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    ‘Pro-worker’ Republicans are status quo toadies cloaked as populists | Bhaskar Sunkara

    JD Vance, author of the bestselling 2016 memoir Hillbilly Elegy, wants to be a senator. He’s fresh off a trip to visit Donald Trump in Mar-a-Lago and he’s solicited the support of the tech billionaire Peter Thiel. Thiel has contributed $10m to a new Pac – Protect Ohio Values – created to support a possible Vance bid for the Senate seat of the retiring Republican Rob Portman next November.While elite donations roll in, Vance is playing up his rightwing-populist credentials to the Republican base, praising Tucker Carlson as “the only powerful figure who consistently challenges elite dogma” and complaining about corporations who have opposed state voter suppression efforts. But Vance has a secret he doesn’t want voters to find out about: in form, and substance, he’s a 1990s Clintonite.Behind a mantra of “opportunity, responsibility, and community” and through institutions like the Democratic Leadership Council, Bill Clinton pushed back against liberal orthodoxy within his party. When running for president in 1992, in the same breath he called for an end to “welfare as we know it” and described his hardscrabble upbringing in the little country town of Hope, Arkansas. He admonished “deadbeat fathers” and reminded people that “governments don’t raise children; parents do”, while lamenting the fact that battles for social justice were being lost at home. In other words, he had his cake and ate it too – appealing to popular disgust with inequality, while supporting the economic policies that fueled that inequality, and blaming America’s problems on “welfare cheats” and corporate greed in equal measure.Clinton and the Clintonites – the so-called New Democrats – rejected both Reaganism and welfare-state liberalism. They offered a balanced-budget populism, hoping that free trade and deregulation would boost growth and spur job creation. But unlike Reagan, Clinton raised taxes on the wealthy and increased the earned income credit as a mild redistributive measure. As Clinton put it: “Trickle-down economics has sure failed.” Rather than restore government programs, however, he said that the government was “in the way” and had to be radically streamlined. Those within the Clinton administration who hoped to invest in public infrastructure and expand social goods, like the labor secretary Robert Reich, were ignored. The president told voters he could feel their pain, but in practice he preferred the market (and people’s bootstraps) to deliver relief.They offer Americans rhetoric about elites and hard work, but don’t actually take power away from those elitesToday, some of those searching for a new Third Way between a leftward-moving Democratic party and traditional business conservatism have found a home in the post-Trump Republican party. Hillbilly Elegy effectively took Reagan and Clinton-era rhetoric about the culture of poverty and applied it more generally – not just to black Americans, but to poor whites, as well. In the book, Vance describes how his grandparents escaped Appalachian poverty by moving to Middletown, Ohio, during the postwar boom. They and others found good manufacturing jobs and adopted an ethos of hard work and community. But by the time Vance was around, the jobs were gone, poverty was soaring, and drug abuse was rampant.In “a town where 30% of the young men work fewer than 20 hours a week”, Vance complained, he could not find “a single person aware of his own laziness”. Yet instead of seeing the Middletown’s malaise as rooted primarily in economic collapse and the failures of free-market policies, Vance mused about a Scots-Irish American culture “that increasingly encourages social decay instead of counteracting it”.“We spend our way to the poorhouse,” Vance wrote. “We buy giant TVs and iPads.”Hillbilly Elegy made quite a splash when it published in 2016, in part because it simultaneously appealed to anxious liberals keen to “understand” Trump voters and to anti-Trump Republicans who wanted to blame Trumpism on what they perceived as sheeplike and undereducated poor whites. At a time when conservative commentators such as National Review’s Kevin Williamson were claiming that white workers weren’t “victimized by outside forces”, but rather had failed themselves through welfare dependency, drug and alcohol addiction, and family anarchy, the New York Times was lauding Hillbilly Elegy’s similar narrative as “a message of tough love and personal responsibility”.Bill Clinton made it; why didn’t you? JD Vance made it; why didn’t you?Today, Vance seems to be setting himself up as the Ohio version of Josh Hawley, the Missouri senator who trumpets himself as a champion of the American worker. But Vance’s post-2016 evolution from the media’s chosen interpreter of poor whites and Trump critic (while getting rich as a tech venture capitalist) to the populist Hawley wing of the Republican party didn’t necessitate a policy shift. Sure, he has to tweet more about Dr Seuss now, but Vance’s new model, Hawley, has only a 5% rating from the AFL-CIO, the largest working-class organization in the country.Hawley and Vance try to balance pro-working class appeals with the fact that their party is funded by rich donorsWhen it comes to rhetoric, the new breed of conservative populists – Carlson, Hawley, Vance – love saber-rattling against “cosmopolitan elites”. When it comes to actual policy, they have no interest in challenging corporate power and few plans to invest in working-class communities. Take Vance’s recent opposition to universal childcare, which he called “a massive subsidy to the lifestyle preferences of the affluent”.Vance’s alternative idea to help American parents, who frequently face a crushing, Catch-22 style choice between giving up their full-time jobs or paying astronomical amounts of money on childcare? Instead of an expanded social wage through a government program, Vance lauds a plan, proposed by Hawley, to give a tax credit to married parents with children under the age of 13. Not exactly transformative, New Deal-style reform to aid struggling Americans; if anything, it’s the kind of tepid, wonkish program that the New Democrats could have very well dreamt up 30 years ago.Recall the words of the then candidate Bill Clinton, who in 1992 pined for “an America in which the doors of colleges are thrown open once again to the sons and daughters of stenographers and steelworkers. We will say: everybody can borrow money to go to college. But you must do your part. You must pay it back.”Like the Clintonites, Republicans such as Hawley and Vance are trying to find a way to balance pro-working class appeals popular with voters with the enduring fact that their party is largely funded by rich donors and powerful business interests. Their solution is to offer Americans rhetoric about elites and the importance of hard work, but not to actually take power away from those elites or, say, enact job programs.It took decades, but millions of voters came to see the New Democrats as frauds. The same, I hope, will be true of the New Republicans. More

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    Peter Thiel’s Bitcoin Paranoia

    Silicon Valley billionaire Peter Thiel finds himself in a confusing moral quandary as he struggles to weigh the merits of his nerdish belief in cryptocurrency against his patriotic paranoia focused on China’s economic rivalry with the United States. Participating in “a virtual event held for members of the Richard Nixon Foundation,” Thiel, while reaffirming his position as a “pro-Bitcoin maximalist,” felt compelled to call his faith into doubt due to his concern that China may use bitcoin to challenge US financial supremacy.

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    According to Yahoo’s Tim O’Donnell, Thiel “thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” He directly quotes Thiel who wonders whether “Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S.”

    Today’s Daily Devil’s Dictionary definition:

    Financial weapon:

    The role any significant amount of money in any one person’s, company’s or nation’s hand is expected to play to assert power and obtain undue advantages in today’s competitive capitalism

    Contextual Note

    Thiel may be stating the obvious. Money is power and concentrations of money amount to concentrated power. The point of power is to influence, intimidate or conquer, depending on how concentrated the power may be. It is ironically appropriate that the event at which Thiel spoke was organized by the Nixon Foundation. Richard Nixon was known for putting the quest for power above any other consideration. He was also known for opening the relationship with China, which many Republicans today believe led to a pattern of behavior that allowed China to eventually emerge as a threat far more menacing than the Soviet Union during the Cold War. Nixon was also the president who destroyed the Bretton Woods system that set the financial rules ensuring stable international relations in the wake of World War II.

    Thiel’s thoughts are both transparently imperialistic. They follow Donald Trump’s “America First” logic, while at the same time revealing Thiel’s uncertainty about how to frame it in the context of Bitcoin. His version of “America First” has less to do with the Trumpian idea that America should worry first about its own internal matters and later deal with the world than with the idea of the neocon conviction that the US must impose itself as the unique hegemon in the global economy. In Thiel’s mind, this sits uncomfortably alongside his made-in-Silicon Valley belief that cryptocurrencies represent the trend toward something that might be called “financial democracy.”

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    According to O’Donnell, Thiel “explained that China isn’t fond of the fact that the U.S. dollar is the world’s major reserve currency because it gives the U.S. global economic ‘leverage,’ and he thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” O’Donnell is guilty of somewhat hypocritical understatement when he claims that it is all about China not being “fond of” the dollar’s status as the world’s major reserve currency. Who besides the US would be “fond of” such a thing? Those are O’Donnell’s words, not Thiel’s. As for the idea that Bitcoin might chip away at the dollar’s might, Thiel avoids making that specific point and prefers a more vaguely paranoid reading of events as he suggests a kind of plot in which China may be using Bitcoin to undermine US hegemony.

    Thiel’s phrasing places him clearly in the realm of what might be called diplomatic paranoia. He begins with a statement of speculative uncertainty as he expresses his concern with China’s turning Bitcoin into a financial weapon. Here are his exact words: “I do wonder whether at this point Bitcoin should also be thought in part of as a Chinese financial weapon against the US where it threatens fiat money but it especially threatens the US dollar and China wants to do things to weaken it.”

    “I do wonder whether at this point Bitcoin should also be thought … of” expresses a deviously framed insinuation of evil intentions by a Fu Manchu version of the Chinese government. This is a popular trope among Republicans and even Democrats today, who vie with each other to designate China as an enemy rather than a rival. But Thiel’s admission that it’s really about “wondering” tells us that we are closer to Alice’s Wonderland than to the CIA book of facts.

    Thiel then adds the temporal detail of “at this point,” which introduces a surreal notion of time that has more to do with a fictional dramatic structure than the reality of contemporary history. It is tantamount to saying: This is where the plot thickens. And his suggestion of how it “should be thought of,” besides being manipulative, indicates that we are invited into accepting the plot of a paranoid fantasy made up of thought rather than reality.

    He then explains what he means by “a Chinese financial weapon against the US.” Though he claims to be a believer in the unfettered freedom of cryptocurrency, he accuses it of violating what might be called “the rule of law” insofar as “it threatens fiat money,” which is the privilege of every nation on earth. But that worry has little merit compared to the fact it “especially threatens the US dollar,” which — it goes without saying — China wants to weaken.

    Thiel knows where the money is. It lies in the primacy of the US dollar. That is why the US has 800 military bases across the globe.

    Historical Note

    Since the dismantling in 1971 of the Bretton Woods system by US President Richard Nixon — in whose name the Richard Nixon Foundation was created — the dollar has functioned as the ultimate and most devastating financial weapon in history wielded by a single government. The Bretton Woods agreement, signed in 1944 by 44 countries, allowed the dollar to play a controlled role as the world’s reserve currency thanks to its convertibility with gold. When the growing instability of the dollar, due in part to the Vietnam War, threatened the order established by Bretton Woods, Nixon unilaterally broke the link with gold. Instantaneously, the US was free to weaponize the dollar for any purpose it judged to be in its interest.

    Nixon produced one of the greatest faits accomplis in history. As with many successful unnoticed revolutions, Nixon’s administration presented the uncoupling of the dollar and gold as a temporary measure, the response to a momentary crisis. It took two years for the world to notice that Bretton Woods had definitely collapsed. The era of floating currencies began. Money could finally be seen for what it is: a shared imaginary repository of value that could eventually become the focus of what Yuval Noah Harari has called the religion of capitalism in his book, “Money.”

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    For many people, Bitcoin has become a kind of alternative religion, or rather a vociferous radical sect on the fringes of the global religion of neoliberal capitalism. Bitcoin as a concept highlights the lesson brought home by the collapse of Bretton Woods: that the value of money people exchange, despite Milton Friedman’s objections, is literally based on nothing and therefore meaningless. That also means — though the faithful are not ready to admit it — that its value is infinitely manipulable. It appears to derive from economic reality but is anchored in little more than what a small group of people with excess cash may think of it on a given day. Elon Musk ostentatiously manipulated its value when he announced that Tesla had purchased $1.5 billion worth of bitcoin. 

    For anyone with billions to throw around, it’s an easy game to play. The manipulation by Musk, Peter Thiel’s former associate as co-founder of PayPal, doesn’t worry Thiel. Wondering about whether China might, in some imaginary scenario, use Bitcoin for nefarious purposes does trouble him.

    Thiel represents our civilization’s new ruling elite. It consists of individuals who sit between two hyperreal worlds, one dominated by the mystique that surrounds means of payment (cash) and the control of financial flows, complemented by another that seeks political control and the hegemony required to enforce the now imaginary “civilized” rules governing financial flow. Since the demise of Bretton Woods, those rules have lost all meaning. That means the rules themselves can be weaponized. It’s a monopoly that Thiel, his fellow members of the Nixon Foundation and most people in Washington insist on reserving for the US.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More