Rudolf Steiner On Why Plutocrats Love Democracy

“It is interesting that the excellent statement was made in 1910 [by Francis Delaisi, La Démocratie et les Financiers, 1910]: ‘… that big capital has succeeded in creating out of democracy the most wonderful, the most effective, the most flexible instrument for the exploitation of the population as a whole. Continue reading

Maya Angelou On What People Remember

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

— Marketing saw, quoted by Maya Angelou

My Comment:

This quote led me to think of the way in which political debates these days have become entirely devoid of emotional intelligence. I’m convinced that the way we debate things is at least as important as what we debate. Maybe even more important.

There’s something fundamentally wrong with the media when it humiliates public figures, either directly and anonymously on the internet, or indirectly though misrepresentation and innuendo in print. There’s nothing funny, liberated, or “free speech” about any of it. It’s an abuse of speech… a form of violence.

Now if you cuss out someone who’s provoking and attacking you directly, that’s one thing. Turn about is fair play.

But using sexual humiliation as a tool to demonize political candidates (Sarah Palin) or feeding public voyeurism about prominent figures with no political relevance (David Letterman, John Edwards, Tiger Woods) is morally wrong and socially dangerous. It feeds a constant cycle of partisan retaliation that drives everyone but the most insanely ambitious out of politics.

Then, of course, the media turns around and complains without irony about how insanely ambitious politicians are.

Reporters are professionals. They have standards to adhere to. It’s not their job to simply supply a demand. It’s one thing to follow stories that interest people (within certain boundaries of what’s relevant to public discourse). That’s fair enough. But reporters can’t just cave in to whatever it is they think people want to talk about.

You could, after all, argue that people like watching snuff movies. Does that mean the media feeds that appetite too?

Demand doesn’t just come into being. It’s created. And that’s not a one-way thing. There’s a feedback loop. Demand feeds supply, which feeds demand. There’s an addictive element to the whole thing.

That means writers can’t just give up their own moral freedom to feed a demand for immoral things. They have to make a conscious choice to go against what’s in their (or their publisher’s) economic interest and do what’s right.

Admittedly, it’s hard.

As for the so-called hypocrisy of politicians, politicians (and entertainers) aren’t meant to be moral exemplars, so the question really shouldn’t arise at all.

Since the public expects a certain image, politicians have to conform if they want to get elected. Wanting that image to reflect reality strikes me as an example of the foolishness of the public, not of the hypocrisy of politicians.

Public figures are more and more simply the victims of mob mentality. From that perspective, John Edwards did quite right to deny the scandal until the end. It’s no business of the mob’s to know everything about a politician’s marriage and demand a standard from him that the vast majority of people don’t hold to.

Now, Edward’s team members are a different issue. They sacrificed money and time and they might naturally feel betrayed. That’s a different matter. Perhaps they should have researched him a bit more before latching onto him. That they didn’t suggests they have a problem too – mindless hero worship.

People can have extraordinary talents but it doesn’t follow they’re perfect human beings, and there’s something deeply troubling about the urge to demand perfection from mere human beings…. and then attack them when they can’t supply it.

If I were Edwards, I would have banged the door on reporters who hounded me, a long time back. I would have turned the tables and started asking them a few questions about their private lives.

I suppose that’s why I have a degree of sympathy for people who’ve played the game back at reporters, like CEO Mark Cuban..and lately, Patrick Byrne.

Cuban has used Web 2.0 to his advantage against regulators as well.

A New York Times article in 2007 described how John Mack Mackey of Whole Foods and even disgraced and convicted financier Conrad Black of Hollinger International posted anonymously on message boards to counter negative posts about their companies. [The articles noted that they ran the risk of violating securities laws, especially if they disclosed company business in their posts].

Perhaps that’s where the problem lies. We have laws to stop CEO’s of companies defending themselves against attacks, but none for the people who do the attacking, even if they have a financial motive for it and even if their attacks are founded on semi-truths and lies indistinguishable by casual readers.

Mack Mackey used the handle rahodeb, an acronym of Deborah, his wife’s name, and he even commented on how cute he looked with a new hair-cut.  Byrne, on the other hand, has used a pseudonym Hannibal (the ruler of Carthage, not the star of “Silence of the Lambs”), but always signs his name underneath. Both took up the pen to counter attacks on their companies by anonymous internet posters.

It seems to have become a real problem.

In 2008 Apple CEO  Steve Jobs finally had enough of the rumor-mongering about his health and called Joe Nocera of the New York Times a juicy epithet I will chastely refrain from repeating.

[Since I’ve begun contributing to Deep Capture and enjoy a degree of bloggeraderie with them, I’m refraining from commenting directly on Byrne’s running battle with the media, about which I’ve written before. I will just admit to being on their side versus Goldman and the short-raiders. I think they tell it like it is. But any obscene rants at reporters’ expense don’t earn brownie points with me. And I maintain a neutral rating on Overstock, since I just don’t know enough about that end of things].

Either journalists act like a responsible press, or they are paparazzi, in which case they should expect to be hounded and harassed in turn. If reporters want access to the highest levels of business and government, if they want to report on subjects that are socially and politically important, then they should show some respect for their jobs, qualify themselves, adhere to professional standards of behavior, and avoid tormenting other human beings just to make their names.

Remember these are the same reporters who failed to report accurately or in time on one of the biggest stories in a hundred years. And why was that? Because (with honorable exceptions) they were either too comfortable with Wall Street, too lazy to do the research, too ignorant to know where to look, too provincial to read the people who could tell them, and too venal to go against their interests…. or all of the above..

This kind of public exposure we subject people to is not a one-time business. There is a record of the Edwards saga for ever on the net, visible to the whole globe….every little painful detail. What kind of sensitivity to a sick woman does that show, just to take one angle.

Or consider their children..

Isn’t it a kind of torture?
And doesn’t it make us, as it makes any kind of torturer, bestial?
Meanwhile, the victims never forget…..

Psychic Income Versus Real Income (Updated)

John Mauldin in Frontline Thoughts on one off balance sheet vehicle that might get us out of this crisis faster than we think: psychic income, our dreams for our future…

“Every night we go to sleep on our psychic income, and every day we get up and try to figure out how to turn it into real income……The future is never easy for all but a few of us, at least not for long. But we figure it out. And that is why in 20 years we will be better off than we are today. Each of us, all over the world, by working out our own visions of psychic income, will make the real world a better place.”

My Comment:

In response to RobertinDC, my loyal reader, who politely calls this a “crock,” I should add the context of Mauldin´s note, which is technological change.

Mauldin argues that even if the market stays flat or depressed in real terms, even if unemployment increases and the standard of living falls, none of us can know for sure what the future holds. In ten years time, the world may very well be a better place.. in terms of possibilities… than it is today because of technological innovation.

Is this implausibly “feel good” stuff?

Well, yes.

Of course.

It takes no great courage or imagination to imagine plausible scenarios.

Imagination is the ability…the very creative and fundamentally life-giving ability..to imagine implausible..even unbelievable scenarios and then make them not only plausible but inevitable.

And, again in a fundamental sense, that is how creativity in all fields works. Focusing solely on the negative is itself a form of delusion.

I don´t mean by this that you can wish yourself into any outcome you want. There are also physical laws at work that you have to accept. You cannot wish away a contraction of the economy because of overspending, for instance.  The economy has to correct.

But the effects of the contraction, the extent, and its resolution can in fact be ameliorated by a change in attitude.

And by staying alert to every possibilty, we can also sense when deterministic interpretations – such as, “this is the way capitalism is”  — are being used to cover up what is in truth a very manipulated reality.

In that case, what we should focus on is an imagined ideal, the way capitalism should be, which may be implausible or even a crock, in some views, but is our only true guide to a way out of this debacle.

This is why I wrote, in 2007, that the economy didn´t have to crash. It was in a PR piece for the book.This wasn´t because I lacked a healthy sense of reality. But reality in the sense that physicists understand it is a very different thing from the “common sense” understanding of reality. The physicists´view is actually closer to what might be called implausible or even unbelievable. But it´s none theless true. The same divergence between common sense perception and underying reality exists in the economy.  Cynicism is often right. But not always. Pessimism is often warranted. But not always.

There were fundamental problems in the economy in 2006-2007, but the way the crash occured struck me then as very strange.

I suspected at the time that some of the indices were manipulated…and now the deepcapture team (and others like Pam Martens) have shown how they could have been (see prior posts).

In time, you are going to find that this is true of many of the indicators we use to read the mood of the investing public. Markets are driven by emotions. And smart crooks with the ability to manipulate that emotion can make big money from the manipulation….

And if they can, it stands to reason they will.

What is surprising is only why it took so long for supposedly tough minded financial reporters to figure that out.

In any case, whether manipulation is proved or not, what ordinary people can do is to take for their model the good trader. Good traders are people who can “keep their heads when all around you are losing theirs and blaming it on you”..as Kipling said.

The hall mark of expert trading is to control the emotions and rein them in from succumbing to mass moods. What does that mean in practical terms?

It means when everyone is panicking, look for silver linings, and when everyone is complacent, learn to worry…

Eduardo Galeano on the Nobodies

Fleas dream of buying themselves a dog, and nobodies dream of escaping poverty: that, one magical day, good luck will suddenly rain down on them – will rain down in buckets. But good luck doesn’t rain down, yesterday, today, tomorrow or ever. Good luck doesn’t even fall in a fine drizzle, no matter how hard the nobodies summon it, even if their left hand is tickling, or if they begin the new day on their right foot, or start the new year with a change of brooms. The nobodies: nobody’s children, owners of nothing. The nobodies:  the no-ones, the nobodied, running like rabbits, dying through life, screwed every which way. Who are not, but could be. Who don’t speak languages, but dialects. Who don’t have religions, but superstitions. Who don’t create art, but handicrafts. Who don’t have culture, but folklore. Who are not human beings, but human resources. Who do not have faces, but arms. Who do not have names, but numbers. Who do not appear in the history of the world, but in the crime reports of the local paper. The nobodies, who are not worth the bullet that kills them.”

— Eduardo Galeano, “The Nobodies”

 

Ron Paul: There Will Be Violence….

Ron Paul on Glenn Beck, via Lew Rockwell:

“I think that there will be violence,” he explained. “I hope we don’t have to go through, you know, a very violent period of time, but that’s what happens too often when the government runs out of money and runs out of wealth, the people argue over, you know, a shrinking pie and, of course, the people who have to produce are sick and tired of producing.”

Sun-Life Financial Review of “Mobs”

Kevin Press has a short (but sweet) review of “Mobs, Messiahs, and Markets” at his Today’s Economy blog at Sun-Life Financial, where he gives the book a thumbs up for prescience, a slight tut-tut for being a wee bit too contrarian, and another thumbs up for a lot of sound advice on investment. You can see it here.


Mobs, Messiahs and Markets
September 21, 2009

Talk about timing the market. When William Bonner and Lila Rajiva decided to collaborate on a book about the behaviour of crowds in politics and economics, they did so with the understanding that Malcolm Gladwell’s The Tipping Point had generated a level of interest in the subject that they could capitalize on. What they didn’t know, even as the book went to press in 2007, was that the real estate bubble they were watching with such great interest was about to pop.

The best-selling result of their timely partnership, Mobs, Messiahs and Markets, was released in paperback last month.

“We look at the biological evidence behind human behaviour,” Rajiva told me. “People are basically driven by fear and libido. We want to consume. Why do we want to consume? Because we want status. Why do we want status? Because we want to mate well, we want to propagate.”

Behaviour, of course, isn’t all just fun and games. “People do make sacrifices,” said Rajiva. “They’re generous and kind, and they want to help each other. There’s no one explanation for crowd behaviour, at the biological level at any rate.”

The book is far from a Gladwell knock-off. Rajiva is a well-regarded political journalist. Bonner is a successful publisher of financial newsletters and a website called The Daily Reckoning.

To say they are contrarian is to put it mildly. Despite its light-hearted style, there is a strong anti-establishment tenor to the book. Too much so in my judgment, but there is good advice here.

A couple of examples:

* “[T]he less you know for sure, the more important it is to have rules and principles you can follow. So, as we become more ignorant about what is actually going on, we become more stubborn in our opinions about what should be.”
* “A real investor buys a stock as though it were a can of tuna fish. He knows what it is worth to him and buys it when it is a bargain. But how do you know what a business is worth? How do you know when the perfect market has slipped up? Traditionally and sensibly, the investment value of a business is measured by how much money it will return to the investor. This seems only self-evident, but few investors actually figure it out and invest accordingly.”
* “The more someone wants to sell you an investment, the more you don’t want to buy it … The owner of an investment usually knows the asset better than the buyer does. If it were such a good business, why would the owner want to sell it to complete strangers? If it could earn a decent return on equity, why share it?”

Over a Million Refugees in Somalia

In the news on Friday, May 22:

“Martin Bell, former BBC war correspondent and current UNICEF UK Ambassador for Humanitarian Emergencies, recently concluded a three-day trip to the north-east zone of Somali to report on the situation of children and women affected by conflict, drought, displacement and other hardships – and to shed light on UNICEF’s efforts to provide them with crucial services.
In Bossaso, one of the country’s busiest ports, Mr. Bell visited settlements for displaced people and saw firsthand the dire conditions in which they live. Displaced populations form a group of chronically vulnerable people here, lacking even the most basic social services and livelihood opportunities.
Bossaso hosts 27 camps where 40,000 people have sought refuge from other parts of the country. Over 1 million people in Somalia are internally displaced, mainly due to the conflict and insecurities in the central and southern regions..”

More at Relief Web.

Doctors Without Borders/Medicins Sans Frontieres reports that more than 270,000 have fled to Northern Kenya, to camps operated by the UN High Commission for Refugees, where rations have been cut by 30% and malnutrition runs at over 22%, well above the emergency threshold. That’s driving many of the refugees back to the war-zone.

My Comment

This was sent to me by a young Somali friend, who urges everyone to help in any way they can.
Now, my focus in this blog is on mass thinking, but the organization of crowds (through state propaganda, coercion, and surveillance) has as its other face, the dis-organization of crowds in times of crisis, often state-produced crisis, such as at New Orleans during Katrina, or here. Among people on the move in large groups, refugees are probably the largest group.
What is amazing to me about crowds of refugees is that they move peacefully, giving the lie to fear-mongering imagery of masses of people overwhelming civilization. That’s the sort of imagery usually conjured up by authoritarians when discussing mass migration or mass movement of any kind.