Re: [Marxism-Thaxis] G.A. Cohen Goes Home

2009-08-10 Thread Ralph Dumain
Your unrelenting idiocy is a shining example of the senility of CP Marxism.

Otherwise, I think that Cohen was worthless, not even interesting in 
comparison with the revival of Marxism that mushroomed in the '60s.

At 04:01 PM 8/10/2009, c b wrote:
>From: jkschw1 at yahoo.com
>To: "marxist philosophy" 
>Subject: [marxistphilosophy] G.A. Cohen Goes Home
>Date: Fri, 7 Aug 2009 17:57:20 +
>
>Unless I missed it the death the other day of Jerry Cohen attracted no
>comment on a list devoted to Marxist philosophy. I know that as first
>a founder of analytical Marxism, then as a refugee from Marxism to
>liberal egalitarianism, he was not favored among the participants
>here. But IMHO he was one of the most influential and important
>Marxist thinkers of the latter half of the 20th century, and his
>legacy requires comment.
>
>^^
>CB: Cohen may have been important , but he was not unusually
>influential among Marxist thinkers.  This conclusion can only be
>reached from the tendencies in Marxism that dismiss the Marxism of
>CP's and Trotskyist parties, and thinkers in these sections of Marxism
>
>^
>
>Not much time here but I will note a few thoughts;
>
>- In the context of a sharp decline in the quantity and quality of
>Marxist theory,
>
>^
>CB: This is a position held by only a section of Marxists,
>particularly academic and anti-Party Marxists.
>
>^
>
>Cohen and the AMs stood for the disconnection of
>theory from practice,
>
>
>CB: A telling admission, given that Marx himself put so much emphasis
>on the unity of theory and practice.  "Philosophers (like Cohen) have
>interpreted the world in a number of ways; the thing is to change it."
>
>
>
>the entrenchment of Marxism as another academic
>exercise. In some ways this was not their fault giving the collapse of
>Marxism as a movement and a force in the world.
>
>^
>CB: This ignores that the Communist Party is the ruling party of
>China, Cuba, Viet Nam, parts of India, et al., and the revolutions in
>South America , which though they don't announce it, are obviously
>part of the Marxist movement.
>
>^
>
>- Cohen helped bring a level of rigor and precision in Marxist
>thinking that had been sorely lacking for a very long time.
>
>^^^
>CB: This is an assertion that is not demonstrated nor accepted by 
>many Marxists.
>It's also a self-serving claim by Analytical Marxists.
>^
>
>  If it's
>complained that his work lacked popular accessibility, what are we to
>say about Adorno, a favorite here who gets wide discussion?
>
>- Cohen's major work on Karl Marx's Theory Of History is very
>valuable, but went down the wrong track in reviving a stagist,
>mechanical, primacy of the productive forces 2d Internat'l conception
>of historical materialism. (Possibly due in part to his roots in the
>Canadian CP.)
>
>^
>CB: Why not say that his alleged greater rigor and precision are the
>results of his roots in the Canadian CP ?
>
>^
>
>  True, Marx gave that view a lot of space, but Cohen almost totally
>neglected Marx's alternative class struggle view, which I think is
>more true and valuable and gets no less, arguably more, space. Brenner
>is far better on this (and no less rigorous).
>
>^
>CB: A "rigorous" look at actual history today would lead one to a more
>"stagist" view. And of course CP's , including the Canadian , give
>much primacy to "the class struggle view". So, this is a typical
>slanderous claim about CP's. If the alternative to the "stagist" view
>is a "class struggle" view, then the CP's don't promote a "stagist"
>view.
>
>^^^
>
>- Cohen's turn to traditional style moral philosophy as important,
>first as a complement to his idea of historical materialism, then as a
>replacement for Marxism and materialist analysis, was a major
>retrogression. No doubt there is more ethics in Marx and Marxism than
>Marx cared to admit, but Marx pointed the way in integrating these
>into materialist analysis.
>
>^
>CB: There's a recent thread on LBO-talk discussing this.  Marx doesn't
>claim that capitalists are moral, he just appeals to self-interest
>among workers, and appeal to self-interest is not a moral appeal.
>
>^^^
>
>Cohen's own positive ethical views were, moreover, disappointingly
>primitive and underdeveloped. See his awful Egalitarianism book, but
>also earlier papers on exploitation and his paper critiquing value
>theory -- a real train wreck. And I don't accept value theory myself!
>I haven't carefully read the last book in Rawls.
>
>Btw in that book Cohen lists as the big three books on political
>philosophy Rawls' A Theory of Justice, Hobbes' Leviathan, and Plato's
>Republic. Marx's Capital doesn't make his cut. Given Cohen's a priori
>turn to liberal morality, Marx might be happy to be left out.
>
>
>CB:  Cohen's earlier thesis is interesting to get a discussion on
>Marxism going, and to demonstrate how Marxism is different than
>mid-twentieth century British philosophy . However, he's no

Re: [Marxism-Thaxis] Detroit

2009-08-10 Thread Waistline2
In respect to AIG, I have not done the investigation into the rates charged 
 to Detroit to determine if insurance of Detroit bonds required a higher 
premium  rate. 
 
Did the failure of AIG have a racist impact on the city of Detroit? 
 
Without question Detroit's working class faces higher general insurance  
rates on their personal property, than Black workers in comparable economic 
and  social circumstances outside Detroit. Say in the city of Southfield. 
 
Housing and vehicle insurance is outrageously high and this "extra-charge"  
- called redlining, is the structural and material relations of white  
supremacy/chauvinism - in respects to blacks, or as it is called by the 
theorist 
 of biological race, racism. All the workers in Detroit - black, brown, 
"Arabic"  and white, who are able to use another resident address for 
insurance, do so in  order to receive a reduced rate of insurance. 
 
Detroit is redlined. A red mark is drawn on the map and everyone within the 
 red zone is charged extra for being in the zone. Redlining. 
 
Highland Park is worse with it being virtually impossible to get reasonable 
 insurance against fire. Pontiac is a basket case, with Grand Rapids and 
Battle  Creek being most distasteful for the working poor and teetering on the 
verge of  open fascism for blacks and the whites in the neighborhoods 
adjacent to the  blacks. Benton Harbor has been the seen of a particularly 
nasty 
fight over  voting rights. Northern Michigan and the farming areas of the 
state are  devastated, with huge sections of our blue eyed brothers and 
sisters living  below standards acceptable in Detroit. 
 
Detroit has muscle and proletarian fiber. The city's proletariat has to  
lean how to make its point understood. What needs to be understood is the 
class  relationships and the role of the color factor in American history. 
 
Amongst the blacks the most destitute sector of the proletariat and the  
middle class is caught in the turning gears of capital, with the former being  
herded into the concentration camps called prisons. This happens to be the 
case  throughout the state of Michigan, without regard to the color of ones 
eyes. This  is more so true with the blacks because we were slaves and 
trapped on the bottom  of the economic and social ladder. 
 
One might need to get out more often and visit areas beyond the city. 
 
"Ain't I blue ain't I blue. Ain't these tears in my eyes, telling you." 
 
Rather than eye color it is the dark clouds in the proletariat's eyes that  
cannot be ignored. 
 
Inkster is hit but so it Adrian and Allen Park. Canton, Centerline and  
Clearwater are facing murky waters. Eastpointe is "holding on" but my other  
brother by a different mother paid $105, 000 for his home in 1999, only to see 
 the house next door sell for $45, 000 two months ago. Class politics means 
 understanding intersection and economic logic and the spontaneous movement 
of  those workers who are a tad bit to economically secure to be the lowest 
sector  of the proletariat, but to economically weak to escape the cycle of 
capital  destruction. My brother in Eastpointe is black. 65% of his 
neighbors are white.  The proletariat as proletariat is hit hard. 
 
Everyone lost money and value. The problem is the promise capital made  pro
mising economic stability if we worked for them 30 - 40 years. The social  
contract has been ripped to pieces. Ripping the social contract apart might 
have  racists implications but it is a class act. Everything that happens to 
me -  the good, the bad and the ugly, has racist implications because I am a 
 Black man in America. Easy answers are boring and make me none the 
smarter. Some  of this shit - if not all of it, is capitalism. 
 
I was just up in Flint, Michigan. 
 
Detroit is a paradise compared to Flint. Actually, Detroit is still very  
beautiful. Blight and poverty is in neighborhoods zones. These zones are  
economic categories. The autowokers with 15 years seniority and up live in  
different zones than the workers making 50% less. 
 
In fact, as this horrible crisis of capital unfolds, Detroit is still  
economically robust. 
 
The "Hip Hop" Mayor was not all bad by any means. The "old Mayor" was  
stupid and arrogant. Us old heads call young men like this "young, dumb and 
full 
 of come." Our young Mayor was driven by testosterone and bourgeois 
politics and  lacked a vision based on the fact of Detroit's history. Detroit 
is 
the  industrial proletariat, past, present and future. 
 
Then again, K. Kilpatrick was part of the political establishment and  
beholden to McNamara. This was good and bad. Housing development in Detroit has 
 
been remarkable. Remarkable becomes outstanding under politicians on the 
side of  the proletariat. 
 
Communist know a little "something something" about money, wages, bonds and 
 economic interest of various economic strata in the city. Since some of us 
know  how to negotiate without being overwhelmed fro

[Marxism-Thaxis] G.A. Cohen Goes Home

2009-08-10 Thread c b
From: jkschw1 at yahoo.com
To: "marxist philosophy" 
Subject: [marxistphilosophy] G.A. Cohen Goes Home
Date: Fri, 7 Aug 2009 17:57:20 +

Unless I missed it the death the other day of Jerry Cohen attracted no
comment on a list devoted to Marxist philosophy. I know that as first
a founder of analytical Marxism, then as a refugee from Marxism to
liberal egalitarianism, he was not favored among the participants
here. But IMHO he was one of the most influential and important
Marxist thinkers of the latter half of the 20th century, and his
legacy requires comment.

^^
CB: Cohen may have been important , but he was not unusually
influential among Marxist thinkers.  This conclusion can only be
reached from the tendencies in Marxism that dismiss the Marxism of
CP's and Trotskyist parties, and thinkers in these sections of Marxism

^

Not much time here but I will note a few thoughts;

- In the context of a sharp decline in the quantity and quality of
Marxist theory,

^
CB: This is a position held by only a section of Marxists,
particularly academic and anti-Party Marxists.

^

Cohen and the AMs stood for the disconnection of
theory from practice,


CB: A telling admission, given that Marx himself put so much emphasis
on the unity of theory and practice.  "Philosophers (like Cohen) have
interpreted the world in a number of ways; the thing is to change it."



the entrenchment of Marxism as another academic
exercise. In some ways this was not their fault giving the collapse of
Marxism as a movement and a force in the world.

^
CB: This ignores that the Communist Party is the ruling party of
China, Cuba, Viet Nam, parts of India, et al., and the revolutions in
South America , which though they don't announce it, are obviously
part of the Marxist movement.

^

- Cohen helped bring a level of rigor and precision in Marxist
thinking that had been sorely lacking for a very long time.

^^^
CB: This is an assertion that is not demonstrated nor accepted by many Marxists.
It's also a self-serving claim by Analytical Marxists.
^

 If it's
complained that his work lacked popular accessibility, what are we to
say about Adorno, a favorite here who gets wide discussion?

- Cohen's major work on Karl Marx's Theory Of History is very
valuable, but went down the wrong track in reviving a stagist,
mechanical, primacy of the productive forces 2d Internat'l conception
of historical materialism. (Possibly due in part to his roots in the
Canadian CP.)

^
CB: Why not say that his alleged greater rigor and precision are the
results of his roots in the Canadian CP ?

^

 True, Marx gave that view a lot of space, but Cohen almost totally
neglected Marx's alternative class struggle view, which I think is
more true and valuable and gets no less, arguably more, space. Brenner
is far better on this (and no less rigorous).

^
CB: A "rigorous" look at actual history today would lead one to a more
"stagist" view. And of course CP's , including the Canadian , give
much primacy to "the class struggle view". So, this is a typical
slanderous claim about CP's. If the alternative to the "stagist" view
is a "class struggle" view, then the CP's don't promote a "stagist"
view.

^^^

- Cohen's turn to traditional style moral philosophy as important,
first as a complement to his idea of historical materialism, then as a
replacement for Marxism and materialist analysis, was a major
retrogression. No doubt there is more ethics in Marx and Marxism than
Marx cared to admit, but Marx pointed the way in integrating these
into materialist analysis.

^
CB: There's a recent thread on LBO-talk discussing this.  Marx doesn't
claim that capitalists are moral, he just appeals to self-interest
among workers, and appeal to self-interest is not a moral appeal.

^^^

Cohen's own positive ethical views were, moreover, disappointingly
primitive and underdeveloped. See his awful Egalitarianism book, but
also earlier papers on exploitation and his paper critiquing value
theory -- a real train wreck. And I don't accept value theory myself!
I haven't carefully read the last book in Rawls.

Btw in that book Cohen lists as the big three books on political
philosophy Rawls' A Theory of Justice, Hobbes' Leviathan, and Plato's
Republic. Marx's Capital doesn't make his cut. Given Cohen's a priori
turn to liberal morality, Marx might be happy to be left out.


CB:  Cohen's earlier thesis is interesting to get a discussion on
Marxism going, and to demonstrate how Marxism is different than
mid-twentieth century British philosophy . However, he's not an
unusual giant among Marxist or Marxian thinkers.



- Cohen was nonetheless a major influence, one of the few really
original thinkers in late 20th century Marxism, along with perhaps
Althusser -- who, it might argued, paralleled him in a French sort of
way. The people we tend to discuss, Marx, the Western Marxists, all
had their roots and did much or all of their impo

[Marxism-Thaxis] Short obit for Jerry Cohen

2009-08-10 Thread c b
G. A. Cohen, 1941-2009
by James Farmelant
Early in the morning on August 5th, one of the most notable left-wing
political philosophers of the English-speaking world, Gerald Allan
Cohen, (G. A. Cohen) or as he liked to be called by his friends, Jerry
Cohen, died after suffering a massive stroke at the age of 68.  Jerry
Cohen was probably best known for his 1978 book, Karl Marx's Theory of
History: A Defence (Oxford University Press), where he attempted to
apply the techniques of analytical philosophy (including both logical
analysis and linguistic analysis) to the elucidation and defense of
Karl Marx's materialist conception of history.  In doing so, he helped
give birth to a new school Marxist thought, Analytical Marxism.  This
school sought to clarify Marxism, using not only the tools of
analytical philosophy, along with tools of modern social science such
as rational choice theory (i.e. game theory and even neoclassical
economic analysis), to the clarification and defense of the theories
of  Karl Marx and his successors.  Besides Jerry, other leading
Analytical Marxists included the economist John Roemer, the political
theorist Jon Elster, the economist and economic historian Robert
Brenner, and the sociologist Erik Olin Wright.

In this respect, Jerry Cohen offered a reading of Marx that rejected both
traditional dialectical materialism, as well as the Hegelian readings
associated with Western Marxist schools like the Frankfurt School as
well as the structuralism of Louis Althusser.  In this and other
respects, this book was the product of Jerry's unique background.  He
was born the son of working class Jewish parents in Montreal.  Both
his parents were active in leftist politics, with his father active in
trade unionism while his mother was a member of the Communist Party of
Canada.  As a young boy, Jerry Cohen for a time attended a left-wing
Jewish day school that had the distinction of being raided by Quebec's
red squad.  That raid eventually led to the school's closure.  During
his teens, Jerry was active in the National Federation of Labour
Youth, which was the youth arm of the Canadian Communists.  He
experienced the turmoil which tore the Party apart following Nikita
Khrushchev's de-Stalinization speech before the Twentieth Congress in
1956 and which led to the disintegration of the National Federation of
Labour Youth in Quebec.  Out of this milieu, Jerry went on to attend
McGill University where he studied philosophy and was active in the
university's Socialist Society, of which he became president.

After graduating from McGill, Jerry Cohen then went to Oxford
University to pursue graduate study in philosophy, earning a B.Phil
degree and becoming fully trained as an analytical philosopher.  At
Oxford he studied under Gilbert Ryle who was one of the leading
analytical philosophers of the twentieth century (among other notable
students of Gilbert Ryle include A. J. Ayer and Daniel Dennett).   He
also studied under the political philosopher Isaiah Berlin, who was
one of the leading lights of liberal political philosophy.  While
Jerry remained very much a socialist and he was quite critical of
Berlin's analysis of negative liberty versus positive liberty, the two
men became close personal friends.  After completing his studies at
Oxford, Jerry Cohen stayed in the UK and took a teaching position at
University College London as an assistant lecturer, lecturer, and
reader in the philosophy department of that institution.  It was
during those years, in the 1960s and 1970s, that he began the work,
which led to the writing of his famous book.  He would remain at
University College London until his 1985 appointment as the Chichele
Professor of Social and Political Theory at All Souls College, Oxford.
 He would then remain at Oxford until 2008 when he took emeritus
status there and accepted a new position as the Quain Professor of
Jurisprudence at University College London.

A full evaluation of Jerry Cohen's thought and work would be beyond
the scope of this article.  However, it should be noted that his
thought (and the thought of his fellow Analytical Marxists) followed a
distinct trajectory.  They started with a focus on historical
materialism, but, over time, they became more and more focused on the
ethical justification of socialism.  Indeed, that was the focus of his
later books including Self-Ownership, Freedom and Equality (Cambridge
University Press, 1995) and If you're an egalitarian how come you're
so rich? (Harvard University Press, 2000).  He became intrigued with
the arguments of libertarian political philosophers, especially those
of Robert Nozick, as expressed in the latter's Anarchy, State, and
Utopia (Basic Books, 1974).  Jerry was intrigued by the libertarians,
both because he thought that they had provided some of the strongest
arguments available in defense of capitalism and because they appealed
to premises which he himself embraced.  Therefore, Jerry devoted much
time and energy to 

[Marxism-Thaxis] Inside Story on Town Hall Riots: Right-Wing Shock Troops Do Corporate America's Dirty Work

2009-08-10 Thread c b
Inside Story on Town Hall Riots: Right-Wing Shock Troops Do Corporate
America's Dirty Work
By Adele M. Stan, AlterNet
Posted on August 10, 2009, Printed on August 10, 2009
http://www.alternet.org/story/141860/

The recent spate of town hall dustups may look like an overnight
sensation, but they've been years, even decades, in the making.

Since the days in the late 1970s, when the New Right began its
takeover of the Republican Party, it has cultivated a militia of white
people armed with a grudge against those who brought forth the social
changes of the '60s.

These malcontents have been promised their day of retribution, a day
for which they are more than ready. Few seem to understand that they
are merely dupes for a corporate agenda that will only worsen the
conditions in which they live.

Why, you may ask, would men of power and fame shake the rough,
unmanicured hands of gun enthusiasts, conspiracy theorists,
gay-haters, misogynists and racists?

Because somebody's got to do the dirty work. Magnates don't like to
soil their French cuffs, and it's hard for a bunch of rich guys to
garner sympathy for threats to their bottom lines. It's the classic
inside-outside game that the right wing of the GOP has played for the
last two decades.

The Health-Care Industry Executive

Imagine you're an executive at a pharmaceutical company. Your U.S.
operations are your cash cow; they earn you wild net profits because,
unlike in other industrialized nations, you do not experience the
price controls of a government-administered program in which the
government negotiates for the best price on prescription drugs and
devices.

Along comes a government plan for health-insurance reform that
includes a public, government-financed plan. The public option, they
call it. As part of the plan, you will be required to negotiate with
the government for the price of medications and devices to be
distributed within the plan.

Now that could really screw up your massive profit margins. Private
plans might then insist on prices more like those the government is
getting.

Instead of increasing your profit by double digits in the worst year
the economy has seen since the Great Depression, as did an outfit
called The Medicines Co., your shareholders may have to settle for
profits more in line with the overall growth of the economy. And
wouldn't that just stink?

Meanwhile, polls show a clear majority of Americans -- you know,
regular Americans, the kind who don't want to own an AK-47, or who do
accept the president's citizenship status -- favor the public option.
In fact, in June, CBS News found that majority to be 72 percent.

So, whaddaya do? Well, if your lobbying firm counts former Rep. Dick
Armey, R-Texas, as its senior policy adviser, you don't have do much.
Dick will take care of the rest through FreedomWorks, the ostensibly
grassroots, nonprofit organization of anti-taxers, cold warriors and
affirmative-action opponents, which he chairs.

Need to make it look like regular Americans oppose the
health-insurance reform bills now being considered by Congress? Make
sure a handful of those angry white people turn up at the town hall
meetings now being conducted by members of Congress throughout the
country. Make sure they disrupt the meeting and rattle the
congressperson.

Capture it all on amateur video and put it up on a faux,
amateur-looking Web site, and try to kid the media into thinking
there's a widespread rebellion happening. After all, the media are
gonna want that dramatic footage.

The Republican Member of Congress

Now, suppose you're a Republican member of Congress. Your party got
totally throttled in the 2008 election, and if you don't derail this
health care thing, it's going to be a big win for your Democratic
opponents, as millions of underinsured and uninsured Americans finally
have some health care coverage -- one bright spot in a largely dismal
economy.

Meanwhile, you get a lot of your campaign cash from
health-care-related industries and from the Wall Street bankers and
brokers who want to keep those profits soaring.

A public option is going to stink for you, too. So, while Armey's army
of taxphobes is useful to you, it would be great to get some really
hard-core types to further stoke the fires -- especially if marshaled
by guys who know how to really tar Democrats with racist imagery and
slurs of unpatriotic behavior.

That's where Grassfire.org and its brother networking site, ResistNet,
come in. Sen. Jim DeMint, R-S.C., who promised to make health-care
reform President Obama's "Waterloo," is a big fan. Says so right there
on the Grassfire Web site. ResistNet is yet another right-wing hub for
organizing the disruption of health-care town hall meetings.

The Media Mogul

Okay, now put on the hat of a media mogul, one who rails against the
minimal restrictions the U.S. has on multi-outlet ownership, and one
for whom the bottom line is everything. In fact, you actually own the
Wall Street Journal.

If you can nip th

[Marxism-Thaxis] Detroit

2009-08-10 Thread c b
AIG insuring of Detroit city bonds was not motivated by race hate or racism
 but profit motive. The first question is "why did the leaders of Detroit
go to  AIG in the first place?" I am not aware of any evidence that Detroit
seeking  insurance from AIG was racially motivated. AIG’s pricing of
insurance or  financial products was the motivation for Detroit
entering into this
market  relation.

^
CB:  On this  issue, racism should be analyzed _structurally_, not in
terms of individual motivation.

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Re: [Marxism-Thaxis] The Detroit Election: notes. response 4

2009-08-10 Thread Waistline2
Home Rule 
 
No politically mature person in America believes white supremacy has been  
eradicated in America or is not expressed in some of Detroit's relations 
with  other political jurisdictions. However, classes and segments of class 
respond to  and articulate their response to the material impact of white 
chauvinism in  different ways. Home rule from the standpoint of the class 
conscious workers and  militants is the spontaneous push for block by block 
self 
organizations to  contain crime and violence; restore the safety and high 
standards of public  education, to educate our youth and to fight for a vision 
of what Detroit can  become. 
 
The road to unity of the fighting section of our working class lay along  
lines of affirmative actions and fights riveted to common economic interest. 
For  instance expansion of the public sector or government funding to 
alleviate  poverty for all within an economic category. One opposes Mayor Dave 
Bing
’s plans  of privatizing because it lowers the wages of workers. 
 
The workers are slowly waking up to seeing that the problem is capitalist  
relations of production.  
 

 
>> On a specific, AIG's bankruptcy caused Detroit's bond rating to  fall 
because AIG insured it. So, now Detroit had to dedicate a revenue stream  more 
strictly to the Wall Street thieves. AIG on the other hand was bailed out  
after fucking Detroit up, Wall Street bond rating companies and AIG are 
"white". 
 
From a structural and historical perspective,+ , to the extent that Detroit 
 is worse than other places, the difference is due mainly to racism against 
a  city with an 85% population, the largest percentage of any city but DC.  
<<
 
Comment
 
AIG insuring of Detroit city bonds was not motivated by race hate or racism 
 but profit motive. The first question is "why did the leaders of Detroit 
go to  AIG in the first place?" I am not aware of any evidence that Detroit 
seeking  insurance from AIG was racially motivated. AIG’s pricing of 
insurance or  financial products was the motivation for Detroit entering into 
this 
market  relation. 
 
Perhaps, Detroit was "redlined" by AIG, which would be pretty consistent  
with most insurers. However, this is not what is being discussed. Did 
Detroit's  bond rating fall faster and lower than a comparable city doing 
business 
with AIG  or in a way different from crisis situations over the past 100 
years? 
 
Charging AIG with racism rather than being a non-banking financial  
institution contributing nothing socially useful to society, teaches the 
workers  
nothing. Minimally, calling for nationalization of the banks and dismantling 
the  non-banking international financial institutions opens the door to a 
new  dialogue on the issue of the free market economy. 
 
There is much that can be said and has been written about AIG domestically  
and AIG Financial Products (AIGFP). Based in London where the regulatory 
regime  was less restrictive, AIGFP, took advantage of AIG statue 
categorization as an  insurance company and therefore not subject to the same 
rules on 
capital  reserves as real banks. 
 
AIG would not need to set aside anything but a tiny sliver of capital if it 
 would insure the super-senior risk tranches of CDOs in its holdings. In 
other  words AIG collected money from companies and institutions promising 
insurance in  the event of default, knowing good and well that in the event of 
crisis, it did  not have the means to honor its obligations. 
 
For the buyer of such insurance, city's like Detroit and other  
municipalities, the cost is insignificant for the critical benefit, which is a  
good 
credit rating. The buyer of insurance receives a good credit rating not  
because the instruments - bonds and insurance, are "safe" but only because the  
risk was insured by AIGFP. 
 
You get good credit rating because all your loans are insured. 
 
A good credit rating means the ability to borrow more money from more  
suckers at a lower interest rate. Detroit went to AIG for the same reasons  
everyone else did; a good credit rating based on imaginary assets (value) of an 
 
insurance company.  The intellectual prostitutes of capital claimed AIG was 
 safe and to big and smart to fail. 
 
The political leaders of Detroit sought out AIG and its insurance schemes  
as a way to improve the city's credit trust worthiness. AIG did not fuck up  
Detroit. Detroit was already fucked up and the reason is the free market 
system.  The workers need to know what happened. Racism is not the answer. AIG 
collected  money from businesses and governments institutions charging a 
ridiculous tiny  amount for insurance, say 0.02 cents per dollar multiplied a 
few hundred billion  times. This ridiculously tiny amount of capital/money 
adds up to an appreciable  income stream, particularly if no reserves are 
required to cover the supposedly  non-existent risk. Regulators were told a way 
had been found to remove all  credit risk from 

[Marxism-Thaxis] David Rovics - The Commons

2009-08-10 Thread DGöçmen

 http://www.youtube.com/watch?v=blOeXMcapBI&NR=1


 


D.Göçmen
http://dogangocmen.wordpress.com/
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