Fox Me Harder

 

One of the upsides of the current financial turmoil is my new found love for Fox News. I'm no CNN fan boy though, as they feel hopelessly incapable of appearing either robustly partisan or assiduously impartial. CNN strikes me as trying too hard to be a friend and having no solid position apart from the pursuit of ratings.

Fox has succeeded in invoking nauseous feelings with me, ever since our paths first crossed. The 'fair and balanced' tagline is Orwellian, and it perturbs me when reasonably educated people sing it's praises as the lone voice of truth against the liberal bias in the media (while forgetting about right-wing radio, the WSJ editorial and a slew of right-wing blogs).  Bias is evident in the media but it generally balances out. However the ferocity of the Fox presenters against the Democratic party members is distasteful, and symptomatic of everything  that is divisive about modern day politics in the United States.

Watching Fox presenters at work is like seeing a co-ordinated and telegenic gang of thugs at work. Like A Clockwork Orange with impeccable presenter hair do's, lickable teeth that blaze sparking enamel, and blusher that smoothes out aging and skin-colour differences under the intense bright lights. It is for me ugly, unhealthy and has reduced the U.S. media landscape to a default position of defining plurality of opinion as un-American activity, which is quite the reverse of what largely made the U.S. great in the first place. The makeup may be flawless and the colour graphics capable of rekindling the glare on the dimmest of aged TV screens, but it's the hate that fuels a grotesque spectacle of 'Newspeak' on offer 24/7 by Fox.

Despite avoiding Fox (or even TV as a general rule in recent years) I know their key political pundits reasonably well through Al Franken's book which did a pretty good job of demolishing the individuals who drive the ratings on this channel, including the token 'Liberal' Holmes, who hasn't quite figured out that Hannity on occasions is evidentally  a borderline sociopath (I believe if I heard correctly that the man admitted he'd never danced with his wife the other day, thus revealing as any double left-footer knows, a cauterized personality that is in need of therapeutic liberation.

It's not how well you dance it's about the joining in and participation Hannity. What next? No foreplay in case it distracts from and contributes to the time saving serious business of getting down to business? What next?  Supreme court appeals against fellatio and cunnilingus as incontrovertible evidence that Roe Versus Wade exclude all else that has no direct contribution to conception? What a tool.

Recently though I've started to enjoy the dysphoria that Fox News is experiencing through observing everything they have stood for, in the last eight years and more, disintegrate in daily live broadcasting of their televisual dingo pack life. All that they have despised, smeared and belittled is now becoming the bipartisan and consensually agreed way forward for their beloved government to avoid sparking off financial paralysis. The U.S. among other measures is nationalizing  financial institutions, and has done so to the worlds 20th largest company, throwing taxpayers money into anything that can be rescued if it keeps Wall Street propped up - whether that is strapped to the lamp post in a vein attempt to bluff sobriety matters not.

The rationalization for this remarkable about-face on the government's role in business and their increasing intervention  by the Fox news presenter line-up is more perverse than say the genre of fisting pornography popular with smooth talking Japanese admen. But all that Bill O'Reilly, Hannity et al can say in these astonishing times, is that these Trotskyite measures are not as painful as the alternatives of an instantaneous meltdown. What are we talking about here? Hot-dripping-wax meltdown on crying Japanese schoolgirls or just economic collapse? I must remember to write the Japanese humiliation sex post one day. It will be a corker. You can count on it.

If however that's what happens when a country avoids short sharp shocks and opts for long drawn out economic decline as medicine, drip fed over a decade or more, as the US is seemingly inclined to do, then I question the efficacy.

Break it up now and rebuild quickly no? Didn't Jung say the best thing to subvert human growth is the delay of legitimate pain?

Isn't this perverse denial by the Fox line-up called ideological bankruptcy?  Shouldn't this require some measure of contrition if not a full mea culpa? The Fox/Republican ideology that the markets are unfailingly wise has been unmasked as a laser focused and greed-driven wealth-acquisition spree with no concern for the people who are now being asked to pick up the bill or more accurately left with bills they will struggle to pay should their salaries be the next victim of liquidity problems.

Now that my former prejudice against Fox is dropping quicker than the dollar is about to in markets that have figured out how deep and long the US congress is going to embrace economic decline, I've discovered the upside of the Channel such as unexpected broadcasts  of the people I've seen as reluctant to be interviewed by serious media in the manner that proper journalists do. It's a complete revelation to see Donald Trump predicting that oil prices will drop like a rock (they will because of demand) and that this will be a silver lining (a slim one, the system is broken - not the cost of energy you cretinous syrup)

Here we have a phenomenally successful property tycoon incapable of providing anything close to the inspiration that these critical times are crying out for, and all the while  ingnoring impending complete loss of systemic confidence. I was however chuffed to see Bill O'Reilly lambast Karl Rove for the first time ever on home turf. I suspect that this was fueled by the realisation Bill's pension fund is looking like toast. Typically many Republicans feel outraged when it's their own financial well being at risk or when their prescriptive morality is challenged on say abortion or gay marriage. I could go on about Karl Rove and his constant appearances on Fox of late, although I doubt he's going to demand his own arrest any time soon now that the fake yellow cake from Niger for WMD's in Iraq has been discredited at the expense of outing a CIA operative so the case for war was perceived as robust. Karl Rove; yet another chicken hawk who sent the young sons of the United States to a war that will line the pockets of people in oil, defense and private security such as Karl Rove and his jackal consorts.

I  doubt a better time to enjoy Fox in their current predicament will occur again quite so soon. Here we have a bunch of people with a clear ideology that is articulated often and openly with more than an whiff of superiority, about where tax is taken and spent, the importance of business over society, war over peace, tolerance over intolerance, self sufficiency over charity, prison as a lucrative business necessity, war on drugs, war on terror, war on anti-war, and war on anything that galvanizes people to respond to the knee-jerk corrosive nationalism that fear invokes. Fox have supported the government on every major decision taken by the GOP; from the Iraq War to their negligent response over Hurricane Katrina. There is not an envelope to squeeze between them and the GOP, and so the impending displacement of U.S financial supremacy surely has their fervent endorsement held fully responsible? Some people say that if you're not on the left when young you've no heart and if you're not on the right when older you've no head. I say if you're not capable of conceding disastrous errors of judgement or acting with contrition towards society as a whole then the word sociopathic springs too mind again.

I don't wish this post to give the impression that I'm some fully paid up evangelist for the entire Liberal sentiment or that the Democratic party are the solution to the unprecedented challenges we are all about to face. I'm heavily disappointed with the lack of Democratic backbone in recent years, and their inability to voice the unpopular when a few years in the wilderness would have earned their stripes as people of principle and conviction. They've overseen a colossal failure of duty, and hardly deserve to inherit the cyclical momentum that appears increasingly likely to go there way. I'm on record as saying that Ron Paul was my preferred candidate for the presidency because of his sheer courage and frankness in policy proposal. So please no blind partisan loyalty from this neck of the woods. Binary views on life are unhelpful and probably anachronistic given the complexity and volume of  the information age we live in.

But for the time being Fox is making great TV as their reality disintegrates around them. Thanks for the show guys.

Economics - A Reality Construction

Noah has written one of the most intelligent and thought provoking pieces on the demise of U.S. Economic supremacy I've come across on the net. However I've been reliant on a tiny N95 mobile phone for internet usage of late and it crashed twice after considerable effort.

I have now secured the Wifi needed to respond fully to both his post and questions in the comments section. However I decided that here is more appropriate to respond given they are quite extensive.

"Hey Noah, as you know my N95 browser extinguished some pretty extensive comments I laboriously squeezed out through predictive text to respond to both your questions and terrific post. It's disappointing because they were more coherent than what will follow but now I'm in front of a traditional keyboard I'll try and resume the key thoughts.

I think the point you make early on that everything is imaginary echoes my hyperbole of simulacrum as insanely useful. It lends credence to the notion that much of what we hold as valuable or important is largely illusory, Baudrillard's work supports that much is not as it seems, or indeed is largely defined by what we collectively determine it to be. The Herd dynamic is a potent one for reality definition.

Buddhism has plenty to say on the folly of illusions, but I'm not in the business of proselytizing so moving onwards, all this intellectual posturing is of little value should a not inconceivable liquidity breakdown come about, causing the economic eco-system to stall rapidly, incurring supply shortages through cash flow paralysis, inflationary pressure and a dysfunctional and erratic distribution of basic goods such as food.

Should hunger present itself in such a catastrophic scenario as this, then simulacrum will provide no relief for stomachs, save for the likes of the intellectual and pampered elite such as ourselves. I hope such a scenario doesn't take place, as in an interdependent world we all need to find a commonly beneficial solution.

However it's clear when referring to simulacrum, that the financial institutions have played fast and loose with their customers money and furthermore expect to be rescued from their excesses with additional funds that the taxpayers will bear the brunt of. As you point out, any run on the banks hurts the customers just as much as the key stakeholders . There is an emerging consensus that banks need to have the bricks they indiscriminately loaned money for covered - over and against say a food/travel subsidy program that will keep Joe Sixpack sufficiently nourished and mobile to do the work he is compelled rather than would elect to do. That's the nature of mass unemployment but more importantly that emerging consensus is wrong. People first not bricks and mortgages.

There is no imaginary dimension to the naked greed that gave the likes of Dick Grasso a $200 million pay-off for ringing that triumphalist Dow Jones, record profit-taking bell, which to the outside world rang more of hubris than fairness.

The US is an amazing country that was in part built on the notion of an optimism for today, driving future growth. It's still an incredible idea; however, the point of crossover not entirely removed from a 'prosperity simulacra' emerged when today's growth fueled the optimism for tomorrow's continued success. This is an entirely different, and logically unsustainable scenario - indistinguishable to many who prefer swift moving scenarios that are easier to track.

It's about optimism driving fortune as opposed to fortune driving optimism. One is the free and self determining dynamic that pays a dividends, the other the dividend that encourages more and increasingly greedy higher risk-taking.

I don't concur that events are as random as you assert. I've pointed out that attendants of the World Economic Forum at Davos were raising the flag of an impending crisis quite some time back, and that on page 225 in Nassim Nicholas Taleb's Black Swan the footnote could not be clearer of the statistical backflips performed by J.P. Morgan's 'Riskmetrics' and the dangerous situation Fanny Mae was in. I would include my post in July that while in the States I saw what was coming and that the reluctance to even discuss the subject of recession and financial collapse by perfectly intelligent Americans was of a magnitude I've encountered in Beijing during the recent Tibetan crisis when any mention of sovereignty was met with the same furious indignation that another point of view could have some validity.

I am however still fueled by a recent rereading of Talebs 'Fooled by Randomness' to concede that it's difficult to divine where this will eventually flesh out. Sure developed economies will hurt more, and developing economies unexposed to the toxicity of goofy financial instruments will experience a rise in commensurate currency-strengthening which, while not stratospheric will have a contextual rise in influence. Those are just broad sweeps but a consensus that it's still early days is one I agree with fully.

As for the lack of moral clarity, you write about, I understand your point in resolving the complexity of being both resentful towards the bank's actions and the need for ostensibly indiscriminate bailouts to diminish the potential for loss of savings. I think there are creative ways of making sure the punitive measures are soaked up by errant banks and not their customers. The idea that they have a carte blanche get out of jail free card, is unacceptable. All it takes is resolve, creativity, strong government defending the populace and not the privileged, and the banks can sit on the paperwork they have a claim to,while the real task of ensuring that the day to day needs of the people who are invariably screwed time and time again are taken care of.

It's crucial in these unprecedented times to ask ourselves the question: am I going to trust the same people who screwed up my mortgage, credit line, savings, security, national liquidity, international credibility and much much more to provide an answer that is audacious, creative, transnational, collaborative and most importantly punitive on the people who at present have mistaken their ability to create wealth with the randomness that potentially could clean them out if the panic concludes they are no longer to be trusted.

Should this come across as supportive that now is a good time to adress poverty redistribution you wouldn't be far wrong right. The disparity between the haves and the have nots globally is unacceptable and now is a good time to to ensure that culture drives economics and not the other way round.

These are quite remarkable times and the opportunity for a new approach is way more tempting than propping up the greedy people who never fail to fleece the people and ask for more."

A sensational post Noah. Exactly what I'd expect from you and an heroic attempt to use intellect to impose a sense of much needed order. We only probably differ on what that order should look like.

The mother of all market meltdowns

This is real propaganda (or messaging)  from the ministry of information in 1939. George Orwell would have seen this no doubt.

I'm surprised so few advertising people are acknowledging that we're in truly remarkable times. It's been a year of credit crunch with Bear Stearns on 'emergency loans',  Merrill Lynch sold to the Bank of America (convenient) Freddie Mac and Fannie Mae nationalised, that's proper nationalised like my heroes Ernest Bevan, Clement Atlee and Tony Benn would have done long before there was any trouble, Lehman brothers down and AIG about to bite the carpet. There's more to come as well.

I've been rereading my Nassim Nicolas Taleb (Fooled by Randomness, not The Back Swan) and although I can see like Johnnie Moore suggested to me that he's a bit full of himself, he has taught/reminded me that we know so little (the past is relatively short) that we've no idea about the future and so I'm not going to make any predictions except some light water colouring.


We're in for a change, I think monetarism might get a good spanking and selling stuff will still be vital but what is sold and how it is sold will change. (although more slowly) I don't think economic growth is the metric by which we can always measure a country's success. Just one example is that they shut the factories down in China for the Olympics and we had the cleanest air in Beijing for a few weeks.

I'm pretty sure someone somewhere in the oxyacetalyne growth obsessed Chinese Politburo must have said 'hang on what's it all for if we have a better quality of life by doing less'? Well greed is intoxicating isn't it so maybe not, and let's not point the finger because we thought we won something when Communism was beaten by the West. What we lost was the chance to grow slower-quicker but that's another post I guess. I absolutely love thinking and talking about those 'what if's'. One thing is for sure I'm sick to death of the word growth being used as if it's a sign of success. It's a sign of intellectual decay. We absolutely need to go slower in life. A rich man is one who goes slowly and takes their time. You can't buy time, you can only spend it so the wealth aquired usually means expending effort so hard that your life slips by before you can really start to enjoy it. I'll say it again. Rich people go slowly.

So that's enough from me for the time being. I sympathise if you're heavily exposed in mortgage on property that will be in negative equity but there's nothing for it but to adapt lifestyle and sit it out till money starts moving around again. Hopefully in a more intelligent way than the neoliberal economics that played on peoples greed and extended many of us way beyond our capacity to operate in harmony with the planet.

Anyone disagree?

Update Lehman just got propped up for 85 Billion Dollars by the Federal Reserve. Partially renationalised.