Category Archives: banks

Why there will be a Greek Revolution this year

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The cut-up XtraNormal video says it all–the “deal” is a mess and is not going to work. The details of what ordinary Greeks can expect were revealed late yesterday:

The measures include nearly €400 million ($530 million) in cuts to already depleted pensions. Health and education spending will be reduced by more than €170 million ($225 million), subsidies to the state health care system will be cut by €500 million ($661 million), and health care spending on medicine will fall by €570 million ($754 million). And some €400 million ($529 million) will be lopped off defense spending — three quarters of which will come from purchases.

And no one expects this disaster to work:

The draft law also drastically revises the 2012 budget, changing the government deficit target to 6.7 percent of gross domestic product from an initial forecast of 5.4 percent. Even worse, plans for a modest primary surplus — which excludes debt servicing costs — have been scrapped and Greece will instead post a primary deficit of nearly €500 million ($661 million), or 0.2 percent of GDP.

If you wonder whether people might not just feel they have to accept this, here’s Ilias Iliopoulos, general secretary of the Greek civil servants’ union Adedy, not one of the more radical groups as you might expect: “I don’t rule out a popular revolt.”

Some nuggets suggest why:

  • Greek bank shares are down 10% this morning.
  • The “Socialist” party that brought in the crisis is running at 12% in the polls.
  • Greek debt was cut from CCC to C by the Fitch agency, which equals default.
  • As the New York Times speculated this morning, that would mean Credit Default Swaps start to be activated: do banks have the money to cover them? What do you think?

Unsurprisingly, what the Times does not mention is that the left is resurgent:

Left-wing parties that oppose the next round of cuts the coalition government is promising are meanwhile surging. A relatively new party, the Democratic Left, is nipping at Pasok’s heels, with 12 per cent, twice as much support as it had in December. Another, the Coalition of the Left, has 8.5 per cent support, and the communist party, KKE, has 9.5 per cent.

In the event that these parties were able to form a Popular Front against the Troika, they would win an election, as the Conservative Party that the Times claims is “heading” for an election win is polling at 19%. Even a coalition without the dogmatic Communists would win on these numbers.

The defense cuts might make us nervous about a military coup: which brought to mind Costa Gavras’s classic film Z (1969) about the repression that led to the Greek dictatorship of the colonels (1967-74). The title of the film is not explained until the very end. It is not a letter: it stands for zei (he/she/it lives).

In the context of the film, this is taken to refer to the lead character, who has been assassinated by the secret police. His identity is clearly that of the Greek politician Grigoris Lambrakis, killed in 1963. The list of those things to be banned include zei, which we might now want to read as “it lives,” that which was supposed to be long dead, interred and forgotten–the revolution.

Debt Servitude and (Micro)Fascism

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IMF leader Lagarde to Greek PM Papademos: "Do something for the poor? that's hilarious!"

The widely-circulated photographs of the Troika laughing it up as they imposed their settlement on Greece reflect their triumph at imposing a neo-liberal colonization of Europe. As Frantz Fanon noted in 1963:

What is fascism but colonialism at the heart of traditionally colonialist countries?

The debt servitude being imposed on mass populations in the interest of transnational capital represents a neo-colonialism, in which the colonial powers like Portugal, Spain and Italy will be recolonized after the long-term Ottoman colony Greece.

It’s worth rehearsing the breath-taking Treaty-of-Versailles-style conditions imposed on Greece. According to the Guardian:

the European commission will present proposals for “an enhanced and permanent presence” of debt inspectors in Athens later…Greeks have already suffered a 30% cut in wages and can look forward to steep cuts in the minimum wage as well as pensions…Eurozone finance ministers have demanded that the Greek Constitution be revised to give debt payments top priority in government spending.

The money for the bond markets will be placed in a charmingly named “segregation account,” as if to remind everyone of the fascist neo-colonialism that has been created.

There was an alternative: an 2001 Argentina-style default, with a relaunched currency. From this crisis emerged the practice of horizontalidad that has been so influential across the Occupy movement. In Occupy!#3, Marina Sitrin quotes Neka from the unemployed workers movement near Buenos Aires:

it was a sort of waking up to a knowledge that was collective…It was like each day is a horizon that opens before us

This “horizonism” is the direct opposite of debt servitude.

Towers of Debt at NYU

Today I was reminded that such servitude is local as well as global, a microfascism to match the global neo-colonial project. At my institution, NYU, there is currently a plan to build 6 million square feet of new office and residential space in a series of skyscrapers. As well as destroying the character of Greenwich Village, and making Washington Square a building site for 20 years, this plan will cost $6 billion.

When asked where this money would come from an official replied: “NYU is not afraid of debt.” Given the enormity of the sum–twice the entire endowment of the university–and the crisis of debt worldwide, you wonder why. I asked a friend who works at Credit Suisse–in the compliance department that makes banks abide by regulation–and she replied “Money is cheap.” Which is to say, the interest rates on the bonds will be so low that the investment makes perfect sense to a Board of Trustees filled with people from JP Morgan Chase, Citigroup, Paulson, Met Life and so on.

Who will repay the money? According to NYU4OWS and the Occupy Student Debt Campaign, the only possible answer is students–via their tuition fees, financed in turn by student debt. Student debt is about to surpass one trillion dollars and is the largest single sector of consumer debt, even exceeding credit cards. NYU is already top of the league for student debt per capita. What is especially heinous about this exchange is that money borrowed at less than one per cent interest is likely to be repaid by loans carrying interest in the range of eight to ten per cent. Student debt cannot be liquidated, meaning that even people who are bankrupt, or on social security have to repay it. As a powerful essay in the Village Voice last year showed, many NYU grads have to abandon ideas of careers serving the public good for corporate positions in order to make their payments.

What can be done about this servitude? Horizontalism insists that there is no point in applying for redress to leaders–as you can see above, the very idea makes them laugh. Yesterday at an event in New York City, David Graeber argued that one of the most critical developments of 2011 was a transformation of the imagination. In other words, it began to become possible to visualize a world in which the economic was not the dominant value.

In terms of debt, this would mean refusing the demand that debt repayment is the highest form of morality. When debts are imposed or exacerbated beyond any realistic possibility of repayment, the ethical approach is to move beyond the horizons of money. You can pledge to refuse to repay your loan if one million other people do so here: and decide whether you’re actually going to do that when it gets into the high 900,000s–for now it’s about pressuring for change. For faculty supporting debtors, pledge here and for family and others supporting debtors pledge here: this is important to show that the community supports debt refusal, but demands little more than a few clicks for now.

In terms of the horizontal imagination, imagine what was once the case: a public education from pre-K to PhD that is entirely free. This long-time position of abolition democracy needs to be insisted upon not in terms of accounting–that people need degrees to get jobs and so on–but in terms of democracy: a direct democracy needs citizens who are critical, knowledgeable, resourceful and autonomous.

That won’t happen overnight but here’s what we can do now: stop using economic metaphors for the critical projects that we engage in. Stop asking “how’s your work going?”, or using metaphors and scales of productivity, or otherwise commodifying the common intellect. In work using digital technologies in particular, leave aside notions of “rich” data, “robust” platforms and all the other quasi-market metaphors.

Stop thinking like a market. A market likes an investment (a beginning), a time of production (the middle) and, above all, profit, aka the end. This is why Occupy insists on the primacy of the everyday because it needs doing every day, like child care, sustenance, farming and other forms of sustaining.

Try it. It’s fun.

Futures of Occupy

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As much as I have wanted to stress the present and future present of Occupy, I keep getting asked to do events or to write about the future of Occupy. I’m coming to think that the “future of Occupy” would be changing the terms of the way that the “economy” is discussed. From this perspective, we can see how two parallel, failing discourses of governance regarding austerity and climate change need to be converged and reversed.

The prevailing governance requires austerity to placate the bond market, even as it also wants to promote growth to generate revenues to make future bond payments. It dismisses the possibility of climate change being a present-day issue, displacing it to a remote future. If Occupy is truly “a state of mind,” as many post-eviction banners have had it, then one way to express it would be to present a radical alternative to this neo-liberal consensus.

Present austerity is actively producing the societal emergency it claims to be solving from Greece to Portugal, Ireland and Italy. It seems as if bond-holders hope to recoup as much of their investment as they can as soon as possible, ignoring the future social ramifications of the crisis thereby produced. The Greek elections in April will undoubtedly be, shall we say, interesting. There are rumors from France that the National Front candidate Marine Le Pen may finish first in the Presidential elections: if she is in a run-off against the Socialist, it is uncertain that right-wing voters can be relied on to rally to Hollande. So neo-liberalism seems actively willing to gamble with the rise of the far right in order to sustain profits.

The vague hope for “growth” as a solution to the social crisis fails to recognize that all industrial and manufacturing growth at present is going to entail higher levels of carbon emissions. In New York today, I saw a cherry tree in blossom: on February 19. Yet when the New York Times published today about the impossibility of ice-fishing in Minnesota due to the thin ice this winter, the phrase climate change was not used. The deniers have pushed the debate out of the liberal mainstream.

In a report published yesterday by the Union of Concerned Scientists entitled Heads They Win, Tails We Lose: How Corporations Corrupt Science at the Public’s Expense, the list of smear and diversion tactics described is as striking as the direct connection to the polluting corporations.:

the key driver of political interference in federal science: the inappropriate influence of companies with a financial stake in the outcome…

 

In 2010, the oil and gas sector donated more than $10 million to PACs. The largest donors were Koch Industries ($1.2 million) and ExxonMobil ($1 million).

For this, the oil and gas industry obtained the active support of a Republican House. A larger investment will secure the Senate and independence from the Presidency.

There is a further irony that one of the few government interventions into the recession that appears to have been very successful was also one that does most damage in terms of climate change–the auto industry “bailout.” After reading the UCS report, it is hard not to suspect that the same players that have targeted climate science were comfortable letting the government support the car industry, while being happy to see that mass transit options were defeated.

In the background lurks Keystone XL.

Al Gore's comment on Keystone

Al Gore has tried to characterize the tar sands campaign as “addiction,” part of the “addiction to oil” meme that is now a cliché. My feeling is that the neo-liberal corporate machine is constantly harping on Keystone not just to gain approval of the pipeline. The Canadians seem set on producing the “oil” and the Chinese will buy it, meaning that the multinationals will make their money. However, the “controversy” makes it less and less likely that the Democrats in Congress and the President will campaign on climate issues.

Therefore, any return to “growth,” the only solution that neo-liberal capital can offer, will not only be to the profit of corporations but structured around fossil fuel extraction and transport, leading to the continued success of the spectacularly profitable oil and gas sector. Mainstream liberalism nonetheless continues to believe that discussion can produce a return to what the UCS call “transparency and accountability in the use of science” and, by extension, in politics.

Occupy knows that this future is not going to happen. The future we’re likely to get is a willingness to “liquiduate everything” in the newly-fashionable phrase of depression era Treasury Secretrary Andrew W. Mellon. Fossil fuel generated growth will promote both greater climate change and further political chaos and extremism, funded by the unrestrained PACs. The Occupy encampments actively performed an alternative to that future. Other, unexpected ways have to be found to visualize it now, to make the connection between “prosperity without growth,” ending climate change and ending political corruption.

Greece, Slavery and the General Strike

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Today the Greek parliament met to approve the deliberately humiliating terms of the German-backed bond rescue plan (aka the bailout). In the streets, it is more precisely defined as slavery. The response is, as it has long been, to organize the general strike. For globalized neo-liberalism this is the moment to bring an “end” to 2011, a year after their man in Egypt, Mubarak, had to step down.

Estimates suggest 50,000 people in the street in Athens, perhaps as many as 100,000 with thousands more elsewhere, and many buildings occupied. The inevitable riot police and tear gas have been deployed. Exarchia, the radical district resounded to explosions. As fires burned, allegations circulated that the police had started them or ignored them. (Watch on Livestream here.)

Athens 2 12 12

The scenes were extraordinary–Starbucks on fire, smoke bombs, riot police–with the word “chaos” on every Greek website.

General Strike in Greece

The troika-installed Prime Minister Papademos–whose name seems to evoke a patriarchal “father of the people”–pushed the market line about debt refusal:

It would create conditions of uncontrolled economic chaos and social explosion. The country would be drawn into a vortex of recession, instability, unemployment and protracted misery.

Such remarks fly in the face of existing reality, in which those are already the prevailing conditions. Official unemployment exceeds 20%. Reports have suggested people returning to family farms in the countryside and islands from the cities in order to survive. The Church feeds 250,000 people a day in a country of 11 million people. Homelessness has increased by 25% (although the absolute numbers are low by U. S. standards. The official EU statistics agency Eurostat reports that one-third of the country is living in poverty. And yet Papademos called for more “sacrifice.”

Nonetheless, even this is not enough for the one percent: “The promises from Greece aren’t enough for us any more,” the German finance minister, Wolfgang Schauble, said in an interview published in the Welt am Sonntag newspaper. When the vote is passed, the minimum wage will be cut by over 20%, pensions will be reduced and the already ruined state will cut back still further. The graffiti in the streets calls this slavery.

"We Should Not Live as Slaves"

“We should not live as slaves,” it reads [Na men zesoume san douloi]. Evocatively, the word “doulos” is used for “slave,” the same term used by Aristotle in his Politics to approve the institution of slavery. His meditation on slavery is in fact one of governance, which manifests itself as the necessity of dominance. I’m going to quote at some length because it is the inability to “reason” according the “logic” of the markets that is being used to justify Greek slavery today. It’s also important to read this to realize how thoroughgoing and long-lasting the Western commitment to slavery has been.It is also a passage that contains within it so many of today’s critical concerns from the human/nonhuman, to the “soul at work” (Bifo), governmentality, Rancière’s division of the sensible, and the persistence of slavery. Let us note this is not a coincidence:

for that some should govern, and others be governed, is not only necessary but useful, and from the hour of their birth some are marked out for those purposes, and others for the other, and there are many species of both sorts….Those men therefore who are as much inferior to others as the body is to the soul, are to be thus disposed of, as the proper use of them is their bodies, in which their excellence consists; … they are slaves by nature, and it is advantageous to them to be always under government. He then is by nature formed a slave who is qualified to become the chattel of another person, and on that account is so, and who has just reason enough to know that there is such a faculty, without being indued with the use of it; for other animals have no perception of reason, but are entirely guided by appetite, and indeed they vary very little in their use from each other; for the advantage which we receive, both from slaves and tame animals, arises from their bodily strength administering to our necessities; for it is the intention of nature to make the bodies of slaves and freemen different from each other {1254b-1255a}

The present rhetoric of the “lazy” Greeks, shiftlessly avoiding tax payments and demanding state support defines people driven entirely by appetite. They must therefore become the chattel of the troika, despite the likelihood that the cuts will still worsen the economy and necessitate yet more support for the external bond markets. What matters is that the Greeks be made an example: “Can’t pay! Won’t pay!” is reworked into “Can’t pay? Become a slave.”

In Black Reconstruction, W. E. B. Du Bois insisted that the enslaved had ended chattel slavery themselves by mass migration from South to North at the beginning of the Civil War, long before the Emancipation Proclamation:

This was not merely the desire to stop work. It was a strike on a wide basis against the conditions of work. It was a general strike that involved directly in the end perhaps half a million people.

The result of the strike was an abolition democracy, whose participatory process centered on education and the capacity to be self-sustaining. The measures have passed. The occupations have been ended. It’s up to us to keep this present, to remain in the moment, to be present.

 

Pathologizing and Privatizing Occupy

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This week we’ve seen a very public attempt to pathologize Occupy and purported violence within the movement, even as I happened to see a very private closure of an Occupy in Pittsburgh. I’ve been reading Elisabeth Roudinesco’s history of the committed French intellectual, Philosophy in Troubled Times. She begins with Georges Canguilhem, Foucault’s adviser and the author of the classic The Normal and the Pathological. Canguilhem had to abandon the pacifism he adopted in the aftermath of World War 1 when confronted with fascism. In 1943, he defended his thesis defining the modern formation of the normal as that which was not pathological, while active in the Resistance. My point is not that these were real choices compared to ours but that it was every bit as difficult to make them, even though they now seem so clear.

In Pittsburgh, there was a privatized eviction of Occupy Pittsburgh by BNY Mellon. In New York, the NYPD cleared Zuccotti for Brookfield who now place rent-a-cops in the space. In Pittsburgh, the bank did it. Here’s the sign they posted:

Evicting Occupy Pittsburgh

It is now the bank that occupies the park and anyone else who might remain is a trespasser. As befits this activism, BNY Mellon has a Political Action Committee:

Our PAC makes contributions to U.S. federal candidates, a limited number of state and local candidates, and campaign committees and other PACs. When making specific contribution decisions, the PAC considers a number of factors, including the candidates’ positions on issues related to our business, their leadership positions, legislative committees and communities they represent.

According to their filing with the Federal Elections Commission, BNY Mellon raised about $112,000 in the second half of 2011. None was spent on any specific election and will presumably be used this year, for which data is not yet available. Any wild guesses as to how it might be spent? All such information is, under current law, private.

In public, some leading figures in Occupy have decided to attack each other rather than engage with these or similar actions. Financial journalist Chris Hedges, who might have been able to shed light on the matter, this week decided instead to pronounce that the so-called “black bloc” are a “cancer in the Occupy movement.”  Hedges, who has covered Occupy widely, published a long, rather rambling attack on the anarchist “black bloc” as being a direct attack on the “organized left.”

For Hedges, the  “criminal…hypermasculinity…[and] inchoate rage” of the black bloc are linked to the violence of the First World War via Erich Maria Remarque’s 1929 classic All Quiet on the Western Front. It would be just a few years after the novel was published that Canguilhem set aside his pacifism in response to the rise of the Nazis. I’m not saying we face a rise of Nazism now: I’m worried that the parallel is not helpful.

David Graeber has written a detailed reply to Hedges that makes the violence inherent in referring to people as “cancer” very clear. In Canguilhem’s terms, a cancer is the pathology of all pathologies. We cut it out, bombard it with radiation, saturate it with toxic chemicals. Very often it wins anyway. Like many people, I know this at first hand. You don’t do this, or make a verbal parallel, because people engage in the “shouting of insulting messages to the police,” as Hedges has it. That would have made all of ACT UP part of the Black Bloc, as Jodi Dean points out. To be exact, it makes almost everyone I know part of the Black Bloc.

It is no doubt not worth worrying about this too much at the level of its logic, except that it looks very much like a high-profile supporter preparing to abandon the movement. There was also an attempt this week to create concern that the Direct Action working group of OWS were abandoning non-violence. It was a bad misreading of their proposal to the General Assembly but it suggests that a range of people are ready to end their involvement with Occupy.

What we’re finding is that the state may be succeeding in turning Occupy into an occupation. In the Occupied Territories, it is always, in the joint view of the U.S-Israel government, the responsibility of the occupied to renounce all violence in all its forms. The precise nature of the violence to be renounced can be modified to meet given needs. Now that Israel has decided that there must be a “zone of immunity” in Iran, for instance, the US is scrambling to respond. Using the logics of counterinsurgent biopolitics, such discourse renders the body politic of Israel “normal” and that of Iran “pathological.” Only a zone of immunity–which has no meaning–can protect the good normal body from the pathological one. The immune system has exteriorized itself in this image into a wall of separation.

If part of Occupy is a cancer, then the “organized left” will need to declare a “zone of immunity.” It will heed the (meaningless) claim of the Oakland police that activists used “Improvised Explosive Devices,” the signature weapon of asymmetric insurgency in Iraq and Afghanistan. The “normal” will have to extirpate the pathological in order to survive. Let’s not go there.

Banks, Steel and Empire

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In what has become a sorry tale of repetition with the closure of Occupy sites, today we had a first: an Occupy encampment shut down by direct order of a bank.

Occupy Pittsburgh--rally against eviction

Since October 15, Occupy Pittsburgh has had a permanent presence in People’s Park formerly Mellon Park. The space is located downtown in front of BNY Mellon’s towering skyscraper, testament to its $25.9 trillion (yes, trillion) in assets. It is leased from the city on conditions that are in dispute. Investment bank BNY Mellon claims that it is a three season park, closed in the winter, and that they comply with the regulation that at least 20% of the space must be open at all times by making the sidewalk available. Clearly people in Pittsburgh treat the park as open space, as they were using it today for access and a place to smoke even though being there was legally trespassing.

For on February 2, BNY Mellon persuaded the usual compliant judge that they had the right to reclaim the space, remove all the structures and tents, and declare anyone present to be trespassing. That order went into effect today. Posted signs around the park announced that BNY Mellon had declared it illegal to set foot in the space. No mention was made of any other form of state authority.

Indeed BNY Mellon like to make fun of the whole Occupy thing, in the manner of London stockbrokers waving wedges of cash at Occupy London. Here’s their “hilarious” ad for the Financial Follies last year:

Occupying Wall St for 227 years: BNY Mellon

If you can’t read that, it says “We don’t mean to brag but we’ve been Occupying Wall Street for 227 years.”

So, perhaps it’s not so surprising that, unlike in New York or Oakland, there was an apparent reluctance on the part of law enforcement to get involved. Pittsburgh Occupiers I talked to today described how Pittsburgh police had helped them organize marches and had turned on their flashing lights to attract attention to the Occupiers. The reasons for this sympathy are obvious. I took the bus from the University area of Oakland where I’m staying to downtown. You pass one abandoned or derelict building after another with the only visible businesses being bars and gas stations, while the sole sign of life was outside a soup kitchen.

There’s a sense of absence throughout the city from the moment you arrive at the enormous airport, designed by US Air as a hub and now abandoned by them. People even lament losing the US Air call center where 50 people were employed, so tough is it to find a job. And then there are only 800 police in Pittsburgh, compared to the 30,000 in New York. I can’t move in New York without seeing the NYPD but I’ve been here two days without seeing the police although I spent all morning at Occupy.

This is still a steel town. BNY Mellon occupy a skyscraper once owned by the giant US Steel. The United Steel Workers union have an impressive building downtown that has been an important resource for Occupy Pittsburgh.

United Steel Workers Local 3657 in support of Occupy Pittsburgh

And then there are the nineteen steel bridges across the rivers here. From Occupy, I walked across the spectacular Seventh Street Bridge, now renamed the Andy Warhol Bridge, to visit the Andy Warhol Museum.

Outside, the streetscape is bleak and empty with no one passing by. Inside there’s lots of life and energy. I had Campbell’s Tomato Soup for lunch and thus fortified spent some time in the galleries. The Race Riot and Electric Chair series made it clear that Warhol was always aware of politics. The cold reality of the electric chair is difficult to confront even in a screen print. It was Empire that really caught my attention today, though.

Andy Warhol, "Empire"

I came into the screening of Warhol’s eight-hour film of the Empire State Building at a point where it was completely dark. The lights at the top of the building were the only point of illumination and they flared in the lens, giving the illusion of a fire. Thus Empire regards us. It would have us believe that it is a burning bush that never consumes itself but will scorch us should we try to touch, let alone extinguish it.

As I stood in the dark watching Empire burn, uncomfortable questions kept surfacing in my mind. Many of us in the humanities, very much including myself, are direct or indirect beneficiaries of the Mellon empire. Indeed, it seems that almost all new initiatives in the field are funded by the Mellon Foundation. In the face of today’s quasi-legal provocation what should we do? Move on, say nothing, and take the money because it is a repurposing of it for better things? Or try and use our place on the inside to somehow influence BNY Mellon? Or consider whether it might not be better to refuse to collaborate with them? What do you think?