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(Hat tip to the website Critical Thinking for this most excellent piece.  Worth the read, indeed.)

The End of Democracy as we Knew it

By Bernd Hamm

September 02, 2014 “ICH” – This paper starts with summarizing the major theoretical elements in the definition of a global ruling class. It then examines how neoconservatives in the US took power and used regime change to install US-friendly governments in other regions. A strategy of tension is used to press the population into conformity. But the real revolution is to what extent factual politics escape any attempt to democratic control. Three case studies show how far the Deep State already goes. Democracy is on the brink of survival.

  1. Theory

In an earlier paper (Hamm, B. 2010) I suggested an analytical framework for the study of power as it relates to the future of global society. This outline specifically addressed four questions: (1) How is the global ruling class structured internally? (2) Is it theoretically correct to use the term class for the ruling elite? (3) What are the major instruments of power? (4) How do these analytical insights impact on the probable future of human society?

Drawing on C. Wright Mills’ seminal work on The Power Elite (1956), recent power structure research suggests an ideal-type model of four concentric circles: In the inner circle, we find the global money trust, the richest individuals, families or clans, all with fortunes well above one billion Euros. The CEOs of big transnational corporations and biggest international financial players make up the second circle. They are mostly concerned with increasing the wealth of the inner circle, and with it their own. Top international politicians, some active in governments and international institutions, some more in the background as advisors, plus the top military, compose the third circle. This political class has assignments: organize the distribution of the social product in such a way as to transfer as much as the actual power balance allows into the pockets of the inner and second circles, and secure the legitimacy of government by organizing the political circus of an allegedly pluralistic structure. The fourth ring will be composed of top academics, media moguls, lawyers, and may sometimes include prominent authors, film and music stars, artists, NGO representatives, few religious leaders, few top criminals and others useful for decorating the inner circles. They enjoy the privilege of close access to those in power, they are well paid, and they will make sure not to lose such benefits (Hamm, B. 2010:1008-9; see also Phillips, P., Osborne, B. 2013).

It appears that the degree of internationalization of the powerful correlates with their status on the ring hierarchy. The two inner circles have always been international. The third and fourth rings, however, tend to be much more nationally bound (by ownership and by elections) than the first and the second. The inner circle is not static but relatively solid. It builds on financial and social capital often accumulated by former generations (steel industry, banking, weapons, or oil barons). The major source of power is being borne to a family of the inner circle (for example, the Rockefellers, the Rothschilds, the Morgans, the DuPonts, the Vanderbilts, the Agnellis, the Thyssens, and the Krupps, to mention a few) [1].

There are also the nouveaux riches. Names like George Soros, William Gates, Warren Buffet, Marc Zuckerberg, Sheldon Adelson, or the Koch brothers come to mind (Smith, Y. 2013), and the Bush-Clan might also be mentioned here (Bowles, W. 2005); Russian or Eastern European oligarchs like Alisher Usmanov, Mikhail Chodorkowski, Boris Beresowski, Mikhail Fridman, Rinat Ahmetov, Leonid Mikhelson, Viktor Vekselberg, Andrej Melnichenko, Roman Abramovich; then there are Carlos Slim Helu, Lakshmi Mittal, Mukesh Ambani, Jorge Paulo Lemann, Iris Fontbona or Aliko Dangote from the so-called less developed countries. These parvenus tend to be politically more active, at least on the front stage, than the old rich families: George Soros with his Open Society Foundation and his permanent warnings of the evils of unregulated capitalism is the best known for his liberal leanings, while the Koch brothers, Sheldon Adelson or Robert Murdoch are aggressively right-wing (Heath, T. 2014; Snyder, M. 2013; Webster, S.C. 2013). The oligarchs of the former Soviet block have almost all grabbed their fortunes during the presidency of Boris Yeltzin who, pathological alcoholic as he was, made room for large scale privatization of state corporations and raw materials after the collapse of the socialist regime. Shock therapy was pushed through under the influence of Western advisors, especially the Harvard privatization program with Jeffrey Sachs as the leading figure, as well the International Monetary Fund (IMF). Jegor Gajdar, Anatoli Tschubais (an oligarch himself) and Alfred Koch [2] were their local executives in Russia (Vaclav Klaus in Czecholovakia, Leszek Balcerowicz in Poland, etc.).

The strategy for the creation of oligarchs and social polarization is easy to understand since it has been practiced by the IMF time and again to this very day as part of their structural adjustment policy (later cynically referred to as “poverty reduction strategy”). What it amounts to is the abolition of all prize control and public subventions, laying-off civil servants, limiting wages, devaluing currencies, and privatizing public corporations and infrastructure (the so-called Washington Consensus). Widespread poverty is the immediate result, and the other side of the coin is extremely concentrated wealth in just a few hands. If the number of victims multiplied by the gravity of damages done to each of them is used as an indicator, the IMF is certainly the most criminal organization on earth (Chossudovsky, M. 2001).

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