Thursday, November 06, 2008
Reaction in France
Recent French elections have some strong parallels with Nixonian and post-Nixonian identity politics. Sarkozy, for one, managed to send out clearly racist messages while sounding the alarm about "personal responsibility," "delinquance," etc. It is/was classic dog-whistle politics. Like some American administrations, though, he as been innovative in not always promoting the elite-school technocrats but rather universitaires and minorities. His actions, like George Bush appointing Powell or Rice, show the cognitive dissonance of his public policies and personal ones.
Friday, July 25, 2008
"Free Markets"
"Fannie’s and Freddie’s free lunch, by Joseph Stiglitz, Commentary, Financial Times: ...The US government is about to embark on ... a partnership, in which the private sector takes the profits and the public sector bears the risk. The proposed bail-out of Fannie Mae and Freddie Mac entails the socialisation of risk – with all the long-term adverse implications for moral hazard – from an administration supposedly committed to free-market principles.I heard some "left wing" talk show host yesterday on AM 1150 who kept going on and on about free markets and how if we just let them do their job everything would be ok. Well, no. Free markets, as an idea, may be perfect, but the truth is that they are a utopian concept, a shadow on the wall. Power (as seen above) will always intervene, and, indeed, power structures (lobbyists, politicians, Wall Street) were present in the first place as Fannie Mae was massaged into a corporate model (with benefits for shareholders). Until we have an open discussion about who is wielding this influence and whether such influence is undue and subject to corruption and failure, then our conversations will also remain in a "utopian" netherworld that fails to account for what is really happening.
Defenders of the bail-out argue that these institutions are too big to be allowed to fail. If that is the case, the government had a responsibility to regulate them so that they would not fail. No insurance company would provide fire insurance without demanding adequate sprinklers; none would leave it to “self-regulation”. But that is what we have done with the financial system."
[h/t economists view]
Capitalism, the marketplace are incredibly dynamic systems, but they can be a threat to democracy when they become a corporatocracy. It's funny, someboday was telling me how much China was becoming like us; I looked around and thought: "No, we're becoming like them."
Wednesday, April 09, 2008
Economics 101: Le Monde Diplomatique
In theory, the United States is all for free trade and is the leading advocate of the system. But, faced with a recession and a colossal trade deficit, it is reconsidering, as everyone knew it would. The US military contract for 79 refuelling tankers, co-produced by European Aeronautic Defence and Space (EADS) at a cost of $35bn, is no exception. US national interests are well protected. This “European” aircraft will be equipped with General Electric engines, produced in partnership with the US company Northrop Grumman and assembled in Alabama. More than half the added value will be generated in the US. Much of the equipment on offer from the main competitor, Boeing – less readily available, with a more limited refuelling capability and range – would not have been produced in the US.
Editorials in newspapers and the business press assure us that it is wrong to take strong measures to protect national companies and their employees. But history shows that most developed countries owe their prominent positions to trade barriers. Britain, France, Korea, Japan and Prussia did not acquire their industrial power by obeying David Ricardo’s law of comparative advantage. And in the 19th and early 20th centuries, when the US had the highest growth rate in the world, its customs tariffs were around 50% (44% in 1913). President Ronald Reagan inveighed against protectionism but set limits on imports of cars, steel, sugar and textiles. His administration increased duties on cars with big engines (by a factor of 11) and on motorcycles, to rescue Harley-Davidson. And it pressured Japan to revalue its currency, just as President George Bush is asking China to do now (1).
The monetary policy pursued by the Federal Reserve with the tacit approval of the White House, although not openly protectionist, has obvious implications for trade. A weak dollar is good for exports and will reduce the impact of the current recession in the US. The European Union is almost alone in calmly allowing central bank policy on interest rates – high interest rates – to threaten major industries established with considerable injections of public money. Groups like EADS are relocating their activities to the dollar zone to escape the dire effects of revaluing the euro (2).
The deal with the Pentagon also has political and strategic implications. What price did Europe have to pay for the honour of refuelling US aircraft with equipment co-produced in the US because the Federal Reserve keeps interest rates down? When it was announced that the contract had been awarded to EADS, Democratic congressman John Murtha complained that the Europeans were not pulling their weight in Afghanistan. By coincidence, President Nicolas Sarkozy is about to send 1,000 more French troops there. Celebrating his new diplomatic entente with Washington, Sarkozy said: “It would have been unthinkable for EADS to win the contract for refuelling tankers in the previous climate of tension between France and the US” (3). Enough said. The Pentagon decision is a superlative lesson in free trade.
Wednesday, March 19, 2008
Obama's Speech
h/t Obeygiant
It is rare that I link to the speeches of politicians in a positive way, but I think the rare occasion has arisen with Obama's discourse yesterday on race. Of course the media think he did not distance himself enough from Wright, and, of course, the media are wrong on at least two counts: 1) They cannot acknowledge the existence and need for resistance within poor and oppressed communities (because the media is blind to institutional oppression); and 2) because they do not hold other candidates to the same standard. Think: McCain and Haggee, Bush and any number of racist kooks. Anyway, read the words:
For we have a choice in this country. We can accept a politics that breeds division, and conflict, and cynicism. We can tackle race only as spectacle – as we did in the OJ trial – or in the wake of tragedy, as we did in the aftermath of Katrina - or as fodder for the nightly news. We can play Reverend
Wright’s sermons on every channel, every day and talk about them from now until the election, and make the only question in this campaign whether or not the American people think that I somehow believe or sympathize with his most offensive words. We can pounce on some gaffe by a Hillary supporter as evidence that she’s playing the race card, or we can speculate on whether white men will all flock to John McCain in the general election regardless of his policies.We can do that.
But if we do, I can tell you that in the next election, we’ll be talking about some other distraction. And then another one. And then another one. And nothing will change.
That is one option. Or, at this moment, in this election, we can come together and say, “Not this time.” This time we want to talk about the crumbling schools that are stealing the future of black children and white children and Asian children and Hispanic children and Native American children. This time we want to reject the cynicism that tells us that these kids can’t learn; that those kids who don’t look like us are somebody else’s problem. The children of America are not those kids, they are our kids, and we will not let them fall behind in a 21st century economy. Not this time. (Link)
Sunday, April 29, 2007
Wednesday, March 22, 2006
French Racists and the 10 Condiments!
The essayist apologizes for following the strict structure of the essay form. (Essay comes from the French word "essai," which can be loosely translated as "trial," "attempt" or "experiment." And this essay is just that. It is a trial, an attempt at understanding the present and predicting the future. So, dear Reader, your patience is appreciated, as is your open mind.)
Part I: The French Problem
I was shocked to find out today that French people are racists. And this news doesn’t come from a Bush administration official, PNAC or the Wall Street Journal, but from the French themselves. Indeed, a recent poll indicated that 30% (or something like that) of the population (of that former Roman territory) considers itself racist.
You know, while living there, I kind of suspected this. There were the tell-tale signs: I saw mostly white folks stores like the Bon Marché, yet there were just a few chez Tati. I also noticed that even in France's capital city there are poor, non-white people living in sub-standard conditions. (Now, to be fair, they do provide the poor with health care and numerous childcare options, but that doesn’t make things alright with me. I don't care how much you help people--it's the thought that counts. So, even if French people are helping poor African immigrants, it doesn't matter because their heart is in the wrong place, as the survey says.)
Part 2: A New Age Dawns
Television news has always been a progressive reflection of society, so a lot can be learned looking at how France and America® do things. For example, when I was in France, another thing I noticed was that French TV hosts are almost always white. That’s a problem because TV hosts can and do change the world. Luckily for us, America solved its racism problems a long time ago. This was known as the Bryant Gumble Revolution. This was when all Americans quit being racist because we finally understood that people with colored skin were not always like Richard Pryor or Malcolm X. Rather, they were just like us! Since then, we've had people like Barack Obama. He transcends race, as do most people who don't talk about it much.
But let's leave Barack aside a moment, for I do believe we are at a crossroads: America (and the world) are currently in what serious historians will probably call the Condi Rice era. It is an age of glory, truth and justice for all creeds and colors. History is over and race is an afterthought. What proof do I have of this? Well, though we are still awaiting the arrival of the Ten Condiments, we do still know that the present era represents a profound change. How profound? Well, for the first time, the Senate heard a black woman’s testimony without challenging her veracity.
Getting back to France and the poll that shows they are racist... I think this poll represents an important step in American journalism: the AP did, for once, report what a French person thinks rather than what an American person thinks a French person thinks. Really, this is important, so I checked with my contacts at CJR, FAIR and Media Matters and they agree. (Does that make me a reporter now, like Ben Domenech, and not just a blogger? Gosh, I hope so!)
This new pollalso really just confirms what those car burnings were all about. Now, you think I’m going to say "because racism exists in France, that ’s why those disaffected youth took to the street to protest that (as well as the sinister forms of institutional racism that frame their lives.)" Well, this time you’re right. Racism--and class difference--exist in France, that ’s why those disaffected youth took to the street to protest. What do you expect, France is still socialist and now the people are revolting against the sinister forms of institutional racism that frame their lives. Luckily, in America, we no longer have to worry about government repression because neoliberalism and capitalism have brought us all the freedoms we need.
You may also remember that last weekend one million (1,000,000) French youth marched peacefully to protest a new law that allows employers to fire young people pretty much at will. While the car fires showed how disorderly French youth could be, this protest shows how spoiled and utopian the French are. Fighting for your rights is so passé, and now it may get you fired! (“You’re fired!” That’s so classic!)
Part 3: Confronting Our Demons
Now, you’re thinking: “what about Katrina?” I’m here to report that there was, kind of like for Karballah and Fallujah, a lot--a lot!--of false reporting. For example, all those reports about violence in the SuperDome, they were false. Really--even Voice of America says so! Those people, mostly African American it appeared to me, were not as disorderly and violent as it might have seemed. It was just an impression, thank goodness, and that really reminds me of why the Bryant Gumble Revolution was so important to our country and why Condi Rice is proof of the absence of racism in America. It’s all very logical if you think about it and that is why the 10 Condiments (whenever they come and whatever they say) will be so very revolutionary.
In conclusion, I think I understand why the French are racist and, more importantly for today’s news, why they consider themselves such. France has prosecuted numerous territorial, imperialistic wars. Think Napoleon, South-East Asia, North Africa, West Africa, Canada, and a dastardly (and successful) pre-emptive strike on Wallis and Futuna. This did not just come from the blue (or should I say Le Grand Bleu), but from a deep-seated belief that they were not just equal to, but better. The Best. The Best. They have HUGE egos.
Now me, I'm a huge--HUGE!--Lee Greenwood fan (I own “God Bless the USA/Proud to be an American”--I even have the American Idol version of the song that came out after, well, you know). Anyway, I think that Lee and I agree that there is a difference between pride and thinking you’re the best. I really don’t think he is trying to say America is “The Greatest.” He’s just saying we’re great, really great, but not necessarily The Greatest.
And that’s why Condi Rice is such an important figure in this essay and, dare I say, in the whole world. She’s now our Secretary of State and has John Bolton (he happens to be white so she’s not racist either) working for her at the United Nations. Since America is a land of equality and opportunity, we will be able to convey those and other ideals (democracy and freedom, for example, and our greatest gift, representative capitalism) to the world. Maybe we can spread a little humility, culture and tolerance for other races too, because, obviously they need it! In fact, I suspect that one or several of the 10 Condiments will focus on this and they will actually replace the UN Charter. Furthermore, they will be written in English Only, and French will no longer be one of the official diplomatic languages, precisely because the French are racist.
Part 4: The Final Countdown
In a final conclusion, I feel compelled to address those critics who say I'm leaving out our own history when I don't mention Native Americans, Latinos, Asians and other people whose skin is not white. My point is that things have changed and that Americans need to have a different mindset. Back in the day, we used to send people of color away. For example, we sent Josephine Baker and James Baldwin to Paris not because they weren't welcom here, but to show how amazing these black folk could be. And though the Liberal Left will say they were fleeing oppression here, that's just not true. They were sent to the even more racist country of France as punishment and show them how life was actually pretty darn good here. This recent poll just proves my point again. Furthermore, if any residual racism lingers here after the pronouncement of the 10 Condiments, it will no doubt dissapear quickly. (My concern is that the Condiments will not appear until the burning Bush. I know that this may be as worrisome to you as to me, but rest assured: anonymous sources tell me that Barbara's hair spontaneously combusted several weeks ago.)
So, in my last conclusion, , I will say, without equivocation, that France is racist and the age of the 10 Condiments lies just around the corner. This will be much better than the Teresa Heinz 57 (so verbose that Kerry clan) or heavy racist French fare such as the Hollandaise 11, the Dijonnaise 24 and Beurre Blanc for Dummies .

