Like many of us, I remember the financial crisis of 2008 vividly. My first son Archer was due in February 2009, in December I was fired from my job and in January the crisis exploded. I remember applying for literally any job I could plausibly apply for and being met with silence. The economy had battened down the hatches and rolled down the gates while everyone waited. I was incredibly afraid and had no idea what was going to happen. I’m sure many of you have similar stories and memories of that period. Slowly over the following years it became clear what had happened. The bankers had been playing upside down and backwards Jenga with the economy, pulling bricks of wealth out of the future and stacking them to support the present. The tower had collapsed.
I spent some time listening last night to talks with prominent leftist Yanis Varoufakis. Varoufakis for those unfamiliar was briefly the Greek Minister of Finance for the Syriza leftist government of Greece. Varoufakis sought to renegotiate Greece’s debt and to limit the impact of austerity imposed on the Greek people during their own 2008-like debt crisis.
In this wonderful talk he offers a lucid and concise view of the evolution of the economic system which has lead us to the present moment. His explanation of how bankers work and their role in cyclically undermining and collapsing capitalism by looting the future is particularly worth watching. In a vivid metaphor he explains that bankers have a science fiction like magic extendable arm which they can stretch out through time, capture value in the future and pull it back into the present in order to inject it into the financial system (and of course in the process create and capture more and more value for themselves). This process of creation of debt obligations, by bankers who believe that they can capture value from future productive activity goes on until at some point it becomes implausible. At this moment the bankers have borrowed so much money from the future that people in the present no longer believe it’s possible to be repaid, at which point the system experiences a crisis of confidence, a kind of fiscal collapse of the imagination, the system seizes and the people living in the present must pay the often terrible cost. In the context of the great depression the US government imposed punitive tax rates and placed serious limits on the extent to which the bankers could manipulate the system which lead to about 20 years of prosperity. In 2008 in contrast this process of government getting bankers under control failed. Obama appointed more Wall St bankers to clean up the mess (Geithner and Summer) and they basically allowed the crisis to continue, and even accelerate. In this sense, as Varoufakis says in his talk, 2008 never ended.
The recent political events in the United states make more sense in this regard. Those who voted for hope and change embodied in Obama were betrayed. The banks were bailed out and the people were left to fend for themselves. We experienced a ‘jobless recovery’ and the markets roared back to life while huge swaths of United States descended into misery and despair. Given the chance to express their feelings about this to Hilary Clinton, a significant portion of the population opted to spit in the face of the establishment and throw it an orange, misogynist, racist Molotov cocktail. The people who voted for Trump in this regard are rational. The Democratic party sold them out to the bankers 2008, pissed on them and told them it was raining. So they decided to throw the bums out. This is in my opinion not a desirable state of affairs but it is nonetheless an understandable one.
Which brings us to the present moment. A few days ago on November 30th in Burlington, Vermont the US based Sanders Institute, founded by Jane Sanders and Europe’s DiEm25, founded by Varoufakis announced the launch of Progressive International with the goal of beating back right-wing forces with an organized “grassroots movement for global justice”. The recognition here that this is a problem which demands international effort is wise. Global capitalism is an international phenomenon and it will not be restrained by retreating into the structures of the nation state. We need a new approach which utilizes a global network to meet a global threat. Unfortunately the right wingers are already organizing and working in this way, as typified by Steve Bannon’s attempts to collaborate with rightist movements in Europe.
You can sign up for the call of the Progressive International here, and read the full the call to action below:
There is a global war being waged against workers, against our environment, against democracy, against decency.
A network of right-wing factions is collaborating across borders to erode human rights, silence dissent, and promote intolerance. Not since the 1930 has humanity faced such an existential threat.
To defeat them, we cannot simply go back to the failed status quo of the last few decades. Unfettered globalization promised peace and prosperity. But it delivered financial crisis, needless war, and disastrous climate change, instead.
The time has come for progressives to form a grassroots movement for global justice: to mobilize workers, women and the disenfranchised all around the world behind a shared vision of democracy, prosperity, sustainability, and solidarity.
Our Progressive International will reach out to communities in every corner of the world to help build our shared vision.
Our Progressive International will stand by people who are already fighting to end inequality, exploitation, discrimination and environmental degradation.
Our Progressive International will reclaim our communities, our cities, our countries, and our planet with a bold International New Deal that we will work, together, to deliver.
It is time for progressives of the world to unite.
Today, on behalf of DiEM25 and The Sanders Institute, we issue a Call to Action: to create a global network of individuals and organizations that will fight together for dignity, peace, prosperity and the future of our planet.
Join us. Join Progressive International.
Visit the website for the new group here.