Tuesday, 27 September 2016

The question is TWEE....



Earlier in this blog I mentioned that great quote from Cicero ‘Cui Bono?’ (Who benefits?) when analysing the decisions and initiatives of governments. It has been an accurate guide to a party’s real agenda ever since the Roman Empire and hasn't failed to reveal the truth about politicians ever since. However, ‘Cui bono?’ is not near robust enough a test for selecting a party to vote for as it only offers a guide to what has already happened in the past and it cannot present a sure picture of what may happen in the future. Obviously a voting record in the Dáil is a good guide to a TD’s personal agenda but Civil War parties operate under a whip system thus your kindly and attentive local TD may be forced by the party whip to vote against your interests and there’s nothing he or she can do about it other than resign from their party and fund their political career from their own resources and efforts (not an attractive option when one considers the enormous sums – in the millions - presented to political parties from the exchequer simply for occupying Dáil seats). It is very easy to fall into the trap of assuming ‘Cosi Fan Tutte’ (They’re all like that) when it comes to candidates and parties who come knocking at your door.




The citizen voter needs to ask a farther reaching question to make an informed decision on who to vote for and who to not vote for. Voting against is not an option under Proportional Representation and, tactical voting is about as easy to master as spread betting on the horses. So here today, I would like to present my personal system of analysis: TWEE

 


TWEE is an acronym which stands for ‘To What Economic End?’ Here’s how it works:




Take a party, any party or even an independent candidate and ask yourself what is in their manifesto when it comes to the overall societal and economic vision they hold. What steps do they advocate taking, what laws and white papers do they propose, what changes to the tax and subsidy regime are they championing and what functions do they see being critical to the State. Most political manifestos are compromised of initiatives and promises to deal with the current areas of displeasure in the society and rarely offer a clear picture of the party’s or the individual’s long term strategy.




Let’s take the current ruling manifesto of FG and the ‘new politics’ - “The best little country to do business” – Now ask the TWEE question: To what economic end?



There are other little countries out there even in the Eurozone looking for inward investment from multinational corporations and investment funds. These little countries do not enjoy the same quality of life or the same level of service provision and thus, their people will work for less than Irish people can afford to work for. Other countries of equivalent size enjoy superior infrastructure and logistical access to mainland Europe than little old island of Ireland. Some countries are so little they have enjoyed ‘Tax haven’ Status for centuries – our current European Commission president Jean Claude Juncker hails from one of the most venerable of these patchwork states, Luxembourg. So the ‘double-Irish’ for instance is nothing new to European business we’re just not established enough with the traditional banking clans to be allowed to compete on the same footing as Luxembourg, Lichtenstein, Andorra, San Marino and Monaco. We’re just not in with the ‘in-crowd’.


This soundbyte (a mere soundbyte!) that has been the guiding principle for this country since 2011, is inherently stupid and self-defeating because to achieve the goal of being the ‘best little country to do business’ we would have to wave bye bye to all of our state services such as health, education, transport, energy, water and natural resources just to compete with the likes of the billionaire’s playgrounds of Europe whatever about the developing countries to the east. Clearly this was never going to work to our benefit even in the short term.


The Economic End of our previous seven governments has been to divest the state of all investment that does not directly benefit the International Financial Services Industry and to bring the workforce of Ireland into harmony with a smaller mix of industries and sectors than it could have otherwise enjoyed. We put all our eggs into one basket and that basket toppled in 2007. The Economic End was to move as many young people off state subsidy (unemployment benefit, third level subsidised education and housing allowance) as possible to ensure that a better subsidy could be offered to the international investors. This has had the knock on effect of Ireland ‘voluntarily’ (Deliberately) exporting two generations of Irish people to work and live (and invest and pay tax) abroad.



Now the European Union (Not the Troika) has asserted that exporting entire generations and playing silly buggers with tax instruments when it comes to large corporations is not the behaviour of an active and respectable member of the EU. They’re perfectly right because the Economic End of Europe and the Eurozone nations is to have a base-line quality of life and investment into its citizenry. However, the bailout and how it has placed an unwarranted and unwieldy yoke around the necks of Ireland’s population smacks of the highest hypocrisy. If Ireland has given unfair subsidy to Apple Inc. and other US international corporations, shouldn’t we also include Deutsche Bank, Société Générale, Crédit Suisse and BNP in the mix of corporations who have had their businesses subsidised by the Irish people to a ridiculous degree thanks to the tinkering of Herr Juncker and his ilk?



Questioning the Economic End directly impacts upon each citizen voter because handing a mandate to a political party to do as they wish creates situations which last decades. The strokes and secret deals Charles J Haughey first introduced in the late 80’s are only now being dealt with in the chamber because of the hard work and relentless questioning of Mick Wallace, Ruth Coppinger, Clare Daly and the Social Democrats; there hasn’t been a peep from the so-called opposition, even Sinn Féin and the so called ‘hard left’. There have been gestures, protests and rallies but there hasn’t been any homework and forensic challenging of government policy offered by these parties.


Shakespeare wrote in Julius Caesar : “The evil that men do lives after them; the good is oft interred with their bones” – and thus it has been proven to be true with Charles J Haughey. Charlie’s posthumous reputation is somewhat less fractious than his living notoriety but let us look at the good that has been interred with his bones.




Free travel for the elderly.
In the mid to late 70’s Ireland experienced a gravely upsetting bloom in isolated and depressed elderly people as their families had been forced abroad by Ireland’s economic policies. A fireman called Willie Birmingham started a charity to help the elderly achieve a modicum of independence and comfort called ALONE. I have had dealings with his charity and I can attest to the fact that they are among the most diligent and caring people I have had the pleasure to meet but they would have been simply overran had free travel not been offered to our seniors to encourage them to get out from their homes and mix in the community more. The result has been in a more vibrant and sociable population mix with our seniors wielding both purchasing and political clout. Without the support of extended family to rely upon, our seniors have made good use of their free passes and ensured an internal market along Ireland’s rail and bus networks.




The Irish Financial Services Centre.
This couldn’t have been worse managed had Charlie decreed that he wanted to create an open wound in Ireland’s economy – which is the opposite of the truth – Charlie Haughey founded and successfully populated a financial zone in Ireland which handles up to €1.5 trillion per annum – that’s one thousand billion of euros sloshing through that half kilometre of Dublin’s docklands creating the ‘leprechaun economics’ situation where Ireland’s GDP (Ireland’s turnover) bears no relation to its GNP (Ireland’s profit). This facility, paid for, built to the highest standard, and serviced by the Irish state should have provided Ireland with the billions in taxes after ten years of operation as agreed with the tenant clients at the time, however, it wasn’t Charlie who was in power when the rent fell due. Albert Reynolds, Bertie Ahern, and Brian Cowan all shied away from closing the deal and Ireland continued to go without billions of tax income which it rightfully deserved for decades. After the decade of Fianna Fáil strokes and feints, Fine Gael swept into power buoyed up by Labour and then, more recently, a patchwork of opportunists, ex-PD hacks, and FG members in mufti. Have they cracked the whip on getting some of that GDP money into the GNP coffers? Have they shite!!!

 


Temple Bar Properties
Yes, nowadays it has the reputation of a tacky, vomit filled, alcoholic’s destination – but look at the tourism figures into Dublin and Ireland before the founding of Dublin’s cultural quarter and after and you will see a boost to the exchequer and to Ireland’s tourism offering that fuelled the mini boom of the Celtic Tiger years. How many UK and European hen and stag parties chose Dublin and Ireland as a destination before Temple Bar? Where did one go in Dublin city as a tourist looking for a good time before Temple Bar? How many guided walking and bus tours did Dublin offer – Galway, Limerick and Cork for that matter – before Temple Bar established Irish tourism as a reliable cash cow? Fine Gael’s and current Fianna Fáil’s contribution to Irish tourism has been….? Attempting to demolish Moore Street, emptying Dublin City’s O’Connell Street of all people to ensure one VIP tourist wasn’t offended by floating black balloons, and again, closing off O’Connell Street to the citizens of Ireland as a junket for visiting dignitaries happened on the centenary Easter Sunday commemoration. That’s why I didn’t blame the LUAS drivers for going on strike – cui bono?



Section 31 of the Finance Act – Tax free status for artists and creative works.
As of the time of writing – Ireland has three film studios which are fully booked and operational. Ireland has five of the top twenty movie stars in the world. Irish musicians, fine artists, sculptors, novelists and poets are world renowned. Irish culture is well understood and appreciated globally. An interval act of Irish dancing and contemporary Irish music called Riverdance has toured the world for the last twenty one years. All these things happened because of this one economic gesture towards nurturing Irish talent and creativity – not just leaving it to the professional gaelgóirí who wanted to preserve our Celtic Revival culture in amber. Again, what legislation or tax adjustments have been implemented by Fianna Fáil, Fine Gael, labour, or the current Independents since to encourage our culture to flower and pollinate the world? Zip!




The Fianna Fáil of Charles J Haughey had a definite and clear economic end. Charles J Haughey was determined that Ireland shook off – once and for all – the raggedy man reputation of the Republic’s early years and stepped with fresh confidence as an equal member onto the European Stage. It may have been ego but he was ultimately successful and we are more the richer for it. Now look at how the Celtic Tiger years are remembered by the current incumbents Fine Gael and the political pygmies of latter day Fianna Fáil – “We lost the run of ourselves” – Who is this ‘we’ they keep referring to?



I am dismissive of all Civil War parties – Labour and Sinn Féin are also civil war parties having been in existence at the time of the civil war and they share the same proprietorial attitude to Ireland’s people – because they cannot answer the TWEE question. If you apply this test to the parties’ general vision and founding principles you very quickly see that none of them offer a positive or beneficial economic end but are defined by their antipathy towards one another. Ireland’s people are like the unfortunate children of warring, drunken parents trapped in a chaotic and dysfunctional household in which they are being used as pawns and hostages by one parent against the other. Thank goodness we have divorce in Ireland – if only we could divorce from these self-obsessed parties and their gombeen cronies.




From Fianna Fáil’s own Website:


“Fianna Fáil represents the mainstream of Irish life. It is the only party which on several occasions has commanded overall majorities in Dáil Éireann. Since its foundation Fianna Fáil has been the single most coherent force in Irish politics, so much so indeed that alternative governments have been characterised by their opposition to Fianna Fáil as their only common bond. Electorally Fianna Fáil is second only to the Social Democrats in Sweden in its length of tenure in office.”



“Fianna Fáil adheres to the great democratic principle of government of the people, by the people and for the people. The party’s name incorporates the words ‘The Republican Party’ in its title. Republican here stands both for the unity of the island and a commitment to the historic principles of European republican philosophy, namely liberty, equality and fraternity.”

“Fianna Fáil has always had a ‘can do’ attitude. The Party has always been positive and never defeatist in its thinking. Fianna Fáil aims to unite all in a common identity of self-confident Irish men and women in a dynamic, vibrant, prosperous nation.”




To what Economic End?

Where in this mish-mash of self aggrandisement, borrowed ideals and usurpation of Ireland’s Republic is there a vision for how Ireland can plan in the long term? This non-statement makes absolutely no mention of Ireland’s current economic challenges, its selling out to vulture fund managers, and the shameful continuing abandonment of its young and old alike – the ‘can do’ attitude is clearly reserved for those prepared to stump up the cash to get a dodgy passport or rezoning scheme though. By their own words let them be damned; Fianna Fáil professes no economic end other than to continue to be dominant in Irish politics and to command overall majorities in Dáil Éireann. That’s it; just power for its own sake. That’s what you’re voting for.

From Fine Gael’s Website: (and I had to scroll waaaaaaay down to get to this link)




“Fine Gael is a party of the progressive centre. That means we act in a way that is right for Ireland, regardless of dogma or ideology. We base our policies and ideas on our core beliefs”

(Core Beliefs) Fine Gael stands for:
Investment in our public services
We want to create a fair and caring society where everybody is engaged in democracy, and where there are no barriers to equal opportunity. We see health and education as rights, not privileges.
A driven, vibrant, and competitive economy
Our Party encourages initiative, innovation, investment and self-reliance. We also believe in preserving, enhancing and sharing prosperity. To that end, we believe Government policy should encourage initiative and reward hard work, thus driving economic activity and creating jobs.
law and order, and protection of families and communities.
We want to build a safe society in Ireland by protecting citizens and enforcing the law. Our Party believes in tough sentences for criminals and more Gardaí on the beat while also tackling the root causes of crime like poverty and educational disadvantage. We also believe in strengthening families, in all their modern forms, and in fostering communities.
integrity in public life
Fine Gael believes in being truthful and courageous in what we do, and in promoting and upholding both the rights and the responsibilities of people. This means ensuring all of us live up to our responsibilities as well as enjoying our rights as Irish men and women.
a confident and sustainable future for Ireland.
Fine Gael wants to build an Ireland of excellence and ambition. To achieve this, we believe in enhancing Ireland's international reputation through our support for the European Union, protecting communities through balanced regional development, and safeguarding our children's future through protection of the environment.

In fairness to Fine Gael they do offer a lot of words to build an analysis with but let’s just apply the TWEE test again. To What Economic End?



Fine Gael defines themselves on their website as a party of the progressive centre. In what direction is this progress? If the party is in the centre then it must progress either left or right, no? Is this technological progress? Financial progress? Social progress? Where is the social progress core principle on their website? They also say that they are free from dogma and ideology, basing their policies and ideas on their core beliefs (which would constitute an ideology, by the way)
 
Now ask what Fine Gael has done ever since 2011 to ‘progress’ these core beliefs.
What have Fine Gael done to promote a fair and caring society – given the Land and Conveyancing Reform Act 2013 has brought about more evictions and destroyed more families than the Penal Laws and the genocidal state neglect after the potato famine? 

What supports to innovators, hard workers and shared prosperity initiatives have happened over the last five years except for a €300 million write down of Dennis O’Brien’s overdue debts?

Where are these extra Gardaí on the beat to be stationed or are they flying columns on bicycles?

We’re still waiting for truth and courage in public life from Fine Gael’s decisions when it comes to tertiary unsecured bond holders as well as several tax avoiding private interests like NAMA & NTMA.

So how has Ireland’s International reputation been enhanced, outside of giving the Greeks a gratuitous kicking when they were down, engaging in Leprechaun Economics and allaying with hard right nationalist European partners – is that reputation or notoriety they’re thinking of? 

Is this all Fianna Fáil’s fault?

The Economic End that is already apparent is that Fine Gael promotes tax avoidance and private interests even more shamelessly than Fianna Fáil rather than the social contract of a Republic – which would GUARANTEE all their core beliefs by law. A vote for Fine Gael is a vote for a tax farm in which everyone is hard working, driven to improve the economy and well policed. Nein Danke!




Let’s move on to Labour, let’s just do that….and I notice that up until recently they resided in the unfortunately but ironically named Bloodstone Building (just sayin’, the hint is in the name, lads). Labour’s website very wisely eschews any core principles or self description and just goes straight into ‘rebuilding’ the Labour brand (shouldn’t that read ‘salvaging’?) and highlighting their current manifesto. So let’s get into this year’s manifesto and see what new delights await us.

You can click on some headings and the manifesto points shuffle about the page like one of those picture puzzles we used to play with before the Rubik’s Cube arrived and they don’t always make a lot of sense in relation to their headings: ‘Strong Economy, Decent Society’, ‘Working People’, ‘Jobs and Opportunities’, ‘Families’ and ‘Modern Ireland’. Anyhow, here’s Labour’s Manifesto (2016).

Pathways to work, Growing the rural economy, An Gaeilge, Doing ourselves justice, Better functioning hospitals, Supporting our defence forces, Action on child poverty, Constitutional reform, Full Equality for LGBT+ people, Security in retirement, New deal on Income tax, Agriculture, Food and the Marine, Traveller recognition, Finance and Banking, Better for Sport, Water and Flooding, Dignity in Disability, Drugs and harm reduction, Reproductive health, Regional development, Better for Dublin, Making work pay, A better future for young people, Investing in skills, Primary and community care, Improving Health promotion, Mental Health, An Age-Friendly Society, A strong green economy, Quality of life in our communities, Integration and new communities, The digital economy, True equality for women, A social Europe, Making homes affordable, Equality in education, Open Government, An active role in the world, Political and electoral reform, investing in infrastructure, Affordable quality childcare, Homes for the most vulnerable, Schools fit for the digital age, Dignity at work 
……aaaand whatever you’re having yourself.


Are you seeing what I’m seeing? Even if we got that €13bn owed by Apple inc. into the bank tomorrow, we couldn’t afford Labour even for two years. This collection of issues-in-search-of-a-portfolio is just blatant vote-bait headlines. Once I click on them, which I have, I am led to a one-line ‘things is bad’ statement and then (where relevant) what labour did to alleviate the problem and a short bullet point list of what Labour’s five year plan is involving words like ‘Implement’, ‘Ensure (including Continue to ensure)’, ‘Work closely with…’, ‘Invest in’, ‘Promote’, ‘Provide’….etc.

I checked out the ‘Finance and Banking’ and the ‘New deal on Income tax’ to see where the money was going to come from…..nope. Nowhere was there a transaction tax, a charging of rent or tax on Financial Services in the IFSC, an economic virtuous circle in which people can earn more money through participation, a straight up tax reform on the double Irish or a proposal for inward investment into the country from any industry whatever about the FinTech gazillions flushing around our shores as it stands.

To be fair, none of these ideas are wrong-headed or ideologically ignorant of people’s real needs but the entire mix is cluttered and not structured into an overall programme. Where are the priorities? Where are the aspirations? Where are the mere negotiating tokens? What’s a firm commitment and what’s just ‘The things you say at election time?”

To what Economic End, Labour? Bankruptcy, obviously, if they’re serious about what they say.






I have to hand it to Sinn Féin, they have a separate page with detailed principles and key policies all listed together. If only every party were so…..dare I say it….forthcoming with information?




Sinn Féin is a 32-County party striving for an end to partition on the island of Ireland and the establishment of a democratic socialist republic. The achievement of a United Ireland is within our reach and unity offers the best future for all the people of Ireland. In these harsh economic times, it is also the best way forward from a financial and social perspective.

90 years after partition, as communities divided by the border become increasingly reintegrated, there is a growing pull towards reunification. As old allegiances change and people from loyalist backgrounds consider voting for a republican party because it best represents their social and economic interests, the potential for dialogue with those from the unionist community about their place in a united Ireland becomes possible.

Sinn Féin’s Economic Policy

Sinn Féin believes people should be put at the heart of an economy. An economy should serve society, not the other way round. We believe a successful economy redistributes wealth via the tax and welfare systems. It sees employment, education and training as a right. And it takes into account all the activity that is not currently measured by modern economies, such as housework, child rearing, caring and volunteering.

Detailed, intensive economic policy is available on the Sinn Féin website in various pre-budget submissions, alternative economic papers and job creation documents. Our position on bank bondholders (restructure banking debts) are reiterated across the Sinn Féin website.

Now there are also policies on Education, Agriculture and Fisheries, Accountability and Governance, Health and Local communities made safe but for the purposes of my TWEE test I only need to look at core guiding principle or raison d’etre and how this is to be paid for. I am going to push my innate cynicism about Sinn Féin’s relationship with truth and fact to one side and apply TWEE to the words they present on their website.




Sinn Féin is pitching a 32 county Ireland as an economic inevitability once Ireland’s finances are stabilised and secured. I am inclined to agree that it would certainly be a negotiating option but I very much doubt that the Republic of Ireland’s economy could sustain the inward investment to Northern Ireland that they currently enjoy from the UK. I recall how Germany was plunged into a decade’s worth of recession after their reunification and Germany’s tax and industrial base dwarfs that of Ireland by a factor of hundreds. Ultimately, taxes will have to rise across the board or quality of life will have to suffer. They aren’t exactly throwing money at problems like Labour promises to but a United Ireland is something only attainable I believe, as co-members of the same wider regional economy such as the Baltic States incorporating Ireland and Scotland. Given the Social Democratic bent of the Scandinavians this would be more likely in a Sinn Féin-led administration than the Neo Liberal mittel Europe of the EU.


Brexit has really thrown a spanner in their works, hasn't it?


Furthermore, their political and economic vision of a United Ireland appears not to take into account that the current models need to drastically change. I cannot envision even Republican communities in the north accepting control from Dáil Éireann over their lives and destinies when every part of Irish life is currently predicated on who is in the cabinet when we all look like yahoos to them. This wouldn’t fly even among their own heartlands. Given that an economically United Ireland is more possible than a political one it would be smart of Sinn Féin to work out how power and budget is divvied out as opposed to assuming that Dáil Éireann is going to accommodate sitting Westminster MPs as sitting Leinster House TDs. That’s not going to happen. Just. Not. Ever.


Economically Democratic Socialist Republics are possible and they do exist: Bangladesh, India, North Korea, Portugal, Sri Lanka and Tanzania. With the exception of perhaps the resource rich India and sunny Portugal I can’t see many people seeking out economic or political links with the other countries, just sayin’.

Sinn Féin’s economic statement seems at first glance to be fine and dandy even though it puts Ireland at loggerheads against the entire European project – we’re there anyway so we may as well argue for the best possible outcome for our people. By placing people at the centre of their long-term economic planning, Sinn Féin runs the risk of wandering into Lala-Labourland but they cite very firmly that they deem their budgets will come from internal investment, taxation and enterprise.

To what Economic End, Sinn Féin?

An indebted and increasingly isolated state-controlled economy of five million people each enjoying higher than average wages and state provided services as long as the money can be efficiently extracted from those economic actors who have avoided taxation to date (If only Apple could be coerced into handing over €13bn every five years! – Did I say coerced? I take that back! I didn’t meat THAT!). This would be an interesting experiment but ultimately Ireland’s offering to inward foreign investment would suffer (there IS generous wriggle room as the current scandals attest). Ultimately, even without tax harmonisation and central budgeting (neeever gonna happen, lads), Ireland would need some kind of high value resource to fund the initial ten years of intense cash injection needed to provide such a plethora of State functions and services- many of which would have to be accounted for as state subsidy to the international lenders which every state still needs to access. Perhaps a renationalisation of Ireland’s oil and gas reserves sold to actors in Norway and Holland, maybe? They’d just need to change the constitution, repeal legislation voted through by both Fianna Fáil and Fine Gael and prosecute all the ex-taoisigh from Bertie Ahern to Enda Kenny.


So no pressure there, then, The core ideals are not really credible or doable in our lifetimes but “♪Don’t stop believein’♬”

 




As for the others….

Socialist and Communists of the world…. there is no Global Workers Revolution going on anymore and, even if there were, Ireland doesn’t have the necessary proletariat and burgeois populations necessary to invoke a revolution or uprising….you just come across as immature and envious.




Nationalists of the world….unless you’re prepared to wipe your granny’s bottom for a pittance, stop being so racist.



Conservatives and Christian Democrats of the world…admit it….you’re unemployable without all those privileges and insider contacts scattered throughout your life…yes, you are.


Anarchists of the world….personal hygiene is not a system of control.



Religious fundamentalists….we’re not going back to sacrificing children and shagging goats, thanks anyway.



Finally, in the interest of fairness, I will be applying the TWEE test to my own party’s policies and vision with much more detail and rigour as I have with the other parties websites on my next post.





Saturday, 24 September 2016

Capital in the 3rd Millennium



Earlier on this blog I wrote about taking democracy back, well this essay is all about taking European democracy and European capitalism back. The crises Europe face from uncontrolled inward migration, increasingly violent nationalism, social unrest and anxiety, politicised heavy policing that seems bent on criminalising the law abiding citizen, pre-programmed generational unemployment etc. all stem from the one source: globalised capitalism and it’s political wing neo-liberalism.

Now to begin, I am an unrepentant capitalist. I hold no faith in idealised political systems composed in the late 19th Century to resolve our issues in the early 21st Century. 

Capital is the means through which all endeavours are undertaken. Without capital, even the greatest idea, the most brilliant invention, and the most soul lifting work of art simply cannot exist; it is the patronage of our age. It is essential to acknowledge this fact because it is fact and not just political rhetoric.

Capital is the blood that courses through the entire world. No nation on Earth has no capital. Most nations have very little capital and its people get by on very low wages and barely-there services while a select few nations have far too much capital and are wasteful with what they enjoy now; let’s call them the ‘G’ Nations. Nearly two centuries of human development has been powered by this substance called capital (as opposed to gold, silver and currency) yet it is intangible.

You can’t get a certain weight of capital, you can’t buy capital – that sounds incongruous but try – nobody knows what capital looks like. Capital is the Holy Ghost of business and capitalism is its religion. At least, capitalism was its religion until the reformation of the late 80s. This schism ushered in the petulant brat that is anti-capitalism. Before then the opposition to capitalism was either socialism or communism depending on how close the army was to the throne. With the fall of the Berlin wall and the collapse of the surveillance state in Europe and Asia, Capitalism won the cold war.....or so we were told.

It’s a truism that the more you fight against something, the more you begin to resemble it. The hero slowly becomes the villain, the rebel becomes the establishment. Thus, capitalist countries, bereft of their nemesis regimes embraced a tinselled version of politburo centralism, replacing the State with the New World Order. In terms of our day-to-day lives not much changed quickly but in real terms it was as historic a shock as the Fall of the Roman Empire. History just happens. We really don’t notice it other than something in the backdrop to our daily lives, ambient chatter which we drown out with our diversions and obsessions, just rolling thunder in the distance.....Then the storm hits.


Every place the G nations have visited to discuss the NWO so have the anti-capitalists. We’re familiar with the chorography of tear gas, water cannons, baton charges and Molotov cocktails, as anti-capitalism is also a religion, it also demands that we suspend our disbelief and trust in the word of great men who are also (handily) dead. Just like the religious reformation, our modern capitalist reformation has provoked a counter reformation – a souped-up, turbo-charged, super white toothed, orange skinned version of capitalism called globalised capitalism or globalisation with its ‘prophet’ neo-liberalism.
 
Like the Spanish Inquisition and the pogroms against European Jews of that period, globalisation has profoundly changed our world, changed how our world replenishes and threatened the security of our place in that world.  We have been in constant war for the longest period of time in our history.

That’s war with modern weapons of mass destruction, biological weapons, chemical weapons, depleted uranium shells, drones and the arsenals of austerity, terrorism and mass migration. The teaching of the new religion is clear: We are not in charge of our destinies anymore.



What human rights can we lay claim to when so many fellow humans are being drowned and washed up on Mediterranean beaches all year round....and we do nothing?


Where is the dignity of mankind when children are being openly trafficked across continents, enslaved by the most perverted of masters ....and we do nothing?

Who will argue for us when we pay taxes into an unaccountable political machine that is gearing up to host a devastating mass war on European soil....and we do nothing?


This new religion is NOT capitalism it is the inverse of capitalism. The ranks of anti capitalists and anarchists may find this hard to admit but they are actually fighting FOR pure capitalism and against this new hybrid regime called globalised capitalism because, they argue that the wealth should be fairly distributed – which is capitalism rewarding both labour and investment. Worse, their complaints against their imagined version of capitalism is actually aiding and abetting the spread of neo-liberalism and globalisation.




Here is capitalism. Here is how we have been able to build amazing cities, develop remarkable systems in logistics and supply, land humans on the moon, and where our increasingly powerful personal electronics come from.

The society made up of the people pay into the state to provide services and infrastructure; the state through government does what the society demands dispenses subsidy to (and thus can regulate) capital actors (banks and investors) to free up monies into industry which provides work, products and services back into the society. Along these transactions of course many middle-men take their cut. It’s a somewhat flabby design but most of the fat finds its way back into the system and thus capitalism puts the power in the hands of people who are capable of transmuting it into tangibles and quality of life for everyone else who can work and supports for those who can’t.






That’s how capitalism works.

Here is globalisation. This is how it fails. This is how we have laid waste to our own natural habitats, this is how we have been divested of resources and rights forcing millions into the jeopardy of migration, and this is why people are dying in factories yet again fifty years after our labour laws ended such cruel regimes. Capital made up of investors and private funds pay into states or governments dictating what they have calculated would provide optimal returns for their investment; government then regulates the society to provide cheaper labour and conditions to industry which returns profits not to the society or even the national economy but directly back to the capital actors via tax avoidance schemes.




That’s globalisation, that’s how it fails not only us but also them in the long run: Capital is now the client of the state and the super-state, not the citizen.

The social contract, established at great cost in wars and devastated rural cultures, by capitalism doing what it is designed to do – making investment into labour pay dividends – is under threat from a culture that systematically devalues labour and bumps up the importance of capital investment. The problem is that capital investment is now done in ‘credit’ as opposed to tangible currency and yet, tangibles such as homes, businesses, and entire industries are handed over perfectly legally.



Worse still, labour is now definitively devalued by technology. Factories full of child sweatshop labour, or US penitentiaries stuffed full of cut-price prisoner labour cannot compete with a well designed automated production process where the labour is done by machines. This has been true ever since FIAT built the Strada/Ritmo nearly 30 years ago in the 80’s (https://www.youtube.com/watch?v=X8KdiiVccBo).

With 3D printing and information freely being exchanged  over the internet, the need for factories and logistics to get products to shopping zones and then to consumer homes has been disrupted as completely as Apple’s iTunes ended the era of the record shop. People can buy their furniture in flat-pack form from IKEA and then struggle with the assembly instructions or soon they can simply download the designs and 3D print their items at home. Food will go the same way soon with people able to download expertly composed meals by celebrity chefs for their smart kitchens to prepare for them.  Labour, either in production or in the realm of services will soon go the way of the butler and the chambermaid.  There is nothing that will arrest this inevitable iterative step forward.



   
Capital doesn’t have a plan to deal with this fact. I stated that in 2011 in my open letters
and it is even truer today, five years later. There is no Plan B when human labour is no longer worth the cost of feeding and housing human beings. When we look at neo-liberal political actions (the truth behind the rhetoric) we see a pattern of dispossession being studiously followed to the ruthless letter by all our mainstream politicians and media cheerleaders to ensure that people, human beings, you and me, feel anxious and helpless.

Anxious and helpless is where we came from many millennia ago; naked and exposed to the elements, defenceless against nearby natural predators, shelter, food, and water being fatally scarce, living with no say in how we lived and what happened to our loved ones when we died. That unbearable state is why we scraped our civilisations together by our fingernails, with our blood and sacrifices, and through the support of our ingenuity, labour and co-operation.

Together, humanity managed to build empires, wonders, sciences, arts, and unimaginable wealth because of co-operation and trust. Today, for the sake of this intangible ghost that is a New World Order, we have been atomised, divided and mistrustful of one another. We have become alienated from our own elected representatives, our neighbours, our wealth repositories, and our police.

We are rapidly falling back into chaos and destruction all because of the abuse of capital.

The amazing servant and genie named capital has been enthroned by the neo-liberal and now it is the cruellest and most destructive master over humanity despite the fact that it is humanity’s own invention. Everything that exists outside of the natural wilderness and its myriad species is the invention of humanity and as such is the PROPERTY of humanity as a whole. What mankind has not invented it holds no dominion over nor may it claim ownership over, nor may it destroy.




This destruction must end immediately but how can helpless individuals tackle such a hungry beast?
     
Just like our ancestors did: co-operation, imagination, faith in one another, and determined action.

I spent some of my time as a bouncer for the local Irish Bar in a French military town. In that period of time, I received not even so much as a push to the shoulders let alone being set upon by a gang.  It’s not as if people don’t get drunk in Irish bars, they often bicker and even ‘take it out onto the street’ but never, even with a full-on Riot Policemen versus Foreign Legion aggro with some people who were clearly drunk, enraged, insecure or just giddy did I or anyone around me get injured.
 
This secret? Kindness. Patience. Co-operation. Good-humour. Listening over talking and shouting.

Capital has just seen many of its greatest investments go belly-up in 2008 and is in active flight seeing that China lost 33% of its value in 2015, and the rest of BRIC are looking decidedly shaky for various reasons (not least dwindling clean water supply). Where to go for capital? The Euro is failing to win back any confidence after the EU/ECB/IMF Troika forced the crushing of the Greek State, precisely because investors do not trust that level of institutional violence and brutality.  Bankers and Wall Street investor types may express themselves in macho ways, trying to ‘out man’ one another, but when shit gets real people responsible for billions worth of investments get scared. 




Nobody wants to drink in a bar where fights regularly break out, risking being bottled in the mêlée. Likewise, capital doesn’t want settle where brutal crackdowns on personal freedoms and democracy are likely. Imagine capital as the classy model in designer heels and a couture outfit who just wants to have her Kir-Royale in a pleasant setting and you get the picture – capital doesn’t like threat; any kind of threat – lest of all, institutional or politically motivated threat.

The mania of globalisation, neo-liberalism and the whole nonsense surrounding a New World Order does not make a comfortable, unthreatening world; rather its raison d’être is to destablilise, exploit and enslave both financially, physically and spiritually. One can resist such ambitions by decrying the symptoms and even seek to remove its actors but, like the brawling soldiers, that only compounds the confusion and the threat. Instead, the most efficient way to ensure that capital can put down roots and do its creative, productive thing is to diffuse the tension, present an offer that is rational and attractive and let capital CHOOSE long term benefit over this short-term ‘smash and grab’.

All capital, even international vulture/hedge funds, requires some return on their investment that is guaranteed. In the world of business and entrepreneurial endeavour a guaranteed return is akin to the Holy Grail because one cannot guarantee unknown unknowns won’t happen. After the crash of 2008 (which, by the way, I was painfully aware of in early 2007!!) capital fled from risky derivatives and complex financial instruments like a supermodel from a hobo fight and sought out security.  That security presented itself in government bonds and public debts (no less risky but they had a national seal which looked pretty). This obviously was a huge mistake both by capital and by those governments too incompetent to handle an economic shock and thus the domino effect continued. 




Now, even natural resources (remember we didn’t invent those) are up for grabs and international businesses and corporate bodies are warping and twisting together like a school of sardines that has spotted a shark in order to mutate into a form capable of controlling water, oil, gas, and metals. All this because ‘the smartest guys in the room’ repackaged bad loans with good loans and confused every available economic model.
 
The answer is startlingly simple: https://www.youtube.com/watch?v=5Ay5GqJwHF8

It is time to start building our civilisations back to robust health by investing in long term endeavours.

Notice I said ‘civilisations’ as opposed to ‘societies’ or ‘economies’ because the civilisation is something that people can get around, identify with, and strive to improve. The economy doesn’t inspire the same allegiance among all strata of our civilisation because it is accurately perceived by the majority to only benefit a wealthy minority. Likewise the society cannot capture the imagination because it is the invention of a dwindling educated middle class to serve that narrow grouping alone; if you’re on your uppers society can go hang until you’re on your feet again and if you are insanely wealthy what care do you have for the hoi poli elbowing their way to your favourite table at the best restaurants? Only the civilisation can bind a people together across all income groups, social backgrounds, cultural identities, national boundaries, and personal beliefs because a civilisation represents what we leave behind for future generations to discover and wonder at. Civilisation is our Time Graffiti; it is our indelible mark on this world. 

The only way to ensure that the benefit of an endeavour is felt by all is to host that endeavour under the umbrella of the all encompassing ‘Civilisation’ – no matter how this may make free marketers sick to admit it – and to ensure that endeavour has a concrete, planned, scheduled outcome.  With this level of guarantee you are a supermodel magnet. Capital will readily invest in any endeavour and (gasp) even pay tax if the payoff comes with a guaranteed profit on a guaranteed due date. That is precisely what capital wants to invest in.

Risky resource wars have cost the financial world trillions and that is REALLY what crashed the sector because the promised payoff never emerged. Iraq has control over its oil, US tar sands are going to dry up in less than five years and Saudi Arabia is upping its production, not lowering it whilst simultaneously diversifying its economic offer.
 
Why?

Because, as I predicted five years ago, people are seeking alternative solutions to oil and gas not just for environmental or human rights reasons but because they want.....security. 

Over the last two decades we have witnessed the vertiginous rise of the statement tower in major cities around the world. From the erection of Petronas Towers in Kuala Lumpur in 1996 there has been on average two new skyscrapers completed per year. Countries that once may have sought to build great armies and navies now seek to build glass towers that loom over the cities they stem from.  The classic image of the tower cluster in Los Angeles or Manhattan has now reached China, Hong Kong, South Korea, Thailand, the Sinai Peninsula, and will soon dominate the Indian Sub Continent. In 2007 there were 28 registered skyscrapers (buildings the height of or superior in height to the Empire State building at 380 metres) in the world, by 2011 that number has risen to 46 towers.  I chose these dates as they represent the high point of the global economic crisis and austerity when ‘there was no capital for investment or governments’.  In fact, the money simply sloshed towards these building projects. Capital fled to what it knew best: construction and office space. Whether these multi-use towers, full of the latest design and material technology will be of any actual use is debatable.  




Already cities are reporting that the accommodation sections of these super towers are being purchased by investors and oligarchs not to actually occupy or lease but to keep the taxman off their cash. More empty boxes where people cannot live....lovely!  



If ever there was a parallel to the Tower of Babel story and its fatal folly, here we are. The rich are in open panic and there is no separate middle class left to speak of. Governments are no longer borrowing against their populations as I stated in the 100% letters, they are now borrowing against predictions of population– that is, people who have not yet been born.


The punch-line is, of course, that these towers will simply be ‘White Elephants’ and they will not generate anything like the income their sponsor cities and nations hope because, as more and more super towers emerge, their scarcity and thus their value per square metre decrease.  Furthermore, on completion, the project begins the long slide back into the quicksand called ‘depreciation’.  Normally cars and machinery suffer from depreciation and accommodation – well maintained and fit for purpose – gains in value according to inflation.  However, for that rule to be true they must have people dwelling or working in them. The average person simply doesn’t want to live at the heights we are talking about; where visitors can actually detect the curvature of the Earth. I’m hazarding a guess that one can pick up a chi-chi apartment in Petronas or 101 Taipei at a fraction of what it would have cost the first owner of that apartment. Capital moved on and actual occupancy didn’t happen. Like the white elephants in Thailand’s recent monarchist past, the money needed to build and maintain these towers drains vital capital from the real wealth creators: the people.




So, what to build?

Right now there is a housing emergency plan in operation....or at least there will be when the Dáil gets back from their extended Summer break. Housing is essential, it is a constitutional right and yet it is prohibitively expensive. We all know that public housing was neglected over the last twenty to thirty years in Ireland because of how much private housing was being built around the time of the Celtic tiger. We now see that this private housing simply isn’t worth the money asked for it.  The buyers who hoped to lease their acquisitions and make them pay for themselves found that the austerity budgets and the property taxes bit into their margins and they were forced to price their properties beyond the means of the market. We have a Minister for housing who last Wednesday expressed the hope of having a €250,000 house in Dublin county. Think about that for a minute: fully built houses that used to change hands for IR£70,000-80,000 in 1996 now cost more than a quarter of a million Euros to buy off the plans. The State needs to invest in housing, certainly, but housing on its own can’t guarantee a return on investment and thus, won’t attract the necessary capital.




A national endeavour isn’t a housing estate or even several housing estates; nor is it commercial zones; nor is it business districts, financial quarters or even technology hubs. A national endeavour is a radical rethink on how we live, work, play, and learn. A national endeavour isn’t a top-down exercise but a co-operative effort involving our entire society.  A national endeavour will attract massive inward investment into our Gross National Product because it will guarantee those investors their much needed payday beyond reasonable doubt because it harnesses labour, talent, ingenuity, intergenerational effort and attract more people to our land to live and work because it will provide not only jobs but lifestyles and fully funded services.

Each nation is different and unique and we will RESPECT that uniqueness. Ireland’s unique skill, the heritage of its people, is building. Our national endeavour needs to be something we build and what we build must benefit all of our society at once.  Instead of a skyscraper, I propose that we reinvent the city itself. Cities are legacy technology, they began as villages which grew into market towns which then developed a specialisation such as having a handy port or a local resource such as tin or coal to mine.  These lucky towns then exploded into boom-towns – experiencing a rapid, massive influx of people to live and work in them – and, as long as that town’s endeavour was attractive or useful to the market, the growth spurt could be supported.  Once that mine ran dry or that port got outmoded by another larger port further up the coast the boom town fell into decay and dereliction.



The boom town to ghost town narrative was the story of the 19th and 20th centuries which is why we are at the best possible moment in history to apply some intelligence to what we define as a city and how we build it.  Our legacy cities are really just amalgamations of villages and towns from the 18th Century subsumed into a metropolitan ‘whole’ without much thought on how one element relates to the other and what is actually lost when ground is broken on a new development. 

Dublin, Cork, and Limerick all show signs of this process growing in an asymmetrical fashion based upon the market value of the land available to develop and its proximity to work and facilities.  Obviously living at the fringe of a city doesn’t suit someone who must work at the far fringe and arrive at the job at nine am sharp.  Another issue with cities and towns as legacy developments is the ghost town threat to certain areas which specialised in a certain industry and that market dried up. 




Developing a bright, shiny new quarter or estate or town on the fringe of the city only serves to increase the pressure upon that city’s core function.  Tallaght and Jobstown taught us the painful lesson that one doesn’t simply plonk a large body of people in one area without full access to the city or a viable town centre. Yet, here we are developing several new ‘motorway towns’ on the fringe of Dublin and Cork and Limerick.  We just do not learn.  Right now the overwhelming majority of Ireland’s population live in the province of Leinster.

A smarter idea is to do away with the urban sprawl idea entirely and to link our cities together ensuring a continuous urban habitat to a growing Irish population (I’m estimating a potential of 10 million denizens by 2050 if we play our cards right). The added benefit to this plan is to create a ‘Firth of Forth’ bridge economic virtuous circle in which the endeavour provides the labour and work opportunity on a repeating cycle over decades.  Having Dublin being a ‘Vampire squid’ which holds a far too dominant demanding position over the resources and people in Ireland simply because of its untrammeled growth is unsustainable and physically destructive of our unique natural landscape and wildlife heritage.  Dublin city now occupies areas in Louth, Wicklow, Meath and Kildare, change needs to happen sooner rather than later before the entire farming culture in Leinster is eaten with overpriced apartment buildings.



This is where Capital comes in.

In a true public-private partnership agreement Capital – that’s foreign investors who produce actual products as opposed to specialist hedge and vulture funds who exist solely to monetise their investment portfolios within three to five years – may invest in a mid to long term city project that spans from Dublin’s fringe to Mullingar or Athlone or Tullamore in which tens of thousands of people may find a home at subsidised cost in order to being new productivity and investment and commercial activity to regions that have been largely bled of investment and populace for decades.  A major player such as Apple Inc., Microsoft Corporation or Google Corporation could then invest directly in stretches of this bridging, linear city (no wider than two kilometres at any given point) to place their employees and campuses confident in the knowledge that their products and services can reach global markets efficiently because the infrastructure is in place and has been planned to serve the long term interests of the investor and the communities living within the city.





This is how Capital, currently a very panicked and acquisitive influence, can ally its goals with those of the nation state, data and energy to generate constant economic benefits. Capital need not continue with an ill advised ‘endgame’ but open new markets, new economies and new horizons.

Capital has a role and a future in the 3rd Millennium we just have to offer that super-model a nice quiet drink in a swanky winery as opposed to a grubby pint in the local spit-and-sawdust bar.