Even if capitalist markets do have an inclusive aspect, open to exchange with anyone…as long as it is profitable, capitalism as a whole is predominantly and inherently a system of social exclusion, dividing people by property and excluding the non-profitable. a system of this kind is, of course, incapable of allowing the capabilities of all humankind to be realized. and currently the the system looks well fortified, even though new critical currents are hitting against it.
And so we thought demonetization was not a success. Let me begin with the Socratic irony to assume that it was indeed a success, albeit not in arresting black money for sure. Yes, the tax net has widened and the cruelty of smashing down the informal sector to smithereens to be replaceable with a formal economy, more in the manner of sucking the former into the latter has been achieved. As far as terror funding is concerned, it is anybody’s guess and so let them be with their imaginations. What none can deny is the surge in deposits and liquidity in the wake of demonetization. But, what one has been consciously, or through an ideological-driven standpoint denying is the fact that demonetization clubbed with the governmental red carpet for foreign direct investment has been an utter failure to attract money into the country. And the reason attributed for the same has been a dip in the economy as a result of the idiosyncratic decision of November 8 added with the conjuring acts of mathematics and statistics in tweaking base years to let go off the reality behind a depleting GDP and project the country as the fastest growing emerging economy in the world. The irony I started off with is defeated here, for none of the claims that the government propaganda machine churns out on the assembly line are in fact anywhere near the truth. But, thats what a propaganda is supposed to doing, else why even call it that, or even call for a successful governance and so on and on (sorry for the Žižekian interjections here).
Assuming the irony still has traces and isn’t vanquished, it is time to move on and look into the effects of what calls for a financial reality-check. Abruptly going vertically through the tiers here, it is recently been talked about in the corridors of financial power that the Reserve Bank of India (RBI) is all set to drain close to 1.5 lakh crore in excess liquidity from the financial system as surging foreign investments forces the central bank to absorb the dollar inflows and sell rupees to cap gains in the local currency. This is really interesting, for the narrative or the discourse is again symptomatic of what the government wants us to believe, and so believe we shall, or shall we? After this brief stopover, chugging off again…Foreign investments into debt and shares have reached a net $31 billion this year, compared with $2.7 billion in sales last year, due to factors including India’s low inflation and improving economic growth. This is not merely a leap, but a leap of faith, in this case numerically. Yes, India is suffering from low inflation, but it ain’t deflation, but rather disinflation. There is a method to this maddening reason, if one needs to counter what gets prime time economic news in the media or passes on as Chinese Whispers amongst activists hell-bent on proving the futility of the governmental narrative. There is nothing wrong in the procedure as long as this hell-bent-ness is cooked in proper proportions of reason. But, why call it disinflation and not deflation? A sharp drop in inflation below the Reserve Bank of India’s (RBI’s) 4% target has been driven by only two items – pulses and vegetables. the consumer price index (CPI), excluding pulses and vegetables, rose at the rate of 3.8% in July, much higher than the official headline figure of 2.4% inflation for the month. The re-calculated CPI is based on adjusted weights after excluding pulses and vegetables from the basket of goods and services. The two farm items – pulses and vegetables – have a combined weight of only 8.4% in the consumer price index (CPI) basket. However, they have wielded disproportionate influence over the headline inflation number for more than a year now owing to the sharp volatility in their prices. So, how does it all add up? Prices of pulses and vegetables have fallen significantly this year owing to increased supply amid a normal monsoon last year, as noted by the Economic Survey. The high prices of pulses in the year before and the government’s promises of more effective procurement may have encouraged farmers to produce more last year, resulting in a glut. Demonetisation may have added to farmers’ woes by turning farm markets into buyers’ markets. Thus, there does not seem to be any imminent threat of deflation in India. A more apt characterization of the recent trends in prices may be ‘disinflation’ (a fall in the inflation rate) rather than deflation (falling prices) given that overall inflation, excluding pulses and vegetables, is close to the RBI target of 4%. On the topicality of improving economic growth in the country, this is the bone of contention either weakening or otherwise depending on how the marrow is key up.
Moving on…The strong inflows have sent the rupee up nearly 7 per cent against the dollar and forced the RBI to buy more than $10 billion in spot market and $10 billion in forwards this year – which has meant an equivalent infusion in rupees. Those rupee sales have added liquidity into a financial system already flush with cash after a ban on higher-denomination currency in November sparked a surge in bank deposits. Average daily liquidity has risen to around Rs 3 lakh crore, well above the RBI’s goal of around Rs 1 lakh crore, according to traders. That will force the RBI to step up debt sales to remove liquidity and avoid any inflationary impact. Traders estimate the RBI will need to drain Rs 1 lakh crore to Rs 1.4 lakh crore ($15.7 billion to $22 billion) after taking into account factors such as festival-related consumer spending that naturally reduce cash in the system. How the RBI drains the cash will thus become an impact factor for bond traders, who have benefitted from a rally in debt markets. The RBI has already drained about Rs 1 lakh crore via one-year bills under a special market stabilisation scheme (MSS), as well as Rs 30,000 crore in longer debt through open market sales. MSS (Market Stabilisation Scheme) securities are issued with the objective of providing the RBI with a stock of securities with which it can intervene in the market for managing liquidity. These securities are issued not to meet the government’s expenditure. The MSS scheme was launched in April 2004 to strengthen the RBI’s ability to conduct exchange rate and monetary management. The bills/bonds issued under MSS have all the attributes of the existing treasury bills and dated securities. These securities will be issued by way of auctions to be conducted by the RBI. The timing of issuance, amount and tenure of such securities will be decided by the RBI. The securities issued under the MSS scheme are matched by an equivalent cash balance held by the government with the RBI. As a result, their issuance will have a negligible impact on the fiscal deficit of the government. It is hoped that the procedure would continue, noting staggered sales in bills, combined with daily reverse repo operations and some long-end sales, would be easily absorbable in markets. The most disruptive fashion would be stepping up open market sales, which tend to focus on longer-ended debt. That may send yields higher and blunt the impact of the central bank’s 25 basis point rate cut in August. The RBI does not provide a timetable of its special debt sales for the year. and if the RBI drains the cash largely through MSS bonds then markets wont get too much impacted. This brings us to close in proving the success story of demonetization as a false beacon, in that with a surge in liquidity, the impact on the market would be negligible if MSS are resorted to culminating in establishing the fact that demonetization clubbed with red-carpeted FDI has had absolutely no nexus in the influx of dollars and thus any propaganda of this resulting as a success story of demonetization is to be seen as purely rhetoric. QED.
On to Bureaucracy. Why do I say it is impersonal? This is an idea imported from Max Weber, probably the father of Bureaucracy Theory. Bureaucracy differed from other types of organisations by its nonlegal forms of authority. Weberian take was inclined on its being technical proficiency specialised expertise, certainty and continuity. The genesis of it lay in money-based economy, the forerunner to capitalism in its variegated disguises and attendant need to ensure rational, impersonal and legal transactions. So, that is the combination spoken about that has got inverted from its traditional schemata. Also, there is an accompaniment of historical roots in the statement.
Fascism: it is absolutely necessary to insist on this essential aspect of the definition of fascism, for one can scarcely understand the emergence of the fundamental concepts of fascism and of the Fascist philosophy and mythology if one does not recognize, at the same time, that it arose from an originally Marxist revolt against materialism. It was the French and Italian Sorelians, the theoreticians of revolutionary syndicalism, who made this new and original revision of Marxism, and precisely this was their contribution to the birth of the Fascist ideology. Zeev Sternhell has amazingly outlined the history of Fascism in his “The birth of Fascist Ideology: From Cultural Rebellion to Political Revolution“. Sternhell further says, ‘From the standpoint of the temporal structure of the project, fascism is a particularly radical form of conservative revolution.
Some of the traits that will be offered by a populist leader who affirms fascism is a rebirth of a strong National Identity, making a nation strong again, reviving culture, industry, education, and the middle-class values that have sustained it. It is always a populist authoritarian movement that seeks to preserve and restore a former glory to the nation as well as military, social, and religious values based on strong patriarchal roots that center on community of nation, race, and faith. It will treat any opposition as it sees fit to the point of utter abandonment of the norms and laws of the land, seeing in them hindrances that must be circumvented under dire emergencies, etc.. It will seek to cleanse the nation of foreign and domestic threats it perceives as outside the mainstream socio-cultural order it seeks to revive and promote. It will seek to revive an organic wholeness and totality, and expunge and expel those it perceives as outsiders: immigrants, refugees, or aliens in its midst. It will begin by attacking the insiders or establishment who it perceives as decadent, corrupt, and a parasite upon the body of the Nation as a whole. It will also incarcerate and expunge the poor and poverty stricken, enforcing codes of distrust and victimization. It seeks only to bolster up the vast majority of the middle-class workers of all diverse forms. From this point of view, BJP’s rule is perfectly congruent with fascism.
On the Adanis and Guptas, why is it not a collusion of corporate and state power of the past? It is, but with a vectoral shift in axis. The Fascist revolution sought to change the nature of the relationships between the individual and the collective without destroying the impetus of economic activity-the profit motive, or its foundation-private property, or its necessary framework-the market economy. This was one aspect of the novelty of fascism; the Fascist revolution was supported by an economy determined by the laws of-the free-market ideology. The shift in the axis lies precisely in the prerogative the financial capital has over decisions political. The shift in the axis has inverted the priorities of politics and capital. So, the Adanis and Guptas decide the politics rather than the other way round. This is a journey back to some of the basic tenets of political economy, which were seemingly eroded in the first phase of neoliberal era, thanks in large part to Thatcherism and Reaganomics.
Police before the state: This is a complicated relationship and is best understood if one were to dissolve the colloquial use of the word police. Allow me another recourse here to the French Political Philosopher, Ranciere, who puts it most aptly, “I do to identify the police with what is termed the state apparatus. The notion of state apparatus is in fact bound up with the presupposition of an opposition between state and society in which the state is portrayed as a machine, a cold ‘monster’ imposing rigid order on the life of society. This representation already presupposes a certain ‘political philosophy’, that is, a certain confusion of politics and the police. The distribution of places and roles that defines a police regime stems as much from the assumed spontaneity of social relations as from the rigidity of state functions. The police is essentially the law, generally implicit, that defines a party’s share or lack of it. The police is thus first an order of bodies that defines the allocation of ways of doing, ways of being, and ways of saying, and sees those bodies are assigned by the name to a particular place and task; it is an order of the visible and the sayable that sees that a particular activity is visible and another is not, that this speech is understood as discourse and another as noise. Policing is not so much the ‘disciplining’ of bodies as a rule governing their appearing, a configuration of occupations and the properties of the spaces where these occupations are distributed.” Therefore, by this logic the latency of police’s requisition for running the state is guaranteed. And, do we see any other way, if policing is extended to the notions of ‘moral policing’? I bet not.
Politics as the last resort of scoundrels will defeat the entire purpose of this response, and evidently, there is a strain of polity running throughout this response. Moreover, communication theories across generations have believed in media as the message and politicians of the present-day ruling regime are dramaturgists precisely in their compositions. We have had numerous examples to prove the point in the last one month or so.
Why do I call the Left academicians and practitioners idiots? Substantial segments of the left are in danger of allowing their movement to degenerate into a trite, self-indulgent counter-culture, in which an angry anti-establishment posturing conceals a lack of a positive political programme, and obviously nothing to say about the economic programme. Have we forgotten about the frittered opportunity during the 2008 crash? Globalise Resistance is one of the most visibly popular left-wing campaigns, defined by what they’re against, not what they’re for. Many people on the left are far too ready to draw an artificial moral equivalence between true tyrannies overseas and the very real but usually much milder moral failings of their own leaders and institutions. This is perpetrated by academicians and practitioners, and I am speaking of a very personal set of experience here. And still nothing seems to have changed.
Techno-politics isn’t really a slippery terrain, and for a change is one way the left can bounce back with. Humanity is being processed as mindless organisms (i.e., through processes of de-education, cultural amnesia, de-programming, etc.) in a system of normative practices on a global scale that seek to install an ethos of domestication in a grand safety system to secure its own inhuman ends. This inhuman core is constructing secure, comfortable, and hedonistic bubbles of imprisonment that will allow it to design and further its own programmatic operations. Most of all through the pacification of the human species, and a controlled or modulated form of work and leisure; attenuated by the dictates of a global hierarchy of corporate capitalist institutions, no longer bound to ideological systems of a democracy, communism, or religious practice: the nexus of encoded cultural references that bind us to ethno-nationalists agendas, all the while seeking to envelope us in intelligent hypermedia reality machines and systems that will allay our fears and graft us into their own secret agendas of power and dominion. This is a scary proposition talked about.
There is no doubt in me when I oppose Industrial Corridors, and why Shouldn’t I? But, by electronic corridors, I mean are trading systems becoming the nerve centres of financial capitalism, say for instance, High Frequency Trading, HFTs in short. These are algorithmically powered and somehow dehumanistic by being capable of the pillars of the Fourth Industrial Revolution. One could look at the recently held World Economic Forum, where this topic was largely thrashed about. Yes, there are political ripples created against it, but as a personal friend of mine who was single handedly responsible for launching the #occupymovement told me, “such ripples are minute for they lack steam to bring on the alternative voices into a robust solidarity against corporatism.” For obvious reasons, I cannot reveal the name of this person. BTW, she is a hardcore neocon, right now. Strange, but true.
Electronic knowledge turning into digital ash is a reference given to surveillance technologies, the answer to which lies in sousveillance, but then do we have have enough resources. Sadly, in our country, the answer is a resounding no. During the cold war, East Germany was the most infamous surveillance society, but the shift is palpable to more advanced democracies including the upcoming economies. China is a bizarre case still.
The other two intervening points are largely agreed to, and thus I won’t venture there. On me being a socialist, the original writeup said, sciolist, a concert that talks of superficial pretender of knowledge. The words appear same through spellings, but are vastly different. On whether I am a socialist in the Marxian sense, I’d be short here: NO.
Socratic irony is a particular device often used in rhetoric in which one person pretends to be ignorant about an issue to lure the other person into explaining it. In a debate or argument, for example, two people may hold differing points of view about a particular subject. One of the two participants may then pretend that he or she does not understand an important aspect of the subject, and ask the other person to explain it. As the other person explains it, the first participant then comments on weaknesses inherent in the other person’s argument and has used Socratic irony to make him or her reveal them. The left needs it, as the right is weak in rhetoric, maybe, or not. But it is required.
State as a PR firm is necessarily a naive understanding of state, but fits the present-day context. Though, I must admit if it was made to look like a naive understanding. Public relations and state have been two firmly entwined concepts since the beginning of recorded history. For evidence from ancient times, take a look at Aristotle and his schools of rhetoric that taught the art of persuasive communication. In more recent times, the work of the man commonly thought of as the father of modern day public relations, Edward Bernays, and his belief that public relations is an art applied to a science provide a clear connection between the two.