The Fourteenth Banker Blog

June 21, 2010

No Ox Spared

Filed under: Running Commentary — thefourteenthbanker @ 1:20 AM

In this piece, Gonzalo Lira takes on corporations broadly defined to include governments, military, unions, GSEs and companies.  Repeatedly he illustrates how the corporations are shielding individuals from consequences for their actions. Meanwhile, unaffiliated individuals are easily and often prosecuted, even unjustly.  He starts with a case of individual injustice that you need to click on the article to read.  The main point though it that the protection of individuals from accountability is now all pervasive.

All of this underscores the same problems we are having throughout our society in the Industrialized West: Corporate entities, be they corporations, unions, the military, or the government, act lawlessly—anarchically—trampling the individual without hesitation, yet coming to accomodations between one corporate entity and another.

In other words, our society has become a neighborhood where street-gangs—corporate entitites—battle one another for position. Even the Government is just another street gang.

People allied with a particular corporate entity have rights and the full protection of the corporate entity to which they belong, much as street gangs are fiercely loyal to their individual members. The higher up in the corporate entities’ hierarchy—CEO, General, President—the more untouchable he or she is.

This is damningly true and with the reach of these enterprises it is little wonder that there is very little discussion of how the behavior and decisions of the “subjects” of these enterprises are created and supported by the enterprise itself.  The protection racket is both ways.  The enterprise protects the individual and so the individual is obligated to silently protect the enterprise.

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3 Comments »

  1. 14, this is so on point yet somehow there is almost complete silence on the subject. I am trying to work something up on it for a presentation later in the year, but something you might find interesting if you have not already encountered it is the work of Bill Black, former enforcer for the old Federal Home Loan Bank Board. During the S&L Crisis something like 28 executives went to prison–for what seems in retrospect to be less significant activities than we have seen recently. He has developed the concept of “control fraud,” on which see these links:

    http://law.fordham.edu/assets/CorporateCenter/Black_-_Control_Fraud.pdf

    http://www.nakedcapitalism.com/2009/09/guest-post-william-k-blacks-proposal-for-“systemically-dangerous-institutions”.html

    Your post is helpful to me as I try to think through some kind of concept of “derivative crime” and “derivative tort.”

    Lawrence Baxter

    Comment by Anonymous — June 21, 2010 @ 8:20 AM | Reply

  2. Yup, the article is spot on in general. The first observation must be that every organized society must be corporate since general organization is a requirement of living together beyond perhaps the band of families.

    There is one factor in US mythology that is probably responsible for most of our plight. That is the myth that all are equal politically. The stupid will have their political rights reduced by the clever and cunning. There is no device to stop the stupid from losing political power other than devices provided by the compassion of the cunning and clever to limit themselves and especially themselves against each other. Those that are clever and cunning enough to aid corporate systems also know they must aid the chronically stupid to participate. So, ideas like political equality evolve as self protections.

    Checks and balances protect the clever and cunning from themselves. What has happened is utterly normal over all human history. The clever and cunning have so moved their individual greeds and fantasies ahead of their abilities that they destroy themselves and the societies.

    This leads to the ” Labor Revolution” that is the cornerstone of P R Sarkar’s Social Cycle Theory. The masses get tired to death of being pissed on by the clever and cunning and exercise their one great power. They utterly dominate in numbers. The clever and cunning throw up leadership to quiet the Labor Revolution. They to tend to fail until a successful warrior leader ends the Labor Revolution.

    The clever and cunning need a good hiding from loss of political cleverness and cunning, which in politics of a failing state means loss of power and position. Who will ride their train to the American Finland Station is not yet known. The passenger group on that first train will understand the latent rightist nature of the American political mythos… hence they will be hard nosed nationalists.

    Comment by Jerry J — June 21, 2010 @ 11:55 AM | Reply

  3. Anonymous,

    you probably missed 14’s post on Bill Black. It was one of the best. I doubt there’s anyone who sees the sickness in the current incentive systems can miss Dr Black’s work. Amazing man!

    Good luck to you in your work.

    Comment by Vocalbanker — June 22, 2010 @ 11:05 PM | Reply


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