ZAIBATSU GLOBALIZATION ‘VOODOO ECONOMICS’ BOWING OUT

Bro. Erle Frayne Argonza

Magandang hapon! Good afternoon!

Let me share to you at this moment some notes regarding the ‘globalization’ experiment and the flawed policies that sustained it. There has been much ballyhoo about the global economy’s integration, over the last three (3) decades, as having been carved out supposedly by the Anglo-Saxon policy architects, using Thatcher & Reagan as the face for the ‘neo-liberal’ policy regime they installed.

Little do peoples across the globe, including experts who are so mired in their own parochial perspectives, know that the liberalization of country economies has a great deal to do with the Zaibatsu offensive. The West should better accept the facts: that their technocrats and policy shapers have run out of fresh ideas since the 1970s onwards (i.e. mentally bankrupt), a gap that they filled up by looking up to Japan and the NICs (newly industrializing countries) for copycat purposes.

Reaganomics, as neo-liberal policies of ‘privatization’ was dubbed (Thatcher of the UK preceded Reagan by a year), is as voodoo as one can get, seductive as any enchanting mantra-resonating principle can be, and was indeed potent in erasing the vestiges of the Regulated Economics doctrines that preceded the era. In the emerging markets, they were dubbed as ‘structural adjustment policies’ or SAPs, were imposed by the IMF-World Bank Group on debtor nations, and can be summed up as follows:

· Core principles: Privatization, Liberalization, Deregulation
· Subsidiary Principles: Tax reforms, trade liberalization, free floating exchange rates, diminished state subsidies for welfare, increased utility prices (revenue generation)
· Governance Principle: Decentralization (local government autonomy)

Such policy reform measures, as far as developing countries or DCs were concerned, came in as very harsh, cruel ‘austerity measures’ imposed by the IMF. We citizens from the ‘margins’ can never forget these measures, the pauperization that they effected, the dislocation of marginal producers, the decline of health services and rise of morbidity rates, and so on. In the Philippines, our very own capital goods industries were either delayed or un-implementable (such as integrated steel), as the money allocated for their purposes simply dried as dictated by the World Bank.

But there’s another set of policy architecture that wasn’t Anglo-Saxon, and didn’t receive their inspiration from the classicists (Smith, Ricardo) and the monetarists (Friedman, Hayek). This set of liberalization policies came from Zaibatsu country, and were crafted by Japanese technocrats. Not only policies, but also institutions were addressed by them, giving rise to the globalized economy that we have today.

Chief among those technocrats was Kenichi Ohmae, who in the 1980s was a think-tank executive. Further down the line were many other technocrats, who were organically linked to the Zaibatsus (landlord-industrialist-financier oligarchs), taking up cudgels for Ohmae.

Globalization, as one better realize, was never meant as any ‘win/win’ formula for nation-states in the arena of international trade as the liberal thinkers came to defend it later. It was outright a strategy to pre-position Zaibatsu corporate interests outside of Japan, notably the U.S. and European markets.

At that time of conceptualization, Zaibatsus have already efficaciously penetrated the Asian markets, and had leveraged their investments’ entry via aid and technical knowledge diffusion (including sponsoring Developing Country scholars in Japanese universities & special institutes). The old doctrine of ‘Asia Co-prosperity sphere’ was finally won, without firing a shot this time (unlike Imperial Japan era expansionism).

In the 1980s, the clamor for mooring investments and trade in the Western markets became ever stronger. The offensive tactic adapted was rather two-pronged, which made the new voodoo mantra even more potent:

· On the micro-level, permeate other markets with new concepts such as ‘Theory Z’ (decentralized authority, see W. Ouichi), total quality management or TQM, new tools for strategic planning, mergers and de-mergers. Till these days, the tools are considered sacrosanct in all sectors of society, including the Catholic Church that now uses ‘bottom-up’ planning added to strategic planning (my observations done in 2001-02 in a California diocese).

· On the macro-level, blend the Reagan-Thatcher ‘structural adjustments’ with the ‘globalization’ doctrine. The Zaibatsu technocrats fanned out across the globe, some of whom were positioned inside international bodies, and sweetened liberalization via a supposedly ‘win/win’ growth strategy for participating countries. This brilliant blending, which Western thinkers didn’t perceive at all as any subtle tactic by a predatory class (Zaibatsu), soon caught up fire and became buzz word for nigh three decades.

Before long, the Japan Inc. was being bandied across the globe as worth any country’s emulation. Southeast Asia and Korea went for it. Even the former presidents of the USA admired the Japanese Inc. doctrine of renewed private initiatives and shift from macro- to micro-economics as stabilization and growth measure. Bill Clinton of the USA spoke so fondly of ‘globalization’ like some captive fan of an economic icon, and moved to negotiate the NAFTA.

Little do unsuspecting, gullible peoples across the planet, more so the policy experts of the West, realize that the Japanese voodoo economics was largely intended to permit Zaibatsu investments to breed and morph inside their economies. Using merger and buy-in tactics, the Zaibatsu agents made it appear that their sponsors came in for benign purposes or so. If there is any group in the world today that is enjoying its last laugh, it is the Japanese militarists of the past, who finally saw the success of their nation’s offensives and the decline of the West via ‘organized chaos’.

Around 1994, the magic of the Japan Inc. began to cramble. Recession came, and before long many banks and investment houses were catching fire. That was the origin of the bankrupt and immoral Bush-Paulson ‘bailout’, which began with the ‘crisis management’ tactic in Japan to save ailing banks and financial institutions. Eventually, Zaibatsu technocrats were forced to revive the Western tool of ‘interest rates’ intervention, to the extent of bringing down interest rates to zero percent and sustaining it there for many years.

There also came that moment, in the late 1990s through 2006, when Zaibatsu financiers suddenly were so awash with funds (liquidities), at a time when Western economies reached low growths. The ‘yen initiative’ package was therefore conceptualized as another last-ditch voodoo tactic, which was implemented by loaning out large funds at zero or low interest, which Western financiers than re-loaned at profitable interest rates. Many such funds reached the USA& EU realty subprime mortgage markets, to recall. Again, note the seemingly benign nature of the financial gesture.

Just as when the realty markets were beginning to sneeze in America, the last voodoo measure was pulled out. The ‘crisis management’ was already folded up earlier, as Japan’s economic growth was propelled up anew by the Asian markets notably China’s. Just as when USA & EU needed the Zaibatsu loans very badly, and ditto for portfolio investments, they were pulled out, thus ensuring the crash of both economies.

Japananese voodoo economics is now bowing out, as the compass of policy initiatives at present is pointing to the reconstruction of macro-economic, New Deal type measures intended to attack problems both on short-term (bail out on productive sectors) and long-term basis (induce physical economy rather than predatory finance). But the withdrawal of the voodoo regime is not being done without witnessing its catastrophic results.

That’s surely tragic for the West or North. I wonder how Zaibatsus & technocrats perceive peoples outside their borders: whether they regard the latter as human beings worth co-partnering with, or as hungry lizards that must subsist on crumbs of investments & finance from Japan that have been buttressed by enormous tons of gold acquired through production and plunder of occupied lands, across the 2,000 years of Japan’s existence from kingdom to nation.

Honestly, I don’t know the answer. But if the Zaibatsus are receiving flaks from outside their borders, it wouldn’t be a surprise. There are no more borders for Zaibatsus by the way, just an entire planet with seamless web, cocooned in all corners by their corporate money.

[Writ 14 November 2008, Quezon City, MetroManila]

OBAMA VICTORY: ‘14th BRUMAIRE ‘ OF US TECHNOCRACY, HEALING BEGINS

Bro. Erle Frayne Argonza

From my highland nest in Manila goes Big Kudos to Barack Obama & US Democrats!

My first elation has to do with the fact that Obama represents my generation of ‘post-industrial babies’, comprising of those aged 55 and younger. Obama represents a broader worldwide trend of leaders who are veering away from intolerant/polarized values towards one of ‘tolerance for difference’. My generation is the first among the emerging ‘global citizens’, and I could hardly wait to see various sectors worldwide taken over by the most competent and enlightened ones among us, as exemplified by Obama’s take of the US presidency.

Another source of elation is the fact that Obama is a Black man, the first one ever elected as president in America. His victory sends a clear signal to many countries across the globe—dominated by Whites as majority populace—that the time for change has come. Just across the border, in Mexico, the citizens are still accustomed to choosing a White Man as president: White, and Male. Quite a bit further, down south in Argentina, it’s still White country there, and I wish the minority Colored people or Colorados will get to be Chief Executive, whether they are male or female.

Finally, a source of euphoria over Obama’s victory is his being funded largely by the people’s purses. True, there were fund donations from the wealthy families, but to say that their pockets constituted the cutting edge funding would be to disregard those aggregates of monies that in-flowed to Obama’s campaign coffers from out of ‘couples of dollar bills’ donations from the workers & middle classes. I would dare say that the people’s purses comprised the cutting edge in funding, for the 1st TIME, which has many governance implications for Obama’s Team.

There are certain sociopathic elements in America, represented by the perennial Democrat candidate Lyndon LaRouche, who have been peddling the allegation that George Soros, through his subaltern Felix Rohatyn, were behind the bulk of funds for Obama. In some other articles published early this year, LaRouche kept on peddling the noxious allegation that Mafia groups were behind Obama’s making as a politician, and that, ipso facto, his funding would come largely from the same criminal rings.

Were it not for LaRouche’s sociopathic and fascistic tendencies, I should really find many of the facts and thoughts that he generated as worth our reflections. Let us challenge the likes of LaRouche to come out with evidences, and file criminal charges in proper channels such as the US Senate, and they better desist from further slanderous and libelous accusations against a political team that is outside of their poll choices.

The people’s purse option, let me repeat, has deep governance implications. It is indicative, first of all, of the immense constituency participation during the polls, which clearly created for them (people) a status as co-partner of the Obama Team. Second, the people’s purse option gave the clear mandate to the Obama Team, comprising largely of noblesse technocrats, that it can exercise a ‘relative autonomy’ from diverse interest groups particularly the financier-technocratic-military elites.

I would prefer to see the Obama victory as a ‘14th Brumaire of the US Technocracy’, which is a very laudable feat, precisely as a result of that people purse option. 14th Brumaire refers to that moment in history when Louis Bonaparte declared a coup d’etat in France, a grand act of defiance against the oligarchy that enabled him to exercise ‘relative autonomy’ from the latter. The governance implication of such an act is that the Strong Man was able craft and enforced policy initiatives, unhampered by the pestering demands of ensconced elites.

Obama won his coup equivalent by way of the electoral path, with aid from a vibrant electoral constituency and allied politicians who also buttressed his victory with additional seats in both houses of the US Congress. With solid grounds of support from both the people and the legislative allies, Obama has been practically offered the policy initiative on a golden platter by the electoral heaven of social contract. And the good image exuded by this Team was that of a change-directing Technocracy rather than that of a rambunctious Pedagogue of dangerously perverse hoi polloi.

With such a grand opportunity of mandate, the Obama Team is enabled to re-engineer the policy environment of America on its initiatives. Lobby groups and ‘whispering mafias’ representing the elites do not have a business making demands on this Team, and must be kept at bay, in practice more than in words as promised by Obama.

The Obama Team should also use this ‘14th Brumaire’ mandate to begin a long process of healing. The healing work is quite complex, as it entails tasks both on the domestic and international fronts. This healing can begin by the shift in tact from that of the previous hawkishness of the neo-conservatives to the dovish aura of Wilson-Roosevelt-Kennedy greats.

For my own country, Obama should not forget the 1 Million+ Filipinos who died during America’s invasion of the nascent republic, many of whom died as ‘collateral damage’ of a genocidal campaign. White House and Congress should better release their respective statements of apology to my nation, dubbed as populated by “brown monkeys with no tails” by the White combatants (T. Agoncillo, History of the Filipino People). Coupled with this is the return of the Balangiga Bells that were looted by the US Army after leveling the town of Balangiga in Samar province, with all town folks butchered and all visible structures burned to the ground (ibid).

Obama must also remember the 1 Million+ Filipinos who died during World War II, or who died defending the interest of America in the Far East. Many of the living veterans of that war are waiting for their additional just subsidies, their bones now almost disabled from mobility. World War II was never our war, but was one among the world powers’, and look at what the cruelties and genocidal butchers our people got from defending America here.

Authentic healing will take several decades to undertake. But there is no harm involved by beginning the process now. The Native Americans and Colorados of the USA are expectant, and so are those peoples who suffered from America’s imperialistic adventurisms overseas. Begin the healing now, and put a final end to the USA as Empire.

The Obama electoral coup is total, his technocratic Team’s autonomy ensured. He cannot fail to deliver results as expected, and he must translate that ‘relative autonomy’ into more solid healing and prosperity feats. His massive constituencies must help the Team in this colossal task, to ensure galvanization par excellence, rather than just wait passively for results.
Cheers! Kudos to the Obama Team! Mabuhay!

[Writ 06 November 2008, Quezon City, MetroManila]