Things have been a bit quiet here because we’ve been trying to piece together our thoughts on crisis for an article in the next Shift. Those speculations can be found here (although we may one day produce a slightly longer version because we ended up cutting sections on wealth and value, among [...]]]>

Things have been a bit quiet here because we’ve been trying to piece together our thoughts on crisis for an article in the next Shift. Those speculations can be found here (although we may one day produce a slightly longer version because we ended up cutting sections on wealth and value, among other things).

As we threw ideas around, one that kept bouncing back was the meaning of ‘crisis’. As we explain in the piece, “the word ‘crisis’ has its origins in a medical term meaning turning point – the point in the course of a serious disease where a decisive change occurs, leading either to recovery or to death”. It’s a fork in the road. In one sense, it’s utterly binary – you either live or die. But really it’s a lot more than that. In the current global crisis, the options are far more fluid. If capitalism recovers (i.e. if it can develop a new regime of accumulation), it won’t take the same form as the capitalism we faced 5 years ago; and if it fails to recover, it won’t simply curl up and die.

From capital’s point of view, it’s exactly this sense of openness, of possibility, that needs to be closed down. At the three major summits this year (G20 in the UK in April, G8 in Italy in July, and COP15 in Denmark in December), world leaders will be looking to contain things, to rein in our desires, and draw a line under the events of the past few months. “Move along now, there’s nothing to see here…” Every ‘solution’ that’s touted at these summits will also be an act of closure, an attempt to reintroduce capitalist temporality, one that sees the future rolling out inexorably from the present. So we’re treading a tightrope here. On the one hand, as recession deepens, we will resist any measures that restrict our immediate freedoms – and that might mean pushing for ‘solutions’ that are slightly less damaging (as lay-offs mount, it’ll be interesting to see whether the recent successful Chicago factory occupation is taken up elsewhere). But on the other hand our greatest chance of something different lies in keeping the crisis ongoing. Of keeping the wound open.

On the 28th of April 2006 a group of activists dressed in Superhero costumes burst into the insanely expensive Hamburg delicatessen, Frische Paradies and ran out with 1500 Euros worth of expensive food. Despite several police cars and a helicopter rushing to the scene, the culprits they got clean away. Not, however, before [...]]]>

On the 28^th of April 2006 a group of activists dressed in Superhero costumes burst into the insanely expensive Hamburg delicatessen, Frische Paradies and ran out with 1500 Euros worth of expensive food. Despite several police cars and a helicopter rushing to the scene, the culprits they got clean away. Not, however, before they posed for the photo above, which they release along with a communiqué explaining that the food was given away to some of the city’s precarious workers. Months later the police raid some houses and arrest a woman in relation to the incident. The evidence against her wasn’t the strongest; they claimed that she sometimes wore her hair in a ponytail, as did one of the superheroes, and that on her computer were documents that mentioned precarity, which was also mentioned in the Superheroes communiqué. The case against her has recently been dismissed.

It’s a nice story but I want to use the incident to think through some recent concerns. Firstly, responses to the current crises. Secondly how to act without that acting seeming like specialised work for activists. And thirdly, how mediatised figures can change the way people think about themselves by allowing them to recognize commonalities with others.

In many ways the incident chimes with other recent actions and suggestions, which are all variations on the tradition of self-reduction struggles. In the UK there has been a suggestion for a Price Reduction Campaign, we’ve mentioned this before. The idea is to organize mass meetings outside supermarkets to decide what a fair price for essential goods should be in these exceptional times. One of the problems with this idea is how to avoid getting trapped in the identity of ‘consumers’ or ‘customers’. Another recent practice has been that of the Greek Robin Hoods, who have conducted mass raids on supermarkets, leaving the goods outside for the general public to help themselves. A problem with this, however, is that it is acting on behalf of other people, which could reinforce the identity of the activist as separate from passive category, ‘ordinary people’.

The precarious superheroes incident might seem similar but they try to overcome such problems by inventing identities meant to represent common experiences of precariousness. The superheroes call themselves names like Spidermom, Multiflex, Santa Guevara and Operaistorix. The idea is that you need super human abilities just to survive in this world of insecurity and precarity. As they explain:

“Superflex is familiar with every type of job contract: part time, full time, internship. All the stress led him to a pleasant mutation of his molecules… Operaistorix survived the last few years with the help of his unemployment module… Spider Mum’s mutant body developed somewhere between the kindergarten and unpaid and paid cleaning jobs. In her hands, Ajax and a mop turn into merciless weapons… Santa Guevara dodges all control checks and disappears without a trace. With this power, he is able to escape from the boredom of call centers and university seminars.”

We could think of the superheroes as P2P icons, a concept first raised in the context of San Precario, the patron saint of the precarious. San Precario was invented as a symbol or icon in which all the different experiences of the precarious could invest their desires. Large models of San Precario have been carried round on demonstrations, like the saints parades of Catholic countries.

The superheroes are a variation on this theme that address the problem of how people’s subjective understanding of themselves can limit their possibilities. Or as Mario Tronti put it: ‘As a matter of urgency we must get hold of, and start circulating, a photograph of the worker-proletariat that shows him as he really is – “proud and menacing”‘. The certainty and dignity of the job for life, that was some small compensation for the world of the mass workplace, has become increasingly rare. The precarious superheroes want to create a new “proud and menacing” photograph by reframing our precarious experiences as training for a world when we are in control of our lives and can be as flexible as we want. With the crumbling of the financial sector, the erstwhile ‘masters of the universe’ have been revealed as small men who wasted their lives building pointless pyramid skills. Our greatest revenge would be the menacing prospect of a new class of people stepping on to the world stage. As Spidermom says:

“We don’t care for the romanticism of the lonely hero type, we’d much rather bump into more and more superheroes in our daily lives.”

I went to a really productive meeting at the CommonPlace last night, throwing about ideas on the financial crisis and trying to work out how best we can ‘intervene’ (ugh, bad word but you know what I mean). I’m slowly coming to terms to with the fact that I’m fairly crap in meetings: [...]]]>

I went to a really productive meeting at the CommonPlace last night, throwing about ideas on the financial crisis and trying to work out how best we can ‘intervene’ (ugh, bad word but you know what I mean). I’m slowly coming to terms to with the fact that I’m fairly crap in meetings: I get distracted too easily and lose the thread; plus I have the turning circle of a small tanker (a small tankie, even), and need time to digest new ideas. But I can think on my wheels, if not on my feet, so here are a few things that occurred to me on the way to work this morning.

One of the recurring themes of recent debates around the financial crisis is that we really don’t know how things will pan out, and what new regime might take the place of neoliberalism (if it is dead), or what new form neoliberalism might take (if it’s just a bit poorly). Clearly some new Bretton Woods is going to take shape – it already is happening – but it might be more useful for us to focus on our end of the bargain. It’s not as if our leaders are going to emerge victorious from a boardroom clutching a piece of paper and proclaiming a new global financial regime… Actually, they might do just that, but the point is that regime will only ‘work’ to the extent that we allow it to work. Simplistic, I know, but it’s the same as any campaign around the law: during the struggle against the Poll Tax in the UK, it was really important for activists to know the law, to advise non-payers of their rights, to know how to use the power of “McKenzie Friends” to clog up the courts etc. But the aim of the game was to make the law unworkable.

Related to this is the problem that it’s really hard to work out what’s going on while we’re in the middle of this shit-storm. True. I’m struggling to understand what the fuck is going on (and why) and where we fit into this. But perhaps we can flip this around. This sense of global uncertainty is exactly what’s offering a possible opening. There’s a crack in capitalist reproduction (altho not one obviously created by our activity), and this has led to the suspension of some of the “normal” laws of operation. The impetus for a new Bretton Woods is an attempt to minimise this state of exception (and normalise what can’t be reduced), so we can all “stop worrying and get back to work”. So how can we slow down this process of normalisation? How do we keep these times exceptional?

One of the defining characteristics of neoliberalism (at least in the global north) is the way the logic of capital has penetrated ever further into our lives. And one of the results of this has been a real cramping of time and space. Two simple examples: the “working week” has been extended in countless, barely visible ways; and the cut-backs in state provision (and privatisation of social resources) have meant a decline in real, physical space available to us – community centres shut or squeezed, and the domination of shopping centres (private space) over the traditional High Street.

The idea of a Fair Price Campaign (or whatever it might turn out to be) could work really well on several fronts. First, it’s something new, a break with normality – an “exceptional” tactic. It could capture the imagination in a way that straightforward ‘political’ activities (like marches around town) doesn’t. Second, it tries to disentangle our needs from money. It’s not perfect, I know: it would be better to completely bypass the cash nexus, but we have to start in some sort of real world. Third, there’s a reclamation of space (and time), and the possibility of laying foundations for a new collectivity (subjectivity, even).

But (and this is a big ‘but’) there’s a real danger of getting trapped down a populist dead-end. This could be as simple as us all ganging up on Tescos, and Aldi/Waitrose/Netto then picking up a whole load of new business. Or the introduction of a new ‘Recession’ food range. Or maybe a wide-scale reintroduction of food stamps, or even rationing… All of these could easily be sold back to us as ‘solutions’, precisely because none address the fundamental problem – our desire to escape this world and create new ones.

It’s useful here to think about the relation between demands and problematics which we talk about in Worlds in Motion. The demands we pose (like ‘fairer prices’) are useful because they help open up space for the development of problematics. Problematics are, well, problematic because they’re about movement into the unknown, the creation of the new – exploration, as our surrealist friends might say. Demands, on the other hand, are always partial or one-sided (we can demand lower prices knowing that they’ll only come by supermarkets screwing producers even further into the ground) because they operate within this world. It’s crucial that we don’t get stuck inside them, unable to remember what it was that brought us here in the first place.

As well as being a place to store our half-baked ideas, this blog is also meant to be a place where we can collect, record and circulate interesting stuff. And amidst all the shite that’s been written about the current credit/finance crisis, this piece (by George Caffentzis and Silvia Federici of Midnight [...]]]>

As well as being a place to store our half-baked ideas, this blog is also meant to be a place where we can collect, record and circulate interesting stuff. And amidst all the shite that’s been written about the current credit/finance crisis, this piece (by George Caffentzis and Silvia Federici of Midnight Notes) really stands out. Read and think on…

“MUST THE MOLECULES FEAR AS THE ENGINE DIES?” –NOTES ON THE WALL STREET “MELTDOWN”

Dear Midnight Notes Friends,

The breakdown of the Wall Street financial machine makes the task that we outlined in our June meeting more urgent. In June we planned to rethink Midnight Notes in view of the restructuring of the accumulation process and class relations carried out through the neoliberal turn and Structural Adjustment. We can now define this project more precisely: what do the current crisis and restructuring of the financial system imply for us as we join the rest of the world in the dog house of structural adjustment in the twilight of the American empire?

In response to these questions, it is important, first, that we realize that the so-called Wall Street “meltdown” is certainly the end, but also the completion of the neoliberal program. Let us be clear about it. To think otherwise is to ignore the lesson taught to us by the event that opened the present capitalist era: the 1973 coup again the Chilean working class experiment with socialism, that led to the victory of strong state backed market economy. Karl Polanyi’s theory that the single most important cause of the rise of fascism and Nazism in Europe was the inability to control the financial market after the 1929 crash also resonates here. In other words, we should not read the restructuring taking place as a turn to socialism/Keynesianism, to the extent at least that Keynesianism was an intervention by the state into the economy aimed at increasing the state’s investment in social reproduction, starting with the reproduction of the working class, in exchange for an increase in the social productivity of labor. Despite the adoption of regulatory mechanisms, the operation presently conducted by the US government bears little resemblance to the Keynesian program launched with the New Deal.

Behind the $700 billion bail-out and the many others that will follow – some already in the pipeline – is a massive transfer of funds from the US working class to capital, inevitably leading to an assault on the last remaining entitlements (like Medicare, Social Security) and a general program of austerity the like of which we have not seen yet in a long time. The fact that there is no organized response to this assault makes us fear the worst. For things would never have reached this point if over the last decade the US workers had responded to the repeated thefts of their money and benefits, through the Enron scandal and the many other “crises” that have followed it. That despite the “instability” of the market, despite its usage as a means to expropriate thousands of small/working class investors, US workers continued to trust their livelihoods and future to it is certainly a key factor in what we are presently witnessing and Washington/Wall Street confidence in launching the new austerity program. It is our argument that in the same way as September 11 served the US government to shed the last remains of “democracy” and move to a model of government where militarization is always around the corner (apparently Representatives were threatened with the proclamation of martial law if they did not pass the bailout bill), so the Wall Street crash will serve to shed the last remaining elements of working class “socialism” in the US political economy, starting with Social Security, Medicare, a thorn in capital’s flesh, but so far demonstrating a great resilience, the last shore for working class struggle in the nation.

2. Lessons from the Debt Crisis

There is an important parallel here, not sufficiently noted, between the present crash and bail-out and the “debt crisis” of the 1980s, which engulfed most Third World nations (except for China) and was the start of the globalization process. Both have been engineered in the same fashion.

The “debt crisis” was the outcome of a financial campaign conducted by Washington and Wall Street, to practically force Third World nations to take cheap development loans – liberally dished out at the lowest interest rates – at a time when capital was refusing to invest in Europe and North America in the face of the most successful working class attack on its profit-rate since the 1920s, and a new generation of Africans, Asians etc. were organizing to demand a global redistribution of wealth and a program of reparations, that is, in the language of the Bucharest Conference of 1974: A NEW WORLD ORDER.

Through the lending mechanism, the massive flow of petrodollars that had been amassed in the aftermath of the 1974 embargo (the first attack on US wages, organized through a stiff inflationary wave) was redirected to the coffers of Third World nations, which, attracted by the bait of cheap loans, were soon hooked to the global economy, all dreams of an independent path to development foregone.

In other words, loans at the lowest interest rates were key to the creation of a global debt and the process of primitive accumulation (through structural adjustment) that was imposed on most of the workers of the world.

As we know, within less than a decade, the rise of the interest rates in the US, turned manageable debts into a long-term process of economic and political subordination. Debt became the hook for a massive restructuring of Africa’s, Asia’s & Latin America’s political economies, re-establishing a colonial dependency that for three decades has served to promote a massive transfer of funds from the Third to the First World and defeat the organizational efforts of TW nations for an independent road to development.

Under the guise of the “debt crisis,” portrayed as a case of “mismanagement” by backward countries, requiring First World-style financial responsibility, countries across the world were forced to open their books to Washington – via the IMF and World Bank – and accept any terms of repayment imposed on them. They were forced to freeze wages, terminate all social spending, open their markets to foreign investors and products, devalue their currencies and so forth. The consequences of these policies are well known. While Washington and NY built forests of skyscrapers, sucking on the blood of Africans, Asians, Latin Americans, Caribbean people, such levels of impoverishment and expropriation were imposed on the people of the world that millions took the road out of their countries, unable to survive in them, while those remaining witnessed epidemics, elimination of schools, famines, wars, the loss of ancestral lands, waters and forests, brutal wars of privatization, all directly related to the debt.

This is history now, though the politics of SAP have set back for decades the project initiated by the anti-colonial struggle, reformulated and reasserted, as I mentioned, at the Bucharest Conference of 1974, where TW nations emboldened by the defeat of the US in Vietnam, demanded a NEW WORLD ORDER, i.e. the redistribution, return of the wealth that Europe and the US have robbed from the colonial world.

With the debt crisis, international capital obtained three major objectives.

i) It disciplined the working class in Europe and the US, by dismantling its manufacturing structure and refusing for years to engage in any serious investment in these regions [remember “zero growth”?]

ii) It destroyed the attempt of the former colonial world to escape a dependent/subordinate position, as demanded by the new generation of Africans, Asians, etc., who, infused of the spirit of Fanon, were keen on import substitution schemes, were pressing for REPARATIONS, and pushing for some form of socialism (in Angola and Mozambique).

(iii). In addition to defeating revolution in First and Third World, the “debt crisis” built the infrastructure for the new global economy. It forged the mechanisms by which industries and offices could be relocated, companies could run around the globe, the work process could be computerized and streamlined and the working class thereby could be flexibilized and re-divided.

Against this background, we must note some basic similarities between the engineering of the debt crisis and the engineering of the Wall Street crash and must assume these similarities will extend to the social consequences of the crash. The housing bubble was the result of loans made at very low though adjustable credit rates, redirecting the influx of capital coming from abroad (China and other countries) toward the US market.

Is it possible that investment banks, credit rating agencies, the head of the Federal Reserve all FAILED to realize what would be the inevitable result of an “easy credit,” lending policy that reversed decades of regulatory principles and rules? Unless we want to revel in the nonsensical tale of a blinding surge in human greed, the answer must be a negative one. Thus, we must stop using the concept of “failure” to describe the absence of regulations and the reasons for the crash. We must rule out that the architects of the housing/mortgage crisis did not know it would end in a financial disaster and cascade of foreclosures for the home owners, in the same way as banks are partly responsible for the debt of the US working class ($45,000 on average per capita).

Continuing with the parallel, we have to conclude that with this 700 billion dollar “bail-out,” coming straight out of our pockets and hides, the “structural adjustment” that since the 1980s has been imposed on countries across the world, is going to be extended to the US territory and the US working class. This time (after many beginnings and many deferrals) we too are being “adjusted.” I will discuss later what adjustment will mean at this time for us. For the moment we only want to stress that we are witnessing not only a financial meltdown, but also a great robbery, a macro-process of expropriation, an immense transfer of labor, this time siphoning funds to the US banking system not only from the Third World, as in the Debt Crisis of the 1980s, but from our households, through the classic maneuver of increasing the national debt. What we are witnessing is a capitalist coup, an example of capital’s historic readiness to destroy itself in order to regain the initiative and defeat resistance to its discipline.

3. Where does this resistance come from? How is the collapse of the financial systems a response to it?

We cannot understand the Wall Street crisis unless we read it in class term as a means to negotiate a different class deal and response to class struggle and resistance. However, in dealing with these questions, I also want to distinguish this approach and the growing tendency to view every development in capitalist planning as a realization of working class struggle and demands, the Negrian perspective on capital’s response to class movements.

This perspective is dangerous, because besides turning even defeat into a victory, (such as: we wanted globalization, we wanted flexibilization, etc), it ignores the fact that a capitalist response must use working class demands against themselves, use them to drive part of the working class out of the struggle, turn it against or away from the other half, use them in such a way as to spark off forms of development that decompose the class.

Let us look now at the crisis as a disciplinary tools and strategy. There are at least three areas of resistance to the neoliberal accumulation project that the Wall Street collapse has to respond to. I will list them without an attempt to establish an order.

First, the crash and the bail-out must defeat the attempt of the US working class to circumvent class discipline by using financial markets, rather than struggle, sweat and labor, to increase their wages. While strikes and struggles have died out over the last two decades, workers have tried to increase their income in three ways: investing in the stock market, buying on credit, now even for everyday expenses, getting equity money through housing, and defaulting student loans. These tactics have clearly failed and now millions of workers are now to pay twice for them, in terms of their individual losses and in terms of the losses that will be inflicted on the US proletariat as a class through the bailouts. If successful, these bail-outs will in fact be conducive to a new regime of low wages and zero entitlements the like of which we have not seen since the last part of the 19th century.

The new regime will not be the end of market fundamentalism. It will be a revitalization of market investment through the injection of our social security money, and it will be a revitalization of some parts of American industry now presumably taking advantage of the fact that workers are desperate enough to accept any conditions just to have a job and a roof over their heads. A large part of capital has for a long time been lusting to bring back America to the situation before the New Deal, when employers had the upper hand. The “crisis” is giving them a chance to return to that era.

That this time Social Security is at stake is due to various factors. First, Social Security is the last pot of money available to re-launch the US market, in a context in which workers have no savings and monetary flows from the outside are drying out. It is also the last “scandal” on the list of US capitalists who have relentlessly for years now told us it must go. Most important of all, Social Security affects primarily the old, the retired, and it is therefore an easier target than entitlements affecting the whole working class.

So far workers in the US have resisted the privatization of Social Security despite many governmental attempts. But cuts in pensions have already gone a long way in the private sector, where employers have given stocks of their companies to workers, or stopped putting any money in their pension funds. The present crisis will extend that to government-backed pensions. And the road to it has been cleared by years of false statements to the effect that Social Security is unsustainable. Though it is a colossal lie, younger generations have, however, accepted it. By cutting Social Security, capital undoubtedly hopes to pit the young against the old, who (as in Africa today) are being pictured as a crew of selfish gerontocrats sucking up the funds the young need to build their future.

The second target of the attack is the global resistance to capital’s appropriation of natural resources beginning with oil and gas extraction. The defeat in Iraq is the peak of it. To this day, despite an immense expenditure in war funding, the US has not been able to put its hands on Iraqi oil. Resistance to international capital control over global energy resources has also come from Venezuela, Bolivia, and Ecuador. Many more countries are also refusing the neoliberal packet, especially in Latin America. These refusals, not peak oil, are the true limits to capital’s energy plans.

There have also been bottlenecks in the exploitation of forests, waters, minerals, and lands which structural adjustment was to remove. A new “rurban” peasant movement has been growing that is fighting independently of unions, parties, “civil society” and NGOs, using direct action tactics, to re-appropriate the lands and resources of which it has been robbed —poaching, harvesting timber or produce in commercial plantations, mining diamonds and gold “illegally,” or farming in the very lands from which they have been “legally” excluded. When they move to the cities they squat on urban land and take over land not used, private or public to farm it for their needs. It is a vast re-appropriation movement that is redefining the fundamentals of social reproduction globally. It has put globalizers and adjusters out of government, it has forced the nationalization of local resources, and has redistributed wealth and political power, putting the World Bank and IMF almost out of business in Latin America. It has defeated the attempt to completely liberalize the economies of the TW through the rule of the World Trade organization. Though not sitting at the table, the specter of the rural/urban peasants of the world has guided the refusal of TW representative to comply.

Third, global migration has developed in ways that make it difficult for governments to use it as a regulatory mechanism for the labor market. Far from being an easy device for driving wages down, migration is now an autonomous uncontrollable phenomenon, with a logic of its own that is not reducible to the needs of the labor market. It is important however to stress (against the idealization of the migrant and of Exit, Exodus, Flight as the highest form of struggle) that the struggle of the migrants is not superior to the struggle of those who remain. In fact, migration can lead to the dissolution of local organizations, it can create new divisions among the locals, separating those benefiting from remittances and those deprived of them, it can boost the cost of living in the area of origin by the influx of new money and hook local economies more strongly to the international monetary system, fostering the expansion of monetary relations. These, of course, are not inevitable results. Actually, migrants have been able to use the wage against the wage, to refuse impoverishment, to create transnational networks, to move from country to country seeking a better deal and nullifying national boundaries and borders.

The attacks on immigrants of recent months, which have seen the most massive factory raids and deportations ever in the US, are responses to this autonomy. They are part of the attempt to create a population of rightless workers, to function as a safety valve for the labor market. Only if they have no rights can immigrants function as regulatory mechanism for the labor market (in the same way as mass incarceration and expansion of unpaid labor do). The redefinition of immigrant workers as outlaws and the criminalization of the working class – historically a key strategy to devalue labor power – will continue to be a tool of the world order we will see emerging from the crisis. But the crash will intensify the divisions between “natives” and migrants, attack the organizational strength of migrant organizations, unless there is strong opposition to this strategy.

The Politics of the Financial Crisis and Our Response

Crises are always a threat and an opportunity as they break down business as usual, and reveal something of the inner workings and nastiness of capitalism. This one is not an exception and we can be sure that what will come out of it will be greatly a result of what people do in response to it. If the Great Depression is an indication, it took more than ten years for capital to organize a different social order. Much can happen in such a period.

The problem for us today is that workers are only organized around electoral politics at best. And many still place more hope in a racist and imperialist stance than in working class solidarity. We certainly don’t have a communist or an anarchist movement organizing rallies of the unemployed, fight against evictions, or organize “penny auctions” of farms as they did during the Great Depression. Nor do we have an anti-capitalist alternative as the Soviet Union was in the eyes of many. We also do not have the kind of solidarity that in the Great Depression led to invention of new commons, like the hobo movement and the creation of “jungle cities.”

Where to start then? This is what we need to work on in the coming months and years. There is no clear path to this kind of mobilization. But we need to start somewhere. On two things we can get people to agree with us: First, we better find alternatives, because, as things stand presently, we are so incestually connected with capitalism that its demise threats our own existence. Second, unless we organize to resist government planning, what lies ahead for us, after a cut of more than a trillion dollars of our “entitlements,” looks much more like some variant of fascism than socialism.

With warm greetings

Silvia and George

The non-lego version of this image came to represent the Tiananmen square events in the West. It seemed to sum up the narrative that the western press [...]]]> Seeing as we have our own history of political lego in Turbulence, I couldn’t pass this picture without nicking it (apologies to Jane Dark’s Sugarhigh).

The non-lego version of this image came to represent the Tiananmen square events in the West. It seemed to sum up the narrative that the western press had forced onto the events, of the merciless Stalinist state apparatus being stopped by a symbol of individualism. At the time I remember the picture being put on a poster by the Federation of Conservatives Students with some slogan like “Stand up to Socialism”. This was alongside their “Hang Nelson Mandela” posters.

However another version of events has gradually emerged which puts those conservative students on the other side of the barricades. In the “The Shock Doctrine”, Naomi Klein quoting Wang Hui, a leading figure in the protests and now a well known Chinese leftist critique of the Chinese Communist Party, puts it like this:

What ignited the protests, he recalls, was popular discontent in the face of Deng’s “revolutionary” economic changes, which were lowering wages, raising prices and causing “a crisis of layoffs and unemployment.” According to Wang, “These changes were the catalyst for the 1989 social mobilisation.”

The demonstrations were not against economic reform per se; they were against the specific Friedmanite nature of the reforms-their speed, ruthlessness and the fact that the process was highly antidemocratic. Wang says that the protesters’ call for elections and free speech were intimately connected to this economic dissent. What drove the demand for democracy was the fact that the party was pushing through changes that were revolutionary in scope, entirely without popular consent. There was, he writes, “a general request for democratic means to supervise the fairness of the reform process and the reorganization of social benefits.”…

Before Tiananmen, (Deng) had been forced to ease off some of the more painful measures; three months after the massacre, he brought them back, and he implemented several of Friedman’s other recommendations, including price deregulation. For Wang Hui, there is an obvious reason why “market reforms that had failed to be implemented in the late 1980s just happened to have been completed in the post-1989 environment”; the reason, he writes, “is that the violence of 1989 served to check the social upheaval brought about by this process, and the new pricing system finally took shape”…

It was this wave of reforms that turned China into the sweatshop of the world, the preferred location for contract factories for virtually every multinational on the planet. No country offered more lucrative conditions than China: low taxes and tariffs, corruptible officials and, most of all, a plentiful low-wage workforce that, for many years, would be unwilling to risk demanding decent salaries or the most basic workplace protections for fear of the most violent reprisals” (From The Shock Doctrine p.187-190).

It seems timely to go back to this event in history as we sit amidst the multiple crisis of neo-liberalism. The production of cheap consumer goods in China was the other half of the story of a boom created at the cost of our personal indebtedness in the West. Every now and then we have to step back and realise just how rooted in class struggle these crisis are, even if we have to trace it back over decades. It also shows how contingent history is, something to remember as we contemplate how to intervene into the present mess.

I’ve just started reading Naomi Klein’s new(ish) book, The Shock Doctrine, and I came across this quote on page 7:

Only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is [...]]]>

I’ve just started reading Naomi Klein’s new(ish) book, The Shock Doctrine, and I came across this quote on page 7:

Only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.

There’s a lot to be thought through here, but the basic insight makes a lot of sense to me. What’s interesting is that the quote’s from arch-neoliberal Milton Friedman, in his book Capitalism and Friedman (published almost half a century ago).

I guess my reaction to it is perhaps similar to that of Stephen Duncombe when he read of that Bush advisor’s quote about acting and creating reality.

On the subject of quotes I like, a friend who knows activists in Uganda sent me this one from a community association there:

When people know their rights they become a bit difficult to manage.

I should probably mention the source of the image. It’s called Shock and Awe 1 and 2, it’s by a artist called Anne Swannell and I came across it after typing “shock and awe” into the search engine.

Money and finance don’t normally get much discussed on this site. All that might change. Last summer’s ‘subprime’ mortgage crisis in the United States (and the run on Northern Rock bank-cum-building society over here) has developed into a full-blown ‘credit crisis’: the global financial markets are in what the commentators describe as [...]]]>

Money and finance don’t normally get much discussed on this site. All that might change. Last summer’s ‘subprime’ mortgage crisis in the United States (and the run on Northern Rock bank-cum-building society over here) has developed into a full-blown ‘credit crisis’: the global financial markets are in what the commentators describe as ‘turmoil’ and ‘catastrophe’ threatens. Last week, the US’s fifth-largest investment bank, Bear Stearns, imploded. In a ‘rescue’ orchestrated by the Federal Reserve, another bank, JPMorgan Chase mopped up its shares, which had been trading for $170 a year ago, for two bucks each. Jimmy Cayne, Bear’s chairman and former chief executive, who held a 5% stake, has seen his ‘worth’ fall from $1.2 billion to a mere $11 million. Apparently managers are having to sell holiday homes. (What were we saying about resentment?)

But it’s all more interesting and complicated — and worrying and exciting — than this. Not only is there financial crisis. There’s also recession in the US — economists define recession as two successive quarterly falls in output — but if it wasn’t poor people finding they could no longer keep up with mortgage payments that triggered the subprime crisis then what was it? And central bankers in Europe and elsewhere are worried about inflation. (‘Some say the world will end in fire, some say in ice’ — this was a former IMF chief economist quoting poet Robert Frost in an address to a recent meeting of monetary policymakers. Fire = recession; ice = inflation.) So, the return of stagflation?

Let’s look at inflation. Well commodity* prices are rising rapidly, but what’s behind this? A lot of it comes down to climate change activism in the North and workers’ struggle in the global South. Greater demand for biofuels (so we can stop emitting CO2 without changing the way we live) is pushing up the price of all crops. As people get richer in the South they are demanding more meat and this also puts upward pressure on crop prices — since it takes something like 6kg of wheat (or equivalent) to produce a single kilo of meat. There is much commentary about ‘China’s voracious appetite for resources’, which is pushing up the prices of commodities such as steel, copper and so on, but the real wages of Chinese production workers have risen by an average of 11% every year over the past decade (compared with 3% a year over the previous ten years). However much this statistic is phrased in the passive voice doesn’t change the fact that there’s an active subject here.

But what sparked me to post this, was a piece in this week’s Economist, ‘Apocalypse now?’. With ‘the world going to hell in a handcart’, the piece wonders what ‘you’ [i.e. a financial investor] should buy. And here we’re getting back to more familiar Free Association territory. Because we’ve written before about how at times of crisis (far-from-equilibrium situations, ‘moments of excess’, states of exception…) illusions and ‘ideology’ are stripped away, reality seems to be laid bare. This is as true for ‘them’ as it is for ‘us’ — which is why The Economist, say, is usually a much better read than The Guardian.

In the pub after our recent talk about capitalism and climate change, discussion turned to money and somebody suggested the universal equivalent is a mutually agreed fantasy. Exactly! This precisely the problem facing investors now. There’s no mutual agreement on what anything is ‘worth’, or (and in the world of capitalism/finance this is the same thing) will be worth at some point in the future.** After discussing the problems with holding government bonds (the government, the US government at least, won’t default, but what if its currency the dollar keeps falling in value?), depositing money in banks (what if they collapse, like Bear Stearns?) or buying gold (but it’s taken gold almost three decades to regain its price of 1980) the author, ‘Buttonwood’, concludes:

In a complete meltdown, for example during world wars and revolutions, it is hard to find anything that keeps its value. Stockmarkets collapse. Governments default on their debt. Private property is no longer respected, either because governments seize the assets or because goods cannot be protected from criminals. Jewellery might hold its worth, but you had better have a good hiding-place. Think of all the treasures looted by the Nazis or the Red Army.

But we also see here how bourgeois commentators still don’t get it. Buttonwood is assuming that ‘value’ is something objective, a property intrinsic to a thing. It’s not, it’s social. S/he can’t move beyond categories like ‘government’ and ‘criminal’, or conceive of revolutionaries who aren’t of the bolshevik sort. Why would I want to loot jewellery? And, more importantly, it’s only a store of ‘value’ in a world of abstract labour. And here’s the other big assumption. Buttonwood assumes any such period of uncertainty and ‘suspension’ of the law of value will be temporary, that after some period of months or even a few years, things will return to capitalist ‘normality’.

So, what should ‘you’ do? Buttonwood quotes approvingly the advice offered by some ‘Wall Street veteran’ who suggests that ‘investors should own, as insurance against the apocalypse, “a farm or a ranch somewhere far off the beaten track but which you can get to quickly and easily.” Well, as Buttonwood admits, this assumes ‘war and disorder are avoided’, but it reminds me of Marx’s story in Capital of ‘unhappy Mr Peel’:

Wakefield discovered that in the Colonies, property in money, means of subsistence, machines, and other means of production, does not as yet stamp a man as a capitalist if there be wanting the correlative — the wage-worker, the other man who is compelled to sell himself of his own free-will. He discovered that capital is not a thing, but a social relation between persons, established by the instrumentality of things. Mr. Peel, he moans, took with him from England to Swan River, West Australia, means of subsistence and of production to the amount of £50,000. Mr. Peel had the foresight to bring with him, besides, 3,000 persons of the working-class, men, women, and children. Once arrived at his destination, “Mr. Peel was left without a servant to make his bed or fetch him water from the river.” Unhappy Mr. Peel who provided for everything except the export of English modes of production to Swan River!

And this is why all this is exciting for us. Because this crisis is a crisis of value — what things are ‘worth’ — and that means that it has the potential to become a crisis of values (plural): what do we value, what sort of world(s) do we want to live in?

* Being good Marxists here at freelyassociating.org, we understand a commodity to be that peculiar amalgam of (capitalist) value and use-value, the product of abstract and concrete labour, but in economist-parlance commodities are agricultural goods, such as wheat, coffee, pork bellies (bacon) and soya (yes, all you vegans, soya is a commodity too) and minerals and metals, such as oil, steel and gold.

** One of the main ‘points’ of finance and financial markets — along with their disciplinary function — is to convert uncertainty into risk. I’ve just started reading An Empire of Indifference: American War and the Financial Logic of Risk Management, by Randy Martin. In the Introduction, the author suggests that ‘preemption, bringing the future into the present, has since the 1970s been the guiding principle for fiscal policy.’ (As it has been for foreign policy/politics, such as the ‘war on terror’.) And then this bit, which is great: ‘In terms of the experience of time, preemption means that the future is profaned. The future no longer holds a promise that the constraints of the present can be transcended or transformed. Without a conviction that the future bears our dreams, the idea of progress becomes difficult to sustain.’ Maybe this is why most of us find finance boring, because it holds no promise, it leaves no space for hope.

Ok, seeing as we’re posting quotes about punk this one from “Rip It Up and Start Again” needs flagging up and reflecting on:

“Devo had been hippies, of a sort. Gerald V. Casale and Mark Mothersbaugh, the group’s conceptual core, were among the anti-war students protesting at Kent State University, Ohio, [...]]]>

Ok, seeing as we’re posting quotes about punk this one from “Rip It Up and Start Again” needs flagging up and reflecting on:

“Devo had been hippies, of a sort. Gerald V. Casale and Mark Mothersbaugh, the group’s conceptual core, were among the anti-war students protesting at Kent State University, Ohio, on 4 May 1970 when the National Guard opened fire. Two of the four slain students – Alison Krauss and Jeffrey Miller – were friends of Casale. ‘They were just really smart liberal kids, eighteen and nineteen, doing what we all did back then,’ he says. ‘They weren’t crazy sociopaths.’ He recalls the dazed, slow-motion sensation when the guns started firing, ‘like being in a car accident’; the blood streaming down the sidewalk; the eerie sound of moaning from the crowd, ‘like a kennel of hurt puppies’. At first, even the National Guard was frozen, freaked out. Then they marched us off campus and the university was shut down for three months.’ That date in May 1970 is one of several contenders for ‘the day the sixties died’. ‘For me, it was the turning point,’ says Casale bitterly. Suddenly I saw it all clearly: all these kids with their idealism, it was very naive.’ Participants in SDS – Students for a Democratic Society – like Casale reached a crossroads. ‘After Kent, it seemed like you could either join a guerrilla group like The Weather Underground, actually try assassinating some of these evil people, the way they’d murdered anybody in the sixties who’d tried to make a difference. Or you could just make some kind of whacked-out creative Dada art response. Which is what Devo did.’”

Of course this is great for several reasons. Firstly, as we’ve argued before punk’s a continuation of hippie. In fact it was both a reaction to hippie’s failed revolution and its renewal.

Secondly, it helps us to reflect on the relation between excess and exception by bringing up Kent State again. We have to remember that Dada was a reaction to the horrors of WW1. Is the resort to Dada a retreat into art caused by the closure of the space for politics or is it best to see it as a sidestepping of a problematic that had become saturated by the states excessive violence. Punk as well as Dada ultimately reopened the space for politics, at least for a time.

A word of warning, you can’t keep that space open for ever you know.

In the news today is the discovery of a tape recording of the 1970 Kent State Massacre. It reveals that the National Guard troopers who shot four students dead were ordered to open fire. This is important because it shows a degree of deliberation in the massacre. The story kept to at [...]]]>

In the news today is the discovery of a tape recording of the 1970 Kent State Massacre. It reveals that the National Guard troopers who shot four students dead were ordered to open fire. This is important because it shows a degree of deliberation in the massacre. The story kept to at the time was of spontaneous shooting triggered by panicking soldiers. The event had a huge effect, triggering a national student strike in the US involving university and high school students. The slogan of the protests was: They can’t kill us all.

I’m not reporting this naively believing that revealing the violence of the state, the iron fist in the velvet glove, is enough to save us but it does make me wonder about the mechanism that triggers this sort of phase shift into new levels of violence and how they relate to wider shifts in regimes of power. This relates to a debate we’ve been having in the Turbulence collective on the idea that this century has seen a strategic deployment of generalised war as a means of overcoming the failings of neo-liberalism.

Of course the Kent State shootings make you think of the turn of the century shootings of demonstrators, first in Gothenburg and then in Genoa. I remember thinking about Kent State on first hearing about the Gothenburg shootings. I was reading a newspaper report flying back from a Football tournament in Germany. I turned to a friend (little Matt) and said “Christ they’ve moved to bullets so quickly.” I wasn’t so much shocked at the level of violence but how early in the cycle of struggles the police had escalate to that level and were soon to tip over to a murderous one.

Apart from the speed of the escalation the other shocking thing over the next few months was that this new hyper-violent attitude towards protests appeared to be imposed right across Europe and North America at the same time. It was like a globalised race to the bottom in power relations, with Third World policing exported to the west. This wasn’t just the use of guns but the early and undiscriminating use of violence against protests seen most comprehensively at Genoa. Over the next few years it begged the question of the relation that this militarization had with the Neo-conservatives’ open strategy of imposing war – not as a continuation of politics by other means but as a means of managing society.

That last phrase is a bastardisation of Foucault in “Society must be Defended” and perhaps the problem might make a little more sense if we conceptualise it with the dispositifs of power he examines. The exemplary violence against the protests and then the imposition of war both show a movement towards sovereign forms of power. Of course Guantanamo bay fits with this and taken together might explain the popularity over the last few years of the concepts of sovereignty, and exception as the foundational outside of sovereignty, that Agamben has reintroduced.

I’m interested in the idea that there is a link between exception and excess. Negri criticises Agamben by saying his lack of social movement experience leads him to start with the structures of power over, constituted power. This makes him unable to make the leap downwards to connect it with the animating constituent power. I agree but think that Negri (who started life as a constitutional theorist) also starts with Empire and not with Multitude.

I’d argue that the state of exception could be produced out of a moment of excess. That the fear and uncertainty caused by moments of excess can provoke recourse to sovereignty from above and political sadness from below. The latter is a term that Collectivo Situationes use to describe the drawing back and closing of off potential experienced after the high point of struggle in Argentina. It refers to the temptation to allow the re-establishment of sovereign power because of an inability to cope productively with uncertainty. Then again, of course, neo-liberalism contains it’s own precarity and so carries its own potential to resort to sovereignty. Perhaps the narrative runs like this:

The first ‘heroic phase’ of the movement of movements is an attempt to escape the dispositifs of neo-liberal governmentality. The moment of excess within the movement runs into a sovereign response which is then reinforced by the excessive counter-sovereign violence on 9/11, which provides the neo-conservatives with the big opening they take advantage of to escape neo-liberalism’s gathering problems. This raises the idea that exception is produced by the challenge of either a constitutive moment of excess or sovereign violent excess. Perhaps it doesn’t matter which one of these it is from the sovereign’s point of view.

Of course all concrete assemblages are mixed. There are many different strategies being followed at any one time. They may just exist with a small circle of cranks until their time arrives, just look at the history of neo-liberal ideas. It’s important to resist a conspiracy view of power, where great men sit in a room and decide the time is now right for 10% more sovereignty in the mix. From the angle outlined above the mechanisms of power still seem obscured and slightly mystified, we can’t make the leap up, but the important thing is to retain the point of view of the movements. The problematic from this perspective becomes: how can we defend our moments of excess from sovereign violence without ourselves finding recourse in the sadness of sovereignty?