The Grapes Of Wrath - Ready For The Harvest

“and in the eyes of the people there is the failure; and in the eyes of the hungry there is a growing wrath.
In the souls of the people the grapes of wrath are filling
and growing heavy,
growing heavy for the vintage.”
~John Steinbeck, The Grapes of Wrath

    John Steinbeck's brilliant novel "The Grapes Of Wrath" was published on April 14th  in 1939.
He documents how society is divided into the dominant  and the dominated and how people in the dominant roles in a society act viciously to preserve their dominance. The novel identifies that division as the primary source of evil and suffering in the world.

So Where Is Tom Joad Today?

   “And the great owners, who must lose their land in an upheaval, the great owners with access to history, with eyes to read history and to know the great fact: when property accumulates in too few hands it is taken away. And that companion fact: when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed. The great owners ignored the three cries of history. The land fell into fewer hands, the number of the dispossessed increased, and every effort of the great owners was directed at repression. The money was spent for arms, for gas to protect the great holdings, and spies were sent to catch the murmuring of revolt so that it might be stamped out. The changing economy was ignored, plans for the change ignored; and only means to destroy revolt were considered, while the causes of revolt went on.”~ John Steinbeck, The Grapes Of Wrath

   What have we learned? Where are we today in terms of combating the obvious evil that arises when any group of people assemble themselves as a force to dominate others? Whether it is politically or economically, the lesson history teaches us is ignored time and again.
Indeed what is the true nature of capitalism in today's world?
 Is it some grand national adventure, as politicians and textbooks preached when I was growing up? Is it some benign system in which markets provide framework for amiable competition, from which emerges the greatest good for the greatest number of people? Or is it merely the domain of class struggle, a “global class war,” as Jeff Faux’s book of the same title would have it, in which the “party of Davos” outmaneuvers the remnants of the organized working class and beats them down?

The doctrines of the “law and economics” movement, now ascendant in our courts ["law & economics" is the theoretical analysis of law focusing on efficiency. Basically a legal situation is said to be efficient if a right is given to the party who would be willing to pay the most for it.],  suggest that firms will adhere on their own to honorable conduct. That any public presence in the economy undermines this. Even insurance—whether deposit insurance or Social Security—is perverse in this belief system, for it encourages irresponsible risk taking. Banks will lend to bad clients, companies will speculate with their pension funds, etc. This movement has even argued that seat belts foster reckless driving. To adherents insurance creates a “moral hazard” for which “market discipline” is the cure-all.  It’s a strange vision, and if we weren’t governed by people like John Roberts and Sam Alito, who pretend to believe it, it would hardly be worth wasting our attention on.

“ Class struggle is the history of all hitherto existing society”-~ Karl Marx

  The idea of class struggle goes back a long way; it really is “the history of all hitherto existing society,” as Marx and Engels had declared. But if the world is ruled by a handful of monied elite, What role does the middle-class working citizen have today in the global society, or even in his or her own nation state?   None. It's a shell game, a hoax.  The political decline of the left flows in part from rhetoric that no longer matches experience; generally speaking, people in the developed nations do not feel they are living on the edge of a Malthusian catastrophe. Dollars mostly, but Euros and Pounds as well, command most of the world's goods...rupees not so much. So workers, as members in the "dollar" economy have been assimilated and in  today's world; are made complicit in sustaining and ever expanding the influence of the capitalist class.

 I grew up in the mixed-economy America. Yes, there existed a post-capitalist, post-Marxian vision of middle-class identity and indeed pride. It consisted of shared burdens, assets and entitlements.
The cornerstone of which was public education. Along with access to college, decent housing, full employment at living wages, Medicare, and Social Security.
    These programs, were publicly provided, financed, or guaranteed, and had softened the sharp edges of Great Depression capitalism, rewarding the sacrifices that won the Second World War. They also showcased America, demonstrating to those behind the Iron Curtain that regulated capitalism could yield prosperity far beyond the capacities of state planning. (This, and not the arms race, are what really ended the Soviet empire.) These middle-class institutions survive in America today, but they are weakened, diluted, frayed and tattered from constant attack. The division between those included and those excluded is large and growing larger exponentially with each year. This is frightfully obvious.

   The main feature today of modern American capitalism is certainly neither benign competition, nor class struggle, nor an inclusive middle-class utopia. No the main feature is predation. It has become a system where the rich come to feast on decaying systems built for the middle class.
I concede of course, that the predatory class is not the whole of the wealthy; it may be opposed by many others of similar wealth. But it is sadly the defining feature and the leading force in today's world. The agents of this bloodfeast are in full control of the governments under which we live.
Our rulers deliver favors to their clients.They have no interest in representing us, there's not enough cash in that. In the U.S. the predators range from Native American casino operators, to Appalachian coal companies, to 3rd world sweatshop operators, to the oil field operators of Iraq. They include the misanthropes who led the campaign to abolish the estate tax; Charles Schwab, who suggested the dividend tax cut of 2003; the “Benedict Arnold” companies who move their taxable income offshore; and the financial institutions behind the crash of 2007. Everywhere you look in the U.S or the U.K., you find public decisions yield gains to very specific private entities. We have become a predatory regime, and nothing is done for public reasons ever. Those in charge do not recognize that “public purposes” even exist at all. They have friends, and enemies, and as for the rest—we’re simply their prey.
    Remember what happened in New Orleans? Hurricane Katrina illustrated this perfectly, as Halliburton scooped up contracts and Bush hamstrung Kathleen Blanco, the Democratic governor of Louisiana. He stuck a guy who had organized a dog show in charge of the relief and rescue operations. The population of New Orleans was, at best, an afterthought; and once dispersed, it was quickly forgotten. In this predator-prey model, growth among the prey stimulates predation.
The two populations grow together at first, but when the balance of power shifts toward the predators
they swoop in and take everything they prey has accumulated. They have all sorts of tools for doing this; rising interest rates, utility rates, oil prices, crashing home prices by flooding the market with worthless mortgages, buying off the government, or outright embezzlement to name a few).
When any catastrophe occurs, from the 9-11 attacks to Hurricane Sandy,  the predators swoop in and use the catastrophe to enrich themselves. Yes, the Iraq war was nothing more than just that, vulture capitalism at it's worst, an excuse to loot the treasury and funnel money to the capitalist class. No one in government had concern for the suffering of the 1st responders, who sought to have their medical bills paid...14 years later the few who hadn't died from cancers as a result of exposure to toxins in the burning buildings they walked into on that day to save as many lives as they could, were still begging congress for a bill that would help with their medical bills. Gov. Chris Christie and Rudy Giuliani like to cite the attacks as some sort of personal badge of honor, but politically they forgot entirely about the actual people who suffered loss and or disease in those attacks, they were largely discarded except for the occasional photo op. Christie thanks the first responders by not funding the states portion of their pensions, and has sought to bust the public employees unions, roll back healthcare & pay for them. 9-11 was little more than a cash cow to the predators. An excuse to undo the Magna Carta, to stick their bloated friends in cushy 'homeland security' positions, and to loot Iraqi oil fields.
Everything that happens is an excuse to prey.

Predator Capitalism Is The Enemy 

Of Honest Business As Well As Workers

    In a world where the "winners" are all connected, it’s not only the prey who lose out. It’s everyone who hasn’t licked the required boots. Predatory regimes are nothing more than protection rackets. They may be powerful and feared, but never loved nor respected. They do not enjoy a broad political base. In a predatory economy, the rules imagined by the law and economics crowd don’t apply. There’s no market discipline. Predators compete not by following the rules but by breaking them. They take the business-school view of law: Rules are not designed to guide behavior but laid down to define the limits of unpunished conduct. Once one gets close to the line, stepping over it is easy. A predatory economy fosters and rewards criminal behavior.

The Best Way to Rob a Bank Is To Own One

    Remember the Savings and Loan and Keating Five scandals?
  obvious examples where the leader of an organization uses his company as a “weapon” of fraud and a “shield” against prosecution.  Look at Enron, Tyco, and WorldCom, The Neil Bush S&L looting.  All examples of controlled fraud which was protected by clean audits from respected accountants. The large frauds were nearly all committed in institutions taken over for that purpose by criminal networks, often by big players like Charles Keating, Michael Milken,Bernie Madoff, and Don Dixon. There’s another reason people need to be concerned about predatory institutions. They invariably fail in the end. They fail because they are meant to fail. Predators suck the life from the businesses they command, concealing the fact for as long as possible behind fraudulent accounting and hugely complex transactions; and that’s the looter’s point.

     We have governments run by people rooted in this culture.
To expect that they should not also be predatory is lunacy.
The link between George H.W. Bush, who led the deregulation of the S&Ls, his son Neil, who ran a corrupt S&L, and Neil’s brother George, for whom Ken Lay sent thugs to Florida in 2000 on the Enron plane, could hardly be any closer. But aside from occasional references to “kleptocracy” in other countries, economic opinion has been slow to recognize this. Thinking wistfully, we assume that government wants to do good, and its failure to do so is a matter of incompetence.
This is not so. You can't complain if your wine is sour when you choose a liar to select the brew he pours you.

    One would think if our governments are also predatory, or at least controlled by predators, then they too will fail: not merely politically, but in every substantial way. Government will not cope with global warming, or Hurricane Katrina, or Iraq—not because it is incompetent but because it is willfully indifferent to the problem of competence.
    What mechanisms survive for calling the predators to account?
Unfortunately, at the highest levels, one cannot rely on the justice system, thanks to the power of the pardon. It’s politics or nothing, recognizing that in a world of predators, all established parties are corrupted in at least part.  So, how can the political system reform itself? How can we reestablish checks, balances, countervailing power, and a sense of public purpose? How can we get modern economic predation back under control, restoring the possibilities not only for progressive social action but also—just as important—for honest private economic activity? Until we can answer those questions, the predators will continue to rape and pillage. We can say Steinbeck's powerful observations are just as true today as in 1939. All the gains of our father's generation, and ours as well are now being looted.  Being taken back.  The question is, what will we do about it?
What has happened in the past when peoples are made necessitous?
When they hunger?
When they have been robbed?

“Whenever they's a fight so hungry people can eat, I'll be there. Whenever they's a cop beatin' up a guy, I'll be there . . . . I'll be in the way guys yell when they're mad an'-I'll be in the way kids laugh when they're hungry an' they know supper's ready. An' when our folks eat the stuff they raise an' live in the houses they build-why, I'll be there." 
~Tom Joad in John Steinbeck's "The Grapes of Wrath"

John Steinbeck

Top Dogs Of Class War

“There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.” - Warren Buffet

Few would argue that Warren Buffet is a very smart fellow. And his statement is not as condescending as it sounds...he was commenting on the fact that his employees pay around a third of their net income in taxes while he, one of the wealthiest men in America; pays less than 13%. He said he uses no tax planning and makes no efforts to weasel out of paying such as hiding money in tax shelters etc. but this unfair tax situation is simply evidence of class warfare...the war of the outrageously wealthy against everyone else. And They are indeed winning, if they have not already won.


Welcome To The Dog And Pony Show
An American businessman who recently moved his manufacturing operations to Mexico was standing at the pier of a small coastal village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The Globalist complimented the Mexican on the quality of his fish.

“How long it took you to catch them?” The globalist asked.

“Only a little while.” The Mexican replied.

“Why don’t you stay out longer and catch more fish?” The globalist then asked.

“I have enough to support my family’s immediate needs.” The Mexican said.

“But,” The American globalist then asked, “What do you do with the rest of your time?”

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take a siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life, señor.”

The American capitalist scoffed, “I am a Harvard MBA and I could help you. You should spend more time fishing and with the proceeds you buy a bigger boat, and with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats.”

“Instead of selling your catch to a middleman you would sell directly to the consumers, eventually opening your own can factory. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise.”

The Mexican fisherman asked, “But señor, how long will this all take?”

To which the American replied, “15-20 years.”

“But what then, señor?”

The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions.”

“Millions, señor? Then what?”

The American said slowly, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your grandkids, take a siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos…”

Get the picture?

Most of us see success in life as having enough to be comfortable, have some degree of security, and experience life's joys. Some, and I suggest this is a sociopathic quality, can't get enough. They can't experience happiness. They want it all, yours mine and ours. These sociopaths already own most assets and coins on earth, but it's not enough. It will never ever be enough.

Now allow me to interject at this point that I'm not suggesting that all wealthy people are sociopaths, Warren Buffet for instance has every right in my view to make profit from his smarts, at least he has some grounding that makes him understand he too should be taxed for services at minimum, the same rate as his housekeeper. He, and people like him are not really the issue, (though I also understand the logic of the argument that anyone who has more than a fair share, ultimately takes it from someone else.) But that is not the focus of this article. This is about Global Class War waged, not by the poor, downtrodden, or trampled underfoot; but by sociopaths and their sycophants who can not rest until every drop of blood is wrung from every stone.

"We have to tolerate the inequality as a way to achieve greater prosperity and opportunity for all."

Huh? Really?

Those were the words of Lord Brian Griffiths, a former adviser to British Prime Minister Margaret Thatcher. And why the hell wouldn't Griffiths feel that way? After all, he's vice chairman of Goldman Sachs International. He personally experienced much, much "greater prosperity"thanks to record bonuses the banking giant paid out at the end of this year. So the "recession" is over, it's over for the world's obscenely wealthy. And no one else matters.

Goldman--along with plenty of other financial institutions--is in the midst of a bonus orgy, with end-of-year payouts to financial executives worth billions of dollars--allegedly for a job well done in 2009. Of course Goldman is one of the firms bailed out, allegedly saved from it's own extinction from U.S. taxpayers. Goldman isn't alone. Overall, Wall Street firms have paid out $140 billion in bonuses this year, according to a Wall Street Journal survey of 23 banks, investment firms, hedge funds and other institutions. That's $10 billion more than in 2007, the year before the financial meltdown and the high point of Wall Street's balloon. How on earth is this justifiable? It just isn't, and it doesn't matter, you'll subsidize this and like it! That's right you peasants, take it like a chump. Don't put up a fight, don't even whimper.

How did Wall Street recover so quickly that the banks could be wiping their asses with money again? To hear the banks tell it, their boffo quarterly earnings reports and the coming tidal wave of bonuses are the result of their financial skill--proof that the Wall Street Wizards are a cut above the rest of us. Certainly it's only fair that they should be showered with cash while the rest of us get hosed with layoffs, wage cuts, foreclosures and bankruptcies.

But that picture is a vile and pernicious fraud. The Banking Pirate's profits are being subsidized heavily with your money. Remember, these firms were given this money to make loans so credit didn't freeze up. It was for creating new jobs, restructuring mortgages and "trickling down" to Main Street.

That didn't happen did it?

Trickle Down Economics

So what did Goldman and other firms do with this free money? No, they didn't lend it out. Instead, the last quarter shows that almost all of Goldman's revenue in those months--$10 billion out of $10.8 billion--was from trading. Goldman posted its $3 billion in profits based largely on gains from trades and fees from customers. Goldman, in other words, is a bookie, and a gambler and little else.

The bottom line: Goldman didn't create a single job or stop a single foreclosure.

Responding to public anger at the size of Goldman's bonuses, the firm's Chief Financial Officer, David Vinar scoffed, "I do think it's too big a focus. I would prefer people to be focused on the success of our business, how well we're doing, and how well our people are performing."

Con men like Vinar think you are too stupid to understand the swindle they're operating. But it's obvious. As Elizabeth Warren, the Harvard professor and chair of the Congressional Oversight Panel created to oversee the Wall Street bailout, commented:

"So let me understand this. They can take taxpayer money and go out and make investments--gambles. These are not loans. This is not from lending activity, which is what I thought the banks were in the business of doing. Instead, they can go out and make short-term profits in investing and be rich, and that's the healing of the financial system? I'm sorry, I don't think so."

As for the bonuses, Warren said:

"I not only don't think it's appropriate...I am wordless over this. Speechless. I do not understand how it is that financial institutions can think that they can take taxpayer money, and then turn around and act like it's business as usual...I don't understand how they can't see the world has changed in a fundamental way. It is not business as usual when you take taxpayer dollars. But all I can say right now is that they seem to be winning this argument."

The unmitigated audacity of Wall Street was so over the top as to make even the Economist magazine blush. "Worst of all, bonuses are being paid in part from subsidies: this is not a free market, but a perversion of it." The magazine further wrote that banks "enjoy laxer accounting, loose collateral rules at central banks, explicit debt guarantees and asset-purchasing schemes. And critically, they can borrow cheaply because they are deemed too big to fail. All of them--from comparatively healthy Goldman to the nationalized weaklings--are being subsidized by the rest of us."

Warren Buffet has said he paid 13% of his income in taxes, this is without efforts to shelter or weasel out of paying through lobbying, cooking books, or offshore tax dodges like we have seen so many do . His housekeeper has to give 33% of her income. And yet the call from conservatives is to cut the tax rate for the wealthy even further.

Mention to conservatives or Republicans that we should consider some mode of equity in the tax system, that maybe these "Wizards" should contribute to their own subsidization, that the wealthiest men, as Warren Buffet says, should at least pay their fair share... and free marketeers and conservatives will purvey several arguments. The first argument is that this mere suggestion constitutes class warfare. I think Mr. Buffett already answered that one. Resistance is futile. The mere concept of resistance is taboo.

The other argument is that raising taxes actually lowers tax revenues. "Huh"? That's right, total revenues will increase if they aren't paid, so only cutting taxes stimulates federal revenue. They claim this is proved by the history of tax receipts during the George W. Bush presidency. But, in fact, the federal government collected roughly $1.004 trillion in income taxes from individuals in fiscal 2000, the last full year of President Bill Clinton’s merry presidency and actually after the tech boom bubble burst (we won't use figures during the tech boom because that might be unfair and assailable by believers in the miracle of trickle down economics). It fell to a low of $794 billion in 2003 after Mr. Bush’s tax cuts (but not, you understand, because of them, his supporters like to say). Of course I like to say the economy completely derailed under Bush economics, which were of course good old fashioned Voodoo, Trojan horse, Trickle Down, Bullshit. It wasn't until 2006 that revenues broke the trillion dollar mark again. By this time, Republicans had added a $2.7 trillion to the national debt.

So much for tax cuts adding to revenue.

Your Ad Here