and power.
Humans are social animals because banding together by consent and bloodlines provides significant survival benefits over "going it alone." In its essence, politics is the granting of power to leaders for some benefit to those consenting to be led. The leaders must persuade consent or compliance, either by touting a persuasive narrative or creating a coercive system of punishment/terror.
The ultimate summary of politics is power. In lower animals, this boils down to power over reproduction (i.e. being able to improve one's chances of passing along one's genes via choice or coercion) and food. In humans, reproduction remains key (hence every despot acquires a harem and every official a mistress) but power also includes the various fruits of civilization such as wealth and wide-ranging political powers expressed through institutions such as religion, the state, etc.
Just as matter of economics, imposing one's will via coercion/terror is a costly affair. Maintaining a vast gulag of prisons, secret police, domestic armies, etc. drains off a tremendous share of the national wealth, and the coercive state/Empire has a nasty habit of destroying or driving away many if not most of its most productive citizenry.
Thus the "natural selection" process of the coercive state (be it monarchy, oligarchy, state or Empire) weeds out the rebellious, the skeptical and the most productive, leaving the cowed unproductive or the sullenly, consciously unproductive and a huge class of dependent drones ruled by a class of overlords with few limits on what they can skim from what remains of their economy.
The better choice is to persuade the people you wish to skim from to freely offer their consent and their compliance. This is best accomplished by creating a series of narratives in which your power (and the power of your class) is "obvious," "natural" and "beneficial." Thus we have cultures of caste in which the "high-borns'" privileges and power have been accepted as the "natural order of things." All the Powers That Be need do is maintain this narrative via whatever mediums are available (the pulpit, the media, etc.) and suppress or marginalize any challenging narratives as irrational, unnatural, representing the forces of Evil, counter to our sacred way of life, etc.
As an example in the U.S., we might consider the entire narrative of debt/credit. The idea of credit has been sold as a "benefit" for the average citizen; with credit, one needn't save up for five years to buy an auto, one can drive a new car out of the lot today and enjoy it for the five years it takes to pay it off in installments (debt/credit).
All narratives with political and thus economic consequences can be best untangled by this simple question: cui bono, to whose benefit? While credit "obviously" has some visible benefits to the borrower, the line between a borrower and a debt-serf can be thin indeed.
If we examine the profits generated by auto sales, we find that the profits generated by the credit/debt used to purchase the vehicle far exceed the profits made by manufacturing the vehicle. The same is true of housing and virtually all other goods.
So who benefits from an economy based on credit? Everyone, we are told; but it seems some benefit more than others.
Is there any more ideal system than one in which the vast majority of citizens are so heavily indebted that they have little time or energy left to question the system that has essentially enslaved them? Their high indebtedness generates a constant stream of heavy profits while their overworked, anxiety-ridden lifestyle ensures that political challenges to the Powers That Be will be stillborn or easily shunted aside as the ravings of cranks and doomsayers.
For one of the most powerful narratives in America is that we must always be positive and upbeat. One of the easiest ways to dismiss a critic in any setting is to label him or her a "doomsayer." "Just get with the program": that is, put your nose to the grindstone, make your debt payments and shut up.
Another powerful narrative with immense political consequences is the casting of 24/7 "entertainment" as a positive benefit to the masses. To be offered a cornucopia of distraction at any hour—what could be better? What could be better, indeed, for keeping a populace too distracted to question the "obvious" narratives which shape their compliance to debt-serf servitude?
This is the Politics of Experience: the presentation of a narrative, a context and a set of "problems" which require a "solution" which just so happens to richly benefit an Elite.
For instance: as public transit agencies and school districts face insolvency, the "problem" as presented by the public employee unions is that the stingy taxpayers are not providing these essential public services with sufficient funds to operate. The "solution" is "we need more money."
If this is the only "problem," then why are requests for overtime pay, directors' salaries, the average monthly pensions of retirees, the length of service required to retire, etc, met with stony silence or angry resistance? Why are analyses comparing the labor costs of operating the systems today and 30 years ago suppressed or dismissed? Because the labor costs have shot up far faster than ridership, number of students, or the underlying economy; the Elite, in this case, the "caste" of public employees, has enriched themselves at the expense of the no-real-wage-increase-in-30-years public.
Any and all attempts to question the "obvious solution is we need more money" are suppressed, marginalized, denigrated or attacked because revealing the actual causes of the insolvency would topple the narrative which supports the Elites' control and power.
In a similar way, "the market" has achieved a quasi-religious status as the perfect arbiter of efficiency and rationality. Thus the last ten wild tuna on the planet will be priced on the auction block based on their scarcity. The value of that species to humanity as a whole and the ecology of the seas is not factored by "the market's" flawless efficiency and rationality.
Or consider a small tree frog that will be extirpated by the logging of its habitat. The small frog has zero market value; as a commodity, it has no value since nobody wants to eat it or turn it into a marketable product.
But what if the skin of this frog produces a film with anti-bacteriological characteristics that might be highly valuable to humanity? "The market" has no mechanism to assess this potential or future value.
Rather than being an "efficient" or "rational" machine, the market in these cases is a blind, irrational machine that reduces all planetary inputs to a type of "scarcity-value" gravel. If you happen to profit from the trade in that gravel, it's may well appear rational and efficient. But if you recognize all that the market failed to value, not just rationally, but in any way at all, then you might see "the market" as not just irrational but so out of touch with reality as to be psychotic.
Try getting that perspective into the Mainstream Media, and you'll discover that you're the one considered psychotic and out of touch with reality. That's "the politics of experience:" narratives which support Elites' power and privileges as "obvious" and "natural" are sustained, as are "entertainments" which distract and dilute questions like cui bono; all else is marginalized, dismissed, refused or rejected as a form of sacrilege.
R.D. Laing was a psychiatrist by training, and his understanding of the politics of experience flowed from his analysis of troubled families with "psychotic" or "insane" members. He found that in some cases, the family's "leaders" (the adults) had subconsciously selected one member of the family to bear the blame for the family's troubles and conflicts. This child was then labeled "rebellious," "uncooperative," "a troublemaker," etc., and as the child's resistance grew then they were viewed as a psychiatric case.
Laing found (along with Gregory Bateson) that when humans are given a narrative which runs counter to their own experience this disconnect forms a double-bind—an internal state of "no way out." At this point the human can slip into passivity or other states which are categorized as psychiatric "problems" to be treated by drugs.
This is not to say that all madness is essentially political, only that the resistance to irrational narratives is easily cast by those intent on preserving their own power as some sort of psychiatric "illness." The dominant narrative which supports the power structure cannot be allowed to be recognized as the "problem;" thus the beauty of a system in which rebellion, resistance or cui bono questioning can be cast as "obviously" psychiatric "problems" to be "treated."
Those unable to be "processed" medically can be dismissed as "fringe" people unworthy of comment or even dismissal. Those who experience a double-bind between the supposedly "obvious" narratives they're expected to accept and their own internal experiences are given prescription drugs to ease their anxiety and depression.
Again, this is not to say that some of us do not suffer from chemical imbalances in the brain; many of us do, and for those, these psychiatric drugs are a godsend. But we must also be careful about what "problems" end up being "treated" by "solutions" which happen to be drug-based.
Thus we have evidence that children prescribed powerful drugs for hyperactivity responded positively to a lifestyle stripped of sugar, junk food, TV and video games. Imagine the immense reduction in profits if drugs, sugary snacks, junk food, TV and video games were no longer "consumed" by American children. Cui bono indeed.
The narratives that operate beneath the surface compress all of experience into a limited number of hammers; so when a nail resists, guess what happens? It gets pounded down. When you hold the hammer, that "solution" is "obvious."
NOTE: My computer/web time continues to be extremely limited; my apologies for the inability to respond to emails for the next few weeks.
Survival+ 5: Trends and Cycles of History (April 1, 2009)
The Great Transformation: Trends and Cycles of History
We cannot hope to understand the forces which will shape the Great Transformation unless we examine what might be called "ontological forces": structures of Nature which work not just in organisms but in human societies and history, and ontological states which can be characterized as "the politics of experience." By ontological I mean these are forces that are not limited to certain eras or cultures; they act upon human societies in all era and locales.
Feedback Loops, Phase Shifts/Reversals and the Politics of Experience
The human mind seeks patterns and trends as a key survival strategy: if we can anticipate a problem before it overwhelms us, or discern a pattern or cycle in the world around us, we can make a corrective adaptation or modify our behavior accordingly.
Trends may be profitably understood as vectors: a predictable direction influenced by measurable forces. Once we identify a trend/vector, we quickly anticipate it will continue in the same direction.
Thus in the early 1960s, oil seemed so abundant and the promise of nuclear power so bright that the future was envisioned as containing flying vehicles for every suburban home, plastic pod homes and a leisure founded on endless prosperity.
Now, a few scant decades later, the future vector to many has darkened to a collapse that will return advanced economies to the 18th century in the best-case scenario and to a violent AK-47-ridden Dark Age in worst-case scenarios.
Neither of these extremes seem likely, in my view, because neither one is grounded in an analysis of culture, history or feedback systems.
Feedback is built into Nature, including ourselves. A bacterial infection triggers an immune response; without such a feedback loop, we would never survive past a few hours of life. Feedback Loops, Positive and Negative .
All of life, from bacteria to the largest organisms and systems, responds to its environment with feedback; there are no vectors or trends that do not meet with positive and/or negative feedback. Thus the bacteria responds to anti-bacterial medications by developing resistance, companies respond to changing market conditions, etc.
Positive feedback reinforces itself; the classic example is nuclear fission, in which decaying uranium atoms trigger a cascade of radiation that becomes a nuclear explosion. Doomsday scenarios assume that such positive feedback loops will overwhelm any negative feedback loops that would act to slow or reverse the trend.
Thus the Doomsday scenario assumes all civilizations fall in a great heap; some have, some haven't. The ever-popular "technology-will-save-us" scenario downplays or denies the full measure of positive feedbacks and assumes the negative countermeasure loops will correct or reverse any downward trend. We cannot arbitrarily assume either alternative: that would be joining complacency with fatalism.
The outcome depends on our understanding of the crises and our responses (feedback) to those challenges: as families, communities and as nation-states.
We can be fairly certain of one thing: the likelihood of everything remaining like it is today is near-zero. All trends are merely temporary vectors influenced by positive and negative feedback loops which can drop away, strengthen or interact in unforeseen ways.
Those who assume runaway feedback will trigger complete collapse may also be anticipating a phase shift—a sudden jump from one state to another. This concept has been popularized as a "tipping point" in the book The Tipping Point: How Little Things Can Make a Big Difference . In the stock market, such a shift takes the form of a reversal of trend; this is also visible in elections, when the electorate seeks to reverse polarities, so to speak, and place the other party in power.
But a system has to be near a tipping point or phase shift for little things to matter. This ties directly into our exploration of The Remnant and the Pareto Principle: seemingly small percentages of people leading by example can have an outsized influence on the "trivial many," slowly building a trend for change which can "phase shift" at certain points, changing the entire cultural milieu and mindset in a short period of time.
That is, phase shifts do not have to be negative collapses; they can also be relatively sudden "awakenings" or positive transformations wrought by the informal leadership of The Remnant or by a sudden technological improvement which rapidly replaces a less efficient technology. The messy, lengthy revolution launched by the printing press is a good example of the latter, as is the Web/Internet.
Defining the Problem Defines the Solution
Some ideas are easier to express and understand than others. For instance, if I were to say the solution to all the problems listed above is to buy gold and a ton of rice, we can all understand the idea of not trusting paper money and a fragile supply chain of grain.
But if I say that how we identify a "problem" defines the "solution" we will accept, that is more difficult to grasp. The reason is that most of the assumptions we make in framing a "problem" are subconscious or deeply embedded in our cultural/intellectual worldview.
R.D. Laing, author of Politics of Experience, penned this prescient lecture in 1972, The Obvious, explained the inherent difficulty of understanding "the obviousness" of any "problem":
To a considerable extent what follows is an essay in stating what I take to be obvious. It is obvious that the social world situation is endangering the future of all life on this planet. To state the obvious is to share with you what (in your view) my misconceptions might be. The obvious can be dangerous. The deluded man frequently finds his delusions so obvious that he can hardly credit the good faith of those who do not share them.
What is obvious to Lyndon Johnson is not at all obvious to Ho Chi Minh. What is obvious to me might not be obvious to anyone else. The obvious is literally that which stands in one's way, in front of or over against oneself. One has to begin by recognizing that it exists for oneself.
The study of social events presents an almost insurmountable difficulty, in that their visibility, as one might say, is very low. In social space one's direct immediate capacity to see what is happening does not extend any further than one's own senses extend. Beyond that one has to make inferences based on hearsay evidence, reports of one kind or another of what other human beings are able to see within their equally limited field of observation. As in space, so in time.
Our capacity to probe back into history is extraordinarily limited. Even in the most detailed investigations of small fragments of micro-history, in studies of families, one finds it difficult to get past two or three generations. Beyond that, how things have come to be as they are disappears into mist.
Many of us recognize that paper money (i.e. fiat money) has declined precipitously in value when priced in gold. Rather than watch our wealth (as measured in currency or gold) vanish, then we seek to find a store of value which will not fall to zero: gold.
But this "solution" assumes the "problem" is limited to paper (fiat) money. If we understand that "money" as a store of wealth is simply stored energy, then we reach another understanding of "the problem" and thus of the "solution."
Let's say that the fragile supply chain of remaining oil breaks down in a complex interaction of positive feedback loops. Oil would not just be costly; it would be unavailable to individuals. The government would undoubtedly ration what was left for essential services like agriculture, food distribution, police and hospitals, etc.
Let's say we anticipated this and responded not by hoarding gold but by buying a 100 KWhr/day solar power array, productive land in a mild climate, a store of fertilizer and a few electric vehicles to share with our family/community. We own zero gold but we own a power supply, the means to grow food and transportation that does not require petroleum.
Now would we sell these productive assets for gold? At what price, if they were essentially irreplaceable? What would we do with our pile of gold if we can't go anywhere, can't grow food and have no power source?
The holder of gold assumes that all goods can be purchased with a means of exchange holding a tangible value, i.e. gold or an equivalent commodity. But this may not be entirely true. Yes, we will sell some of our power/energy output for gold, but we will not sell our "wealth" i.e. the power plant for gold, which may or may not be able to buy a replacement. As a store of wealth, gold is no match for a productive source of energy.
The reason is "money" as a store of wealth is simply stored energy. From this point of view, fertilizer is stored energy. You may or may not be able to exchange "money" in any form for stored energy, for "wealth" is either stored energy or the capacity to generate energy sustainably. Everything else is merely a means of exchange.
Will gold hold more value as a means of exchange than paper money? If history is any guide, yes—but that's a different "problem" than building or storing wealth.
There are many other examples of "problems" whose solutions may well completely fail to address the structural challenges we face. Once again we must explore complacency, not just as an emotional haven, but as an intellectual attractor.
If we define the "problem" incorrectly, that is a way of selecting a "solution" which may only turn into a positive feedback loop, i.e. make the real problem worse.
NOTE: My computer/web time continues to be extremely limited; my apologies for the inability to respond to emails for the next few weeks.
Wednesday, March 25, 2009
Survival+: Chapter Two
March 25, 2009
Let's begin by considering Context One: Human Nature in more depth. Entire libraries have been written on the subject of human nature, but for our practical purposes those which probe humanity's "default settings" such as Jared Diamond's The Third Chimpanzee: The Evolution and Future of the Human Animal and E.O. Wilson's Sociobiology: The New Synthesis
are the most useful.
Although we can slice and dice complex human responses in hundreds of ways (for instance, Who am I? The 16 Basic Desires that Motivate Our Actions and Define Our Personalities ), for the purposes of a stripped-down practical analysis we can group our "default responses" into four basic categories: inertia, fear/panic, casting our lot with a "Big Man"/leader or fatalism/giving up.
Since we cannot sustain the emotionally charged state of fear/panic ("fight or flight") for long, decisions made in this instinctive mode tend to be rash, hasty, impulsive and poorly planned. Thus the key is to recognize this mode and consciously avoid making decisions with long-term consequences while in the grip of this "instant response" survival-mode.
Humans, like our relatives the chimpanzees, are social animals. Like chimps, we are "wired" to form groups and select/follow leaders who reach their high status by offering something back to the community: protection, "potlatch" type sharing of wealth, etc. We will examine this political/social response to crisis in a later section.
But humans also have the capacity to be alone, like our other primate relatives the orangutans. Thus withdrawing from the community has deep roots in human nature and history.
Being creatures of habit—and habits are a survival mechanism, for why change anything when "everything's working"?-- humans prefer the status quo until crisis forces us to change. The underlying state in this inertia/attachment to the status quo is complacency, which acts as a cognitive and emotional "attractor" or trap, as does fatalism/withdrawal.
Complacency and Fatalism
Complacency and fatalism are both seductive "cognitive traps" and emotional "attractors" which we have to avoid if we are to think clearly. Each is an "attractor" because each is highly appealing for several fundamental reasons.
1. Human nature veers between these basic social/anti-social emotions: complacency/status quo (inertia) and fatalism/resignation (withdrawal).
2. History reveals these attractors (complacency and fatalism) were active in previous great declines/collapses, such as the Roman Empire circa 400-576 C.E. (see below)
3. Humans prefer simplistic "answers" to challenges/problems, and a blind faith in the status quo or resignation both fit the bill.
Complacency is best understood as what's expressed in the phrase, "Don't worry, it will sort itself out on its own." In stable "normal" times, this complacency is usually rewarded; various corrective feedback loops within complex systems kick in and problems are met with countermeasures that act to restabilize the system.
But in very dynamic eras, destabilizing factors overwhelm the usual corrective feedback mechanisms, and things do not sort themselves out. Dramatic, even radical action must be taken. In these times, complacency is not a practical or helpful strategy: it is a soothing but dangerous cognitive trap which guarantees the believer will be unprepared for the challenges just ahead.
In the cognitive trap of fatalism, we recognize the risks/dangers of the situation but feel helpless to correct or solve the problems. In this trap, we remove ourselves from action and give up, dooming ourselves to being swept up by whatever passing winds arise.
The goal here is to avoid these traps, analyze the challenges we face clearly, and then plan out a simple but interconnected three-part strategy for not just survival but prosperity and security.
Complacency can take many forms. For instance, a person who has prepared themselves for a doomsday collapse of civilization, i.e. "The end of the world as we know it" (TEOTWAWKI) may well find themselves ill-prepared for an equally probable slow decline in social cohesion and living standards. That is, living conditions in highly developed nations may descend not to a Collapse of Civilization into Chaos but to a Third World level of stable impoverishment.
This highlights the need to ground our analyses and expectations in history—not because it repeats, but because it rhymes. No one can know the future, so we must be cautious about putting all our eggs in one basket/scenario. Prudence suggests always maintaining a skeptical point of view: what if we're wrong? What's our Plan B/alternative strategy?
Fatalism is similarly devious. People who withdraw from society are certainly taking action, but they have surrendered the opportunity to influence the outcome positively: that is fatalism of the first order.
If you're reading this, then you have already advanced beyond the naïve complacency of "don't worry, everything will work itself out" which is mesmerizing large segments of our citizenry. You may well be a member of The Remnant—more on that later.
The Politics of Complacency and Fatalism
In Greek mythology, two sea monsters Scylla and Charybdis forced sailors into an unsavory choice of facing one or the other when navigating the Strait of Messina. In modern vernacular, we might say the sailors were "between a rock and a hard place."
Our "default mode" responses were selected for a hunting-gathering lifestyle; humanity has pursued agriculture for perhaps 5% of its long history as homo sapiens sapiens and dealt with advanced technology for perhaps 1% of its history.
The consequences of these unconstructive responses can be seen in the advanced civilizations (Mayans, Rome, etc.) that collapsed despite a wealth of experience and knowledge.
As a result, even as we work at devising rational, long-range solutions, we will be fending off the "monsters" of complacency and fatalism every inch of the way.
Analyzing challenges and then plotting out practical solutions is arduous, precarious work, as the answers are rarely clear and painful trial-and-error attempts are often the only way forward. Rather than engage in this difficult process, many find doing nothing (complacency) or withdrawing (fatalism) much less risky and demanding. This inaction feeds on itself, setting up a point-of-no-return that could have been avoided by bold action when the problems were first visible.
Humans cannot remain in the high-stress "fight or flight" status for long; we seek a resolution or equilibrium, both intellectual and social. Thus the most constructive approach is to assess the challenges in a clear-eyed fashion, hashing out the strengths and weaknesses of each major strategy. Then make a decision, and commit to giving the chosen strategy the time, resources and unity it needs to succeed—or fail conclusively, perhaps, at which point we make a reassessment based on what we've learned from the experience.
At every point in this process, two new temptations arise: to either leap erratically from strategy to strategy as a short-term desire ("fight or flight" mode) for instant results sabotages any long-term effort, or to tire of the process of negotiation and analysis and give up any sustained effort.
Many who do engage the challenges will do so out of raw self-interest and thus they will base their solutions on inflexible ideological (political and/or religious) worldviews that are too rigid to be practical/realistic. Rather than face the problems with an eye on actual solutions, these players seek to protect their own fiefdoms, privileges and benefits under the guise of emotionally appealing ideologies. Faced with the loss of their sacrosanct (to them) privileges and benefits, they view the battle for diminishing resources as a "fight to the death." In a real sense, their status and advantages are definitely at risk; but ironically, by focusing on their ideological opponents instead of the actual problems, they seal their own destruction by insuring the collapse of the entire system.
Both ends of the political spectrum are prone to this frantic defense of the failing status quo: the plutocracy/holders of wealth and those drawing benefits/welfare. This too mirrors the experience of the Roman Empire's decline, which saw massive expansion of wealth disparity (those at the top gained ever more wealth at the expense of the middle class) even as an ever-growing army of unproductive recipients at the bottom received the infamous "bread and circuses" of free bread and public entertainments.
As a consequence of this rabidly self-serving political battle over diminishing resources and surpluses, those championing flexible, practical solutions are crowded out by the shrill, desperate voices of those protecting their fiefdoms and privileges. The result is a profound disunity in the body politic in which compromise is abandoned and common ground vanishes. As external and internal threats increase and surpluses/resources shrink, the culture and economy are frozen into warring camps, each of which seeks to undermine the other rather than actually address the severe problems facing the entire body politic and economy.
All these forces—complacency, fatalism, fanatic self-interest, ideological rigidity at each end of the political spectrum and political disunity—pose enormous challenges to those seeking long-term solutions to critical problems.
If we seek historical examples of the immense power of complacency, we need look no further than the Western Roman Empire.
For an explication of just how destructive such deep complacency can be, I turn to the excellent account of the causes of the Roman Empire's collapse by Michael Grant, The Fall of the Roman Empire :
"Enmeshed in classical history, all he can do is lapse into vague sermonizing, telling the Romans, as many a moralist had told them throughout the centuries, that they must undergo an ethical regeneration and return to the simplicities and self-sacrifices of their ancestors.
There was no room at all, in these ways of thinking, for the novel, apocalyptic situation which had now arisen, a situation which needed solutions as radical as itself. His whole attitude is a complacent acceptance of things as they are, without a single new idea.
This acceptance was accompanied by greatly excessive optimism about the present and future. Even when the end was only sixty years away, and the Empire was already crumbling fast, Rutilius continued to address the spirit of Rome with the same supreme assurance.
This blind adherence to the ideas of the past ranks high among the principal causes of the downfall of Rome. If you were sufficiently lulled by these traditional fictions, there was no call to take any practical first-aid measures at all."
But fatalism, often expressed by opting out/withdrawing from society, can be just as destructive as complacency.
As Grant noted elsewhere in The Fall of the Roman Empire :
"Considerable sections of the population of the later Roman Empire decided to opt out altogether. In the first place, a large number of people, finding the social system intolerable, went underground and became its enemies. But a second movement consisted of numerous men and women who merely abandoned the company of their fellow human beings and divorced themselves from the community.
And so as the final political and military reckoning rapidly approached, this substantial number of men and women was no longer available to contribute either to the actual defense of the Empire or to the revenue needed to pay for the defenders."
Grant traces much of the intellectual justification for what might be termed "a fatal fatalism" to Christian thinkers like Augustine:
"And so Augustine preached, as other had before him, that 'we do not want to have dealings with the powers that be.' That is frank: a call to withhold service from the government. Equally frank is his reminder that the Empire is bound to collapse anyway.
Augustine shifted the center of gravity so that the state is now a good deal less that half of what matters: far from helping his own country to survive, his attitude contributed to its downfall. But his suggestion that, since it was up to Providence whether the Roman world should collapse or not, human endeavor could do nothing about it in any case, met with the strong disapproval of thinkers such as Pelagius.
Pelagius' reaction to the sacking of Rome in 410 by Alaric was by no means limited to fatalistic gloom and despair. Both before and after the capture of the city, he found himself deeply dissatisfied with the moral sluggishness of many prosperous people of Rome. He insisted on a strenuous individual effort to attain salvation: we sin by a voluntary imitation of Adam, and an equally voluntary decision can cast our sins behind us.
His doctrine of the will at least wanted people to try. Augustine's philosophy, on the other hand, led to fatalism.
Given the stupendous inertia of complacency, the fierce defense of the status quo from those contributing little but reaping plenty and the intellectual and emotional charms of fatalist surrender or withdrawal, those seeking practical solutions and strategies may well see the battle as essentially hopeless.
As tempting as that fatalism might be, there is hope offered by the Pareto principle: the influential few (The Remnant) can indeed lead the trivial many.
Opting Out/Opting In
The desire to withdraw from a corrupted, declining society, or indeed, from the imperfect company of humans, stretches back to the dawn of civilization. In many cultures, a spiritual quest for Oneness with God/Enlightenment encourages withdrawal and rejection of worldly goods and goals.
We have seen in the example of Rome how eras of crisis encourage many to "opt out" of society. But opting out of society can mean either a withdrawal to what we might call "splendid isolation" or an opting in to an alternative social structure.
Thus the yogi, spiritual seeker, or Transcendentalist might well seek complete isolation in a wilderness, while others opting out of a failing state might join a religious commune or monastery. Such communities are largely self-sustaining, even as they retain ties to various parts of the greater society and economy.
Both of these methods of opting out have deep roots in American culture and history. The noble desire to seek Oneness with God and fulfillment via oneness with Nature was championed by Henry David Thoreau in Walden, while various faith-based communes and communities have found fertile ground in every century.
Splendid Isolation also ties directly into a key American Myth: the Rugged Individual. This is a tangled web of fantasy, reality and hidden dependence on a functioning economy beyond the wilderness. Thus even Thoreau walked back to town on numerous occasions, for food and social contact, and the Buddhist mendicant monks of Southeast Asia rely on the alms of productive people for their sustenance. In other words, Splendid Isolation still relies in most cases on "the outside world" to grow the grain, etc. which the "one alone" ultimately relies upon.
It is exceedingly difficult to grow, nourish and sustain all that life requires alone. That is the fundamental reason why most primates, including humans, form groups: a group is simply a far more productive, robust survival structure than a single individual.
Thus, rugged individuals who could survive on their own form communities to reap the advantages of such mutually beneficial networks.
A few years ago the U.S. Army ran an advertising slogan "An Army of One." But this was a misnomer, for the single most important combat asset is unit cohesion. Even the supreme Rugged Individual survives best in a circle of others willing to fight together for a common cause.
Another enduring myth of American culture is "living off the land." Many of my correspondents who hunt and fish report that when discussions of financial hardship arise, many of their acquaintances say they will simply bag some deer and go fishing to feed their families.
Sadly, what was possible in the remote, largely unpopulated America of the distant past is not possible for a nation of dwindling wilderness and 300 millions mouths to feed.
The more one has actually walked remote areas of the nation like the Rockies, High Sierra, great deserts and untilled plains, the more one comes to understand just how little food for humans exists in the wild. This is why hunter-gatherers require vast tracts of land: Nature is indeed bountiful, but rarely for humans.
It is easy to over-estimate the number of wildfowl, fish and large mammals available for human consumption in the "wild," and even easier to overestimate the calories available to be reaped from the wild before the land is stripped of game and other edibles.
The hunter who bags several dozen pheasant, for instance, ends up with a pitifully small bag of dried meat at the end of the process. As for the plentiful fish—let's not forget they were stocked by an advanced-technology, oil-fueled, well-funded state agency. Once the fish are no longer stocked, the illusory bounty disappears.
To the unknowing eye, the Hawaiian rain forest looks like it must be a veritable cornucopia of edibles suitable for human consumption. In fact, the truly native Hawaiian rain forest offers very little to hungry humans. If you come across a mango or banana tree, that was planted by other humans.
You would also find that the "wild" mango tree is remarkably stingy with its bounty. Growing high above the ground, most of the fruit is unreachable, even with ladders, and the fruit is small and mostly seed; the actual pulp is stringy and meager compared to the farm-coddled mangoes we find in markets.
Thus a small intensive garden may well contain more human-suitable food than a square kilometer or square mile of wilderness. Many bounteous wild crops like acorns require a backbreaking amount of work before they can be rendered suitable for human consumption—and they require copious amounts of fuel for cooking.
It is sobering to recall that tiny bands of primitively armed humans hunted the wooly mammoth to extinction in a matter of a few decades, and a relative handful of better-armed Americans shot millions of bison in a few short years, driving the herds which once blackened the plains to the precipice of extinction.
We should be very wary of all such complacency traps: there is simply no way to feed 300 million people by foraging a mostly calorie-barren landscape and fish-stripped sea. Such a stupendous population requires a large-scale, heavily mechanized intensive production of grain.
Conclusion #1: everyone who opts out of a given social circumstance opts into some other circumstance. There can be no "opting out" without a corresponding "opting in" to something else.
Conclusion #2: Opting into a myth is not a sustainable option; humans developed social networks /communities and agriculture precisely because the alternative options of Splendid Isolation and foraging were perilously less successful survival strategies.
Conclusion #3: The key difference between opting for isolation and opting into alternative communities/networks is the sustainability and productivity of the community. Very few who live in isolation are truly independent of a larger productive society. This simple truth is the engine behind agriculture and urban centers.
Thus the skeptic gazes at the latter-day isolationists who stockpile six months of advanced-economy, advanced technology consumables in a remote cabin and asks:
What happens in Month Seven when the stockpile is gone? Or make it Month 13 or Month 25; the point is withdrawing without creating a productive sustainable source of food, energy and other critical necessities is not a survival strategy at all, it's simply pushing the day of reckoning forward a bit.
Creating an integrated, independent, sustainable productivity by oneself or as a couple is akin to raising a child in isolation: it looks fun until you really give it a try. A baby may well be adorable to a teen for an hour or so, but give the teen the baby for 48 hours straight and his/her reaction will be quite different.
Haul water in five-gallon buckets from a stream for a few weeks, cut wood by hand, carry a 5-gallon propane tank by bicycle down to the refilling station, sharpen a chisel by hand, fix a balky gas-powered refrigerator—the list of skills and energies required are far longer than a myth-based culture can even imagine.
While it is possible to envision a technology-rich "splendid isolation" fueled by solar panels, water pumps, satellite Internet links, geothermal-exchange heating, triple-pane windows, all protected by elaborate security technology, there are two difficulties with this scenario: few can afford to set it up, and those few who do have created a high-value, very vulnerable target in the middle of an existing population with whom they have no social or economic ties. One need look no farther than luxury vehicles being smashed and burned in the streets to foresee the possible responses such wealth disparity causes.
There is a model for barricading oneself and one's wealth behind high walls of security: all "planet of slums" cities in the Third World contain small heavily defended islands of wealth in a vast sea of poverty. If this lifestyle appeals to you, there are ample opportunities to try it out today in any Third World mega-city/mega-slum.
The skeptic wonders if the Isolationist expects others to have constructed a large-scale productive sustainable economy in their absence, and to welcome those who opted out of contributing to the arduous construction of this sustainable future with open arms.
Just because the grasshopper squirreled away a stash to last the winter does not mean the productive colony of ants will welcome his future freeloading come spring.
Thus the goal must be a truly sustainable productivity, not a temporary opting out dependent on a stockpile of unsustainably produced consumer goods.
In some societies, the religious mendicant can freeload off the productive society because the productive members believe feeding the mendicant provides them with religious merit. But the U.S. is not such a society; its historical religious principles are expressed in the line, "The Lord helps those who help themselves," and stockpiling high-tech goodies to last a few months is not actually helping oneself or others in any long-term, sustainable fashion.
Next: A skeptical look at Isolationism: The Art of Survival, Taoism and the Warring States
Note: my computer time will be extremely limited and sporadic over the next two weeks. Please check the main blog at www/oftwominds.com/blog.html for updates. Thank you.
Tuesday, March 24, 2009
Three Comments
March 24, 2009
Before continuing Survival+, here are three important reader commentaries on previous topics.
E.P.
I wanted to comment on your recent article on The "Can't Do" Spirit (March 20, 2009) Your remarks on DoD weapons procurement procedure really hit home.
I am rather embarrassed to note that I was once a government bureaucrat, working for DoD (2002-2008), "ensuring the best systems for our warfighter" and other such public-relations nonsense.
You can't possibly imagine how much money is spent in the name of "government oversight." In my work as a systems cost estimator, we would normally add 100% as a good rule of thumb. 100%! That is, let's say Program X, The Super-Duper Missile Program, is advertised in the MSM as being a $1 billion dollar program. That "$1 billion" is just the money that gets paid to the contractor, say Blockhead-Marteen, for development and production.
There's also at least an additional $1 billion dollars that needs to be spent to oversight the spending of the $1 billion that's going to the contractor. E.g., for cost estimation, integrated logistics support, systems and software engineering, contracting, legal, security, information assurance, not to mention the veritable army of support contractors that file all the relevant DoD paperwork - the reports and baselines and earned value data and the like.
This "oversight" money, however, is never included in the cost performance data of any contract. It just exists in the ether - in our cost estimation work we would always simply assume that the money for government oversight would be supplied. As a corollary, this oversight function was performed, at least during my tenure, not by civil servants, but by support contractors (e.g., Booz Allen, MITRE, CACI) - a bonus of Bush privatization in the vein of Blackwater. How can one pay a for-profit company for oversight? It's an absurd, Kafka-esque proposition.
The term 'military-industrial-congressional complex," which I had previously needed awareness of simply to get one question correct on my AP US History exam, took on a whole new meaning for me after this job. I also became familiar with "iron triangle" and "rent-seeking behavior," which describes what goes on in DoD procurement to a 'T.' That we can accurately define the ills that plague us, yet continue to engage in the same behavior, makes me want to believe that we are stuck in The Matrix. It must be the only logical explanation.
Oliver K.-S.
RE: Mr. Geithner's new bailout plan:
This plan is sheer genius. The bank executives have earned their bonuses again. Here is what I would be doing if I were Citi.
Step 1: I would set up a new entity, say a Structured Investment Vehicel (SIV) and call it $chiti. I doubt the banking regulators will think there is anything strange with this name.
Step 2: I would place 10 billion dollars of TARP funds into $chiti. This money, which the government gave Citi, comes in handy for setting up these off balance sheet companies.
Step 3: I would instruct my lackey at $chiti to bid on $250 billion dollars of bad assets in Citi. These assets are not worth $250 billion, that is their face value. That means, that Citi paid $250 billion dollars to buy these assets. The problem is they are only worth between 7 and 10 billion dollars. $chiti would not bid $250 billion dollars for these gems. No, anyone could tell these mis- understood assets must be worth at least $300 billion dollars. So $chiti places a bid for $300 billion dollars.
Now at this stage, one of two possibilities can occur. Some fool may bid more than $300 billion for the bad assets at Citi, or option 2, $chiti wins the bid and gets the assets.
Let's go with option 2 first. $chiti wins the bid, and now needs to come up with $290 billion dollars (remember it only has $10 billion in it right now) to buy Citi's bad assets. This is where the government comes in. Tim's plan lends and "invests" the other $290 billion.
So, now at Citi, I make $50 billion dollars of profit as I get $300 billion for assets that were originally worth $250 billion.
$chiti does not fair quite so well, as the assets it bought are worth no more than $10 billion dollars. So over time the loan the government gave me through Mr. Geithner goes bad, and $chiti goes bankrupt. Unfortunately Citi loses its $10 billion investment in $chiti.
So to recap. I get to shift $250 billion dollars of stuff that is probably worth only $10 billion dollars, to you the tax payer. Citi gets a $50 billion dollar profit from the sale, and $chiti gives Citi a $10 billion dollar loss. As a result I (Citi) make $40 billion dollars. Not bad, and definitely worth a $1 billion dollar bonus for engineering that plan.
Now let's look at that first option. Someone else bids more than $300 billion for Citi's assets. I know it is unlikely, but you never know. Assume they bid $310 billion. Well then, Citi makes $60 billion in profit and it quietly shuts down $chiti and takes back the $10 billion in it. So overall I make $60 billion in money (the $10 billion coming back from $chiti does not count as profit it is really just moving an asset).
So either way, Wall street can now engineer enormous profits for this year. Bonuses will be back with a vengeance. Everyone is happy. Until that tax bill comes due.
In reality Citi probably won't be so blatant as to buy their own assets. They will collude with Bank Of America and JP Morgan and other banks, with the help of Geithner, to buy each others' assets. This way it all appear kosher, while the taxpayer is fleeced for vast sums of money.
Ishabaka M.D.
It was interesting you published your article yesterday The Migration of Capital and Human Talent (March 18, 2009) as I had been thinking about just the same thing.
As part of my job, I train nurse practitioner students from a nearby University. I am now training Mrs. Ai B., a woman with a very interesting history. Her father was an employee of the C.I.A. in the Vietnam war (he was Viet). After the war the family was captured. Ai spent 6 years in a peasant value re-education camp, and her father 8 years in a hard-core prison.
In spite of this, apparently neither of them are bitter, and still feel Vietnam is their home. Mrs. B. married a Canadian. She told me she would like to go back to Vietnam with him, and that he could teach English - he'd make $1,200 a month, but she said you can live quite well on $100 a month.
Her mother was a pharmacist and was often called upon to diagnose patients, who arrived by dugout canoe if too ill to walk. At age 8 Ai delivered medicines to nearby villages, and became adept at identifying intestinal worms and prescribing the right antihelminthic - no M.D. required, and patients paid gratefully.
The only Viet I know is the different ways to say "hello". I wondered what kind of living we would have if our two families went together - Ai's husband as an English teacher, Ai as a nurse practitioner teacher/translator for me and my wife, who is an optometrist. I bet we could live like royalty compared to our middle class lifestyle in the U.S. I'd use my Canadian passport to avoid political strife. And I bet the authorities wouldn't be too fussy about my qualificiations or my wife's either. I'm moderately good at picking up languages, and would probably have serviceable at least medical Vietnamese in a year.
And we'd all be doing GOOD for really suffering patients!
Again, if I was the only doc in a 100 mile radius I bet the local Communist Party Cadre would take real good care of me.
I'll give you one example - a friend of mine, now deceased, R.I.P., fell in love with Costa Rica. He set up a free clinic in a remote area. He got all his medical supplies donated from local hospitals and clinics. He had doctors come as "medical vacations" - work half the day, fish, jungle treck or surf half the day, stay at an old mansion donated for the clinic and write the stay off your taxes.
Costa Rica is relatively cheap, but they do have one BIG expense - there is a 100% duty on any imported vehicle. That's right - you buy a $25,000 4wd truck in the U.S., you pay $25,000 customs duty to take it into Costa Rica. My friend did this. When it came time to pay the duty the customs man was "You're from the free clinic? You pay nothing, Senor!"
Then he went to get a license plate from the local Police - again: "You're the doctor from the free clinic - you don't need a license plate - I tell all my men to watch out for your truck!" This doesn't happen in the U.S.A. No malpractice or license fee either. Serious crime is rare in Costa Rica but petty crime, especially theft from vehicles is very common. Nobody touched the truck.
One happy note - there was a man who had lost both legs in an accident, and got around on a wooden platform with roller skate wheels. My friend got a local ortho prosthesis company to make him two legs - now he can walk. THAT kind of stuff is what international peace is made of. You think a lot of Costa Ricans didn't hear about that? shock and awe. Give a legless man a pair of legs. Better yet, give the legless child of a family a pair of legs. You think this wouldn't work with the Taliban?
Lastly, another good friend of mine who died prematurely R.I.P. was a hospice nurse who made house calls. She'd go to the ghetto in the middle of the night with a doctor's bag full of narcotics. Anyone hassled her, the local crack thugs would come out: "You don't mess with her - she taking care of my Momma!" Leastways, that's what she told me.
Thank you, readers, for sharing these ideas and experiences.
What's for dinner at your house? has been updated with a new recipe: Eggplant Parmesan . This a mouthwatering photo-illustrated PDF from longtime contributor Bill Murath.
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Operation SERF, Part 12
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