The Death Of The Euro

The Article: Is this how the euro ends? by Ezra Klein in the Washington Post.

The Text: Here’s how it was supposed to go: Greece first. Then, perhaps, Portugal and Ireland. If things got really bad, Spain. If the world — or, more precisely, the euro — was coming to an end, Italy. It was not supposed to go Greece and then Italy. No one was prepared for that. The markets weren’t prepared for that.

(Kristen Boghosian and Anqoinette Crosby/The Washington Post) And so the markets are falling. The Dow is down 290 points. The Stoxx 50, a blue-chip index for the euro zone, is down 2.5 percent. Italy’s borrowing costs have skyrocketed. The Euro has plunged.

The problem, put simply, is that Italy is both too big to fail and too big to save. It’s the eighth-largest economy in the world. At $2 trillion, it’s about seven times as large as Greece’s $300 billion economy. France and Germany’s banks alone have $600 billion in exposure to Italian debt. But Barclay’s says Italy is “now mathematically beyond the point of no return.” Silvio Berlusconi might be out, but changing governments does not change arithmetic. And so the question is simple, and stark: If there wasn’t the will to really save Greece, where would the will — and the money — come from to save Italy?

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Why We’re Bankrupt

The Article: The 1% are the very best destroyers of wealth the world has ever seen by George Monbiot in the Guardian.

The Text: If wealth was the inevitable result of hard work and enterprise, every woman in Africa would be a millionaire. The claims that the ultra-rich 1% make for themselves – that they are possessed of unique intelligence or creativity or drive – are examples of the self-attribution fallacy. This means crediting yourself with outcomes for which you weren’t responsible. Many of those who are rich today got there because they were able to capture certain jobs. This capture owes less to talent and intelligence than to a combination of the ruthless exploitation of others and accidents of birth, as such jobs are taken disproportionately by people born in certain places and into certain classes.

The findings of the psychologist Daniel Kahneman, winner of a Nobel economics prize, are devastating to the beliefs that financial high-fliers entertain about themselves. He discovered that their apparent success is a cognitive illusion. For example, he studied the results achieved by 25 wealth advisers across eight years. He found that the consistency of their performance was zero. “The results resembled what you would expect from a dice-rolling contest, not a game of skill.” Those who received the biggest bonuses had simply got lucky.

Such results have been widely replicated. They show that traders and fund managers throughout Wall Street receive their massive remuneration for doing no better than would a chimpanzee flipping a coin. When Kahneman tried to point this out, they blanked him. “The illusion of skill … is deeply ingrained in their culture.”

So much for the financial sector and its super-educated analysts. As for other kinds of business, you tell me. Is your boss possessed of judgment, vision and management skills superior to those of anyone else in the firm, or did he or she get there through bluff, bullshit and bullying?

In a study published by the journal Psychology, Crime and Law, Belinda Board and Katarina Fritzon tested 39 senior managers and chief executives from leading British businesses. They compared the results to the same tests on patients at Broadmoor special hospital, where people who have been convicted of serious crimes are incarcerated. On certain indicators of psychopathy, the bosses’s scores either matched or exceeded those of the patients. In fact, on these criteria, they beat even the subset of patients who had been diagnosed with psychopathic personality disorders.

The psychopathic traits on which the bosses scored so highly, Board and Fritzon point out, closely resemble the characteristics that companies look for. Those who have these traits often possess great skill in flattering and manipulating powerful people. Egocentricity, a strong sense of entitlement, a readiness to exploit others and a lack of empathy and conscience are also unlikely to damage their prospects in many corporations.

In their book Snakes in Suits, Paul Babiak and Robert Hare point out that as the old corporate bureaucracies have been replaced by flexible, ever-changing structures, and as team players are deemed less valuable than competitive risk-takers, psychopathic traits are more likely to be selected and rewarded. Reading their work, it seems to me that if you have psychopathic tendencies and are born to a poor family, you’re likely to go to prison. If you have psychopathic tendencies and are born to a rich family, you’re likely to go to business school.

This is not to suggest that all executives are psychopaths. It is to suggest that the economy has been rewarding the wrong skills. As the bosses have shaken off the trade unions and captured both regulators and tax authorities, the distinction between the productive and rentier upper classes has broken down. Chief executives now behave like dukes, extracting from their financial estates sums out of all proportion to the work they do or the value they generate, sums that sometimes exhaust the businesses they parasitise. They are no more deserving of the share of wealth they’ve captured than oil sheikhs.

The rest of us are invited, by governments and by fawning interviews in the press, to subscribe to their myth of election: the belief that they are possessed of superhuman talents. The very rich are often described as wealth creators. But they have preyed on the earth’s natural wealth and their workers’ labour and creativity, impoverishing both people and planet. Now they have almost bankrupted us. The wealth creators of neoliberal mythology are some of the most effective wealth destroyers the world has ever seen.

What has happened over the past 30 years is the capture of the world’s common treasury by a handful of people, assisted by neoliberal policies which were first imposed on rich nations by Margaret Thatcher and Ronald Reagan. I am now going to bombard you with figures. I’m sorry about that, but these numbers need to be tattooed on our minds. Between 1947 and 1979, productivity in the US rose by 119%, while the income of the bottom fifth of the population rose by 122%. But from 1979 to 2009, productivity rose by 80%, while the income of the bottom fifth fell by 4%. In roughly the same period, the income of the top 1% rose by 270%.

In the UK, the money earned by the poorest tenth fell by 12% between 1999 and 2009, while the money made by the richest 10th rose by 37%. The Gini coefficient, which measures income inequality, climbed in this country from 26 in 1979 to 40 in 2009.

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A Night With Nero

A Night With Nero

Coming of age in metropolitan Washington DC in the late 90’s, I was fortunate enough to be a participant in and observant of the high water mark of the electronica scene in the area. Ushered in by Buzz and Yoshitoshi, the Washington EDM scene was marked by high-profile appearances while cultivating local talent in distinct sub-genres from deep house to jungle to psytrance.

Needless to say, I would be considered a part of (relatively speaking) the old guard of the electronica subculture, distinct from the developments of the last 10 years — most notably the rise of dubstep. Some of the older clique have viewed the popularity of dubstep as diluting the rest of the electronic scene while rewarding a form that is seen as more produced than created. However, having no distinct opinion and having never been to a dubstep show, I jumped at the opportunity to see the world-renowned Nero presented by Beats by Dre.

Within the confines of a cozy store in SoHo, I was one of approximately 100 individuals to enjoy an hour long set by Nero. The audience trended younger but was comprised of obvious fans of the music, meaning the atmosphere as well as the music had a noticeable bounce. While I was unfamiliar with a majority of the Nero catalog, the ambiance and acoustics harkened me back to headier days spent in lilliputian outposts filled with young rave acolytes and the requisite sensory overload.

Nero Dubstep Spinning in NYC Soho

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Regarding The Democratic Farce

The Article: The Democratic Fraud and the Universalist Alternative by Samir Amin in the Monthly Review.

The Text:

1. The Democratic Fraud Challenges Us to Invent Tomorrow’s Democracy

Universal suffrage is a recent conquest, beginning with workers’ struggles in a few European countries (England, France, Holland, and Belgium) and then progressively extending throughout the world. Today, everywhere on the planet, it goes without saying that the demand for delegating supreme power to an honestly elected, multiparty assembly defines the democratic aspiration and guarantees its realization—or so it is claimed.

Marx himself put great hopes on such universal suffrage as a possible “peaceful path to socialism.” Yet, I have noted that on this score Marx’s expectations were refuted by history (cf. Marx et la démocratie).

I think that the reason for the failure of electoral democracy to produce real change is not hard to find: all hitherto existing societies have been based on a dual system of exploitation of labor (in various forms) and of concentration of the state’s powers on behalf of the ruling class. This fundamental reality results in a relative “depoliticization/disacculturation” of very large segments of society. And this result, broadly designed and implemented to fulfill the systemic function expected of it, is simultaneously the condition for reproduction of the system without changes other than those it can control and absorb—the condition of its stability. What is called the “grass roots,” so to speak, signifies a country in deep slumber. Elections by universal suffrage under these conditions are guaranteed to produce a sure victory for conservatism, albeit sometimes a “reformist” conservatism.

This is why never in history has there been real change resulting from this mode of governance based on “consensus” (i.e. the absence of change). All changes tending toward real social transformation, even radical reforms, have resulted from struggles waged by what, in electoral terms, may appear to be “minorities.” Without the initiative of such minorities, the motive force of society, no change is possible. Such struggles, engaged in by such “minorities,” always end up—when the alternatives proposed are clearly and correctly defined—by carrying along (previously silent) majorities and may by universal suffrage receive ratification, which arrives after—never before—victory.

In our contemporary world “consensus” (its boundaries defined by universal suffrage) is more conservative than ever. In the centers of the world-system the consensus is pro-imperialist. Not in the sense that it implies hatred or contempt for the other peoples who are its victims, but in the everyday sense that the permanence of the flow of imperialist rent is accepted because that is the condition for overall social reproduction, the guarantor of its “opulence” in contrast to the poverty of the others. In the peripheries, the responses of peoples to the challenge (pauperization resulting from the process of capitalist/imperialist accumulation) is still muddled, in the sense that they are fated always to carry with them a dose of retrograde illusions of a return to a better past.

In these conditions, recourse to “elections” is always conceived by the dominant powers as the best possible way to rein in the movement, to end the possibility that the struggles become radicalized. In 1968 some said that “elections are for assholes,” and that view was not unconfirmed by the facts. An elected assembly, right away—as today in Tunisia and Egypt—serves only to put an end to “disorder,” to “restore stability.” To change everything so that nothing changes.

So should we give up on elections? Not at all. But how to bring together new, rich, inventive forms of democratization through which elections can be used in a way other than is conceived by the conservative forces? Such is the challenge.

The Democratic Farce’s Stage Scenery

This stage scenery was invented by the Founding Fathers of the United States, with the very clearly expressed intention of keeping electoral democracy from becoming an instrument that could be used by the people to call in question the social order based on private property (and slavery!).

With that in mind, their Constitution was based on (indirect) election of a president (a sort of “elective monarch”) holding in his hands some essential powers. Presidential election campaigns under these conditions naturally gravitate to “bipartisanism,” which tends progressively to become what it now is: the expression of a “single party.” Of course, ever since the end of the nineteenth century this has represented the interest of monopoly capital, addressing itself to “clienteles” that view themselves as having differing interests.

The democratic fraud then displays itself as offering “alternatives” (in this case, the Democrats and the Republicans) that cannot ever rise to the level required by a real alternative (offering the possibility of new, radically different, options). But without the presence of real alternative perspectives democracy is nonexistent. The farce is based on “consensus”(!) ideology, which excludes by definition serious conflicts between interests and between visions of the future. The invention of “party primaries” inviting the whole electorate (whether its components are said to be leftist or rightist!) to express its choices of candidates for the two false adversaries accentuates still further that deviation so annihilating for the meaning of elections.

Jean Monnet, a true anti-democrat is honored today in Brussels, where his intentions to copy the U.S. model were fully understood, as the founder of the “new European democracy.” Monnet deployed all his efforts, which were scrupulously implemented in the European Union, to deprive elected assemblies of their powers and transfer them to “committees of technocrats.”

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The Five Best Ways to Make Use Of Your Masters Degree

The Five Best Ways to Make Use Of Your Masters Degree

There are many reasons to get a master’s degree, both professionally and personally. Still, getting a master’s degree is a long and involved process, not to mention expensive. You might be one of the many people out there asking themselves what exactly you can do with a master’s degree once you get it. Simply getting the piece of paper isn’t going to rocket you to prestige and prosperity, there are still some things you will have to do.

The true value of a master’s degree is opportunity. Master’s degrees open the doors to many new opportunities you probably didn’t have previously. The trick is knowing how to take advantage of these opportunities and improve your quality of life. Hopefully learning the most important things you can do with a master’s degree will help you to do just that.

Promote Your New School

There are many people who didn’t attend the most prestigious of institutions for their bachelor’s degree. The name of the school on your diploma is actually a fairly influential part of your future success. Having the name of a well respected institution on your diploma makes you far more appealing to an employer. Getting a master’s degree let’s you update and upgrade your Alma Mater to one that carries a little more weight in the world.

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