The Crisis of Credit Visualized

By the author: “The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated. This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California. For more on my broader thesis work exploring the use of new media to make sense of a increasingly complex world.”

See http://www.crisisofcredit.com

To watch this short animation in HD click here http://www.vimeo.com/3261363

Democratic deficit: parliament and democracy

As the crisis surrounding MPs’ expenses exposes the level of blatant fraud in Britain’s parliamentary system Simon Basketter looks at why capitalist democracy fails us

Corruption Goes Right To The Heart Of The System

There is a range of different ways of making money out of parliamentary expenses – and our politicians have milked them all.

Many of the recent revelations in the expenses scandal are centred around claims relating to housing.

Shahid Malik, the justice minister, resigned last week pending an inquiry into the unusually low level of rent he was paying to a landlord in his constituency in West Yorkshire while claiming £66,000 in allowances for his London home.

Elliot Morley, a senior backbencher, was stripped of the Labour whip after “forgetting” that he had paid off his mortgage and improperly claimed more than £16,000.

David Chaytor, a backbencher, was suspended from the parliamentary Labour party after admitting an “unforgivable error” in claiming £13,000 for a mortgage he had already repaid.

Plasma TV

Most people are outraged at the extravagance of many of the claims – such as those of Labour MP Sir Gerald Kaufman who claimed £1,851 for a rug imported from a New York antiques centre and had tried to claim £8,865 for a plasma TV.

But to claim expenses for mortgages that don’t exist takes corruption to a new low.

Is It Time To Turn Our Backs On Capitalism and Give Socialism A Chance?

Capitalism is greed.

Capitalism is theft.

Capitalism is alienation and anti-sociality.

Capitalism is authoritarian.

Capitalism isn’t working.

Capitalism is violent.

Capitalism is unsustainable.

Capitalism is destroying us.

It is not a success. It is not intelligent, it is not beautiful, it is not just, it is not virtuous — and it doesn’t deliver the goods. In short, we dislike it, and we are beginning to despise it. But when we wonder what to put in its place, we are extremely perplexed. What do we want instead?

It is time to take the power back? To do this we need a system where the workers are in control and the means of production are owned by the workers not by a rich minority of capitalists…

In a socialist society the means of production [1] are owned by the workers rather than by a rich minority of capitalists or functionaries. Such a system of ownership is both collective and individual in nature.

It is collective because society can control production unlike the economic anarchy of capitalism and because production is for the common good rather than for individual profit.

At the same time it is individual because workers are no longer a ‘collective’ mob of alienated non-owners employed by a minority of owners. Work becomes a free and self-affirming activity for each worker and they receive the full fruits of their labor. The capitalists and their servants no longer control production nor grow rich from other’s toil. Everybody is an owner. Socialism is genuine free enterprise.

The personally empowering and cooperative nature of socialist ownership underpins similar changes in other aspects of life. Socialism means far healthier individuals and human relationships. It means full participation by each individual in the intellectual, cultural and political life of society.

Socialism requires a revolution with three main stages: firstly the emergence of a workers’ movement committed to socialist revolution, secondly the achievement of political power and the expropriation of the capitalists and thirdly a period during which workers learn how to be owners and rulers and cast off the psychological and ideological dross of the past.

Socialism will not be an utopia simply created in people’s minds. It will be the product of economic and social development. In developed countries it is now possible for everyone to live a reasonably affluent life and be free of long hours of routine toil. This creates a better basis for cooperation and mutual regard. Historically, where equality would have meant shared poverty, it was inevitable that a minority would plunder, enslave and exploit the majority. At the same time rank and file workers are progressively acquiring through their experiences, the abilities to do without an elite. Their general level of education and training has advanced significantly over the last couple of generations. The work they do, while still totally oppressive, has an increasingly mental and conceptual content. And they now have extensive access to cultural and intellectual resources and the diverse experiences of living in a modern society. So while socialism was impossible in the past, these emerging conditions make it inevitable in the future.

Footnote [1]. The means of production comprise everything, except labor, that is used in production, namely, factories, plant, equipment, offices, shops, raw materials, fuel and components.

It is time for the public to wake up. Time to open our eyes. The expenses scandal. The killing of Ian Tomlinson. Heavy handed police aggression during recent legitimate protests. The banking crisis. The Credit Crunch. The huge debts that have been put on future generations shoulders.

Enough is enough.

It is time for real change and to put people first. The only system that will truly do this is socialism.

Find out more. Visit the Socialist Worker.

Scapegoat.

Anti-Democratic Nature Of US Capitalism Is Being Exposed

By Noam Chomsky

THE SIMULTANEOUS unfolding of the US presidential campaign and unraveling of the financial markets presents one of those occasions where the political and economic systems starkly reveal their nature.

Passion about the campaign may not be universally shared but almost everybody can feel the anxiety from the foreclosure of a million homes, and concerns about jobs, savings and healthcare at risk.

The initial Bush proposals to deal with the crisis so reeked of totalitarianism that they were quickly modified. Under intense lobbyist pressure, they were reshaped as “a clear win for the largest institutions in the system . . . a way of dumping assets without having to fail or close”, as described by James Rickards, who negotiated the federal bailout for the hedge fund Long Term Capital Management in 1998, reminding us that we are treading familiar turf.

How to Fix the Wall Street Mess

Demonstration on Wall Street

The richest 400 Americans — that’s right, just four hundred people — own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion — the same amount that they are now demanding we give to them for the “bailout.” Why don’t they just spend the money they made under Bush to bail themselves out? They’d still have nearly a trillion dollars left over to spread amongst themselves!

Of course, they are not going to do that — at least not voluntarily. George W. Bush was handed a $127 billion surplus when Bill Clinton left office. Because that money was OUR money and not his, he did what the rich prefer to do — spend it and never look back. Now we have a $9.5 trillion debt. Why on earth would we even think of giving these robber barons any more of our money?

A System Out Of Control

The bankruptcy of Lehman Brothers–with more financial institutions to follow, no one knows how quickly–is the product of greed and deregulation embraced by Republicans and Democrats alike.

A Wall Street trader watches as the stock market crashes in reaction to the bankruptcy of Lehman Brothers (Zuma)

THE LATEST chaos on Wall Street–the worst financial upheaval in the U.S. since the Great Depression of the 1930s–highlights not just the scale of the world financial crisis, but the needless destruction caused by the blind competition at the core of capitalism.

The Wall Street crisis will almost certainly make the current economic slump worse. A shadow banking system beyond the reach of regulators in the U.S. or any other country is crashing down, destabilizing the world financial system. Even before the latest crisis, Bill Gross of Pimco, a big money-management firm, warned that an uncontrolled liquidation of debt by financial institutions “can turn a campfire into a forest fire, a mild asset bear market into a destructive financial tsunami.”

The risk of such a catastrophe is growing. As hundreds of billions of dollars in financial assets vaporize, banks will be forced to raise interest rates to increase the amount of money they have in their reserves. This, in turn, will cut off credit to business and consumers alike, further choking an anemic economy.

Capitalism is…

Capitalism is theft.

The harsh and subservient labors of most citizens fantastically enrich a few others who don’t have to labor at all. In general, those who work longer and harder get less. Those who work less long and less hard get more.