Confessions of an Economic Hit Man

Seduced by an agent of the US National Security Agency by sex, money and power John Perkins became an economic hit man. In an interview of two parts John reveals the fascinating story of his involvement in profit-driven economic strong-arm tactics in countries across the globe and the part he played in building the "American Empire":



Part 1


Part 2


Thanks to Z3 from world socialist movement forum for the link.

Capitalism And Other Kids Stuff

This is a thought-provoking education into the world we live in, it explains how the world's economic system operates in terms of a crazy and very unfair game that children are playing, and so it captures the imagination of its viewers. A fantastic movie to help understand the politics and economics of our global society, with an aim to establishing an alternative society based on meeting needs, on cooperation rather than competition, and on democratic forms of decision-making intead of top-down hierarchies. This is a movie on the forefront of those who wish to save this planet from worsening global warming, incessant wars, and either widespread physical poverty or profound feelings of spiritual poverty despite our rapacious consumerism. Its alternative is a very realizable future ready for the taking, not a hodge-podge dream.

Here it is then in five bite-size chunks:

Public funding for ‘anti-union’ rail franchises

From Alsef's January 2010 'Locomotive Journal'.

"There is now formal evidence that rail franchises, drawn up by tories and backed by labour, are actively anti-worker.

Franchise rail firms don’t need to bother about having good industrial relations. If they cause a strike by bad treatment of employees or insulting pay offers, they’re not too worried – because the taxpayer will compensate them.

This is the result of a clause that reads ‘the secretary of state, in his sole discretion, may decide to reimburse or ameliorate net losses of the franchise operator arising from industrial action (howsoever caused and of whatever nature)'.

This is really remarkable. It means companies can treat staff as badly as they choose – and get paid for doing it!

This only came into the public eye after Dave Calfe from the Aslef executive committee had a two-year battle to prise information about this clause from the department for transport, using the freedom of Information Act.

As a result of his persistence Blaydon MP Dave Anderson asked a direct Parliamentary Question – had the department for transport paid out money under this clause? Yes, came the eventual and reluctant reply.

He asked who it was paid to, and how much they got – but this information was not given to him because it was ‘commercially confidential’.

Read that again. On the grounds of commercially confidentiality, the labour government will not tell a member of Parliament how much taxpayers’ money had gone to subsidise an employer who had been inconvenienced by legal industrial action taken by a union affiliated to labour!

This really is a scandal. It’s the equivalent of the tories agreeing to fund our members’ wages during an industrial dispute. And worse, itactively protects franchises that have bad industrial relations practices.

Franchises make the government position utterly illogical. If we ask them to intervene on an issue, they says it’s nothing to do with them. They are independent companies and the department for transport has no control over them. This is nonsense. two companies – First Capital Connect and London Midland – were summoned to the department last month and told to submit action plans to improve
their performance.

This is clear intervention by the government, which leads to two conclusions. First it means it can intervene on issues we want raised with companies, like free staff travel. And second, if it does have to intervene, the logic is for the department to oversee the whole railway in the public sector.

All they need to do is not renew franchises when they run out. I know Aslef will be accused of bad manners again – but it is a fact that this is labour Party policy."


So Aslef are surprised that a Labour government is following 'anti-union' policies. You'd have thought they would have become accustomed to it by now.

They draw two conclusions. I have two of my own:

First, Aslef insists on continuing to be affiliated to the Labour Party and to waste union members' dues on funding this anti-working class organisation. The union leaders actively encourage local branches to affiliate to their local Labour Party. The Aslef leadership are, therefore, partly responsible for the Labour government's 'anti-union' policies.

Second, Aslef assumes that governments are entirely free to follow whatever policies they choose. However, when you seek to hold political power you are forced to play by capitalism's rules. It is the capitalist dog that wags the government's tail, not the other way around.

Smash Cash!

(Originally published in 1968 in issue 17 of the sixties counter-culture magazine OZ.)

400BC: Hey all you thirsty people, though you’ve got no money, come to the water. Buy corn without money and eat. Buy wine without money and milk without price. (Isaiah).

1652: There shall be no buying and selling . . . If any man or family want grain or other provisions, they may go to the storehouse and fetch without money. (Gerrard Winstantley).

1968: The Abolition of Money. The abolition of pay housing, pay media, pay transportation, pay food, pay education, pay clothing, pay medical help and pay toilets. A society which works towards and actively promotes the concept of “full unemployment” . . . (Yippie election leaflet).

Abolition of Money! Down through the ages this wild and visionary slogan has been whispered by a subversive few. Ever since human beings discovered cash, they have hated it and tried to rid themselves of it – whilst their own actions have kept it alive. In this respect, money is like syphilis.

Today the whisper has become a shout – though still the shout of a tiny minority. Tomorrow it will be the roar of the crowd, the major topic of discussion in every pub and coffee house, factory and office.

The abolition of money is an ancient dream, the most radical demand of every social revolution for centuries past. We must not suppose that it is therefore destined to remain a Utopia, that the wheel will simply turn full circle once more. Today there is an entirely new element in the situation: Plenty.

All previous societies have been rationed societies, based on scarcity of food, clothing and shelter. The modern world is also a society of scarcity, but with a difference. Today’s shortages are unnecessary; today’s scarcity is artificial. More than that: scarcity achieved at the expense of strenuous effort, ingenious organization and the most sophisticated planning.

The world is haunted by a spectre – the spectre of Abundance. Only by planned waste and destruction on a colossal scale can the terrifying threat of Plenty be averted.

Money means rationing. It is only useful when there are shortages to be rationed. No one can buy or sell air: it’s free because there is plenty of it around. Food, clothing, shelter and entertainment should be free as air. But the means of rationing scarcity themselves keep the scarcity in existence. The only excuse for money is that there is not enough wealth to go round – but it is the money system which makes sure there cannot be enough to go round. By abolishing money we create the conditions where money is unnecessary.

If we made a list of all those occupations which would be unnecessary in a Moneyless World, jobs people now have to do which are entirely useless from a human point of view, we might begin as follows: Customs officer, Security guard, Locksmith, Wages clerk, Tax assessor, Advertising man, Stockbroker, Insurance agent, Ticket puncher, Salesman, Accountant, Slot machine emptier, Industrial spy, Bank manager, before we realized the magnitude of what was involved. And these are merely the jobs which are wholly and utterly useless. Nearly all occupations involve something to do with costing or selling. Now we should see that the phrase “Abolition of Money” is just shorthand for immense, sweeping, root and branch changes in society. The abolition of money means the abolition of wages and profits, nations and frontiers, armies and prisons. It means that all work will be entirely voluntary.

Of course, the itemizing of those jobs which are financial does not end the catalogue of waste. Apart from astronomical sums spent on the Space Race, and the well-known scandal of huge arms production, we have to realise that all production is carried on purely for profit. The profit motive often runs completely counter to human need. ‘Built-in obsolescence’ (planned shoddiness), the restrictive effects of the patents system, the waste of effort through duplication of activities by competing firms or nations – these are just a few of the ways in which profits cause waste.

What this amounts to is that ninety per cent (a conservative estimate) of effort expended by human beings today is entirely pointless, does not the slightest bit of good to anybody. So it is quite ridiculous to talk about “how to make sure people work if they’re not paid for it”. If less than ten per cent of the population worked, and the other ninety per cent stayed at home watching telly, we’d be no worse off than we are now.

But there would be no need for them to watch telly all the time, because without the profit system work could be made enjoyable. Playing tennis, writing poems or climbing mountains are not essentially any more enjoyable than building houses, growing food or programming computors. The only reason we think of some things as ‘leisure’ and others as ‘work’ is because we get used to doing some things because we want to and others because we have to. Prostitutes despise love. We are all prostitutes. In a Moneyless World work would be recreation and art. That work which is unavoidably unhealthy or unpleasant, such as coalmining, would be automated immediately. Needless to say, the only reason these things aren’t done by machines at present is because it is considered more important to lower the costs of the employer than to lower the unhappiness of his slaves.

The money system is obsolete and antihuman. So what should we do about it? In years to come, with the increasing education and increasing misery of modern life, together with growing plenty, we can expect the Abolition of Money to be treated more and more as a serious issue, to be inserted into more and more heads. The great mass of individuals will first ridicule, then dare to imagine (Fantasy is the first act of rebellion – Freud), then overthrow.

In the meantime, as well as propagating the notion of a Moneyless World, those of us who see its necessity have a responsibility to sort our own ideas out, in order that we may present an intelligible and principled case. We must stop thinking of the Moneyless World as an ‘ultimate aim’ with no effect upon our actions now. We must realise that the Abolition of Money is THE immediate demand. A practical proposition and an urgent necessity – not something to be vaguely ‘worked towards’.

Unfortunately those who want the Moneyless World frequently wade in a mire of mystification. Above all it is necessary to understand the workings of this society, capitalist society (Moscow, Washington and Peking are all in the same boat) if we are to know how to destroy it.

For example there is a commonly held view that Automation is going to settle all our worries, that money will expire automatically as part of a “natural process of evolution”. This is quite wrong. As pointed out above, this society only automates to increase profits and for no other reason. Employers even take machines out and put workers back in – if they find that labour-power is cheaper. Any gain from automation these days is more than cancelled out by the waste explosion. Do not imagine that the slight increases in living standards of the last twenty years are the beginning of a smooth transition to Abundance. Another huge world slump is approaching.

A different illusion, also popular, is that cash can be abolished by example, by opening giveaway shops or by starting small moneyless communities which are parasitical upon the main body of society. These experiments accomplish little. Those people, for instance, who open stores to give and receive books without payment, face a predictable result: a large stock of lousy books.

These projects stem partly from a belief that we need to prove something. Relax. We don’t need to prove anything. The defenders of this insane society, it is they who stand accused, they who have to supply the arguments – arguments for poverty and enslavement in a world of Plethora!

All theoretical constructions which relate to wages, prices, profits and taxes are ghosts from the past, as absurdly outdated as the quibbles about how many angels could dance on the point of a needle. ‘Incomes policy’ is irrelevant – we want the abolition of incomes. “Fighting crime” is irrelevant – we want the abolition of the law. ‘Workers’ control’ is irrelevant – we want the abolition of ‘workers’. ‘Black Power’ is irrelevant – we want the abolition of power over people. ‘The national interest’ is irrelevant—we want the abolition of nations.

And let no one raise the banal cry: what are you going to put in their place? As though we would say to a research scientist: “And when you’ve cured Cancer, what are you going to put in its place?”

Then there is the myth of the small-scale. We cannot go back to being peasants and we should not want to. Keeping several thousand million people alive on this planet necessitates railways, oil wells, steel mills. Only by intricate organization and large-scale productive techniques can we maintain our Abundance. Do not be afraid of machines. It is not machines which enslave, but Capital, in whose service machines are employed. McLuhan represents the beginning of the New Consciousness of man-made artifacts. Computors are warm and cuddly creatures. We will have a beautiful time with them.

Many of the worst errors which retard the development of the New Consciousness, the Consciousness of Plenty, are to be found in Herbert Lomas’ piece on “The Workless Society” in International Times 43. This at least has the merit that someone is putting forward a case for the removal of money in specific terms. Unfortunately, they are specific non-starters.

According to Herbert Lomas, a political party is to be formed which will take power and proceed as follows. Useless workers in industry will be gradually be laid off and paid for not working. The process will be extended until money can be abolished. In the meantime, those being paid for doing nothing will do what they like. To begin with many of them might play Bingo; eventually more and more would aim at higher things.

What is wrong with this projection? Many things, but chiefly two. First, it fails to take account of the systematic nature of society. Second, it assumes that present-day society exhibits a harmony of interests.

In the first place, Lomas says: “Why are these people working? They are not working for the sake of production, for the truth is that if they were removed production could be increased beyond measure”.. He concludes that they are working because of their attitudes, the attitudes of their employers, the attitudes of the rest of society. But the fact of the matter is that these workers are working for the sake of production – not the production of goods but the production of profits. The reason why things are “made with great ingenuity to wear out” is not because of the attitudes of the people involved. The management may think it’s criminal but they are paid to optimize profits. If they produced razor blades to last for centuries, the firm would go broke. It is not the attitudes which are crucial, but economic interests. If a teetotaller owns shares in a brewery, it does not make booze less potent.

Which brings us to the second point. Today’s world is a jungle of conflicting vested interests. The Abolition of Money will represent the liberation of slaves, yes – but also the dispossession of masters, i.e. the employing class. We cannot view the government as an impartial panel which looks after the best interests of everybody; it is an instrument used by one set of people to oppress another.

On one point Herbert Lomas is correct. The movement for the Abolition of Money must be political, because when we destroy money we destroy the basis of the power of our rulers. They are unlikely to take kindly to this, so we must organize politically to remove them.

For the moment though, what is needed is more discussion and more understanding. We must be confident that the movement will grow. We must think, argue, and think again – but never lose consciousness of the one, simple, astounding fact: Plenty is here. The Moneyless World is not an ultimate millennium. We need it now.

DAVID RAMSAY STEELE, OZ, 1968.

Also read "The Market System Must Go!" here.

Erich Fromm on Youtube

Erich Fromm, psychoanalyst and social critic, talks to Mike Wallace about society, materialism, relationships, government, religion, and happiness.

It hasn't aged. It's as relevant today as it was 50 years, or so, ago.

Erich Fromm interviewed by Mike Wallace (1 of 3)
http://www.youtube.com/watch?v=mPw5prYLc5w

Erich Fromm interviewed by Mike Wallace (2 of 3)
http://www.youtube.com/watch?v=4y1nraKpIyA&feature;=related

Erich Fromm interviewed by Mike Wallace (3 of 3)
http://www.youtube.com/watch?v=0kyfvfQjNy4&feature;=related

Thanks to Arminius at worldincommon for the link.

'The Soviet Union Versus Socialism' by Noam Chomsky

When the world's two great propaganda systems agree on some doctrine, it requires some intellectual effort to escape its shackles. One such doctrine is that the society created by Lenin and Trotsky and molded further by Stalin and his successors has some relation to socialism in some meaningful or historically accurate sense of this concept. In fact, if there is a relation, it is the relation of contradiction.
It is clear enough why both major propaganda systems insist upon this fantasy. Since its origins, the Soviet State has attempted to harness the energies of its own population and oppressed people elsewhere in the service of the men who took advantage of the popular ferment in Russia in 1917 to seize State power. One major ideological weapon employed to this end has been the claim that the State managers are leading their own society and the world towards the socialist ideal; an impossibility, as any socialist -- surely any serious Marxist -- should have understood at once (many did), and a lie of mammoth proportions as history has revealed since the earliest days of the Bolshevik regime. The taskmasters have attempted to gain legitimacy and support by exploiting the aura of socialist ideals and the respect that is rightly accorded them, to conceal their own ritual practice as they destroyed every vestige of socialism.

As for the world's second major propaganda system, association of socialism with the Soviet Union and its clients serves as a powerful ideological weapon to enforce conformity and obedience to the State capitalist institutions, to ensure that the necessity to rent oneself to the owners and managers of these institutions will be regarded as virtually a natural law, the only alternative to the 'socialist' dungeon.

The Soviet leadership thus portrays itself as socialist to protect its right to wield the club, and Western ideologists adopt the same pretense in order to forestall the threat of a more free and just society. This joint attack on socialism has been highly effective in undermining it in the modern period.

One may take note of another device used effectively by State capitalist ideologists in their service to existing power and privilege. The ritual denunciation of the so-called 'socialist' States is replete with distortions and often outright lies. Nothing is easier than to denounce the official enemy and to attribute to it any crime: there is no need to be burdened by the demands of evidence or logic as one marches in the parade. Critics of Western violence and atrocities often try to set the record straight, recognizing the criminal atrocities and repression that exist while exposing the tales that are concocted in the service of Western violence. With predictable regularity, these steps are at once interpreted as apologetics for the empire of evil and its minions. Thus the crucial Right to Lie in the Service of the State is preserved, and the critique of State violence and atrocities is undermined.

It is also worth noting the great appeal of Leninist doctrine to the modern intelligentsia in periods of conflict and upheaval. This doctrine affords the 'radical intellectuals' the right to hold State power and to impose the harsh rule of the 'Red Bureaucracy,' the 'new class,' in the terms of Bakunin's prescient analysis a century ago. As in the Bonapartist State denounced by Marx, they become the 'State priests,' and "parasitical excrescence upon civil society" that rules it with an iron hand.

In periods when there is little challenge to State capitalist institutions, the same fundamental commitments lead the 'new class' to serve as State managers and ideologists, "beating the people with the people's stick," in Bakunin's words. It is small wonder that intellectuals find the transition from 'revolutionary Communism' to 'celebration of the West' such an easy one, replaying a script that has evolved from tragedy to farce over the past half century. In essence, all that has changed is the assessment of where power lies. Lenin¹s dictum that "socialism is nothing but state capitalist monopoly made to benefit the whole people," who must of course trust the benevolence of their leaders, expresses the perversion of 'socialism' to the needs of the State priests, and allows us to comprehend the rapid transition between positions that superficially seem diametric opposites, but in fact are quite close.

The terminology of political and social discourse is vague and imprecise, and constantly debased by the contributions of ideologists of one or another stripe. Still, these terms have at least some residue of meaning. Since its origins, socialism has meant the liberation of working people from exploitation. As the Marxist theoretician Anton Pannekoek observed, "this goal is not reached and cannot be reached by a new directing and governing class substituting itself for the bourgeoisie," but can only be "realized by the workers themselves being master over production." Mastery over production by the producers is the essence of socialism, and means to achieve this end have regularly been devised in periods of revolutionary struggle, against the bitter opposition of the traditional ruling classes and the 'revolutionary intellectuals' guided by the common principles of Leninism and Western managerialism, as adapted to changing circumstances. But the essential element of the socialist ideal remains: to convert the means of production into the property of freely associated producers and thus the social property of people who have liberated themselves from exploitation by their master, as a fundamental step towards a broader realm of human freedom.

The Leninist intelligentsia have a different agenda. They fit Marx's description of the 'conspirators' who "pre-empt the developing revolutionary process" and distort it to their ends of domination; "Hence their deepest disdain for the more theoretical enlightenment of the workers about their class interests," which include the overthrow of the Red Bureaucracy and the creation of mechanisms of democratic control over production and social life. For the Leninist, the masses must be strictly disciplined, while the socialist will struggle to achieve a social order in which discipline "will become superfluous" as the freely associated producers "work for their own accord" (Marx). Libertarian socialism, furthermore, does not limit its aims to democratic control by producers over production, but seeks to abolish all forms of domination and hierarchy in every aspect of social and personal life, an unending struggle, since progress in achieving a more just society will lead to new insight and understanding of forms of oppression that may be concealed in traditional practice and consciousness.

The Leninist antagonism to the most essential features of socialism was evident from the very start. In revolutionary Russia, Soviets and factory committees developed as instruments of struggle and liberation, with many flaws, but with a rich potential. Lenin and Trotsky, upon assuming power, immediately devoted themselves to destroying the liberatory potential of these instruments, establishing the rule of the Party, in practice its Central Committee and its Maximal Leaders -- exactly as Trotsky had predicted years earlier, as Rosa Luxembourg and other left Marxists warned at the time, and as the anarchists had always understood. Not only the masses, but even the Party must be subject to "vigilant control from above," so Trotsky held as he made the transition from revolutionary intellectual to State priest. Before seizing State power, the Bolshevik leadership adopted much of the rhetoric of people who were engaged in the revolutionary struggle from below, but their true commitments were quite different. This was evident before and became crystal clear as they assumed State power in October 1917.

A historian sympathetic to the Bolsheviks, E.H. Carr, writes that "the spontaneous inclination of the workers to organize factory committees and to intervene in the management of the factories was inevitably encourage by a revolution with led the workers to believe that the productive machinery of the country belonged to them and could be operated by them at their own discretion and to their own advantage" (my emphasis). For the workers, as one anarchist delegate said, "The Factory committees were cells of the future... They, not the State, should now administer."

But the State priests knew better, and moved at once to destroy the factory committees and to reduce the Soviets to organs of their rule. On November 3, Lenin announced in a "Draft Decree on Workers' Control" that delegates elected to exercise such control were to be "answerable to the State for the maintenance of the strictest order and discipline and for the protection of property." As the year ended, Lenin noted that "we passed from workers' control to the creation of the Supreme Council of National Economy," which was to "replace, absorb and supersede the machinery of workers' control" (Carr). "The very idea of socialism is embodied in the concept of workers' control," one Menshevik trade unionist lamented; the Bolshevik leadership expressed the same lament in action, by demolishing the very idea of socialism.

Soon Lenin was to decree that the leadership must assume "dictatorial powers" over the workers, who must accept "unquestioning submission to a single will" and "in the interests of socialism," must "unquestioningly obey the single will of the leaders of the labour process." As Lenin and Trotsky proceeded with the militarization of labour, the transformation of the society into a labour army submitted to their single will, Lenin explained that subordination of the worker to "individual authority" is "the system which more than any other assures the best utilization of human resources" -- or as Robert McNamara expressed the same idea, "vital decision-making...must remain at the top...the real threat to democracy comes not from overmanagement, but from undermanagement"; "if it is not reason that rules man, then man falls short of his potential," and management is nothing other than the rule of reason, which keeps us free. At the same time, 'factionalism' -- i.e., any modicum of free expression and organization -- was destroyed "in the interests of socialism," as the term was redefined for their purposes by Lenin and Trotsky, who proceeded to create the basic proto-fascist structures converted by Stalin into one of the horrors of the modern age.1

Failure to understand the intense hostility to socialism on the part of the Leninist intelligentsia (with roots in Marx, no doubt), and corresponding misunderstanding of the Leninist model, has had a devastating impact on the struggle for a more decent society and a livable world in the West, and not only there. It is necessary to find a way to save the socialist ideal from its enemies in both of the world's major centres of power, from those who will always seek to be the State priests and social managers, destroying freedom in the name of liberation.

1 On the early destruction of socialism by Lenin and Trotsky, see Maurice Brinton, The Bolsheviks and Workers' Control. Montreal: Black Rose Books, 1978, and Peter Rachleff, Radical America, Nov. 1974, among much other work.

The Soviet Union Versus Socialism

Chomsky info

Alexander Berkman's 'ABC of Communist Anarchism'.

You don't question the right of the government to kill, to confiscate and imprison. If a private person should be guilty of the things the government is doing all the time, you'd brand him a murderer, thief, and scoundrel. But as long as the violence committed is "lawful" you approve of it and submit to it. So it is not really violence that you object to, but to people using violence "unlawfully".

This lawful violence and the fear of it dominate our whole existence, individual and collective. Authority controls our lives from the cradle to the grave-authority parental, priestly and divine, political, economic, social, and moral. But whatever the character of that authority, it is always the same executioner wielding power over you through your fear of punishment in one form or another. You are afraid of God and the devil, of the priest and the neighbor, of your employer and boss, of the politician and policeman, of the judge and the jailer, of the law and the government. All your life is a long chain of fears-fears which bruise your body and lacerate your soul. On those fears is based the authority of God, of the church, of parents, of capitalist and ruler.

Look into your heart and see if what I say is not true. Why, even among children the ten-year-old Johnny bosses his younger brother or sister by the authority of his greater physical strength, just as Johnny's father bosses him by his superior strength, and by Johnny's dependence on his support. You stand for the authority of priest and preacher because you think they can "call down the wrath of God upon your head". You submit to the domination of boss, judge, and government because of their power to deprive you of work, to ruin your business, to put you in prison - a power, by the way, that you yourself have given into their hands.

So authority rules your whole life, the authority of the past and the present, of the dead and the living, and your existence is a continuous invasion and violation of yourself, a constant subjection to the thoughts and the will of some one else.

And as you are invaded and violated, so you subconsciously revenge yourself by invading and violating others over whom you have authority or can exercise compulsion. Physical or moral. In this way all life has become a crazy quilt of authority, of domination and submission, of command and obedience, of coercion and subjection, of rulers and ruled, of violence and force in a thousand and one forms.

Can you wonder that even idealists are still held in the meshes of this spirit of authority and violence, and are often impelled by their feelings and environment to invasive acts entirely at variance with their ideas?

We are all still barbarians who resort to force and violence to settle our doubts, difficulties, and troubles. Violence is the method of ignorance, the weapon of the weak. The strong of heart and brain need no violence, for they are irresistible in their consciousness of being right. The further we get away from primitive man and the hatchet age, the less recourse we shall have to force and violence. The more enlightened man will become, the less he will employ compulsion and coercion. The really civilized man will divest himself of all fear and authority. He will rise from the dust and stand erect: he will bow to no tsar either in heaven or on earth. He will become fully human when he will scorn to rule and refuse to be ruled. He will be truly free only when there shall be no more masters.

ABC of Communist Anarchism