14/15 Whiteism: Years of Culture

In 2014 it became impossible to ignore the fact that culture increasingly replaced economics as the driving and defining force in human affairs, both domestic and international. What we have come to know as ‘rational’ economic self interest is exerting less and less pull on the way that people think. Something is taking its place. Across the globe people are beginning to understand themselves as individuals and groups in a different way.

 

This change in perspective is not nationalism or patriotism. In fact it comes into existence in direct contradiction to nationalism and patriotism. It is based on a conception of shared belief, values and history that opposes the property rights and geographic definitions that make up Germanic Land Democracy.

 

We need a new term for this collective/individual identity to differentiate it from what has gone before; I would suggest that the term Cultural Constituency is the most appropriate..

 

The transition from class and nation to constituency has become explicit in relatively few places in the past year but the principle behind it has affected EVERY territory on the globe. This is why I can confidently predict you will see more examples of culture superseding economics throughout the coming year.

 

Here are some of the most prominent examples of the constituency effect in 2014.

 

Scotland Referendum. The desire for independence was built on a non Saxon constituency that sees itself as separate from Britain as a whole with a conception of social rights and responsibilities that puts Scottish/Gaelic priorities in direct opposition to Anglo Saxon priorities.

The referendum was in effect a judgment on the financialised Anglo Saxon economy and resulting Credit Crunch, what was done to ‘repair’ the damage from the financial crash and what is going to happen going forward. This specific difference of opinion and culture explains why the population of Scotland split the way it did: The Gaelic/Scottish west voted for independence, the Saxon East voted against. It also explains why the membership of the SNP has surged in the aftermath of the referendum, especially in the west of Scotland. A national referendum only partially expressed the difference that has emerged between these two constituencies. That is why a national referendum has been unable to resolve these differences and they are ongoing.

 

UKIP in Britain. The United Kingdom Independence Party has emerged as a destabilising force in British politics winning two by elections and threatening to destabilise the entire forthcoming general election. UKIP offers overt Anglo Saxon perspectives and values, differentiating itself starkly from establishment pan European parties. It is not a coincidence that UKIP is strongest in the south east of England, the area with the highest density of Anglo Saxon inhabitants.

 

The Emergence of UKIP in Britain and the SNP in Scotland reveals clearly how fundamentally differing perspectives on the role of government in society, social cohesion etc are all rising to the fore. These perspectives are no longer seen as conditional and subject to changing economic conditions. People are making permanent and irreversible decisions about the way they want to see their societies develop. And they are doing this on the basis of culture.

 

The Catalonian Independence movement is using a secession referendum to challenge the Spanish national consensus on EU membership and the German led restructuring of the European economy. Catalonia can claim a distinct history and culture as will as industrial infrastructure separate from the rest of Spain. This is reflected in the development of Catalan economy and industry which makes Catalonia a viable separate region. Catalonia won’t accept the consequences of being integrated into Europe on German terms which would effectively mean becoming a service hinterland to the central German manufacturing economy abandoning a significant part of their identity and history.

 

The Greeks are another constituency that is deciding whether to remain part of the German culture dominated EU.  This is expressed in opposition to continued compliance with the terms of the bailout organised in the aftermath of the Credit Crunch. The restructuring of the Greek economy, including wholesale privatisation of state assets is increasingly perceived by a majority of Greeks as a German led process. Greek identity is becoming a central issue, if the German led EU has its way there will be no recognisable Greece left. Those who are pro- EU and pro austerity have defined themselves as being anti Greek culture.

(As I write: Greece has failed to ratify the existing bailout arrangements, a General Election is now inevitable…)

 

Sweden has entered a crisis of social democracy ever since Anders Brevik forcibly called an end to the consensus on immigration and the post war model. Scandinavian societies have become increasingly polarised. The Social Democrat consensus is breaking down and Sweden is becoming increasingly divided in terms of wealth distribution. This represents a battle to determine what the ‘true’ nature of Germanic/Scandinavian culture is. Is it the pre WWII culture of polarisation or the post WWII culture of Social Democracy and cohesion?

 

Russia Syria and Ukraine form a troika of nations that are in the crucible of the constituency process. Syria, Ukraine and Russia are being dismembered from without and within using the process of constituencies.

 

In Ukraine a pro German cultural constituency is attempting to permanently dismember a moderately pro Slavic constituency and expel it from political power. Maidan Ukrainians are making a decisive cultural break from Russian/ Slavic culture; even though this is a full on economic disaster for the majority of ordinary Ukrainians, including pro-German Ukrainians. The fact that they are willing to suffer financial collapse in order to separate from pro Slavic Ukrainians is an indication of just how far the culturisation process has gone.

 

Syria is convulsed by the birth of ISIL and Sunni nationalism which seeks to overthrown the existence of Syria as a modern multi-group nation state. Already vast numbers of Shiite and Christian Syrians have been expelled from Eastern Syria. Unless the Sunni army and the Sunni population is utterly defeated and subjugated, the civil war will result in the permanent alteration of Syria along cultural lines. This will mean the end of any kind of modern western economy.

 

As I spent quite a bit of time discussing, Russia has become the central strategic cockpit for the culture war in Europe. This is without doubt the most important culture conflict in the world at this time and it is intimately connected with the nature of Whiteism.

Whether by design or accident, Russia is moving into a period of economic stress. Some might calculate that this will be sufficient to put unbearable pressure on Putin and the Russian leadership; colour ‘revolution’ anyone? But I argue that Cultural Constituencies mean that this kind of economic pressure is becoming increasingly irrelevant.

 

Race in America. In the aftermath of a spate of judicial killings and the abject failure of the American legal system to respond in a way that commands widespread support, race has again become the focus point for the American culture wars -the forerunner of the global move from economics to culture. The situation has degenerated to the extent that individuals are targeting cops to be killed. The Mayor of New York and his local police force are not even on speaking terms. As a whole, the Anglo Saxon constituency in America is becoming less and less willing to make even token concessions to the idea of race based civil rights and cohesion. A growing Anglo Saxon constituency wants an all out confrontation with those who will not toe the established  line. Don’t be surprised if you see them agitating to get one…

 

And China, Korea and Japan are going to emerge as a new cockpit for cultural constituencies in 2015.

South Korea’s Constitutional Court issued a ruling on the 19th December disbanding the opposition Unified Progressive Party (UPP), citing government claims that the party supported North Korea. Clearly there is a move within South Korea to eliminate even token acceptance of the idea of common Korean nationality.

http://www.wsws.org/en/articles/2014/12/24/kore-d24.html

 

In Japan the Abe government is increasingly embracing overt Japanese militarism as an alternative to their ongoing economic malaise. The adoption of secret courts indicates that sections of Japanese society want to return to a traditional relationship between government and people that makes no concessions to post WWII liberal democratic sentiment.

 

http://www.presstv.ir/detail/2014/12/10/389634/japan-brings-secrecy-law-into-force/

As evidenced by Hong Kong, China on the mainland and in its sphere of influence is going to express a divergence between constituencies as a consequence of the American soft power pivot to Asia. Parts of Chinese society will manifest a more overtly non European, even hostile to European, identity

 

Cultural Constituencies and how to recognise them:

 

  • They make permanent rather than transitory demands; the removal of American military bases from Japan instead of a change in interest rates.
  • Willing to compromise on periphery, completely unwilling to compromise on core; creating new spheres and forums for co-operation, even international organisations that encompass Cultural Constituencies. But less and less willing to negotiate with their own national governments.
  • Economic demands secondary or irrelevant.
  • Profound realignment of politics within constituencies; Less and less will traditional areas of contention and politics operate within cultural constituencies. The members will tend to see what they have in common over what they have in difference.
  • Condemned by the post war establishment; Pundits and politicians of the post WWII order are not going to like these groups. And they are going to act against them.

Fakirnomics or Don’t Shoot! or The Permanent Credit Economy and the Point of No Return

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George Osborne Needs You To Borrow Billions To Make His Plans Work

The Huffington Post UK  | By Asa Bennett tp://www.huffingtonpost.co.uk/2014/12/05/george-osborne-debt-obr_n_6274264.html?utm_hp_ref=uk

Revealed: how the wealth gap holds back economic growth

OECD report rejects trickle-down economics, noting ‘sizeable and statistically negative impact’ of income inequality

http://www.theguardian.com/business/2014/dec/09/revealed-wealth-gap-oecd-report

 

If a believable mainstream justification for Quantitive Easing is possible, it must centre on the restructuring of national economies in the aftermath of the Financial Crisis.

Both the Bank of International Settlements and the International Monetary Fund have called on national governments to use the window of opportunity provided by QE to carry out this restructuring. Indeed, they have expressly stated on more than one occasion that QE is only really justifiable if this restructuring happens.

But attempts at restructuring have met with at best mixed success; not least because it is very hard to get a concrete idea of that this supposed restructuring would actually mean. How can we know if restructuring has successfully taken place? Well this question at least does have a clear answer that everyone can agree on: there will be renewed growth in the economy.

By this measurement the most successful examples of economic restructuring are Britain and America. Unlike Europe and Japan, which have been balancing on the edge of recession for the past six years, Britain and America have experienced some level of growth. So if we understand what has changed in Britain and America we will have a pretty good idea of what restructuring actually is.

Have banks and financial institutions in Britain and America fundamentally changed their structure or the way they operate?

No.

There has been some regulatory tinkering round the edges of speculative banking operations but the core activity of manufacturing derivatives is largely untouched, even bonuses have not been substantially affected.

Does the financial sector play a smaller role in the economy now?

No.

Financial services continue to play an ever -growing role in the economies of Britain and America, there has been no real resurgence in manufacturing or traditional industries. These economies continue to be increasingly unbalanced in historical terms.

The growth we have seen in the domestic financial economy of Britain and America has centered on asset growth in the form of stocks and bonds, new derivatives and profits from privatised sectors like education, war, prison provision etc.

For ordinary people in the old fashioned economy there has been asset value growth in housing. This growth in the financial and legacy economies is financed though credit, not through wage growth. Mass immigration and an intensifying attack on trades unions and workplace rights means that wage growth is effectively impossible under the Monetarist regime.

In other words there is an ever increasing reliance on money itself as a vehicle for creating value, not only for the financial elite but for society as a whole. Rather than reducing the financial sector in favour of the real economy, the real economy is being made ever more like the financial sector. This is what restructuring has turned out to mean.

Contrary to the rhetoric of the Neo Liberal project, the mass scale extension of credit is effectively creating a fully planned economy. But instead of governments, it is private credit agencies that increasingly decide what resources are allocated where. The financial and political elite are moving towards comprehensive planning without the political problem of having to admit that the free market is a mirage. This will be quite some trick if they can pull it off.

This is the Permanent Credit Economy. Where credit is not an optional decision, but a permanent necessity of economic life.

But there is a cost to the use of credit as the brain and the heart of the economy. As more and more people integrate more and more credit into all their economic activity, the ever increasing burden of interest payments diminish earning power at an even faster rate than immigration and deregulation does.

Wages have to be allocated to paying off the interest on student loans, mortgages, car loans, credit card and other unsecured debt . This money taken out of the commodity economy is one major cause of the deflation we are now seeing across the developed world. People simply don’t have as much money to spend on commodities as they used to have. In other words there is less and less discretionary spending; you have less and less choice where your money goes.

Increases in credit push up prices on student loans, mortgages, cars, and credit card debt. The more credit that is available the more can be charged for the things that are bought on credit. Were it not for the financialised restructuring of developed economies, the I Phone would cost no more than $200…

But even more insidious than the ratchet effects of interest and credit, is the control and planning effect of credit I refer to above. What you buy is increasingly determined by credit agencies. You are able to get credit for any purchase to the extent that the purchase has a commensurate value and to the extent that you are able to service the payments on that purchase. You can’t borrow $2000 to buy an old car that is only determined by the lender to be worth $1000. This is the flipside of the end of discretionary purchases, even if you are allowed to have the money (credit), you are not allowed to spend it as you wish.

Economies all across the developed world are now growing or not growing entirely to the extent that financial institutions are successful in getting people to take up the offer of credit. There has been some take up of credit for housing in Britain, the market has been goosed by government subsidy. This housing asset recovery is taking place in parts of America also. (San Francisco for example).

On the other hand the failure to take up credit is reflected in the gloomy headlines with regard to the economies of Europe and Japan. In Europe there is at best stagnation and more often contraction in housing credit. Japan is notorious for its domestic populations tendency to save and avoid credit. Shinzo Abe has resorted to shock and awe tactics to firebomb the savings of the Japanese public and force them into the speculative credit marketplace.

A recent article in the Huffington Post made explicit that George Osborne is counting on a further massive increase in secured and unsecured debt as the means to ‘grow’ the British economy.

The HP tells us that:

‘the Office for Budget Responsibility, …forecast that Britons will need to add £360bn over the five years to its levels of unsecured lending, which includes credit card debt, payday loans, and bank overdrafts’.

The £360bn figure represents a £41bn increase on the OBR’s forecasts just nine months ago and would take households’ unsecured lending, as a share of total household incomes, to a record 55%  by 2020. This would be well above the pre-financial crisis unsecured debt ratio of 44%.

And:

APPG member Willie Bain, member of the Commons business committee, told HuffPostUK:

“The chancellor promised in 2011 that the government would lead an export-led recovery, yet this week the share of growth coming from net trade was predicted to fall further in each of the next five years. As the Bank of England said recently, recovery needs to be based on policies which boost wage growth, raise productivity and create more higher skilled jobs. Growth based on soaring levels of personal debt is no recovery at all on living standards for millions of working people in Britain.”

 

Hand in hand with the extension of credit comes the shrinking of the real economy. When the real economy shrinks, the state that relies on the real economy is forced to shrink too:

This comes after the Institute for Fiscal Studies warned that Osborne has “colossal cuts” left to make in order to meet his deficit reduction plans that would leave the size of the state “changed beyond recognition”.

Despite ministers’ indications that the bulk of the austerity agenda is over, the economic thinktank said that just £35 billion of the cuts in spending by Whitehall departments have already happened, with £55 billion yet to come.

You cannot have a viable consumer society without a welfare state. The efficiencies and security that comes from knowing that education, health and housing are backstopped by the state means that people can afford to spend on consumer goods. Without this state guarantee, people are forced to take up private insurance to cover necessities. This is risk that has been transferred from collective provision to the individual.

This is money that no longer goes into the commodity economy which shrinks as a result. This shrinking in turn causes more redundancies and less income and lower tax receipts. Which shrinks the state, which further shrinks the economy, and the process starts all over again ratcheting ever tighter.

As reported in the Guardian:

[the data collected from the thinktank’s 34 rich country members] suggests it is inequality at the bottom of the distribution that hampers growth.”

Rising inequality is estimated to have knocked more than 10 percentage points off growth in Mexico and New Zealand, nearly nine points in the UK, Finland and Norway, and between six and seven points in the United States, Italy and Sweden.

The ‘old’ economy serviced by government issued is shrinking. The ‘new’ economy serviced by democratised money goes from strength to strength.

Indian fakirs are famous for holding an arm aloft for years and years at a time until it finally begins to shrink and wither away. It is a demonstration of extraordinary willpower. The population of the developed world has stood before the Monetarists with  hands in the air for six years now. They are withering away. Soon we will be past the point of no return.