read later: antisemitism and the (modern) critique of capitalism

Antisemitism and the (modern) critique of capitalism 

Werner Bonefeld

I

The Nazi ideologue Rosenberg (1938) formulated the modern essence of antisemitism succinctly when he portrayed it as an attack on Communism, Bolshevism, and Jewish capitalism, a capitalism not of productive labour and industry, but of parasites - money and finance, speculators and bankers.  

There is of course a difference between the antisemitism that culminated in Auschwitz and the antisemitism of the post-1945 world. However, whether antisemitism persists because or despite of Auschwitz is, ultimately, an idle question. The notions ‘despite’ and ‘because’ give credence to Auschwitz as a factory of death that is assumed to have destroyed antisemitism. Furthermore, and connected, antisemitism is viewed as a phenomenon of the past, that merely casts its shadow on the present but has itself no real existence. In this way, overt expressions of antisemitism are deemed ugly merely as pathological aberrations of an otherwise civilized world. In this context the critique of antisemitism is either belittled as an expression of ‘European guilt’ or rejected as an expression of bad faith: a camouflage for insulating Israel from criticism (Keaney, 2007).  

The paper argues that modern antisemitism is the ‘rumour about Jews’ as personification of hated forms of capitalism. I will first look at some contemporary expressions of antisemitism, and theses IV and V explore Adono’s and Horkeimer’s (1989) and Postone’s (1986) understanding of Nazi antisemtism.

II

The projection of the Jew as the external enemy within, as communist, financier, speculator, and banker remains potent to this day. For example, the former Prime Minister of Malaysia, Mahathir Mohamad, assessed the root causes of Malaysia’s financial collapse in 1997 by stating: ‘I say openly, these people are racists. They are not happy to see us prosper. They say we grow too fast, they plan to make us poor. We are not making enemies with other people but others are making enemies with us’.1 What is meant by ‘we’ and who are ‘they’? Mahathir Mohamad’s denunciation of capitalism as ‘Jewish capitalism’ does indeed appear, as the Financial Times (October 23 2003) suggested, to have taken its cue from The International Jew, a book commissioned by Henry Ford in the 1920s. In its structure, the conception of ‘speculators’ as the external enemy within bent on destroying relations of the national harmony of interest, belongs to modern anti-Semitism. It summons the idea of finance and speculators as merchants of greed and, counterposed to this, espouses the idea of an otherwise ‘healthy’, ‘industrious’ and peaceful national community that arises from the ‘soil’, furnishes the homeland with indestructible force and permanence, and is united by characteristics of race and the bond of blood. 

Then there is Pat Buchanan’s (2002) defence of supposed American values and virtues that he sees to be in crisis because of the nefarious effects of ‘critical theory’ for which he holds ‘those trouble making Communist Jews’ responsible.2 Intelligence based on reason and critical judgment appears here as a powerfully destructive force that is ascribed to the intelligence of ‘Jews’. Lyotard (1993, p. 159) portrays this rumour about Jews well: for the antisemites ‘[t]he Jews … have no roots in a nature…They claim to have their roots in a book’. Antisemitism projects the Other as rootless. Instead of being rooted in the supposed values of the nation, its soil and tradition, the Jew is possessed of an intelligence cunning that is destructive of tradition and organic social matter. The Jew seems to come from no-where. ‘Anti-Semitism is the rumour about Jews’ (Adorno, 1951, p.141). They are seen to stand behind phenomena. The power ascribed to this rootless Other, is of an immensely powerful, intangible, international conspiracy (cf. Postone, 1986). It cannot be defined concretely; it is an abstract, invisible power, which hides in such contradictory phenomena as communism and capitalism. 

Then there is the anti-imperialist left. As one of its more critical and distinctive thinkers, Perry Anderson (2001, p. 15) argued: ‘entrenched in business, government and media, American Zionism has since the sixties acquired a firm grip on the levers of public opinion and official policy towards Israel, that has weakened only on the rarest of occasions’. The Jews, then, have not only conquered Palestine but they have also taken control of America, or as James Petras (2004, p. 210) sees it, the current effort of ‘US empire building’ is shaped by ‘Zionist empire builders’. For Anderson, Israel is a Jewish state, its nationalist triumphs are Jewish triumphs, and its economy is a Jewish economyand its state a ‘rentier state’ that is kept by the US as its imperialist bridgehead in the Middle East.  

What makes a state Jewish? For Marx the state was the political form of bourgeois society – the purpose of capital is to make profit, and the state is the political expression of this purpose. He thus saw the state as the executive committee of the bourgeoisie. Max Weber argued that the state cannot be defined by its functions, let alone imaged national characteristics, but solely by its means: the legitimate use of physical violence. He conceived of the modern state as a machine. The great theorist of the autonomy of the state, Thomas Hobbes, conceived of it as result of a social contract that allowed the warring social interests to flourish on the basis of mutual protection. His state appeared akin to a mortal God. Adam Smith defined the state as a market enabling power – it polices the law-abiding conduct between the private interests, each pursuing its ends in a context in which everybody is obliged to all, but nobody is absolutely dependent upon anybody particular. For the economy to be free, the stated needs to be strong, as market police. None of these approaches defines the state in terms of the supposed or imagined national characteristics of a homogenised people. Such forging of national identity is a political task. Indeed, the reverse of anti-imperialism is the demand for national liberation, national autonomy, and national self-determination - a mere abstraction of a classless, imagined community, that is rendered effective by political power, not posited by nature (cf. Anderson, 1991). The identification of a people in terms of assumed national characteristics tends to rebound politically. ‘If “differance” has become the hallmark of theoretical anti-reason, “the Other” has become the hallmark of practical anti-reason’ (Rose, 1993, p.5). The Other provides the excuse for a damaged life and as such a scapegoat, becomes the object of resentment. Perry Anderson (2001) is therefore absolutely right when he argues that the potential of violence against the Other is intrinsic to nationalism, whichever.   

Then there is the mounting scale and sheer extent of the antisemitic tidal wave especially in the Middle East that has blurred any distinction between the critique of the state of Israel and concrete human beings in their social relations. The anti-imperialist left tends to dismiss rampant Islamist antisemitism as a mere epiphenomenon of justified anger at Israel and US imperialism. It condemns the denial of Palestinian nationhood and condemns the national existence of Israel as a bridgehead of US imperialist interests in the Middle East. Symptomatic here is the call for solidarity with the Muslim Brotherhood by International Socialism: “We say we have to work with the Muslim Brotherhood over specific issues [Palestine or Iraq]” (IS, 2005, p. 31). Against this Zizek has argued, there should be no attempt to ‘“understand” Arab anti-Semitism…as a “natural” reaction to the sad plight of the Palestinians’. It has to be resisted ‘unconditionally’ (Zizek, 2002, p.129; cf. also Zizek, 2008). To ‘understand’ Islamic antisemitism as a ‘justified’ expression of anger against imperialism is to claim, by implication, that antisemitism articulates resistance to capitalism. Similarly, there should be no attempt to ‘understand’ the measures of the state of Israel ‘as a “natural” reaction against the background of the Holocaust’ (ibid.). Such ‘understanding’ accepts the barbarism of extermination as a legitimizing force of state action. Every state seeks to justify its policies by exploiting the past for its own legitimacy (cf. Tischler, 2005). Such legitimation does not redeem the dead. Following Benjamin, redemption entails the recovery of the past in contemporary struggle for human dignity, which is both singular and universal, indivisible and priceless. It is associated with refusniks, heretics, dissenters, and dissidents, not the good offices of the state. 

Islamic fundamentalism can be seen as a reaction against the ‘heavy artillery’ of global capital to create a world after its own image. Against this, it espouses the quest for authenticity, seeking to preserve through the purification of imagined ancestral conditions and traditions existing social structures, repeating with deadly and deafening force the ‘paradigmatic Fascist gesture, [the Arab fundamentalists] want ‘capitalism without capitalism’ (Zizek, 2002, p. 131). The fight against ‘westoxication’, as Khomeini called the ideas of liberalism, democracy and socialism, indicates that Islamist antisemitism is unlikely to be assuaged by an Israeli-Palestinian settlement. It is more likely to be inflamed. At base, it is the depiction of Israel as an imperialist bridgehead of ‘Jewish’ capitalist counterinsurgency that fuels the hatred of Israel as a ‘Jewish’ state. The attribute ‘Jewish’ does not refer to concrete human beings, be it Ariel Sharon or Karl Marx, Albert Einstein or Emma Goldman, Rosa Luxemburg or Leon Trotsky, Michael Neumann or Esther Rosenberg. It disregards social distinctions, be they of class, gender, ethnicity, etc., and instead assumes everybody to be of the same national issue, whether they are anarchists, communists, refusniks, capitalists or workers, conservatives, religious fanatics, war mongers, peace-lovers, beggars, or just plain and boring. Instead of recognising contradictions, distinctions, antagonisms, struggles and conflicts, it projects those abstract, reason-defying, imagined ‘qualities’ upon which antisemitism rests onto a nationalised people, displacing the critique of existing social relations to totalitarian conceptions of the national friend and national foe. Within this relationship, reason is suspended and thought is led to the equally irrational belief that the enemy of my enemy is my friend. Socialism is the alternative to barbarism, not its derivate. That however also means that the only way to fight resurgent antisemitism ‘is not to preach liberal tolerance…but to express the underlying anti-capitalist motive in a direct, non-displaced way’ (Zizek, 2002, p.130). Liberal tolerance gives in to the intolerable and is absorbed by it.

III

In Marx’s Jewish Question (1964) and the writings of the Frankfurt School, the category ‘Jew’ is a social metaphor that focuses anti-capitalist resentment from the standpoint of capitalism – an anti-capitalist capitalism. In contrast, however, to Anderson’s affirmative categorization, Marx and the Frankfurt School approached the ‘Jewish Question’ through the lens of the critique of the fetishism of bourgeois relations of production. Expanding on Marx’s critical question, ‘why does this content [human social relations] assume that form [the form of capital]’ (cf. Marx, 1962, p. 95), it asks why does the bourgeois critique of capitalism assume the form of antisemitism? In contrast, the affirmative use of the category ‘Jew’ rationalizes antisemitism as a manifestation of the hatred of capitalism, and through its rationalization, is complicit in the ‘rumour about Jews’. Such complicity partakes in the paradigmatic fascist gesture of an anti-capitalism that seeks a capitalism without capitalism.  

Ulrike Meinhof focused succinctly the rationalisation of antisemitism as hatred of capitalism when she argued that ‘Auschwitz meant that six million Jews were killed, and thrown on the waste-heap of Europe, for what they were: money Jews. Finance capital and the banks, the hard core of the system of imperialism and capitalism, had turned the hatred of men against money and exploitation, and against the Jews…Anti-Semitism is really a hatred of capitalism’ (quoted in Watson, 1976, p.23). The following theses explore this further.

V3

Antisemitism does not ‘need’ Jews. The category ‘Jew’ has powers attributed to it that cannot be defined concretely. It is an abstraction that excludes nobody. Anyone can be considered a Jew. The concept ‘Jew’ knows no individuality, cannot be a man or a woman, and cannot be seen as a worker or beggar; the word ‘Jew’ relates to a non-person, an abstraction. ‘The Jew is one whom other men consider a Jew’ (Sartre, 1976, p.69). For antisemitism to rage, the existence of ‘Jews’ is neither incidental nor required. ‘Antisemitism tends to occur only as part of an interchangeable program’, the basis of which is the ‘universal reduction of all specific energy to the one, same abstract form of labor, from the battlefield to the studio’ (Horkheimer and Adorno, 1989, p.207). Thus, antisemitism belongs to a social world in which sense and significance are sacrificed in favour of compliance with the norms and rules of a political and economic reality that poses sameness, ritualized repetition, and object-less subjectivity as the forms of human existence. Time is money, said Benjamin Franklin. And we might add that therefore money is time. ‘The economy of time: to this all economy ultimately reduces itself’ (Marx, 1973, p. 173). If, therefore, everything is reduced to time, an abstract time, divisible into equal, homogeneous, and constant units that move on relentlessly from unit to unit, and that though dissociated from concrete human activities, measures these whatever their content, then man is nothing; he is, at the most, time’s carcase’ (Marx, 1976, p. 127). Time is of the essence. Everything else is a waste of time. Such time is interested only in two things: ‘how much?’ and ‘how long did it take?’. The time of human purposes is different from the time of abstract labour.4 The mere existence of difference, a difference that signals happiness beyond the life as a mere personification of labour-time fosters the blind resentment and anger that antisemitism focuses and exploits but does not itself produce. ‘The thought of happiness without power is unbearable because it would then be true happiness’ (ibid., p.172). 

Antisemitism differentiates between ‘society’ and ‘national community’. ‘Society’ is identified as ‘Jewish’; whereas community is modelled as a counter-world to society. Community is seen as constituted by nature and ‘nature’ is seen to be at risk because of ‘evil’ abstract social forces. The attributes given by the antisemite to Jews include mobility, intangibility, rootlessness and conspiracy against the – mythical and mythologized – values of the imagined community of an honest and hardworking people. The presumed ‘well-being’ of this community is seen to be at the mercy of evil powers: intellectual thought, abstract rules and laws, and the disintegrating forces of communism and finance capital. Both, communism and finance capital are seen as uprooting powers and as entities of reason. Reason stands rejected because of its infectious desire to go to the root of things. But the root of things can only be Man in her social relations. Reason is the weapon of critique. It challenges conditions where Man is degraded to a mere economic resource. For the anti-Semite independence of thought and the ability to think freely without fear, is abhorrent. It detests the idea that ‘Man is the highest being for Man’ [Mensch] (Marx, 1975, p.182). Instead, it seeks deliverance through the furious affirmation of its own madness. The antisemites’ portrayal of the Jew as evil personified is in fact their own self-portrait. ‘Madness is the substitute for the dream that humanity could organize its world humanely, a dream that a man-made world is stubbornly rejecting’ (Adorno, 1986, p.124).  

Antisemitism manifests a perverted urge for equality. It seeks an equality that derives from membership in a national community, a community of Volksgenossen. This equality is defined by the mythical ‘property’ of land and soil based on the bond of blood. The fetish of blood and soil is itself rooted in the capital fetish where the concrete in the form of use value obtains only in and through the abstract in the form of exchange value. Anti-Semitism construes blood, soil, and also machinery as concrete counter-principles of the abstract. The abstract is personified in the category Jew (see Postone, 1986). For the apologists of market liberalism, the reference to the invisible hand operates like an explanatory refuge. It explains everything with reference to the Invisible. ‘Starvation is God’s way of punishing those who have too little faith in capitalism’ (Rockefeller Sr., quoted in Marable, 1991, p.149). For the antisemites, however, the power of the invisible can be explained – the Jew is its personification and biologized existence. It transforms discontent with conditions into a conformist rebellion against the projected personification of capitalism.  

The nationalist conception of equality defines ‘society’ as the Other – a parasite whose objective is deemed to oppress, undermine and pervert the ‘natural community’ through the ‘disintegrating’ force of the abstract and intangible values of – bourgeois – civilization. The category ‘Jew’ is seen to personify abstract thought and abstract equality, including its incarnation, money. The Volksgenosse, then, is seen as somebody who resists ‘Jewish’ abstract values and instead upholds some sort of natural equality. Their ‘equality’ as Jews obtains as a construct, to which all those belong who deviate from the conception of the Volksgenosse, that is, mythical concrete matter. The myth of the Jew is confronted with the myth of the original possession of soil, elevating nationalism’s ‘regressive egality’ (Adorno, 1951, p.56) to a liberating action. The Volkgenosse sees himself as a son of nature and thus as a natural being. He sees his natural destiny in the liberation of the national community from allegedly rootless, abstract values, demanding their naturalization so that everything is returned to ‘nature’. In short, the Volksgenosse portrays himself as rooted in blood and ancestral tradition to defend his own faith in the immorality of madness through the collective approval of anger. This anger is directed towards civilization’s supposed victory over nature, a victory that is seen as condemning the Volksgenosse to sweat, toil and physical effort, whereas the Other is seen to live a life as banker and speculator. This the Volksgenosse aspires for himself. The Volksgenosse speculates in death and banks the extracted gold teeth.  

For the Volksgenossen, the Jews ‘are the scapegoats not only for individual manoeuvres and machinations but in a broader sense, inasmuch as the economic injustice of the whole class is attributed to them’ (Horkheimer and Adorno, 1989, p.174). Antisemitism calls for a ‘just’ revenge on the part of the ‘victimized’ national community against the powers of ‘rootless’ society. ‘Community’ is seen to be both victimized and ‘strong’. Strength is derived from the biological conception of the national community: blood constituted possession, tradition, and ancestral community. This biologization of community finds legitimation for murder in the biologization of the ‘action’: biology is conceived as a destiny.  

The efficient organization and the cold, dispassionate execution of the deed is mirrored by its disregard for individuality: corpses all look the same when counting the results and nothing distinguishes a number from a number except the difference in quantity – the measure of success. The mere existence of distinction is a provocation. Judgement is suspended. Everybody is numbered and assessed for use. ‘The morbid aspect of anti-Semitism is not projective behaviour as such, but the absence from it of reflection’ (ibid., p.189). Auschwitz, then, stands for the ‘stubbornness’ not only of the principle of ‘abstraction’, but also ‘abstractification’. The biologization of the abstract as ‘Jew’ is also made abstract: all that can be used is used like teeth, hair, skin; labour-power; and, finally, the abstract is made abstract and thus invisible. The invisible hand of the market, identified as the abstract-biological power of the ‘Jew’, is transformed into smoked-filled air. 

VI

National Socialism projected itself as an anti-capitalist movement. Yet, it also embraced industrial capital and new technology. Indeed, according to Götz Aly and Susanne Heym (1988), the preparation of the Final Solution in occupied Poland was based less on antisemitism as an ideology but on Neo-Malthusian resource calculations. Their argument is that, for the Nazis, the economic viability of occupied Poland depended on the reduction of the population per capita in order to secure that capital exported to Poland could be applied efficiently.

  What is the relationship between Nazism’s anti-capitalist ideological projection and the rational calculation of economic resources that proposes mass murder as a ‘solution’ to capitalist profitability? Nazi anti-Semitism is different from the anti-Semitism of the old Christian world. This does not mean that it did not exploit Christian anti-Semitism. Christian anti-Semitism constructed the ‘Jew’ as an abstract social power: The ‘Jew’ stands accused as the assassin of Jesus and is thus persecuted as the son of a murderer. In modern anti-Semitism, the Jew was chosen because of the ‘religious horror the latter has always inspired’ (Sartre, 1976, p.68). In the Christian world, the projected category of the ‘Jew’ was also a social-economic construct by virtue of being forced to fill the vital economic function of trafficking in money. Thus, the economic curse that this social role entailed, reinforced the religious curse.

  Modern anti-Semitism uses and exploits these historical constructions and transforms them: The Jew stands accused and is persecuted for following unproductive activities. His image is that of an intellectual and banker. ‘Bankers and intellectuals, money and mind, the exponents of circulation, form the impossible ideal of those who have been maimed by domination, an image used by domination to perpetuate itself’ (Horkheimer and Adorno, 1989, p.172). The biologically defined possession of land and tradition is counterposed to the possession of universal, abstract phenomena. The terms ‘abstract, rationalist, intellectual…take a pejorative sense; it could not be otherwise, since the anti-Semite lays claim to a concrete and irrational possession of the values of the nation’ (Sartre, 1976, p.109). The abstract values themselves are biologized, the abstract is identified as ‘Jew’. Both, thus, the ‘concrete’ and the ‘abstract’ are biologized: one through the possession of land (the concrete as rooted in nature, blood and tradition) and the other through the possession of ‘poison’ (the abstract as the rootless power of intelligence and money). The myth of national unity is counterposed to the myth of the Jew. Jewry is seen to stand behind the urban world of crime, prostitution, and vulgar, materialist culture. Tradition is counterposed to reasoning, intelligence, and self-reflection; and the nationalist conception of community, economy and labour is counterposed to the abstract forces of international finance and communism (cf. Postone, 1986). The Volksgenossen are thus equal in blindness. ‘Anti-Semitic behaviour is generated in situations where blinded men robbed of their subjectivity are set loose as subjects’ (Horkheimer and Adorno, 1989, p.171). While reason subsists in and through the critique of social relations, the Volksgenosse has only faith in the efficiently unleashed terror that robs the alleged personifications of capitalism of everything they have, cloth, shoes, teeth, hair, skin, life. The collection of gold-teeth from those murdered, the collection of hair from those to be killed, and the overseeing of the slave labour of those allowed to walk on their knees for no more than another day, only requires effective organization.  

Nazism’s denunciation of capitalism as ‘Jewish capitalism’ allowed thus the relentless development capitalist enterprise while seemingly rejecting capitalism as a system of finance, money-grabbing speculation, accumulation of parasitic wealth, as a rootless, mobile, intangible annihilator of space through time, undermining concrete enterprise on the altar of money, etc. The critique of capitalism as ‘Jewish capitalism’ argues that capitalism is in fact nothing more than an unproductive money-making system – a rentier economy that lives off and in doing so, undermines the presumed national community of creative, industrious individuals, subordinating them to the rootless and therefore ruthless forces of global money, or as Mahathir Mohamad had it, ‘they are not happy to see us prosper’.  

For the antisemites, then, the world appears to be divided between money capital and concrete nature. The concrete is conceived as immediate, direct, matter for use, and rooted in industry and productive activity. Money, on the other hand, is not only conceived as the root of all evil, it is also judged as rootless and of existing not only independently from industrial capital but, also, over and against the industrial endeavour of the nation: all enterprise is seen to be perverted in the name of money’s continued destructive quest for self-expansion. In this way, money and financial capital are identified with capitalism while industry is perceived as constituting the concrete and creative enterprise of a national community. Between capitalism as monetary accumulation and national community as industrial enterprise, it is money that calls the shots. In this view, industry and enterprise are ‘made’ capitalist by money: money penetrates all expressions of industry and thus perverts and disintegrates community in the name of finance capital’s abstract values. This destructive force puts claim on and so perverts: the individual as entrepreneur; the creative in terms of a paternalist direction of use-value production; the rooted in terms of Volk; the community in terms of a natural community. Instead of community’s natural order of hierarchy and position, money’s allegedly artificial and rootless force is judged to make the world go round by uprooting the natural order of the Volksgenossen. In this way, then, it is possible for the Volksgenossen not only to embrace capitalism but, also, to declare that the forced labour creates freedom: Arbeit macht frei. ‘They declared that work was not degrading, so as to control the others more rationally. They claimed to be creative workers, but in reality they were still the grasping overlords of former times’ (Horkheimer and Adorno, 1989, p.173). By separating what fundamentally belongs together, that is production and money, the differentiation between money on the one hand, and industry and enterprise, on the other, amounts to a fetish critique of capital that, by attacking the projected personification of capital, seeks its unfettered expansion through means of terror. 

With the biologization of creative activity, the unfettered operation of the exploitation of labour in the name of mythologized concrete values is rendered attainable by the elimination of the cajoling and perverting forces of the abstract – the ‘Jew’ who stands condemned as the incarnation of capitalism. In this way, the ideology of blood and soil, on the one hand, and machinery and unfettered industrial expansion, on the other, are projected as images of a healthy nation that stands ready to purge itself from the perceived perversion of industry by the abstract, universal, rootless, mobile, intangible, international ‘vampire’ of ‘Jewish capitalism’. The celebration of the Volksgenosse as the personification of the concrete, of blood, soil, tradition and industry, allows the killing of Jews without fear. Yet, it manifests ‘the stubbornness of the life to which one has to conform, and to resign oneself’ (ibid., p.171): the idle occupation of killing is efficiently discharged. As Volksgenossen they have all committed the same deed and have thus become truly equal to each other: their occupation only confirmed what they already knew, namely that they had lost their individuality as subjects. 

Everything is thus changed into pure nature. The abstract was not only personalized and biologized, it was also ‘abstractified’. Auschwitz was a factory ‘to destroy the personification of the abstract. Its organization was that of a fiendish industrial process, the aim of which was to ‘liberate’ the concrete from the abstract. The first step was to dehumanize, that is, to strip away the “mask” of humanity, of qualitative specificity, and reveal the Jews for what “they really are” – shadows, ciphers, numbered abstraction’. Then followed the process to ‘eradicate that abstractness, to transform it into smoke, trying in the process to wrest away the last remnants of the concrete material “use-values”: clothes, gold, hair, soap’ (Postone, 1986, pp.313-14).

Conclusion

Adam Smith was certain in his own mind that capitalism creates the wealth of nations and noted that ‘the proprietor of stock is properly a citizen of the world, and is not necessarily attached to any particular country. He would be apt to abandon the country in which he was exposed to a vexatious inquisition, in order to be assessed to a burdensome tax, and would remove his stock to some other country where he could either carry on his business, or enjoy his fortune more at his ease’ (Smith, 1981, pp. 848-49). David Ricardo concurred, adding that ‘if a capital is not allowed to get the greatest net revenue that the use of machinery will afford here, it will be carried abroad’ leading to ‘serious discouragement to the demand for labour’ (Ricardo, 1995, p. 39). He thus also formulated the necessity of capitalist social relations to produce ‘redundant population’. According to Hegel, the accumulation of wealth renders those who depend on the sale of their labour power for their social reproduction, insecure in deteriorating conditions. He concluded that despite the accumulation of wealth, bourgeois society will find it most difficult to keep the dependent masses pacified, and he saw the form of the state as the means of reconciling the social antagonism, containing the dependent masses.  

Karl Marx developed these insights and showed that the idea of ‘equal righs’ is in principle a bourgeois right. ‘The power which each individual exercises over the activity of others or over social wealth exists in him as the owner of exchange value, of money. The individual carries his social power, as well as his bond with society, in his pocket’ (Marx, 1973, pp.156-57). Against the bourgeois form of formal equality, he argued that communism rests on the equality of individual human needs. Theodor Adorno and Max Horkheimer (1989, p. 199) argued that antisemitism articulates a senseless, barbaric rejection of capitalism that makes anti-capitalism useful for capitalism. ‘The rulers are only safe as long as the people they rule turn their longed-for goals into hated forms of evil’. Antisemitism channels discontent with conditions into blind resentment against the projected external enemy within. This rejection of capitalism, then, ‘is also totalitarian in that it seeks to make the rebellion of suppressed nature against domination directly useful to domination. This machinery needs the Jews’ (ibid., p. 185). That is, ‘no matter what the Jews as such may be like, their image, as that of the defeated people, has the features to which totalitarian domination must be completely hostile: happiness without power, wages without work, a home without frontiers, religion without myth. These characteristics are hated by the rulers because the ruled secretly long to possess them’ (ibid., p. 199). Antisemitism urges the mob on to de-humanize, maim and kill the projected Other, suppressing the very possibility and idea of happiness and distinction through participation in the slaughter. 

The anti-imperialist critique of Israel as the bridgehead of US-imperialism in the Middle East and of modern Zionism as the ideology and the far-reaching organizational system and political practice of US-American capitalism, focuses underlying anti-capitalist motives on a false conflict and encourages friendship with false friends. In the struggle of one nationalism against another, class struggle is suppressed and the liberation from class society forgotten. Originally the critique of ideology sought to reveal the necessary perversion of human social practice in its appearance – as relations between things and as objectification of the human subject as a bearer of mythologized things, be they capital, value, price, money or nation. Enlightenment was its critical intent, and revolution is practical desire. It now appears as a mere Weltanschauung that having no principle to call upon, is subject to political calculation and opportunism. Alex Callinicos’s robust defence of Al Qaeda against its description as fascist expresses this well. He rejects this description as ‘an extraordinary assertion’, and then goes on the say that the ‘Muslim concept of the ummah – the community of the faithful – is precisely a transnational one, something that the Al Qaeda network has strictly observed (whatever respects in which its interpretations of Muslim doctrine may differ from those of others), incorporating as it does activists from ay different national backgrounds’ (Callincos, 2003, p. 140). This paper has argued that displaced modes of anti-capitalism do not question the appearance of things – they merely interpret them differently and seek to configure negative human conditions differently. Whether it is this world of things or that world of things, in either case, when the deed is done, the cruelty of silence in the house of the hangman is deafening.

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Zizek, S. (2008), Violence, Verso, London.

We won’t pay for your crisis” italy

We won’t pay for your crisis" : as in the rest of italy, in the
universities of Milano the mobilization is uncontrollable by power.
From Mediazione Culturale to Scienze Politiche, ‘Accademia di Brera
and Università Bicocca, from Conservatorio to Politecnico to the State
University of Milano in central Festa del Perdono. Students are
mobilizing to bock the Gelmini Decree (Gelmini, arch-catholic minister
of education rechristened Gelminator by protesters), and to push for a
self-reform for a university of knowledge and research. Together with
postgrads, researchers, university employees and precasious faculty.
The brainworkers of immaterial labor are on the move. Everywhere the
blocks of lessons and the blockades of traffic by students are
multiplying, with spontaneous assemblies in each university,
department, with rectorates and classrooms occupied. An uncontrollable
movement that can win, and  transfprm a university based on deskilled
higher education and academic nepotism and related fiefdoms into a
university as public place of education and self-education linked to
the needs and cultures of the society to be. But where did all this
come from?

Stop Decreto Gelmini. Hands off schools and universities. We won’t pay
for your crisis!

The Berlusconi Gov’t passed the Law Decree n° 112 del 25 June 2008
titles "Urgent provisions for economic dev’t, simplification,
competitiveness, stabilitazion of public finance and tax equalization"

This decree becomes provisional law during the summer holidays, on Aug
5 (Legge 133/2008)

In provincial Italy, the policy response to the mounting global crisis
as put forward by minister of finance Tremonti is drastic cuts to
social spending, starting from public school and universities.

The essential points of the gelmini-tremonti package: return to the
single teacher in elementary schools, segregated classes for "foreign"
kids, severe cuts in financial resources to education, the block of
hirings of teaching and technical personnel, from elementary schools
to universities and research, the reconversion of public universities
in private foundations…

In september schools reopen: all over italy a new movement makes its
frist stems in elementary schools, high schools, universities. The
first mots d’ordre are against the precarization of teachers, against
the single teacher that would enforce a single ideology, agains the
so-called differentiated classes that would violently discriminate
immigrant children with a truly racial provision aiming at
establishing apartheid in italy.

On Oct 3 the autonomous network of high school student collectives
take it to the streets in many cities of Italy.

On Oct 13, the minister Gelmini cancels her appearance at a symposium
in milano for fear of protests.

In october classes start in universities: a university student
movement emerges powerfully: "We won’t pay your crisis!" It’s a loud
and clear message that speaks of the here and now, of precarity,
economic crisis and the last gasps of neoliberalism. "Cut resources to
bankers and war missions, rather than to schools and universities! we
are the coming society! We are not the problem, we are the solution!"

Week by week the mov’t grows: from elementary schools, teachers,
parents, kids are united in denouncing the decree; high school
collectives network their struggles; in universities researchers other
precarious faculty and professors start joining student assemblies and
discussing with student collectives.

"We have started so that we wouldn’t stop" and "We shall never go
back" : university students are against the berlusconi cuts billed as
‘reform’ but do not want to defend public university fallen prey to
clientelist and nepotistic practices, ruled by barons over the
shoulders of precarious junior faculty. The growing movement does not
accept neither old labels nor old forms of representations, it demands
and practices autonomy and freedom from the classic forms of politics,
parties especially. The responsibilities of past centerleft
governments stand clear in weaking the public university system and so
does the inability of the current parliamentary opposition to oppose
mr b’s decrees, which cuts funds to public schools while giving aid to
private schools. The dem party has also imitated berlusconi in calling
for draconian laws in the name of ’security’  fingerpointing dangerous
subjects such as gypsies, immigrants, street sellers, graffiti
writers.

On Oct 17, the national strike called by radical alternative unions
against the berlusconi government turns into the first No Gelmini Day.
In Rome 300,000 people take part in the strike demo. Rome students
take part in the union demo and then break off in the thousands and by
outflanking police manage to reach and block the ministry of
education. In Milano, unions are also on the streets. university and
highschool students decide to cross the whole city paralyzing traffic
as three demos merge: elementary schools, high school students, and
for the first time since the ‘panther’ movement of 1990, a strong
demonstration of university students from many agitating faculties and
academic insititutions. At the end of the demo, precarious teachers of
elementary schools and high school students put the milano education
department under siege, while university students experiment for the
first time with the practice of metropolitan blockades in the rest of
the city.

In the following week, the social situation escalates, as spontaneous
protests and initiatives spread to further cities large and small. On
Oct 21 in Milano, the General Estates of the University are held in
the aula magna of Milano State University. Just like in Sapienza in
Rome and in Palermo, the assembly is huge: 2000 people that decide at
the end of the assembly to give rise to a an unauthorized demo across
the streets of Milano. The demo marches fast and unpredictably, it
goes back and forth: the city goes tilt. Getting news that in bologna
and other cities university students have occupied railway stations,
the demo arrives at Cadorna train station. Riot cops prevent access to
the station and charge students with batons, who do not disperse and
block the car traffic all around by doing a determined sit-in. In
Florence, 40000 people of all ages from schools and universities
express solidarity to the student movement and fear for the
possibility of repression.

In the subsequent days, mobilizations further develop: in Milano,
Torino and other cities dozens of motions to faculty boards, class
blockades, assemblies, all-night events take place in freed
universities. The first experiments with alternative higher education
occur: academic lectures are held in central public squares before
hundreds of students and curious citizens, wihle students speak of
"free university and free knowledge".

On Oct 22 berlusconi accuses centri sociali (squatted social centers)
to be the maneuverers behind the social mobilizations and warns "I
will send the police against occupations of schools and universities."
THe movement is not intimidated: "We have no fear" is the rallying
cry. Some rectors swear "never police in a university", while some
professors ironize that a bit of university education might be well
needed by the italian police…

On Oct 23 berlusconi now in beijing denies having thought about
sending in the riot copes and accuse the italian press of
misinformation. In Rome, Sapienza students after another huge assemlby
the decided to march toward the parliamente in a demo merging three
streams of people, university students, high school students and the
acitivists of roman centri sociali who are protesting against the
eviction of Horus social center and the will to eradicate all social
spaces expressed by the neofascist new mayor Almeanno.

15000 people are spontaneously taking the streets in the heart of the
city. "Roma libera", "libertà, libertà", in the joy and thrill of the
moment a new cry emerges "un’altra Onda, un altra volta", "siamo i
giovani, siamo l’esercito del surf"  taken from a song of the roman
rapper "Er Piotta" [Another Wave, Once More] [we are the youth, we are
surf’s army] The song is an antiauthoritarian antiwar jibe about being
able to go with the flow and repeat the wave of change; it expresses
the idea of strategic flexibility in the sense of being able to surf
the rough waves and be anywhere and everywhere, and especially to be
where they least expect us.

L’Onda, The Wave, the movement names itself: it’s an anomalous wave, a
social anomaly. While the police protects parliament, the Wave puts
the city center under siege.

On Oct 24 berlusconi denounces the risk of extremist and violent
fringes in demonstrations. That night, 1000 students break onto the
red carpet of the rome film festival, saying "this movie is old". On
Oct 23 and 24 Ottobre piazza Duomo is filled by students and
professors that protest against the cuts and experience the urgency of
horizontal self-reform in higher education: "we shall never go back"

"Let’s occupy the city to be concerned about ourselves":  the
university penetrates the city, the city penetrates the university,
street blocks and spontaneous protests each day block the city, the
outdoor lectures are crowded, everybody is suprised by the scale and
novely of the mobilization: government, police, academic barons, mass
media, it’s an anomalous wave that submerges all.

The mobilization goes on. Fo Nov 29, berlusconi has scheduled the
final approval of the law. And the anomalous wave keeps growing.

[We need traslation of this article please mail us a traslation in
[SPA] | [FRA] | [DEU]->milano@globalproject.info]

Oct 23-24 008 : Protests keep growing, with hundreds of demos and
initiatives in all Italian cities and especially in Pisa, Venice,
Padua, Naplei. In Rome: huge assembly at La Sapienza and spontaneous
demo toward italian parliament. In Milano: official teaching blocked,
public lectures hel in duomo square; assemblies and intramural
protests at Statale, Politecnico, Bicocca and Brera. Berlusconi from
china says "never said I’d send police in schools" and "the italian
press don’t understand my words". Minister of public education Gelmini
says want to "open dialogue with students" and adds "there is an
ongoing terroristic campaign against my reform". High schools are
agitating mightily with most of the schools taken over by students and
a myriad of street protests.

endnotes : The breakdown of a relationship? Reflections on the crisis

  • money_banks_crisis] The breakdown of a relationship? Reflections on the crisis
  • Date: Mon, 20 Oct 2008 20:37:28 +0100

The breakdown of a relationship? Reflections on the crisis

The history of the capitalist mode of production is punctuated by crises. One could say that crisis is the modus operandi of capital, or of the capital-labour relation. This is true insofar as capital, the self-valorisation of value, the self-expansion of abstract wealth, is at any given time a claim on future surplus-value extraction: the accumulation of capital today is a bet on tomorrow’s exploitation of the proletariat.

The crisis today has taken the form of a financial crisis, while the prospect of a full-blown economic crisis looms ever larger. These two crises do not merely stand in a relation of cause and effect, however (whichever way one were to posit the relation). Rather they are the different manifestations of the same underlying crisis - the crisis of accumulation of capital, which is at the same time the crisis in the relation of exploitation between capital and proletariat.

Finance capital is the form of capital which most closely corresponds to its pure concept, in that   the plethora of byzantine forms of finance capital can be reduced to the process whereby money begets more money or value begets more value. The relation between finance capital and productive capital, or between finance and the real economy, is marked, on the one hand, by the discipline which finance capital imposes on productive capital, and on the other, by the possibility and indeed tendency for finance capital to "run away with itself" - to run too far ahead of the possibilities of valorisation which are ultimately given by the profitable exploitation of labour-power in production.

This relation between finance and productive capital, or between finance and the real economy, while it has always existed in some form in the capitalist mode of production, has not remained unaltered. Since the global crisis of profitability of capital, or looked at another way since the crisis in the capitalist class relation in the late 60s and early 70s (marked by a wave of class struggle, industrial and social unrest), financialisation has been an integral element of the capitalist restructuring and counter-offensive - i.e. of the global restructuring of the relation between capital and proletariat. On the one hand, financialisation has been a vehicle by which the exploitation of labour-power has been integrated on a global scale (with the emergence and integration into the world economy of new poles of accumulation in the emerging "BRICS" economies - Brazil, Russia, India, China, South Africa etc); on the other, it has been a means by which the entrenched position of the high-wage proletariat in the advanced capitalist economies could be weakened. These two aspects of financialisation together correspond to the integration of the circuit of reproduction of labour-power with the circuit of reproduction of capital. With the increasing financialisation of the relation between capital and proletariat, workers’ wages in the advanced economies have stagnated, and the reproduction of their labour-power has been increasingly mediated through finance (mortgages, loans, credit cards, and the investment of pension funds in the stock and money markets). This new configuration of the class relation has offered to many, but not all, strata of the proletariat in the advanced economies rising living standards, tied to asset-price inflation. The capitalist counter-attack and restructuring has involved fundamental alterations in the class relation through the defeat of the old workers’ movement and the obsolescence of its institutions (trade unions and parties) which promoted the rising power of the proletariat within capitalist society; the new shape of the class relation and the financialisation of this relation depend ultimately on the ability of capital to extract sufficient surplus-value in the global economy (by increasing productivity and by the intensification of labour).

The present financial crisis has its roots partly in the subprime loans and mortgages which were predicated on the continual upward trend of the housing market, and the inflation of asset prices (after the collapse of the previous asset bubble - the dot.com boom), with vast amounts of fictitious capital being generated by the leveraging practised by financial institutions (banks, investment funds, private equity funds etc). The finance-led boom ultimately outran the ability of the real economy - i.e. productive capital - to extract surplus value through the exploitation of workers in production (whether this production is ‘material’ or ‘immaterial’). As a consequence we are witnessing a massive ‘correction’ - the falling stock markets, housing market - in Marxian terms the devalorisation of capital (expressed in write-downs, defaults, bankruptcies, mergers and fire-sales of financial institutions, and now their part-nationalisation by capitalist states across the board).

Thus the pre-existing tendency towards the overaccumulation of capital (whether this tendency is to be understood as cyclical or secular), such that the productive investment of capital can no longer meet its valorisation requirements, is exacerbated by finance capital’s penchant for generating fictitious capital (through leveraging, debt financing, futures, options, derivatives and an increasing plethora of complex and arcane financial instruments). Even though finance capital disciplines productive capital (and productive capital is increasingly financialised), the extraction of surplus value through the exploitation of the proletariat can not keep pace with the demands for valorisation which are made by finance capital.

Capital is in crisis. The crisis asserts itself as devalorisation. Devalorisation is the only way that capital can lay for itself the basis of a new round of accumulation, and involves the disciplining of the working-class to accept new terms of exploitation; however, this means that it also places the very reproduction of the capital-labour relation at stake. To avert the crisis, the nationalisation of the banks is not sufficient. The economy is facing recession or depression, and the spectre of deflation. The state managers of capital are caught in a double bind: with huge budget deficits increased by the financing of the bail-out of the financial system (through the purchase of toxic securities, the recapitalisation of banks and the guaranteeing of new loans), the deficit-spending that capitalist states would need to engage in to maintain levels of effective demand in the economy will be increasingly difficult to finance. The question of the credit-worthiness of banks now asserts itself at a higher level as the dubious credit-worthiness of capitalist states (central banks and state treasuries).

Capital might find a way out of the crisis: it will seek to maintain or increase profitability in the real economy through pressure on wages (although this will perversely have a deflationary effect) and the intensification of labour (the increased exploitation of workers) - i.e. strategies to increase both relative and absolute surplus value. The way out of the financial and economic crisis involves the intensification of exploitation on a planetary scale and a crisis of the relation between capital and proletariat. In the 19th and 20th centuries up to the capitalist restructuring of the 1970s and 80s, the proletariat could assert itself as a positive pole in the relation of exploitation. Now, as the reproduction of the proletariat is increasingly mediated through finance, and is thus immediately entwined with the reproduction of capital (with the effect that the reproduction of growing swathes of the proletariat is increasingly precarious, as shown by the current wave of foreclosures and repossessions), and financialisation enables the integration of the capitalist exploitation of labour-power on a planetary scale, the very means which on one level enable capital to fight its way out of crisis threaten crisis on a higher level - the level of the reproduction of the class relation itself.

Endnotes

patrick bond on Background to Volatile Global Capitalism: Political and Economic Aspects since the 1970s

* Patrick Bond * To: debate: SA discussion list , money crisis list * Subject: [money_banks_crisis] A presentation on precursors to crisis * Date: Thu, 16 Oct 2008 18:23:32 -0430 by Patrick Bond University of KwaZulu-Natal School of Development Studies and Centre for Civil Society (http://www.ukzn.ac.za/ccs) Presented to the World Forum for Alternatives and Network of Artists and Intellectuals in Defense of Humanity Working Group on the World Economic Order Caracas, Venezuela - 15 October 2008 1. Introduction The forces in Washington that support economic neoliberalism (the World Bank, IMF, US Treasury, US Federal Reserve and associated thinktanks) and political neoconservatism (the White House, Pentagon, State Department and thinktanks) are both suffering major legitimacy problems. These have built up not only in the economic sphere, as is now so obvious, but also over a three-decade long geopolitical process. The purpose of these remarks, as requested by WFA chair Samir Amin, is to provide the background context for discussions on today’s world economic order. 2. Geopolitical realignment, neoliberal ascendancy and economic volatility A catalogue of geopolitical changes since the 1970s would emphasise at least four major developments: • the 1975 US defeat by the Vietnamese guerrilla army, which reduced the US public’s willingness to use its own troops to maintain overseas interests; • the demise of the Soviet bloc in the early 1990s, as a result of economic paralysis, foreign debt, bureaucratic illegitimacy and burgeoning democracy movements; • Middle East wars throughout the period, with Israel generally dominant as a regional power from the 1973 war with Egypt (notwithstanding its 2006 defeat in Lebanon); and • the rise of China as a potent competitor to the West (in political as well as economic terms) during the 1990s-2000s. These were merely the highest-profile of crucial political developments, leaving a sole superpower in their wake, yet one with much lower levels of legitimacy, dubious military and cultural dominance, slower economic growth, higher poverty and inequality, and vastly reduced financial stability over the past third of a century. One critical aspect of the struggle between classes associated with these developments was the waning of the Third World nationalist project and a dramatic shift in class power, away from working-class movements that had peaked during the late 1960s, towards capital and the upper classes. Chronologically, other crucial ‘moments’ that helped define the splintered, polarised political sphere since the 1970s included the following: • formal democratization arrived in large parts of the world - Southern Europe during the mid-1970s, the Cone of Latin America during the 1980s and the rest of Latin America during the 1990s, and many areas of Eastern Europe, East Asia and Africa during the early 1990s - partly through human/civil rights and mass democratic struggles and partly through top-down reform - yet because this occurred against a backdrop of economic crisis in Latin America, Africa, Eastern Europe, the Philippines and Indonesia, the subsequent period was often characterised by instability, in which ‘dictators passed debt to democrats’ (as the Jubilee South movement termed the problem) who were compelled to impose austerity on their subjects, leading to persistent unrest; • the ebbing of Third World revolutionary movements - in the wake of transformations in Nicaragua, Iran and Zimbabwe in 1979-80 - was hastened by the US government’s explicit attacks during the 1980s on Granada, Nicaragua, Angola and Mozambique (sometimes directly but often by proxy), as well as on liberation movements in El Salvador, Palestine (via Israel) and Colombia, as well as former CIA client regimes in Panama and Iraq, hence sending signals to Third World governments and their citizenries not to stray from Washington’s mandates; • after Vietnam, the US’s subsequent ground force losses in Lebanon during the early 1980s and in Somalia during the early 1990s (followed by Afghanistan and Iraq in the mid-late 2000s) shifted the tactical emphasis of the Pentagon and NATO to high-altitude bombing, which proved momentarily effective in situations such as the 1991 Gulf War (decisively won by the US in the wake of Iraq’s invasion of Kuwait), the Balkans during the late 1990s, the overthrow of Afganistan’s Taliban regime in 2001 and the initial ouster of Saddam Hussein in Iraq in 2003; • the 1989-90 demise of the Soviet Union had major consequences for global power relations and North-South processes, as Western aid payments to Africa, for example, quickly dropped by 40 percent given the evaporation of formerly Cold War patronage competition (until the resurgence of Chinese interest in Latin America and Africa during the 2000s); • the consolidation of European political unity followed corporate centralization within the European Economic Community, as the 1992 Maastricht treaty ensured a common currency (excepting the British pound which was battered by speculators prior to joining the euro zone), and as subsequent agreements established stronger political interrelationships, at a time most European social democratic parties turned neoliberal in orientation and voters swung between conservative and centre-right rule, in the context of slow growth, high unemployment and rising reflections of citizen dissatisfaction; • persistent 1990s conflicts in ‘Fourth World’ failed states gave rise to Western ‘humanitarian interventions’ with varying degrees of success, in Somalia (early 1990s), the Balkans (1990s), Haiti (1994), Sierra Leone (2000), Cote d’Ivoire (2002) and Liberia (2003), although other sites in central Africa - Rwanda in 1994 and since then Burundi, northern Uganda, the eastern part of the Democratic Republic of the Congo, Somalia and Sudan’s Darfur region - have witnessed several million deaths, with only (rather ineffectual) regional not Western interventions; • the 2001 attack on the World Trade Center in New York City and the Pentagon near Washington (followed by attacks in Indonesia, Madrid and London) signalled an increase in conflict between Western powers and Islamic extremists, and followed earlier bombings of US targets in Kenya, Tanzania and Yemen which in turn received US reprisals against Islamic targets in Sudan (actually, a medicines factory) and Afghanistan in 1998 and Yemen in 2002; and • the early-mid 2000s rise of left political parties in Latin America included major swings in Venezuela (1999), Bolivia (2004) and Ecuador (2006), as well as turns away from pure neoliberal economic policies in Brazil, Argentina, Uruguay and Chile, and were joined during the mid-2000s in Europe by left coalitions in Norway and, momentarily, in Italy. This list of seminal political moments should not obscure other important trends that seem to have accompanied them: • social and cultural change, including postmodernism, the ‘network society’, demographic polarizations and family restructurings; • new technologies brought about by the transport, communication and computing revolutions; • major environmental stresses including climate change, natural disasters, depletion of fisheries and worsening water scarcity; and • health epidemics, such as AIDS, Bovine Spongiform Encephalopathy, anthrax, drug-resistant tuberculosis and malaria, severe acute respiratory syndrome and avian flu. Although these are topics beyond the scope of the current paper, in the realm of ideology the importance of these polarising events and processes cannot be overstated. Moreover, given the rise of neoliberal and neoconservative philosophies (formerly ‘modernization’ and colonialism), there have been sometimes spectacular counterreactions ranging from Islamic fundamentalism and resurgent Third World Nationalism, to Post-Washington Consensus and ‘global governance’ reform proposals, to global justice movement protests. 3. Economic explosions prior to 2008 Meanwhile, in the sphere of economics, a variety of key moments mark the rise and then decline of neoliberal policy influences across the world: • in 1973, the Bretton Woods agreement on Western countries’ fixed exchange rates - by which from 1944-71, an ounce of gold was valued at US$35 and served to anchor other major currencies - disintegrated when the US unilaterally ended its payment obligations, representing a default of approximately $80 billion, leading the price of gold to rise to $850/ounce within a decade; • also in 1973, several Arab countries led the formation of the Oil Producing Exporting Countries (OPEC) cartel, which raised the price of petroleum dramatically and in the process transferred and centralized inflows from world oil consumers to their New York bank accounts (‘petrodollars’); • from 1973, ‘los Chicago Boys’ of Milton Friedman - the young Chilean bureaucrats with doctorates in economics from the University of Chicago - began to reshape Chile in the wake of Augusto Pinochet’s coup against the democratically-elected Salvador Allende, representing the birth pangs of neoliberalism; • in 1976, the International Monetary Fund signalled its growing power by forcing austerity on Britain at a point where the ruling Labour Party was desperate for a loan, even prior to Margaret Thatcher’s ascent to power in 1979; • in 1979 the US Federal Reserve addressed the dollar’s decline and US inflation by dramatically raising interest rates, in turn catalyzing a severe recession and the Third World debt crisis, especially in Mexico and Poland in 1982, Argentina in 1984, South Africa in 1985 and Brazil in 1987 (in the latter case leading to a default that lasted only six months due to intense pressure on the Sarnoy government to repay); • at the same time, the World Bank shifted from project funding to the imposition of structural adjustment and sectoral adjustment (supported by the IMF and the ‘Paris Club’ cartel of donors), in order to assure surpluses would be drawn for the purpose of debt repayment, and in the name of making countries more competitive and efficient; • the overvaluation of the US dollar associated with the Fed’s high real interest rates was addressed by formal agreements between five leading governments that devalued the dollar in 1985 (Louvre Accord), but with a 51 percent fall against the yen, required a revaluation in 1987 (Plaza Accord); • once the Japanese economy overheated during the late 1980s, a stock market crash of 40 percent and a serious real estate downturn followed from 1990, and indeed not even negative real interest rates could shake Japan from a longterm series of recessions; • during the late 1980s and early 1990s, Washington adopted a series of financial crisis-management techniques - such as the US Treasury’s Baker and Brady Plans - so as to write off (with tax breaks) part of the $1.3 trillion in potentially dangerous Third World debt due to the New York, London, Frankfurt, Zurich and Tokyo banks which were exposed in Latin America, Asia, Africa and Eastern Europe (although notwithstanding the socialization of the banks’ losses, debt relief was denied the borrowers); • in late 1987, crashes in the New York and Chicago financial markets (unprecedented since 1929) were immediately averted with a promise of unlimited liquidity by Alan Greenspan’s Federal Reserve, a philosophy which in turn allowed the bailout of the Savings and Loan industry and various large commercial banks (including Citibank) in the late 1980s notwithstanding a recession and serious real estate crash during the early 1990s; • likewise in 1998, when a New York hedge fund - Long Term Capital Management (founded by Nobel Prize-winning financial economists) - was losing billions in bad investments in Russia, the New York Fed arranged a bailout, on grounds the world’s financial system was potentially at high risk; • starting with Mexico in late 1994, the US Treasury’s management of the midand late 1990s ‘emerging markets’ crises again imposed austerity on the Third World while offering further bailouts for investment bankers exposed in various regions and countries - Eastern Europe (1996), Thailand (1997), Indonesia (1997), Malaysia (1997), Korea (1998), Russia (1998), South Africa (1998, 2001), Brazil (1999), Turkey (2001) and Argentina (2001) - whose hard currency reserves were suddenly emptied by runs; and • in addition to a vastly overinflated US economy (with record trade, capital and budget deficits) whose various excesses have occasionally unravelled - as with the dot.com stock market (2000) and real estate (2007) bubbles - the two largest Asian societies, China and India, picked up the slack in global materials and consumer demand during the 2000s, but not without extreme stresses and contradictions that in coming years threaten world finances, geopolitical arrangements and environmental sustainability. This, then, is a list of major events that reflect tensions and occasional eruptions, but never genuine resolutions to the growing overall problems of volatility that have wracked world politics and economics, until the moment of September-October 2008, the ‘Great Crash of 2008’ as it will be known.

kolya on inflation struggles

No Time to Lose! Confronting Global Inflation Through the Construction of Autonomous Relations of (re)Production, Exchange and Livelihood

“The evidence tells us that we are living in the late stages of a very long price-revolution, perhaps in its critical stage. It also tells us that these are global processes. Our destiny is now closely linked to the condition of all humanity. The patterns of the past also suggest that what will happen in the future depends in no small degree on the choices that we make…We can use this power wisely or foolishly. Our choices will make a difference for our children and grandchildren, and for generations yet unborn.” (Hackett Fischer 1996: 251)

“For the working class in particular, inflation has the direct effect of reducing the one commodity that class has to sell: its labor-power. For the capitalist class it is the reverse. Since they own the commodities whose prices are rising, their wealth embodied in those commodities, tends to rise with the prices, and, therefore, so does their income derived from the sale of those commodities. Other factors assumed to be equal, inflation tends to reduce the income of the working class and increase that of capital – causing a shift of value from one class to the other.” (Cleaver 1979: 87)

“The price hikes themselves have taken on the character of a natural disaster…Far from being natural, this dependence has been constructed step-by-step, policy-by-policy against the criticism of anti-globalization scholars and a long series of oppositional demonstrations, general strikes, and rebellions throughout the world.” (Caffentzis 2008)

“Millions are now calculating that unless they obstruct the “normal” circuit of capitalist reproduction by taking to the streets they will face starvation” (Caffentzis 2008)

“Historic  systemic failures of governments and international institutions are responsible… For these reasons, they have lost legitimacy and confidence of the world’s peoples …We call on the Human Rights Council and the International Court of Justice to investigate the contribution of agribusiness, including grain traders and commodity speculators, to violations of the right to food and to the food emergency…The oligopolies and speculators, who operate throughout the food chain, must be investigated and suspected criminal behaviour must be brought to justice.” (IPC 2008)

We are in the early stages of what may be a prolonged period of global inflation in food, land, energy, key raw materials (e.g. steel and copper) and other basic goods. Without suitable, and rapid, responses from global anti-capitalist networks, there will be devastating effects on people’s lives throughout the world for many years to come, as well as on our collective abilities to struggle. In little over a decade these networks have proved excellent at organizing large global meetings, global days of action, emergency global responses in support of local struggles, as well circulating information and news throughout the world. Now these networks face the urgent task of building on this success in order to go beyond protest and actually construct long term alternative relations of production, exchange and livelihoods that go beyond the nation state, world-market, money and wage relations. In a period of rising inflation, this is not just an ethical imperative, but rather an urgent material demand, the difference between life and death. Time is limited. The task is huge. Nonetheless, movements are in a strong position to confront the situation in an optimistic manner.

Historical Lessons

In the 13th Century prices in Europe rose sky high. A chaotic and traumatic century of war, pestilence, social unrest, and famine followed, resulting in the breakdown of feudal relations. In 18th Century France, the price of grain and bread skyrocketed. Chaos ensued and the French revolution followed quickly behind. In Weimar Germany prices skyrocketed. Chaos ensued and the Nazis came to power. In the 1970s energy and food prices skyrocketed and famine and the neo-liberal counter-revolution took shape…

Hackett Fischer asserts,

“most inflation in the past eight centuries has happened in four great waves of rising prices. The first wave continued from the late twelfth century to the early fourteenth century. The second…began in the fifteenth century and ended in the mid-seventeenth. The third wave started circa 1930, and reached its climax in the age of the French Revolution and the Napoleonic Wars. The fourth wave commenced in the year 1896 and has continued since, with a short intermission in some nations during the 1920s and early 1930s (Hackett Fischer 1996: 3-5)… [despite important differences] all great waves had important qualities in common. They all shared the same wave-structure. They tended to have the same sequence of development, the same pattern of price-relatives, similar movements of wages, rent, interest-rates; and the same dangerous volatility in the later stages. All major price revolutions in modern history began in periods of prosperity. Each ended in shattering world-crises and were followed by periods of recovery and comparative equilibrium.” (Hackett Fischer 1996: 9)

While history never repeats itself, and cumulative changes have occurred with each successive wave, a number of regularities are highlighted. Each wave has entailed a long term redistribution of wealth and income (both monetarized and non-monetarized), with polarization and concentration occurring along class lines. Middling layers of wealth have simply disappeared. Responses to inflation have repeatedly included government instigated price controls, as well as the speculation and panic buying, often fuelled by an injection of increasing amounts of devalued currency into the financial system. Price instability and rapid inflation has also entailed the break down of markets, public indebtedness and bankruptcy. Consequently, it has also provoked breakdown of established political structures, at local, regional and national levels, as well as internationally, frequently involving increased social unrest and also interstate military conflict. On the other hand, periods of price stability have been periods of comparative political and cultural flourishing, economic growth, reduced inequality and democratization. One major cumulative change that has been observed over time is that successive waves have been less destructive, but have provoked more organized and coherent social and political resistance from those most negatively effected by the inflation.

Contemporary Inflation in Food, Energy and Land

Against the backdrop of Global War on Terror, massive US debts, financial crisis and a collapsing dollar,  food, oil and land prices are again rising. Between May 2007 and May 2008, the price of corn rose 46%, wheat 80%, and soybeans 72%. The price of rice increased by 75% in 2008 over its average 2007 price. Meanwhile, as this article is being completed, the price of oil has reached a new high of $146 a barrel, a rise of 55% since January. Having crept up gradually (and relatively invisibly) for many years, prices are reaching new heights and the rate of inflation is accelerating rapidly, provoking a daily stream of dramatic media headlines.
 
Prices represent a balance of power between buyers and sellers. They are political, not natural. And, of course, it goes without saying (though Marx famously said it) that the division of the world’s population into buyers and sellers is also not a natural division. Rising prices do not hit everyone equally, but translate into a negative redistribution of both power and wealth. While the Food and Agriculture Organization reports a 50 million increase in the number of hungry people in the world in 2007, the agri-multinational, Monsanto made record profits. Net sales in the first nine months of fiscal year 2008 were $9.5bn, 35% higher than the same period last year. Net income was up 83%. The Financial Times cites grain giant Cargill having a 69% rise in profits over last years figures.

Food inflation is the result of years of intentional structural adjustment, trade liberalization in agriculture, privatization of land (both to agribusiness and other industrial spheres), the dismantling of food subsidies, price control mechanisms and marketing boards, and the destruction of national food reserves. These changes have been pushed by multilateral agencies such as the World Trade Organization, the World Bank and International Monetary Fund, regional (and more recently bilateral) free trade agreements, such as NAFTA, and with support from agricultural multinationals, national governments and economic elites as part of the process of constructing a world-market. The recent drive towards agro-fuels has exacerbated these trends, bringing fuel and food crops into direct competition over land,  and pushing up the price of both food and land due to speculation.

Many factors contribute to oil inflation including: military conflict in oil rich areas; the perception of imminent scarcity (“peak oil”); and the falling dollar. On the other hand, demand for oil is also rapidly rising (in addition to the much touted rise of Chinese and Indian demand, US consumption is also continually increasing). Finally, as with food, there is also the element of speculation. The US  House of Representatives has just passed a motion condemning speculation in oil, and the UK House of Commons are in the process of initiating an investigation on the theme.

Oil, food and land are key commodities, basic to both capitalist production (and exchange), and also the reproduction of life, and hence labor power. If the prices of these basics go up, struggles are unleashed as to who shall pay? Will labor suffer austerity, or will capital pay?

This is provoking a massive and rapid loss of legitimacy as existing national, regional and multilateral political, economic and financial institutions fail to deal with the problem and/or make it worse. The first half of 2008 saw a world-wide eruption of food and fuel protests/riots. Fuel protests have occurred in: Bulgaria, Burma, Chile, France, Greece, Iceland, India, Indonesia, Italy, Nepal, Nicaragua, Portugal, Spain, USA, Thailand and UK. Food protests have occurred in Bangladesh, Egypt, Haiti, and Pakistan. In Haiti, a government has fallen due to riots. The majority of this unrest has emerged “spontaneously”, apparently not organized by existing grassroots “political” or “ activist”  organizations.  

It is very likely that the legitimacy of official existing power structures will continue to crumble further and faster in the near future as prices continue to rise. This presents emancipatory movements with enormous opportunities but also with big dangers. While opening up space for massive numbers of people to participate in the long term process of collectively constructing new, and hopefully, liberatory social relations at the global level, it also opens up space for ideas and practices based on a coercive politics of fear, divisions and scapegoating. Should organized emancipatory movements fail to adequately respond, there will be very far reaching effects, not least resulting in these movements becoming irrelevant. Of particular importance here are global anti-capitalist networks.

Contemporary Global Anti-capitalist Networks
 
In the last 10 years, decentralized processes of global communication and coordination between struggles in different parts of the world have played a crucial role in throwing global capitalist institutions such as the World Bank, World Trade Organization, and, more recently, the War on Terror into a crisis of legitimacy. As this article is being completed, big protests are underway in Japan against the G8 summit. The lasting importance of these networks can be seen in the following. The World Trade Organization negotiations are virtually dead, as is the Free Trade Area of the Americas. The EU Constitution died an unglamorous death, and it appears that its successor may go down a similar road, and (perhaps the crowning, but scarcely known achievement) the World Bank/International Monetary Fund are on the verge of bankruptcy. In particular, the following organizational processes have played an important part in this world-wide circulation of struggles: Peoples’ Global Action, World Social Forum, Indymedia, Via Campésina, and various global initiatives around the Zapatista Intergalactic Encuentros. This level of coordination, communication, circulation, as well as sheer inspirational power, amongst struggles worldwide was simply unimaginable scarcely 15 years ago. International networking of struggles are strong processes, very strong.

Rather than going into a detailed history of the emergence of these movements in the last decade and a half,  let us instead remember that global anti-capitalist resistance is far from a new phenomenon. We are standing on the shoulders of an abundant history of international struggle. From the pirates, slaves and sailors of the Atlantic world in construction, to the waves of revolution in the USA, Haiti and France in the late 18th Century; to the European revolutions of 1848 (also the year of the first major women’s rights meeting in the US);  to the simultaneous calls for an 8-hour work day in Europe and the USA in 1864, to the cluster of revolutions which swept the world after World War One and the Russian revolution. From the linking of Black American struggles in Detroit to resistance against Mussolini’s invasion of  Ethiopia, to the internationalism of the Spanish revolutionary civil war. From Pan-African anti-imperialism to the anti-nuclear struggles that helped bringing down the Cold War. From the 1st, 2nd, 3rd and 4th Internationals to the Non-aligned Movement, the Tri-continental and the Cuban revolution’s solidarity with African liberation struggles. From the distribution of  Joe Hill’s ashes at an international workers’ gathering after his execution in 1915, to the international campaign to save the Scottsborough Boys from racist lynching in the 1930s. From the 1919 Baku Congress of Peoples of the East, to the exile of Robert Williams in Cuba and China, following his use of armed self defense against the Ku Klux Klan…The circulation of struggles continues today…and these histories will continue to give much inspiration and many lessons to the tough struggles of the future.

Yet, while acknowledging the great strength and novelty of today’s processes, it seems they may also be reaching the limits of their efficacy. The February 15th anti-war actions showed high levels of organizational capacity for globally coordinated protest. They also revealed the inability to go beyond protest. A number of bottlenecks exist in global resistance processes that hinder such a move. These include the fact that organizational process still often center on individuals, the fact that direct South-South communication and exchange is prohibitively expensive and often still functions via Northern intermediaries, uneven distribution of resources such as computer infrastructures, and the fact that the creation of alternative relations that go beyond information and communication flows really requires substantial material resources that are beyond the current capacity of movements to mobilize. Furthermore, key areas of the world are unequally included in global networks, especially Arab countries, as well as (to a lesser degree) Eastern Europe and Africa.  

Beyond Protest: Building New Relations of (re)production, Exchange and Livelihoods

Global networks are, nonetheless, in a very good position to go beyond the limits of protest and denunciation, by collectively redefining processes of revolutionary transformation rooted in the construction of decentralized and autonomous local alternatives. In many parts of the world, including Bolivia, Venezuela, Argentina, Mexico, parts of India, etc, such processes are already underway at the local or national level. The global networks mentioned above, and others which may emerge in the coming period, can play an important role in ensuring that such local struggles have the maximum transformatory effect possible on the world-economy as a whole and that their effects are felt beyond specific locations. This is important, since, in an increasingly globalized world, now more than ever the idea of Socialism in One Country, or any modern day reincarnation of this, seems a highly unlikely possibility. Illustrative of this are the difficulties and limitations which the important national transformation that have taken place in both Bolivia and Chiapas are currently facing (especially due to repression and a resurgent right wing agenda), local manifestations of a crisis of viability at the global level. It is world-revolution or nothing.

Global networks have always emphasized the importance of simultaneously resisting structures of domination and creating alternatives from below, and the local struggles that comprise of the networks are firmly rooted in struggles to do precisely this. An important debate, and range of practice, has emerged in this context, especially around the question as to whether the nation state is a vehicle for emancipatory change or whether it is an obstacle to these processes, itself being simply another form of domination. At the local level, this is exemplified most clearly in the different organizational and strategic approaches taken by the Zapatista revolution in Chiapas, the Bolivarian revolution of Chavez in Venezuela, and the Movement Towards Socialism led by Evo Morales in Bolivia. At the worldwide level, these two approaches are best exemplified in the two nascent, but important, movement building statements issued in the last couple years: the (non-state centric) Zapatista 6th Declaration, and the (state-centric) Bamako Appeal, which was issued by and is supported by certain sectors within the World Social Forum process.

In times of inflation, it becomes harder to survive on wages. The key challenges to human well being are how will people sustain themselves in the future? How will global inequalities be addressed? Where do rights come from?

There can only be one appropriate struggle in the face of inflation: resisting commodification at the point of production and consumption, especially in food, land and energy, three areas which are basic to the reproduction of human life. While certain gains may be made through lobbying governments for price freezes or wage rises, and it will also be crucial to resist austerity measures on public and welfare oriented services, results will only be limited as long as the social relations which keep people dependent on the commodity form in the first place continue to exist. In other words, there is an urgent need to break this set of social relation. This entails overcoming the forced separation that exists between people and their means of subsistence, which forces people to be dependent on the wage (and its associated and subordinate forms of unwaged labor). This means creating relations of (re)production, exchange and livelihoods that satisfy human needs rather than the profit needs of the market, money and waged labor. In other words, there is an urgent need to struggle for far reaching land reform, commonly owned means of (re)production, and non-profit food, land and energy and the decommodification of these sectors. Rioting and looting are indisputably a part of this process.

Possible Moments in an Ongoing Conversation of Resistance

I will close this article by pointing to three contemporary global initiatives that may be useful moments to collectively deepen this discussion and prepare actions based on these long term perspectives. These are a) the Zapatista 6th Declaration and the Intergalactica process it proposes, b) the statement issued by the International Planning Committee for Food Sovereignty (IPC) 2008 Civil Society Statement on the World Food Emergency: No More “Failures-as Usual”! and c) the upcoming grassroots mobilizations which will take place during the  UN climate change talks, COP 15, which will take place in Copenhagen in December 2009.

The Zapatista 6th Declaration, issued in 2005, is a far reaching invitation for people to participate in a collective process of constructing new material relations between people throughout the world, seeking to go beyond the nation state and world-market. It is a call from Below and to the Left. The process, while slow in developing, has already had an important global resonance. In Chiapas the Zapatistas have already hosted three meetings of the Zapatista Peoples With the Peoples of the World (the last one an all women’s meeting), as well as an Indigenous Peoples of the Americas gathering.  While no date or location has been set for the fabled Intergalactica meeting called for in the Declaration, and while the Zapatistas are facing an intensification of state repression against them, the global process set forth is nonetheless a potentially very powerful vehicle for launching a long term process of constructing new world-wide social relations.  

The IPC statement calls for the prosecution of food speculators at the International Court of Justice. Though appealing to the goodwill of existing power structures to implement benign reforms (a process that has limited chances of success), the demand is nonetheless a confrontational one and highlights the crucial question of justice for speculators in times of inflation. And, though gentler in tone, the proposal is reminiscent of revolutionary ghosts of the past. For better or worse, after the Russian Revolution food speculators, the predecessors of today’s corporate agri-business criminals, were unceremoniously shot in the early days of the revolution. A grim reminder of the issues at stake…

Finally, to Copenhagen. The UN Framework Convention on Climate Change is expected result in a replacement for the Kyoto protocol and set the global framework to fight climate change. It will be one of the highest-profile global media shows ever, by which the governments will try to convince us that they are doing something about the multiple crises facing us. It will also be a moment in which the future energy system of the world is up for discussion, or at least being discussed. Energy is a key means of production and reproduction, both for capitalist relations and for non-capitalist relations. As such, there is a key struggle for who controls it. If a transition to renewable energy is about to occur, this means that much of the world’s productive infrastructure will be replaced in the coming years. The struggle for control of this process is an open process, since it hasn’t happened yet. The struggle hasn’t yet been lost, since the infrastructure hasn’t yet been built and appropriated. Hence, Copenhagen can offer an important moment for positing the theme of non-commodified and commonly owned energy infrastructures, services and resources and for generating debate on this theme, both amongst anti-capitalist activists and also within the renewable energy sector itself.

And so, as prices of life’s basic needs go up each day, the clock is ticking. Are we ready or not ?

References cited
Caffentzis, George 2008 Starvation Politics: From Ancient Egypt to the Present in Turbulence 2 (forthcoming, August 2008)

Cleaver, Harry 1977 Food, Famine and International Crisis in Zerowork 2.
Available at http://www.eco.utexas.edu/~hmcleave/357Lcleaverfood.pdf

Cleaver, Harry 1979 Reading Capital Politically Harvester Press, Brighton
Available at http://www.eco.utexas.edu/~hmcleave/357krcp.html

Hackett Fischer, David 1996 The Great Wave: Price Revolutions, and the Rhythm of History Oxford University Press, Oxford/New York

Mattick, Paul 1978 Economics, Politics, and the Age of Inflation Merlin Press, London

Midnight Notes 1979 Strange Victories: The Anti-nuclear Movement in the US and Europe Volume 1, Number 1

International Planning Committee for Food Sovereignty (IPC) 2008 Civil Society Statement on the World Food Emergency: No More “Failures-as Usual”! Available at: http://www.nyeleni.eu/foodemergency/CSOdraftStatement-English.pdf

Ramirez, Bruno (1975) Self-reduction of Prices in Italy reprinted in Midnight Notes 1992 Midnight Oil: Work, Energy, War, 1973-1992 (Autonomedia, New York)