<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>TheMillerCircle.org &#187; Uncategorized</title>
	<atom:link href="http://themillercircle.org/category/uncategorized/feed/" rel="self" type="application/rss+xml" />
	<link>http://themillercircle.org</link>
	<description>A Site Devoted to Evoking Thought and Action on the Political, Social and Scientific Issues of our Time</description>
	<lastBuildDate>Thu, 09 Sep 2010 16:04:34 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.0</generator>
		<item>
		<title>Folly Compounding in America: the stuff of broken empires, Part 2</title>
		<link>http://themillercircle.org/2009/04/folly-compounding-in-america-the-stuff-of-broken-empires-part-2/</link>
		<comments>http://themillercircle.org/2009/04/folly-compounding-in-america-the-stuff-of-broken-empires-part-2/#comments</comments>
		<pubDate>Sun, 12 Apr 2009 16:47:21 +0000</pubDate>
		<dc:creator>Robert Miller</dc:creator>
				<category><![CDATA[Books]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Entertainment]]></category>
		<category><![CDATA[Environment]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Health]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[War]]></category>
		<category><![CDATA[Folly Compounding]]></category>

		<guid isPermaLink="false">http://themillercircle.org/?p=707</guid>
		<description><![CDATA[This article on Folly Compounding is the second on this topic; the first was released in December 2008.  The concept behind these articles got underway early last year (2008), about the time that the sub-prime mortgage disaster had gone beyond warm and was headed to a new thermal high. What was unexpected however, was that [...]]]></description>
			<content:encoded><![CDATA[<p>This article on <strong>Folly Compounding </strong> is the second on this topic; the first was released in December 2008.  The concept behind these articles got underway early last year (2008), about the time that the sub-prime mortgage disaster had gone beyond warm and was headed to a new thermal high. What was unexpected however, was that the new high would go off the charts and require recalibration of our economic instruments. Yet, the election of Obama and the possibility that we might see a reversal of the long-term trend of <strong>Folly Compounding,</strong> has encouraged some revision of this companion  followup. Indeed,  the possibility for some sort of meaningful recovery, now that we have more rational leadership, has encouraged the spawning of a new third component, which is still hatching in the nursery. If anything,  Obama has shown us that we have a long way to go just to get back to the country we had a few years ago and even that one was terribly flawed. Going back forty years, when a truly more equitable society dominated America, gives one the impression that our country of today seems totally foreign to many of us who can remember the earlier era, and in truth, it is.</p>
<p>The cataclysmic economic events of the last few months have renewed my interest in the long-term explanation about how we got to where we are today and why it all happened. Historians like to write about one particular era of history or one politician, usually a President, to insure good book sales,  and most of these historians write to preserve the mythology of America, like cheerleaders who desperately want to keep the false narratives of our past intact, perhaps just modernized a bit, with a new layer added to the multilayer cake of our deceit. Americans have a deep need to believe in a special version of American history and there are plenty of writers to keep nourishing them with the false interpretations on which the current version of America is based. For the author or historian,  it&#8217;s money in the bank if they feed the false narrative, but for those who stray away from the party gospel, sales are likely to be disappointing. A less common historian is the one who attempts to integrate history through a more longitudinal exploration of events, seeking to reveal a more substantive trend that accounts for how the country got to where it is today. This approach is more challenging because it is not a snapshot of an era, but a ponderous collection of lots of snapshots, many of which were never adequately stitched into whole cloth. Sorting fact from fiction is usually a process of deep scholarship. That is why academic historians, who never break the sound barrier of popular publications, provide a more accurate and penetrating account of our own history&#8211;it&#8217;s gratifying to know we have one. Two different accounts, one for popular consumption and the other for historical accuracy, run in parallel and God help us if they ever collide, for it would be like the predicted explosive clash of antimatter colliding with the matter we call America.</p>
<p>It is the rare historian, writing for lay people, that tries  to find a theme of continuity in the archives and discovers some of the ugly truths of our past, followed by the will to write about them. Those kinds of books that run against the accepted grain of history usually settle on the shelves of academia, often published by the academic presses of universities and if they ever see the light of popularity, they are typically drowned out by public outcry giving them a brief respiratory history. Any historian attempting to reveal a more accurate portrayal of American history, has to begin this more exploratory and factual process with a theory or at least a vague conviction, and then he or she must resist the temptation to deviate from the chosen vector, even though you don&#8217;t always end up with the theme that got you started. It is understandable why some historians say there is no history. It&#8217;s because  history is a story seen through the eyes of one writer, who always brings a bias of person place and time to the transcribed events and hopes for a preferred outcome&#8211;maybe a best seller. They too have mortgage payments to meet. So, history is a stack of opinions written by historians whose judgments change with time to adopt contemporary views which serve as the optical lens through which they evaluate history. As readers of history, we are tossed onto the ocean of thermal currents which provide the continuous disruptive influence of our new horizons. For the author of history, the trick is to catch the subject on the cultural upswing, rather than on the somewhat bleaker downside. Timing means a lot. As a result, some figures judged by our contemporary history will rise or fall depending on the ethical yardstick of the  era and the popularity of the viewpoint.  Because Truman started the Cold War, many Republicans later reached out recidivistically to turn him into more of a hero than his actions would merit.  Chalmers Johnson&#8217;s first book of his trilogy <em><strong>&#8220;BlowBack&#8221;</strong></em> had very meager sales until 9/11 hit and suddenly, it became a best seller (I think it was one of the books that Ron Paul suggested Rudy Giuliani should read following one of their Presidential debates during the Republican primary).  Still, there are differences among history writers, even within the same era.  These differences are sufficient for any member of our culture to choose and find resonating evidence for their own version of American history. Having your own private narrative is now within grasp. If you can&#8217;t find your favorite version in a textbook, it will surely show up when Googling. That is one thing the web has done for our culture. It has given stories&#8211;like those propagated by the Swift Boaters during John Kerry&#8217;s run for the Presidency&#8211; a website resource and some sense of plausibility, particularly if you lean in that direction (donations from T. Boone Pickens helped).</p>
<p>Doris Kearns Goodwin (an admitted plagiarist) writes popular history about Presidents and promotes her books as a public cheerleader to keep the American dream  alive and renew the false narratives about contemporary American history. Her subjects are her heroes and she prays at the alter located at the end of the deposit line in the bank.  In contrast, historian Geoffrey Perret in his book <em><strong>&#8220;Commander in Chief&#8221;</strong></em> achieves a more integrated viewpoint, across the presidential spectrum of the Cold War and beyond and describes those Presidents that took us into unwinnable wars (Truman, Johnson and GW Bush) and through this march, Perret gives his readers a different view of these American leaders. He more properly identifies them as confused, naive Presidents who were sucked into the false narrative of America as the dragon slayer engaged in a life and death struggle with the pervasive communist dragon&#8211;the one that McCarthy said could be your next door neighbor. In many ways these three Presidents are victims of America&#8217;s propaganda. That propaganda was supposed to be for public consumption only, not for the political leaders that would follow. But oops, that&#8217;s how <strong>Folly Compounding</strong> becomes self-propagating. James Carroll in his book <em><strong>&#8220;House of War&#8221; </strong></em> provides us with a powerful dialogue, seen through his own eyes, describing how the post-war Pentagon conspired to create and propagate the false narrative about America that we live with today, beginning with the Cold War as the life and death struggle that Americans were asked to believe about their new dilemma in the immediate aftermath of WW II.  That anti-communist narrative,  despite humiliating and falsely identified war experiences in Korea, Vietnam and Iraq, seems to get continuously replenished and updated to preserve America as the &#8220;shining city on the hill,&#8221; the country whose destiny it is to promote justice and save the planet from all forms of evil (while enriching and extending the grip of international corporatism, with new energies devoted to the privatization of water, just as one example of the never ending reach of these international corporations). Perhaps we are witnessing the end of this iteration of America, but it cannot come too soon. The false narrative of America began at the end of WW II. It only took a hand full of men within our government to lurch  us into a new direction that eventually evolved into our current corporatist state and has proven to be the source of our financial ruin: it was the mother of all <strong>Follies</strong>.  This false narrative elevated a party and a political system that eventually created Reaganism, which started us down the pathway to our current set of crises, including the deregulated nightmare of globalization, excessive military spending, unsustainable health care costs, trade imbalances and diminishing income levels for the Middle Class, the epicenter of our creativity.   If we don&#8217;t make these connections and see their initiating events as the mother of present <strong>Follies</strong> and take the cure by replacing our historically false narrative with a more realistic history, we will surely recreate for ourselves sometime in the future, a catastrophe that will look a lot like what we are going through today. Remember that we just finished one stock market bubble and crash in 2001, and now we have a more serious collapse, only seven years later. We let the fixes provided by the New Deal ebb away and returned our economy to the roller coaster ride of boom and bust cycles, whose excursions are rapidly expanding. If we don&#8217;t return to a more sane economy, the one we will have will seem more and more like riding on a roller coaster whose track is a perfect damped to undamped oscillator&#8211;each high and low will get bigger and bigger, until something finally shuts it all down. If we allow these economic excursions to continue growing, I see little chance that the true mother of all <strong>Follies</strong>, global climate change can ever be dealt with to any meaningful degree. We won&#8217;t be able to afford it and maybe we can&#8217;t afford it now&#8211;too many pressing wars.</p>
<p>America&#8217;s false narratives created by <strong>Folly Compounding</strong> decisions in the early aftermath of WW II are like a secret, kept in a vault, waiting for the American maturity to reach a state such that they can accept the real version of what happened to them and why. The real narrative of what happened to America lies in vaults with &#8220;top secret&#8221; stamped on each envelope.  American politicians of today, those few that truly understand our gnarly past,  are afraid to let American citizens know what really happened during WW II and its aftermath that, in reality, have given us the problem set we find on our plate today. We are a country born in war and we continue to use war as our first response to  any challenge. Today, it is not just bad choices about military options that have purged our treasury, but it is also our financial system and our economic mistakes that sucked the wealth out of the middle class to a point where they cannot afford to be the consumers we need to get the economy back to the one we had just a few years ago. From <em>Challenge Magazine </em> &#8220;Today, a male in his thirties earns less after taxes than a male in his thirties in 1970. Wages for women have increased, but women have been closing a historical gap that separates them from male workers and continue to earn 80 percent of what their male counterparts earn. Keep in mind that our wages are no longer the highest in the world; we were the highest in the world&#8230;but that ended thirty years ago. We became the biggest economy in the world with high wages, because high wages created demand without over-borrowing.&#8221; The wage issue is one head of the two-headed monster we created. But we also began generating  <strong>Folly Compounding</strong> from militarism and Reaganism and both have arrived simultaneously on our doorstep, each of which demands a solution. We can no longer brag about America and we can&#8217;t go on until we fix the poorly tuned machine that runs our culture.  But, any solution we apply that doesn&#8217;t address both heads of our problem, our wealth distribution disaster and our excessive military spending,   will only give us marginalized results, fixes at the edges, all distractions from the epicenter of the problem.</p>
<p>Remember when we had a temporary fix from the dotcom collapse in 2001? Does anyone remember the Sarbannes-Oxley Act (SOX) of 2002? It was the law that was passed in response to the dotcom market bubble and crash of 2001, in response to Enron, Worldcom and others who cooked their books to make the company look good for the devious purpose of elevating the stock value of the corporation. Though considered to be a major reform and a fix to the crooked way big corporations were doing business, and  passed overwhelmingly by both houses in Congress, it was completely  irrelevant for preventing the housing bubble and collapse we are currently in: it was too narrowly focused and did nothing to fix the core problems that produced our current fiscal crisis. If we allow Congress to fix the problem of market deregulation once again, without input from the public, we will see band-aid after band-aid applied to our financial system with another market bubble and crash looming in our near future. But have you noticed how these crashes get bigger and bigger? The Savings and Loan bubble and crash of the 1980s had a price tag in the $ billions, whereas our current fiscal crisis is hitting the $ trillion water mark.  It was only seven years between the dotcom crash and the housing crash we are in now.  If we can understand that the Cold War we launched at the end of WW II, with its militarism and protective corporatism, combined with excessive powers given to our president, with a covert army and budgets that Congress did not oversee, we can begin to see a solution that must go way beyond another version of Sarbannes-Oxley, which in reality, was just another band-aid.  The risks are too high for us to settle for serial band-aids, which is what Congress is considering today. What we have to change is the culture&#8211;the culture of corporatism and militarism that grips our society with an iron fist.  It started out in 1945 as a culture of bombs, but evolved into a culture of corporatism and militarism that has turned to feeding on our own society, gaining profits from acts of privatizing government, charging excessive interest rates on housing and credit cards and hiding the true nature of risks in stocks, bonds and the new &#8220;securitized&#8221; bundles of confusion.  The drug bill for Medicare is one example of how high profits for drug companies will give us an unsustainable health care bill not too far down the road. How will we compensate? Our government (yes the Obama government) is now contemplating cuts in Social Security. If so, the drug companies will continue to see record profits while Americans sink and slide towards a third-world status. Companies worldwide are now working on the privatization of water. Because these trends began in America, we have the responsibility to fix them before they fester into permanent lesions on the world economy. As just one small step, we should stop drinking bottled water, for if we continue massive consumption of bottled water, with huge profits from its sales, it will remove the pressure we should be placing on our public water utilities to rigidly insist on high quality water made available for all citizens, based on costs we all share.  There are still millions of people who inhabit this planet that do not have access to decent water, something that is shameful for an economic system that likes to brag about its achievements. The strategy for privatization of water is already gaining foothold in third world countries and newly industrialized ones as well, including India. Can you imagine a natural resource like water to become the source of multinational corporate profits? The corporations blindly think of themselves as providing a good public service.</p>
<p><strong>Folly Compounding</strong> is the concept that when a country makes mistakes, those mistakes get propagated and earn compound interest because they are not recognized as mistakes per se, or, if they are, no one wants to do anything about them because they are too complex or too controversial to appear solvable. The bigger the error, the more it becomes an <strong>Untouchable Folly</strong>. Hence, no corrective actions are put into play until the issues become consuming of the national focus or menacing to the country&#8217;s  future. Postponing a fix for slavery, for example, and the civil war that resulted from it, illustrate how dislocating and destructive  <strong>Folly Compounding</strong> can become, when the fix is put off indefinitely.  Of course, we might never have had a country if we tried to fix slavery when our nation was first stitched together as there&#8217;s no control available to run the experiment.  Sometimes poorly fixing a problem, taking a short cut, or overdoing the fix can add another layer of <strong>Folly Compounding</strong> on top of the problem you are trying to solve.  A good example of stacking new <strong>Follies</strong> on top of old ones is how the onerous peace terms of WW I led directly, twenty years later, to WW II, with a far more devastating effect and a higher toll extracted from all participants.</p>
<p>It is the innate nature of the political process to propagate errors, because fixing them along the way admits that mistakes have been made in the past and that kind of pronouncement usually  means that a political party, the opposite of yours of course,  gets  identified as the cause of the problem, thereby  initiating inter-party friction, national distraction and ultimately precipitating a long smoldering need for retribution. But of course neither party wants to admit that serious mistakes have been made in the past, out of fear that the individual pointing at the errors might get labeled as part of the problem rather than part of the solution&#8211;sort of the pot calling the kettle black. After all, in a two party system, who wants to believe that one party actually wants to destroy the country! Well, ever hear of the Republican Party and their &#8220;starve the beast&#8221; theory of government collapse? The idea behind that concept is that you spin the country into heavy debt, so that it cannot provide the services that you find so odious. The concept was the beginning of Reaganism and remains with us today as one big hangover from GW Bush&#8217;s attempt to recreate Reagan&#8217;s Presidency.  Hasn&#8217;t some of that worked as prescribed? As an example of long-term inter-party paybacks, we can ask what part of the motivation for impeaching Clinton reflected payback for the Democratically controlled Congress that forced Nixon from office, more than two decades earlier?</p>
<p>Of equal importance for understanding <strong>Follies</strong> is the fact that stopping to fix the old mistakes prevents you from working on your own stuff, the new things you promised, the vision that you believe got you elected. Those things by nature need to be worked on first. Indeed, it is often political suicide to continuously look in the rear view mirror, emphasizing the mistakes of the past, so few politicians ever do it.  Even talking about a psychological profile of the present can be politically dangerous, as Carter&#8217;s referral to the &#8220;American malaise&#8221; may have cost him the election against Reagan in 1979, perhaps with the help of the &#8220;October Surprise,&#8221; engineered by officials  in the Republican Party (including perhaps Bush I?). As George Will would say, it&#8217;s just good politics, even if the American prisoners in Iran had to stay captive for a few more months until after the election (the hostages in Iran were released on the day that Reagan was inaugurated as President in 1980).</p>
<p>The great advantage that Obama has over his predecessors, is that he ran on the idea of extinguishing some of our old <strong>Follies</strong>, so his election is the only opportunity since the election of FDR to deal with and fix old problems, primarily because they have precipitated a new crisis that can no longer be ignored.  But, more generally, it is only when our <strong>Follies </strong>of the past burst onto the horizon of the present like an uncontrollable flash flood, a sudden surge of undeniable intensity, that its menacing presence grabs our attention in such a forceful way that it brings the issue front and center as the most  immediate concern, demanding our full attention and challenging our wits. If the <strong>Folly </strong>was only smoldering before, it now becomes an engulfing flame, an  unmistakable  crisis event, riveting our attention, like the grizzly bear who got into the office room and now has to be dealt with before it deals with us: only then do we have a public outrage and fear which leaves us with no choice but to set aside our hoped for priorities and deal with the unleashed <strong>Folly Compounding </strong>issues that, if unchecked, seem to promise cultural enslavement. This disruptive character of <strong>Folly Compounding</strong> usually appears as a financial disaster or a major war looming on the horizon. Bush left us with a Bushel full of these<strong> Follies</strong>, whose true magnitude we have yet to understand, as we are still trying to sort them out and determine their impact;  not all of them have probably been identified. Sometimes, like the current crisis, war and economic disaster go together. Perhaps they are related. FDR got his twin disasters put on his plate in series, first the depression and then WW II.  But Obama has them all in parallel and a different person might just punt, or at least dodge a few of the more onerous <strong>Follies.</strong> No President in our history has ever been called upon to address so many <strong>Folly Compounding </strong>issues, most of which, like health care and Wall Street  have been smoldering and <strong>Folly Compounding</strong> for decades.</p>
<p>The problems we face today seem more like a bundle of major <strong>Follies</strong> all wrapped into a non-tidy giant pile, surrounded and protected by a swarm of ferocious African bees. It seems like it&#8217;s hard to touch the damn thing without getting stung. And if the bees don&#8217;t sting you when you touch the mess, there is the mindless, but ever present press who will do it for you!  What is it about our press that cannot see how the problems we face are those of long duration <strong>Folly Compounding</strong> issues, that cannot be solved without solving the grand dilemma of our culture for the last 60+ years?  What mind-numbing drug keeps their attention span confined to tiny segments of our history&#8211;a few days or weeks allotted for each chunk&#8211;history by chunks, with only the last few given any real importance. We still live in the Grand Illusion of an early narrative of American history. Who is protecting Americans from knowing the true narrative of their history? The false one is propagated like a religion, or maybe it is a substitute religion or maybe even the real thing&#8211;a real religion I mean. Maybe the born-agains need their religion to make it easier to swallow the large capsule of our false history. It is not easily ingested.</p>
<p>Very few components of our culture seem healthy today. Lots of things need fixing. The very fabric of the nation has been torn and like a child learning to walk, we have to learn how to take some seemingly primitive steps all over again. Hopefully we will learn to redo these small steps again much better than we did before, this time with our eyes wide open. About the only things we make these days that other people want is our high tech stuff, but then our own government prevents the sales of these items for fear of contributing to greater sophistication of our enemies and we have a lot of enemies. So, the ships come into our harbors full of stuff, but they leave empty. Sixty years ago, it was just the opposite. That problems needs to be put at the top of the list.</p>
<p>We can also hope that the synapses and neural networks of our brains, that will be called upon to reshape our culture, have sufficient residual plasticity such that we can engage the warped values of our present culture  and mold them into a new one that works for everyone, not just those participating in a giant cultural Ponzi pyramid whose apex serves the upper 1% of our society. We need to replenish our culture and set things right for the first time in 30-40 years. If we go through the pain, we need to see the gain. But, we aren&#8217;t angry enough yet, we&#8217;re not in the streets demanding a new lurching our ship of state.</p>
<p>What got destroyed in the last 30-40 years was an economy that, at one time, roughly from 1945 to the early 1970s,  worked for most people. It wasn&#8217;t perfect, but it had far more equity than the one we have today. At a time when we had a gradual income tax rate and the highest rate on the wealthiest citizens was 91% under the Eisenhower administration, we had a boom economy and our economic pie was divided in a far more equitable way that what we see today. Clearly letting rich people have too much freedom with their money is dangerous to all of us.  Reaganomics replaced that economy that used to work for us,  with one that worked increasingly for the few at the top and, in retrospect, we now  see how it all got started and how the economic  forces that were  unleashed under Reagan&#8217;s two terms in office, started the country on its glide path towards a third world economy for far too many citizens of  America. We arrived at our current state through the process known as  incrementalism, meaning that each step was small enough for us to build up tolerance or adapt, making the next small step more palatable, as the total excursion becomes very large and threatening. Present it all at once and there is no way we would agree to the proposition, but get there in 10,000 steps and it seems to pass through out gut without a wrinkle. Looking back at the magnitude of the tumble we took over the last 30+ years,  we can more clearly see the historic nature of our <strong>Folly Compounding</strong>, and the breathtaking altitude of the fall. If we had maintained Middle Class income levels where they were in 1970, we wouldn&#8217;t have as serious a recession as we are going through because the Middle Class would have more money to behave as consumers and they would not have had to borrow to maintain their consumption levels. Although the decline of the Middle Class began in the 1970s, the first elements of that decline can be traced to events which began at the end of WW II and evolved steadily since then. It&#8217;s just a matter of connecting the dots.</p>
<p>Today, as more clarity reaches into the inner sanctum of our consciousness,  it appears that finally, the sheer weight of our <strong>Follies </strong>over the past60+  years, has grabbed our focus to a degree that fully occupies the attention mechanisms of our brains. Perhaps this is the good thing about facing so many crises at once. Perhaps now we can recognize the depth of our problems and the fact that many long standing <strong>Follies</strong> are at the front of the line, in bad need of identity and repair. We need to address so many things, including our economy, our war costs, empire costs,  health care costs and while doing so, begin to restore our country to the one we thought we had not too long ago. That country, now a distant memory for some, once worked better for most people than what we have today. Many opportunities were presented to us to right the ship along the way, but each time we attempted to deal with one of them, new forces presented themselves to delay our restorative actions. Nowhere was this more apparent than with how the Vietnam war destroyed our greatest domestic President&#8211;LBJ&#8211;and the unraveling of much of his Great Society programs. Medicare, Medicaid and Civil Rights legislation are the great legislative achievements that survived, but LBJ could have done so much more if the Vietnam War hadn&#8217;t destroyed his Presidency.</p>
<p>Our new current President, Barack Obama, will spend his entire Presidency fixing the <strong>Follies</strong> of the past without ever having time to get to his own stuff, the kinds of things he wanted to do when he first decided to run for President. But, we don&#8217;t even remember what those things were, for in the middle of his campaign, the bottom fell out of our culture, even though we think of it as an economic collapse.</p>
<p>Who remembers an America that didn&#8217;t manufacture automobiles? Wasn&#8217;t the auto industry at one time related to a good portion of the jobs in this country and did we ever vote on whether we wanted a &#8220;service economy,&#8221; or, for that matter, do we even know what a service economy is? One thing we do know about the &#8220;service economy&#8221; is that it provides lousy, low wage jobs and curtails workers rights. Our acceptance of a &#8220;service economy&#8221; as an inevitable component to our financial evolution is pure poppycock, and our slide towards that type of economy has been a major <strong>Folly</strong> on its own.  At no other time in our history have we had to deal with such a vast array of <strong>Folly Compounding</strong> issues. Fortunately, we have a young energetic President who might be up to the task of fixing some of the more critical <strong>Follies</strong>, those that are at least palpable.  Perhaps only Abraham Lincoln had a similar kind of confrontation&#8211;a confrontation with past <strong>Follies</strong>.  Shortly after his election, the Civil War started, representing one of the largest and longest <strong>Folly Compounding</strong> blunders in our history: Lincoln dedicated himself to managing and winning that war while freeing the slaves in the process. But it was just a short time after the Civil War  ended that Lincoln was assassinated. His entire presidency was consumed by fixing a single <strong>Folly Compounding </strong>issue, one of sweeping  dimensions. For Lincoln it was a <strong>Folly</strong> of choice that he decided to tackle the slavery problem. He saw the festering wound and knew that it had to be finally fixed. It was not a <strong>Folly</strong> that consumed him after he was in office, as he walked into it with his eyes wide open. It almost seems that Lincoln was born to solve the mother of all American <strong>Follies</strong> of that time&#8211; slavery in America. In exchange for his service, we deservedly generated a tableau of mythology about Lincoln and his Presidency. Perhaps we will look back on Obama&#8217;s presidency and acknowledge that it seems like he was born to solve our new <strong>Follies</strong> and the <strong>Folly Compounding</strong> interest created by them. If so, we picked an able man and hopefully a good President. He will need the energy of his youth and wisdom that is almost out of reach for his age. I think we know that much already. But whether he or anyone can do enough things and do them well,  to avoid the distractions that will reduce his efficiency, remains as his greatest challenge, and ours too. Right now,  I think few people would trade places with Obama.  You might notice however,  that Obama doesn&#8217;t have the same friends each day. Some go off the ranch to criticize him for one thing, then come back onto the ranch for dinner. Contemporary politics are like that and, after all, we are all economists. We all have an opinion of what we should do economically. That&#8217;s what Wall Street will do to you. Today, however,  most of us are Keynesians. Unfortunately, we also have a large number of Democrats and Republicans who practice &#8220;Military Keynesianism.&#8221; There will be a major political battle over canceling the F-22 fighter jet, a cold war jet that was designed to pit against Soviet jets. But, when this plane was first introduced, the Soviet threat had disappeared, but the jets continued to be manufactured and Lockheed continued to make $ billions through the standard method of weapons procurements&#8211;you bid low and let the cost overruns pick up the slack in the bid.</p>
<p>With the election of Barack Obama, we are beginning to see a national leader who has been forced to deal with a whole host of <strong>Follies</strong>. He has forced all of us to look through the rear view mirror, although we need to look a little further down the road behind us to fully visualize the distant past that initiated the long smoldering events that culminated in our current set of crises. It seems that Obama got elected precisely because he stated his political objectives of fixing overdue <strong>Compounded Follies</strong>, though he probably didn&#8217;t think he would have quite so many to deal with when he got elected. But, at long last, perhaps we have a President who is willing to call things by their right name and blame those forces that created our current mess and hopefully develop a consensus about the guilty party and their collective actions of national destruction. He&#8217;s not there yet. He&#8217;s still getting his sea legs and no one has yet been daring enough to mention that the mother of all expenses is our military spending, which is 1/3 of our budget (it&#8217;s actually far more than that because of hidden expenses, such as the Department of Energy that runs our nuclear arms program&#8211;Chalmers Johnson puts our defense spending closer to $ 1.1 trillion). What&#8217;s more, military spending does not stimulate the economy to evolve in a usefully, progressive way. It is a stagnant form of consumption and should be contrasted with spending on research to improve energy efficiencies.  Solving the military spending issue will be more difficult than solving health care and the latter is first up on the can-do list for the country.</p>
<p>We are finally beginning to see that the range of these neglected <strong>Follies</strong> touches every aspect of our lives with an iron grip.  The excessive motility that we feel surging through our gut, mediates such a strong sensation of discomfort, that it grabs our attention and makes us wonder whether we have seen all the <strong>Follies</strong> on the list&#8211;all those that need to be dealt with, or whether others have yet to be discovered. We know this is the year of crisis. We shudder to think that  it might turn out to be the year of further crisis discovery as well. Are we going to be given all the bad news in drip form, through an I-V?   The daily acts of discovery and those of the recent past have awakened us to the possibility that more things are out there. We notice for one thing, we have had to recalibrate our disaster scale. You might remember the savings and loan scandal of the 1980s. For that scandal, our scale was in the $ billions, but for this catastrophe, you might note that we are using the $ trillion scale. Have you recalibrated your instruments?</p>
<p>Despite the misery index remaining high, there is a strong sense that we have seen this happen before; it was transmitted to us through the lore of our parents and when it did happen in the 1930s, we met the challenge and gained prosperity, but it required good people with strong wills and hopefully we have some of those people in place today, beginning with our new President. In the 1930s we took a small government and made it much bigger. Today we have a much larger government but it has lost its focus, such that it serves primarily very narrow interests&#8211;it&#8217;s the Predator State of James K. Galbraith. Perhaps this time around, we are less naive, less gullible and more visionary about the difference between a good solution and a bad one, about avoiding solutions that don&#8217;t start another round of <strong>Folly Compounding</strong>, by merely kicking the can down the street. But you can&#8217;t change your government overnight with a new President. The government he acquired is on autopilot, still doing the kinds of things that Bush set in place. Obama has to be forced to go down new roads he would not ordinarily venture into without constant public demand and pressure. As far as debt is concerned, it is worth remembering that at the the close of WW II, the country had a debt that was about 130% of GDP and the emergence from the war, thanks to government programs like the GI Bill, the growth of labor unions, investments in research and higher education, all provided a long period of growth and prosperity, where the growth outgrew the debt. The new president is trying to replicate that pattern by rebuilding our economy into something new, one that will produce a significant growth with new economic tentacles that, once again, will hopefully allow us to outgrow the debt created by this undertaking. We owned our own debt in 1945, but today our debt is largely owned by other countries, including China. Ironically, the current economic downturn, according to Paul Krugman,  has increased the savings rate of Americans which is in turn helping to finance this new round of public debt. No one knew whether the end of WW II would lead to prosperity or a return to economic despair. But the key to our recovery was that of creating a prosperous Middle Class, through education and government programs like the GI Bill. The root of our creativity is found within this vibrant Middle Class, so that the replenishment of their prosperity will mean a bonanza of new ideas leading to a more creative type of  growth. To make this work, out consumerism will have to be shifted to planetary salvation items and to make that work, we will need vast improvements in our education system and how we finance education. But, to make it all work, it will probably take more investment than what we have made to date and it is unclear whether the political capital exists to make this new economy work for all of us like it should. FDR&#8217;s strategy prolonged the depression because he didn&#8217;t spend enough. Will we, in the end, do the same?</p>
<p>The current series of <strong>Follies</strong> are not just those of our financial system, but in the quality and pay of the jobs that we let get away. We need to recapture manufacturing. But we gave away the toys and plastics and bicycles and a lot of electronics  to Japan, China and South Korea, so we have to be far more inventive than we ever have been before. The world at the close of WWII was devastated and shattered, except for the United States, as we took advantage of a non-level playing field. Today that same field is far more level and there are many signs that we allowed our advantages to dissipate through focusing on the wrong set of problems.  For every $ we spent on increasing American military hegemony abroad, we diminished our domestic economic vitality at home. Now we have to get a little more creative on the high tech side and build a new economy based on saving the planet. Maybe then we will have something that China wants to buy.  An objective like that will get rid of giant <strong>Folly Compounding</strong> and get us back to mini <strong>Folly Compounding</strong> which is easier to deal with. Subtle advantages or disadvantages in trade policy, if corrected soon are the stuff of mini <strong>Follies</strong>.  Spending all your resources on the military, with more than 650 bases extended throughout the world&#8211;that&#8217;s the stuff of giant <strong>Folly Compounding</strong> and you may notice that the size of the military budget is not yet remotely present in the national dialogue. The most recently announced changes in military spending are a shift in the military budget emphasis, not a reduction.</p>
<p>The <strong>Follies</strong> that are demanding a solution today, didn&#8217;t begin yesterday, or with GW Bush, or even with Ronald Reagan or Jimmy Carter, though each of them contributed to the altered state of our economy and income distribution. The great dismantling of  FDR&#8217;s America began shortly after his death in 1945 and eventually led to Reaganism which was the beginning of the end of regulatory practices in our financial community, the termination of usury laws, the demise of labor unions  and the beginning of huge budget deficits that allowed  the Republicans to &#8220;starve the beast,&#8221; and, in the process,  destroy America&#8217;s social contract.</p>
<p>The <strong>Follies</strong> we face today, and we all know there are lots of them, have their origins at the end of WW II, in which a gigantic lurch in our view of the world and how we would face it, was newly and sharply formulated and promptly implemented, penetrating deep into our culture with a seemingly irreversible thrust that permeated our nuclei and changed the American DNA.  This new world view was an ad hoc viewpoint created by the naivete and poor leadership that suddenly emerged on the death of FDR. Immediately after his death, the emergence of a new hard line attitude towards the Soviet Union took shape, and it was this new attitude that would shape our future course, help to destroy the Soviet Union and secondarily render the United States into a confused, bitterly divided and impotent country. If you ask yourself the question that, after WW II, we supposedly turned ourselves into the Juggernaut of the world as a military power and yet how many wars did we actually win since then? Remember Korea, Vietnam, Iraq and where are we headed in Afghanistan, where 80% of the Pakistanis do not want the American presence in their country? Why do we want to stabilize a country of 30 million, while destabilizing a country of 175 million?</p>
<p>The new Post-war cultural format of dividing the world into two camps, the good guys and the commies, turned out to be an easy sell in America because of the public perception that Americans have about their own country as the  &#8220;shining city on the hill.&#8221; If our leaders are asking us to do this it must be right, it must be part of our great American heritage to go down this new path, even though it scares the hell out of us, with atom bombs and hydrogen bombs and Russian bombers.  Perhaps today,  the shining city model of America is coming to an end, at least as far as the internal model to pursue is concerned. If so, the narrative that replaces it can only  serve the national interests if the entire panoply of the national  arrogance and miscues of the last 60+ years is fully understood and recognized for the impact that it had on us and the destructive influence it had on our government and our social contract.</p>
<p><strong>Folly Compounding</strong> exists all around us in the form of an economic meltdown, lack of an adequate broad, health care system, a complex of military-industrial waste, medical-industrial waste and stagnation of the earning power of the Middle Class. And these are just for openers. The social contract that was established in the face of the Great Depression under FDR, has been shattered by thirty years of Reaganism and globalization, which is a euphemistic way of describing wealth transfer from the middle and lower classes to the rich. It&#8217;s as if we are taking money away from workers at home to subsidize low wages of Chinese workers. In China, WalMart is still trying to get Chinese wages lowered further to reduce labor costs and increase profits. If you look at the labor conditions in China, you realize that &#8220;labor camps&#8221; like the ones we had for blacks after the civil war are a good description of the conditions that many Chinese workers live under once they come to the big industrial centers.  One could begin this story by also talking about globalization and do so by mentioning that no single country that experienced economic expansion into a global, Western style economy, did so under the banner of free trade&#8211;everyone one of them, including Japan, South Korea and China, established their wealth by the same pathway we did&#8211;through manufacturing coupled to protected markets and regulated trade. Those countries in South America that went through the &#8220;free market&#8221; transition saw their country transformed into one of income stagnation for the Middle Class, income decline for the poor, and huge prosperity for the wealthy with the emergence of American companies who bought and sold the nationals. The introduction of this type of &#8220;free market&#8221; economy was only made possible through the &#8220;Shock Doctrine&#8221; of capitalism that Naomi Klein talks about in her book, with the IMF in full compliance for the economic changes that each country had to go through to get loans.  For the United States, it was the design of a global military hegemony that cracked the domestic code at home and progressively gave away our candy store.  Of course, that is only part of the story. Along the way to this brave new world, Americans were asked to give up their constitutional  rights, without ever fully recognizing what was being shattered in the process. With such a large and growing military, it was only natural that we would view our international problems as military problems, a view point that is unlikely to change, or will only change with a huge political fight about priorities and the causes of terrorism. As we became a more militaristic country, the roots of transparency in our government were replaced by secrecy and the  &#8220;classified&#8221; government stamp became a common way to prevent the public from knowing about embarrassing moments, all of which were described as necessary and fundamental for protecting our threatened nation.  Chalmers Johnson in his trilogy of books about the CIA and our military empire, a person who has inside knowledge of CIA operations, claims that the classification of information by the CIA is mostly to cover up embarrassing excesses of the agency. The process of surrendering our rights as citizens over the past 60+ years has become so routine and axiomatic that we no longer recognize the forces at work that have  precipitated these sea changes in our democratic system. Many who look with some insight into our strained culture of today wonder whether we are simply one terrorist attack away from a military dictatorship, with the new NorthCom of the military ready and waiting for instructions to begin policing the entire country under martial law.</p>
<p>Our military strategy of containment against the Soviets, led to reshaping the American corporation into what it is today, with the giant multinational corporations living under a shield of indifference towards the living conditions at home and the plight of workers in America. After all, multinationals don&#8217;t really have a home, perhaps just a place of origin and current residence, which is meaningless for their business model. Our militarism became  inseparable from our corporatism: they are now tightly bundled in a seamless package of military hardware, training foreign troops and mercenaries in America and the obligatory purchase of American made weapons and jet fighters. Hot money travels around the world destabilizing the currencies of countries, pushing them into a fiscal crisis for which they need an IMF or World Bank loan to help them right their own ship. Yet, we allow our own corporations and hedge funds to produce these destabilizing events, for in the end, there are huge sums of money to be made. Ending the Cold War had very little impact on our military expenditures or the size of our military reach. Global military hegemony was our objective after the end of WW II created by the U.S. fabrication of the Cold War with the Soviets. As soon as the Cold War was over, we saw how our global military empire has expanded through NATO and other alliances, such as we strongly bonded with Israel, even to the exclusion of our own interests in the Middle East. Though our global hegemony is beginning to unravel in some places, like South America, and perhaps Iraq, we continue to pursue the same strategy and will not stop that approach until our financial collapse makes it impossible to initiate the old reflexes.</p>
<p>Containment gave cover for the multinational corporatist state and the &#8220;predator state&#8221; of the modern era. It was far too easy to establish Corporatist America: our country will remain in this state until we forcefully demand a return to better days, when clarity of mission seemed so much more in evidence. The time for full citizenship activism is here. We finally have a President in the form of Barack Obama who will listen, but we need to dramatically grab his attention.  A national &#8220;New Social Contract Day,&#8221; in which we all take to the streets with our pitchforks in hand should work for openers.</p>
<p>We live in a government today that has gone way beyond the Old Republican insistence of  <em>Laissez-faire</em><strong> </strong>into the terminal stages of Reaganism, in which the U.S. Government has become what economist James K. Galbraith refers to as the &#8220;Predator State.&#8221; It is this Corporatist America that has fused its profit motives with control of our government that most clearly defines the present iteration of our country and it has been consumerism by the middle class that has served as the primary narcotic that allowed this transition to go  smoothly, attended by very little debate.  It is the most prevalent form of cultural opium in the country today. But, despite the high level of the misery index readout and the fear that we may have to once again recalibrate the scale of our disaster, we still have a chance to save the country and return it to the one we used to have, the one that is now a somewhat distant memory. We have a President who might be able to do this, but it will only happen with great public enthusiasm and boisterousness for change.</p>
<p><strong>Connecting the early dots. </strong>America started its own version of continental drift or <strong>Folly Compounding (FC) </strong>at the end of WW II, when, without warning, a dramatic shift in political power allowed the new President, Harry Truman,  to assume authority greatly in excess of what our constitution allowed. The main loss to our constitutional authority was created with the formation of the CIA and the black budgets of the military. Our constitution specifically states that Congress must review the budget, but these new federal agencies, under the control of the President, have never been publicly reviewed or discussed and their operations have been highly protected in the name of &#8220;national security.&#8221; We still do not know the exact funding level of the CIA, or the resources that go into the black budgets of the military or what that money is used for in any detail. All we know is that past performance with all the CIA blowbacks have dramatically increased the size of our military budget to engage in wars and base deployments, the full story of which has never been revealed. The CIA effectively  gave the President a covert army which carried out many military-style operations that generated  highly embarrassing revelations when they were revealed and left America with an odd understanding of its own history: while Americans were denied an understanding of what was done in their name in practically every country in the world, including those of our allies, the indigenous people against whom our actions were carried out, had no doubt who did what and the seeds were sewn for the &#8220;blowbacks&#8221; that are with us still today, the most obvious of which is 9/11. Today we have a unique feature of American culture: more people living outside the U.S. know the relevant, post-war history better than most Americans. Americans have fallen victims as a country to one that has been denied knowledge of its own history. Perhaps that is the ultimate in <strong>Folly Compounding</strong>&#8211;the lack of knowledge about the very events that are knocking on the door for solutions that we really don&#8217;t have or won&#8217;t entertain because we don&#8217;t know for sure that we did the things of which we are being accused. We don&#8217;t know, but they do.</p>
<p>Last year I was in Costa Rica with my wife Rosemary. We took a tour of one of San Jose with a guide, together with several other Americans.  When our guide was asked superficial questions about the relationship between Costa Rica and the United States, he give chrome-polished responses that made Americans feel good about their country. But, if you asked him privately about the history of the US and Costa Rica, he had a well full of knowledge about the Iran-Contra era and illegal bases that the U.S. established on Costa Rica&#8217;s northern region, without ever getting permission from the government of Costa Rica. Here was an individual, our tour guide, who knew far more about the role the U.S. played in South American countries than any American present, including me. I learned a lot about American interventions in Costa Rica just listening to him and later checked to see if I could corroborate his stories, most of which I found to be true, while the others I was unable to gather sufficient information to make a judgment. But, his fund of knowledge was not unusual. As Costa Ricans often say, they tend to like Americans, but not the American government.</p>
<p>It was under Truman&#8217;s watch that the early shape of America&#8217;s future was put into play. Truman was an innate hardliner on foreign affairs, particularly towards Russia, but a more liberal Democrat on social issues; he was a Missouri &#8220;buck stops here&#8221; kind of guy who would learn the hard way that he couldn&#8217;t have it both ways: letting in the hardliners to dominate his post-war foreign policy would let the very people in that didn&#8217;t give a damn about his domestic social policies and aspirations. That mistake would cost him his highest priority domestic objective&#8211;a single payer national health care system.  Indeed,  Truman left office puzzled and disappointed that the hard-liners had labeled his health insurance plan, which seemed like a no-brainer to him, as &#8220;socialized medicine,&#8221; the death knell for any program so labeled in that era, given the hardline attitudes that were drumming up support to confront the Soviets as an evil empire. So right away, right out of the starting gate, we turned down a health care plan and substituted it with a patch work of programs that would eventually create the medical-industrial complex that generated huge profits for some, but insufficient health care for much of the nation,  leaving 47 million Americans uninsured, as of 2009. The National Academy of Sciences estimates that 20,000 people die each year because they do not have access to medical care. Some of these stories are heart-breaking and have appeared on <strong>PBS&#8217;s</strong> <strong>Frontline</strong> in recent weeks. In one of our greatest <strong>Follies</strong>, that of choosing military containment over health care, we encouraged the development of a health care system that is unsustainable in its present form. It is one of the top priorities to get fixed: let&#8217;s hope that for the first time in our history we fix it and do it well. I think if Obama had campaigned on the slogan &#8220;Medicare for All&#8221; as Robert Kuttner has suggested, he would have been elected with a huge plebiscite, more than just a good sized victory! In many ways Obama is too cautious, uncertain about the meaning of his political victory and still afraid to confront the neoconservatives.</p>
<p>Truman was a dedicated American who loved the military, but was completely naive about the world around him and very untested as an international leader.   His selection as vice president for FDR&#8217;s last election run in 1943, was achieved by the hard liners of the party who feared that then vice president Henry Wallace had leanings that were too favorable towards the Russians in the post-war period. FDR had talked about a warm postwar relationship with &#8220;uncle Joe&#8221; (Joseph Stalin) but the hardliners were infected with anticommunist bias; they feared that Russia had become a superpower as a result of the war and was aggressively pursuing a takeover of the Eastern European countries (many of whom had invaded Russia during the war).  It was hard line pressure that helped  force Truman onto the ticket, displacing Wallace, who later ran as a Liberal/Progressive candidate for the presidency in 1948, but came in a distant third. One factor that determined Wallace&#8217;s defeat was his socialist leanings, as the hardliners were trying to sell the country on the communist threat that was all around us and Wallace was too far left to avoid that label. The selection of Truman as FDR&#8217;s running mate in 1943, insured that hardline attitudes would assume the Presidency if FDR died in his last term, which many party members felt was likely. Roosevelt looked terrible in 1943. He looked ashen in his face, smoked excessively, had high blood pressure and was in congestive heart failure. But, somehow he dug deep down into his reserves to try and find the energy to finish the job and live through to the end of the war. Eleanor Roosevelt in particular was looking forward to the end of the war, with her husband still at the helm. She hoped that with the war concluded, FDR could begin setting right many of the social injustices in America she had witnessed through her extensive travels which had given her a unique life outside of the normal political life of a President&#8217;s wife. On her plate were issues such as poverty and racial divide. But, Roosevelt lived only until April of 1945, just a few months after the beginning of his record fourth term. His death and the rapid transition to the Truman presidency may have been the single biggest tragedy for the postwar nation, though it has yet to be recognized as such. We are still too romantic about our history. On the other hand, Jeffrey Perret&#8217;s book <strong>&#8220;<em>Commander-in-Chief</em>&#8220;</strong> goes a long way towards removing the romanticism from the presidency, replacing it with a dash of cold water in our face through a little reality testing about Truman, Johnson and G.W. Bush. One the hardliners had a foothold on the postwar course of our country, they began to shape social policies. The ultimate irony was found with LB Johnson, whose Presidency was one of great domestic progressivism, large parts of which became unraveled by his war in Vietnam, which he pursued believing that the Vietnamese were nothing more than agents of the Soviets. He was so paranoid about the mounting demonstrations against his presidency that he insisted on the FBI finding the connections between student protests and Russian agents and was frustrated when told that no such relationship existed. Johnson pursued a costly war because he swallowed our post-war mythology about the Soviets wanting to dominate the world. It was as if the first generation of hard line Republicans and Democrats created the Soviet threat and the second and succeeding generations actually believed it. Johnson was one of those&#8211;he hated communism and the Soviets he thought were responsible for threatening America.</p>
<p>Truman, who had never been brought into FDR&#8217;s inner circle, knew little about the policy discussions that were taking place at the time that FDR suddenly died in April, 1945. He did not know for instance  about the Manhattan project which produced the atomic bomb, despite the fact that the project was nearing its completion.  It is unclear why the Vice President was kept so peripheral to FDR&#8217;s political agenda, but then again, it was a short period of time. FDR also kept Truman at arms length during the political campaign of 1943 and Truman was surprised and disappointed that he didn&#8217;t have a campaign role of any significance.  But, within weeks of FDR&#8217;s death, Truman had started to put his hard line brand on foreign policy issues and did an abrupt turnabout in dealing with Stalin and the Russians, beginning with the issue over Poland. When the Germans opened up their second front by attacking Russia in 1942, then Senator Truman was quoted as saying &#8220;good, now we will have Germans Killing Russians and Russians killing Germans.&#8221;   He had adopted the hard line attitude towards the Russians because it was regionally endemic to do so and it was immediately apparent when he became president that he was going to tilt the country in a new direction: he was going to lurch our ship of state in a way that had never been done before.  This new direction was, not surprisingly, dominated by the military and individuals, such as James Forestall, who became the first secretary of defense after the war under Truman: he  committed suicide in 1949 by jumping out of the 13th floor of a psychiatric ward in the Bethesda Naval hospital. Many of the emerging militarists that came into authority right after the war  were  in their decision-making capacity only because of the war, not through the electoral process. It was the weakness and inexperience of Truman that allowed these people to convert their private views into public policy.  For that reason, their support of hard line attitudes against the Soviets basically turned the clock back to viewing communism as a mortal enemy to our capitalist system, reaffirming many of the attitudes that had permeated the country during WW I (especially during the Bolshevik revolution, when we sent American troops to fight on Russian soil, in support of the White Russians)  up until the beginning of WW II. It was at the onset of WW II that we had to recognize  Russia as an ally, odious as it might be to some. The two countries were strange bedfellows.  The more liberal voices left over from the FDR administration, including Henry Wallace,  were pushed to the sidelines under Truman. James Byrnes, who became Secretary of State under Truman was a hardliner who made sure that, once successfully developed, the atom bomb would be used against Japan.</p>
<p>One cannot underestimate the importance of the atomic bomb for promoting the cultural lurch that Truman put us through. The sudden availability and use of the atom bomb as our &#8220;gadget&#8221; for ending the war against Japan, gave us a new weapon. Initially, our military and political leaders regarded the atomic bomb as simply another weapon in the conventional arsenal of weapons, a center piece for the long struggle against the Soviets and their expansionist attitudes towards the rest of the world. The atom bomb was followed by the much more powerful hydrogen bomb and the two together became the fixation center of what we thought would give us long-term hegemony over the Russians. Leslie Groves, the army general in charge of the Manhattan project, argued that the inclusion of the bomb as part of our arsenal would give us a &#8220;40 year lead over the Russians who couldn&#8217;t build a decent jeep.&#8221; Most scientists working on the Manhattan project at the time thought it would take 5-7 years for the Russians to get their own version of the bomb. While Groves represented the military side of the Manhattan program, it was physicist Robert Oppenheimer who directed the scientific and technical aspects of the project until its completion. Later on, by inserting his objections to the development of the hydrogen bomb and trying to warn the country about the dangers of an arms race, he would be censored and removed from influence on government military policies. This was another American <strong>Folly</strong> that is now coming home to roost, for Oppenheimer&#8217;s elimination opened an unfettered path to the beginnings of the giant military-industrial complex that Eisenhower warned us about, despite the fact that Eisenhower himself had contributed to that development. With Oppenheimer out of the way, the arms race with the Soviets could begin in earnest and, as the Soviets detonated their atom bomb, followed by the hydrogen bomb, the race was on to get away from bomber delivery to missile delivery followed by  MIRVs and the weaponization of space.</p>
<p>To cement the public attitudes about the need for the Cold War, one cannot overemphasize the importance of George Kennan. He was a member of the Foreign Service, stationed in Moscow at the end of WW II.  Like many Americans, he was instinctively an anti-communist and viewed Soviet Communism as a source of evil and the center piece to elevate his own visibility within diplomatic circles. To this end, he sent the &#8220;Long Telegram&#8221; falsely elevating the Russian intentions about world domination, portraying the Russians as the future source of a &#8220;messianic apocalypse&#8221; and outlining his concept of &#8220;containment.&#8221; This telegram sent a shock wave through Washington. James Forestall, an Admiral in the Navy saw in Kennan a kindred spirit that could be useful for his own strategies in getting Truman to lurch the ship of state. It was Forestall, a knee jerk anticommunist, whose wife thought that the whole family was being followed by communists,  who had encouraged Truman into his early confrontation with Molotov only weeks after FDR died. Many historians look at the Molotov-Truman confrontation as the beginning of the Cold War. Forestall collaborated with George Kennan to expand his Long Telegram into an article published in 1947 in the journal <em>Foreign Affairs</em>, under  the psuedonym &#8220;X.&#8221; This single article probably had more to do with generating the Cold War than any other. It alarmed Washington and was taken as the gospel about the Soviet intention in dominating the world and spreading the evils of communism to the four corners of the globe. It was, as author James Carroll states in his book &#8220;<em><strong>House of War&#8221;</strong></em> &#8220;the foundational U.S. mistake of Cold War thinking.&#8221; It did not properly distinguish between nationalism and the communist rhetoric of world domination, which was, if anything meant for home consumption. Russia had just been through the most devastating war in its history, with 20 million dead, factories and production dislocated, cities demolished and huge sectors of the country experiencing starvation. Russia was in no position to begin hostile actions against anyone. In fact, Russia was demobilizing, something that the authors of &#8220;X&#8221; did not consider. But &#8220;X&#8221; achieved something that the Long Telegram did not.  When Kennan described &#8220;containment&#8221; he was referring to diplomatic containment, not military containment. But, of course Forestall took his message to mean both and for that reason, a stamp of permanence would be placed on that document as the rationale for the Cold War&#8211;it would include both diplomatic and military containment efforts.  Later George Kennan, taken into the Princeton Institute by Oppenheimer, would denounce article &#8220;X&#8221; as one which was used to advocate something he did not believe in&#8211;the need for a military component to the containment policy. Even Truman&#8217;s Secretary of State Byrnes was troubled by the confrontational approach that was being hatched by Forrestal and Kennan.  But, it was too late. The die had been cast, Truman sided with Forrestal and the Cold War had begun. But the Cold War did not change any borders. When it ended, the line demarcating the arrival of the Russian armies and the U.S. and British forces remained exactly where is was at the end of WW II. What then did the Cold War bring us?</p>
<p>Early during the development of the atomic bomb, several scientists wanted to share with the Russians the information on the bomb, and have oversight given to the United Nations. Russia it was argued was one of our allies and should be a partner in the development of atomic technology. Of course, the military and political leaders of the country  refused to carry out such a plan, as they conceived of a different strategy.  Once the &#8220;bomb&#8221; was safely in the arsenal, the American planners thought they had a near permanent lead over the Russians, and that the weapon itself would guarantee hegemony over them on a more or less permanent basis. The two Japanese targets for our two atom bombs, Hiroshima and Nagasaki, were not selected by Truman, but by Groves and to his dying day Truman insisted that both cities were military targets; while these cities did have military troops stationed on them for defensive purposes, the bomb was targeted for the city center, not the military site. The two bombs led to rapid surrender by the Japanese, though they were allowed to retain symbolic leadership by their emperor, their only precondition for surrender before the bombs were dropped. Until the two atom bombs were used, the war against the Japanese homeland had been carried out by the air force, with fire bombing tactics designed  to kill as many civilians as possible. The atom bomb was dropped as a signal to the Russians and Groves admitted as much to the scientists working on the Manhattan project sometime before its completion. There were many attempts by scientists to end the Manhattan project after Germany had lost the war, but Groves managed to thwart those efforts and preserve military control over the weapon. Truman was the captive of the military in terms of strategy for using the new weapon, yet some generals, such as Eisenhower, were against dropping the bomb on Japanese cities. He had seen the carnage of war up close, something air force generals never get to visualize.</p>
<p>Following Truman,  succeeding Presidents have been less and less encumbered by Congress and over time, they have learned that a war footing for the country, a perpetual war state or threat of war, ideally positioned the President in such a way that  he is largely independent of Congress because of the Commander-in-Chief clause of our constitution: under a permanent war footing, based on burgeoning militarism, even a President&#8217;s funding demands typically received little scrutiny from Congress. This new environment was initially created by the threat of an everlasting conflict created by dividing the world into two&#8211;us and the commies. The last time that any President asked Congress to declare war was FDR and WW II. Truman&#8217;s war in Korea was a &#8220;police action&#8221; and no President since FDR has requested a declaration of war for any one of the many conflicts we have had since. In a way, Congress didn&#8217;t mind capitulating because of the presumed titanic nature of the struggle which primae facia demanded secrecy, covert armies, all supported by the black budgets of the CIA and the military. Congressional authority was cumbersome and when you are faced with a cunning enemy, someone that might be your next door neighbor, you needed to have a body of authority that could make quick decisions. You might also note that Bush&#8217;s &#8220;War on Terror&#8221; was designed to be a war without end, designed to confront a human emotion. Fortunately, Barack Obama has officially ended that war and started his own, more limited view of our objectives in the Middle East. Up until the new policy decisions of Obama, we were surely headed for a state of permanent war that Orwell effectively characterized in <em><strong>&#8220;1984&#8243;</strong></em>&#8211;only the timing was a bit off.  Bush&#8217;s intention of propagating a never ending war to align the people in favor of the new robber barons of the culture&#8211;Enron, Haliburton, Lockheed Martin, together with Blackwater, the latter of whom could make a pretty good impression of Hitler&#8217;s Brown Shirts, as they roam the streets of their assignments with impunity from prosecution. Germany in the 1930s? We are partway there&#8211;read Naomi Wolf&#8217;s articles on American fascism for a little cold water in your face.  Germany in the 1930s; many examples of Ponzi investment schemes such as that of  Bernie Madoff, whose scheme is not altogether different from that of Enron and the economic bubbles that will follow one after the other, now that the principle of Federal bailout for largess has been clearly established. None of this could happen today, if congress had not sold out so willingly and completely to start the imperial presidency through abdication of their constitutional responsibilities, such as reviewing the Federal budget. But many other constitutional freedoms have also been abandoned in favor of state control. The new Department of Homeland Security seems more like a national police force that treats demonstrators at political conventions as if they were terrorist. The introduction of secrecy and devious international schemes to manipulate or topple governments, quickly acquired its true nature and served as the secret American Mantra for our foreign policy:  from Guatemala to Iran to Vietnam to Chile, our policies were always those of supporting hard line authoritarian governments as long as they were against communism. But, of course, we had an economic subscript to all these interventions, so the profit motive was part and parcel of our foreign policy. We supported insurgencies that would topple Democratically elected governments.  And, this war on terror will be difficult for Obama to eliminate from the military roster. His declaration to end the use of  the term &#8220;war on terror,&#8221; and restrict his actions have given us the prospects of a fresh start on this theme, but these are only prospects. They haven&#8217;t reached the substance of reality. Indeed if we could somehow generate a &#8220;fresh start&#8221; it would mean putting our ship of state into reverse and going back to where we were before 9/11&#8211;a still highly militaristic culture with a massive military budget and a long list of military hardware that goes all the way back to the Cold War.</p>
<p><strong>Excessive Presidential Power. </strong>The primary reason for excessive presidential power began with the false titanic struggle we created against communism. We entered into this struggle without a significant dialog or debate: we never voted on whether this issue was important to the American Public. It was a hijacking of our government institutions and the ship of state.  No one ever presented a serious alternative.  In the early days of this transition, it was virtually impossible to have a meaningful dialog on the wisdom of this abrupt change in our policies without running the risk of being labeled a traitor to your country. The right wing called all liberals communists and the &#8220;Red Scare&#8221; under McCarthy stifled any chance of debate. Heavy use of guilt was applied to anyone who doubted the value of the new war, the one that got labeled the Cold War. Most Americans were taught that Russia started the Cold War, without ever reading beyond the milk toast information to learn the real truth, that we started the Cold War, as the right-wing fanatics who had been held in check initially under FDR, suddenly now found a place in policy making and a devotee in the form of one Harry Truman: the Cold War was ours and ours alone. Today, a bronze bust  of James Forestall stands at the entrance of the Pentagon and serves as a reminder to those who understand the tragic paranoia that he inserted into our foreign policy about how few people it took to turn the heat up and produce a fifty year Cold War that became so strongly entrenched in our society, that we have had to continue our military hegemony, primarily because we don&#8217;t know how to stop. While we preached that Russia was an expansionist country after the war, Russia was in fact demobilizing&#8211;Stalin had to rebuild a badly broken country.</p>
<p>The essence of this article can be summarized in the following way: once we started the Cold War, we had to generate a new mythology about America and the nature of her adversaries. This new mythology, that we were locked into a titanic struggle with communism, with the very survival of our country and our society at great risk, was brought into our purview in such a way that it had a complete victory over opposing  liberals, even though FDR might well have done things very differently. For example to give Stalin reassurance, FDR promised that Russia would have control over the East European states that he had overrun at the close of the war: Churchill was opposed to this, but FDR acknowledged it as reality.  That promise included control of Poland. But, Churchill&#8217;s dislike of seeing Britain topple before his eyes as a world power, while Russia assumed the mantra of a superpower, allowed him to take advantage of Truman&#8217;s naivete once he assumed office after Roosevelt&#8217;s death. At that point Churchill was able to forge a new alliance with Truman to also aid in formulating the Cold War policy. Less than a year after the end of WW II, <a href="http://www.historyplace.com/speeches/ironcurtain.htm">Churchill gave his famous &#8220;iron curtain&#8221; speech</a> while visiting Truman in Fulton, Missouri.   But once the false narrative took hold through the force of a major propaganda effort, including the era of McCarthyism, that false narrative then produced a huge transition in Presidential power, as we now needed to rely on the President to carry out all those secret operations that we didn&#8217;t want to know anything about. It turns out that the President often didn&#8217;t know much about them sometimes either. The war-like state we put ourselves in demanded war-like powers to be assumed by the President. And, &#8220;Pow,&#8221; we were off to the races. Our style of capitalism was supposedly saved through a hundred thousand episodic assaults on our freedom, our way of government and our way of doing business. The right-wing hardliners that produced this gigantic cultural lurch must have been embarrassed about how easy it was&#8211;it was too easy. Where were the liberals? Thus the black budgets of the CIA and the military meant that we began violating our constitution from the get-go because that document calls for a periodic review by Congress of all government expenditures.  But the false narrative cleared the way for <strong>Folly Compounding</strong> on a scale that can only be appreciated now, as we are finally beginning to drum up the courage to look in the rear view mirror. It is not a pretty picture. Instead of getting a tranquil peace at the end of WW II, we got promised a new form of war of potentially seismic proportions. We lived with a supposed nuclear confrontation for forty years.  We entered into wars that we thought were proxy wars by the Russians, including Korea and Vietnam. Both those wars were unwinnable and notes from Mayo to the Presidents (Truman and Johnson: cites in Perret&#8217;s book) convinced them that if it came to a struggle between the Chinese and the Americans, we could not possibly stand up against their army of millions.  To keep the false narrative alive and <strong>Folly Compounding</strong> moving forward, many naive Presidents who were attracted by the new narrative of America as the world&#8217;s only defender of freedom, committed the country and subsequent Presidencies to military expansion and other wars against evil. So, we had Truman, whose decisions were aided by his use of drugs in the White House (as described by Geoffrey Perret&#8217;s book <em><strong>&#8220;Commander in Chief&#8221;</strong></em>), we had Johnson, whose wild excessive patriotism led him into the Vietnam War, even at the cost of destroying his own ambitious social programs; we had Nixon and Reagan who brought and defended shock capitalism and dictatorships to South American countries and finally the Bush presidents, with GW Bush  putting a frightening validity to Orwell&#8217;s 1984, as he tried to produce a permanent state of war, a war without borders and a war without end, with him as the only &#8220;decider.&#8221; A war against an emotion. Even that part of it seemed highly embarrassing to anyone familiar with the English language.</p>
<p><strong>Reaganism started early. </strong>Ronald Reagan left the Democratic Party because he sensed a communist threat growing within the party and the screen actors guild of which he was the president. He married a staunch Republican in Nancy and joined the Republican Party to become its standard bearer and the birth father of Reaganism. His anti-communist ideology led him into another ideology that would be named after him, without him ever understanding how or why he did it, or what it really was.  For Reagan, Alzheimer&#8217;s was a relief from the excessive toil of looking for the right Rosetta Stone and its associated narrative. He didn&#8217;t really believe in the <a href="http://en.wikipedia.org/wiki/Laffer_curve">laffer curve</a> and probably didn&#8217;t understand it, so Alzheimer&#8217;s was his Pepto-Bismol. Yet, all he left behind were supply-siders who believe today that our entire economy is determined by tax policy. How easy was that medication, despite the fact that it has been disproven so many times in so many ways?  But, it remains a narrative for more than half of America.</p>
<p><strong>We moved from an atomic bomb military to an atomic bomb culture to an atomic bomb economy. </strong>With the development and dropping of the atom bomb on Hiroshima and Nagasaki in 1945,  Washington suddenly saw a way, a gift from the scientists, not the military,  to dominate the world. But, the first surrender in the new war needed to come from  the American public, including a surrender of our own constitution and the social fabric we had been weaving under FDR for a more relaxed and contemplative life. This was all accomplished too easily by too few people&#8211;a handful really.</p>
<p><strong>A landslide transition into Folly Compounding. </strong>During this transitional period in which America formed a new world-wide vision of itself, right after WW II, we had to abandon our intuitive grasp of the world as we thought we knew it and get a new version,  a new narrative borrowed and time-stamped from Washington. It would be the first of many. The new world narrative was that Russia, our strong ally during  WW II, and one of the real heroic countries of Frank Capra&#8217;s documentaries in the 1940s,  <strong>&#8220;Why We Fight&#8221; </strong>had become, or more appropriately, always was, an evil monster and our mortal enemy.  According to this new view, our alliance with the Russians during WW II was an aberration, an unexpected interruption from a struggle that had to be renewed. But this time the renewal would be on our terms, for we had the secret weapon and we didn&#8217;t expect that Russia would have something similar for &#8220;forty years.&#8221; This transition all took place in a matter of weeks to months after FDR died and Truman became our Commander-in-Chief: it was a gigantic national lurch, the first in our lifetime of such magnitude. Nothing the young American culture had done before, prepared it for the mother of all lurches.  Yet, the country was subdued and in a state of shock at the time this new initiative was introduced. A horrific World War had just been completed, with 40-60 million lives lost world-wide; Russia had lost perhaps 20 million of its citizens and now Washington was telling us that a new titanic struggle for our very existence had to be undertaken. According to this silly notion, the country that was completely decimated and nearly destroyed by WW II, was now prepared to engage in treacherous acts to enslave the world and over run American capitalism. The American public was so naive about its own government, that this interpretation was accepted in short order and became the social fabric of the country. Under Truman we didn&#8217;t tear down the Pentagon, as FDR had planned, we didn&#8217;t prevent the French from going back to Vietnam, as FDR had promised and we didn&#8217;t make any attempt to understand Russia needed and in fact was entitled to have control over the border states it had conquered during the war, including some countries that had participated with Germany during the invasion of Russia and the battle of Stalingrad. The lurch led by Truman was shocking, but it would not be the last time we would face a new, counter-intuitive narrative; in this case it was much different than the world we had been prepared to live with under the national music created by FDR. The songs of FDR suggested that a tranquil, peaceful world awaited us at the end of a disastrous war. Truman would prove otherwise.</p>
<p>Finally, what is missing in this narrative is the more objective account of the connections that made the Cold War decision right after WW II of such momentous and determinant influence. The details need to be filled in, but the sequences are easily understood. Our lack of a national health care policy, the destruction of the New Deal, the dismantling of our financial checks and balances, the decay of prosperity of the Middle Class and the incessant reliance on war and military solutions to our problems, can all be traced to the decisions made during the early period of the Truman administration, months into FDR&#8217;s fourth term. It might have been a very different world today and we might have had a very different America if FDR had been able to serve out his fourth term in good health and vitality. We can only dream about that other parallel world that might have been.</p>
<p>RFM</p>
<!-- PHP 5.x -->]]></content:encoded>
			<wfw:commentRss>http://themillercircle.org/2009/04/folly-compounding-in-america-the-stuff-of-broken-empires-part-2/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Folly Compounding in America: the Stuff of Broken Empires, Part 1</title>
		<link>http://themillercircle.org/2008/12/folly-compounding-in-america-the-stuff-of-broken-empires-part-1/</link>
		<comments>http://themillercircle.org/2008/12/folly-compounding-in-america-the-stuff-of-broken-empires-part-1/#comments</comments>
		<pubDate>Fri, 05 Dec 2008 05:24:26 +0000</pubDate>
		<dc:creator>Robert Miller</dc:creator>
				<category><![CDATA[Books]]></category>
		<category><![CDATA[Culture]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Environment]]></category>
		<category><![CDATA[Evolution]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Health]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Medicine]]></category>
		<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Science]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[War]]></category>
		<category><![CDATA[American History]]></category>
		<category><![CDATA[Eisenhower]]></category>
		<category><![CDATA[G.W. Bush]]></category>
		<category><![CDATA[Political Follies]]></category>
		<category><![CDATA[Truman]]></category>

		<guid isPermaLink="false">http://TheMillerCircle.org/?p=188</guid>
		<description><![CDATA[Note: This article has been sitting in my computer for nearly a year, beginning about the time that I felt  the subprime mortgage disaster was likely to be far more serious than we were then led to believe. So, I am bringing it forward now, at a time when it seems, well, more timely. But, [...]]]></description>
			<content:encoded><![CDATA[<p>Note: This article has been sitting in my computer for nearly a year, beginning about the time that I felt  the subprime mortgage disaster was likely to be far more serious than we were then led to believe. So, I am bringing it forward now, at a time when it seems, well, more timely. But, while the crisis is self-evident, and its short-term causes are apparent, its long-term origins, the most significant source of understanding how to right our ship,  are not obvious and in fact are not even considered as an item on the discussion table.  As we look increasingly to Google FDR, searching for solutions to fix our fiscal crisis, we should look to <em><strong>Sputnik</strong></em> and our response to that challenge, to see how, just 50 years ago,  we began to invest in our infrastructure of higher education and how that investment can be used to rebuild our economy into a powerhouse based on saving the planet and reducing our dependency on something we don&#8217;t have very much of these days&#8211;oil.  So here are my thoughts on the issue of how we got to where we are.  I have broken it down into two sections, as I realize that even one of them may be a pill that will prove hard to swallow: <strong>FOLLY COMPOUNDING IN AMERICA, PART 1</strong></p>
<p><strong>Folly Compounding (FC)</strong> happens when you don&#8217;t recognize your error or <strong>Folly</strong> and allow <strong>Folly Interest (FI)</strong> to accumulate until you have one big, giant looming <strong>Folly</strong> that is hard to deal with. By that I mean how a country or a person makes a mistake, perhaps one of great colossal dimensions, though it may not seem so at the time, and then spends a long duration, perhaps a lifetime, or many lifetimes for a country, reaping the misery or the incalculable results of that mistake because the problem wasn&#8217;t fixed early on, when it was eminently more fixable. But, by not identifying the problem early in its development, <strong>FC </strong> is just that: the problem gets bigger and more unmanageable because compound interest on your <strong>Folly </strong>balloons by margins more than you ever thought possible. It&#8217;s like a retirement system in reverse, putting your future into debt rather than building up a nest egg. Instead of getting a check when you retire, you get a bill, maybe a very big one. That, unfortunately is where we seem to be today, this year, right now. Some say it took us less than thirty years to get here, but the reality is far far different. The place we stand today got started after WW II, when we sat at the very top of the heap and committed our most important and first <strong>Folly</strong>&#8211;that of dividing the World in two.</p>
<p><strong>Have we seen this movie before?</strong> Today, we are witnessing a replay of the old movie that we saw twenty years ago, called the &#8220;<strong>Savings and Loan Scandal</strong>&#8221; which played in American theaters in the 1980s. It was the result of advancement in our free market economy, a result of deregulation of the Savings and Loan Banks. The difference between the new and the old release of the movie is that this time, it&#8217;s our <em>entire</em> financial system that we are bailing out and the bill will be proportionately larger. Indeed we are witnessing an almost daily enhancement to the bailout costs as Citi Bank has needed and received financial help and many other banks are known to be teetering. When you couple the bailouts for the financial institutions, with other funds that may be funneled into the American automobile manufacturers, with complete uncertainty as to whether any of these funds will be recovered or repaid, the number reaches into the $ trillions and a seemingly unlimited sea of national debt. And then folks, get ready for the really big one in 20-30 years or so because the bigger they get, the more likely they will have the Federal government as their ultimate guarantor. You saw the problem with Lehman Brothers&#8211;they were too small for Federal Bailout. AIG was larger however and seemed to have its sticky fingers in too many different financial pies. The message is clear, get bigger and then you can keep on truckin&#8217;. With an FDIC guarantee of $250,000 per deposit, as part of the new bailout agreement, our banks will grow and grow and if someone doesn&#8217;t monitor what they do with the largess of all this new money, then the really big one may be still ahead of us. Let&#8217;s hope we can fix it now and fix it for good. But, the fix we did earlier started at the wrong end of the problem and in all likelihood, its magnitude may prevent us from fixing the gigantic social problems that need our attention, the most serious of which is our badly broken health care system. But, there is a way out and it is spelled MILITARISM, the solution for which is to shrink the completely insensible budget of the military and eliminate our corrupt and incompetent intelligence system. It doesn&#8217;t protect us anyway! But let&#8217;s get back to the nature of <strong>Follies</strong> before we tackle the really big one.<span id="more-188"></span></p>
<p><strong>The Unforeseen Folly: </strong>There are of course <strong>Follies</strong> that cannot be seen as such when they begin: who would have thought that the beginning of the industrial revolution was going to give us global climate change in ways we have yet to fully understand. But, based on what we know now, our planetary future doesn&#8217;t look so good. At the very least, things will be different climate wise and maybe our lovely little frogs, salamanders and toads will disappear during our lifetime. In some areas they have been wiped out already. The <strong>FC</strong> through environmental change, with perhaps a new mass species extinction underway, is the <strong>Mother of All Follies.</strong> Yet, that <strong>Folly</strong> is going to play itself out in some way that we can&#8217;t do anything about, at least not in the short run. It was like lighting a very long fuse a hundred and fifty years ago, connected to a bomb that is about to go off without us ever understanding how powerful the explosion is going to be. Whether we can fix that <strong>Folly</strong> in the long run is the <strong>mother of all challenges</strong>, but far removed from the kinds of <strong>Follies</strong> I am talking about here. In this space, we are considering political and social <strong>Follies</strong>, the ones that are fixable through political and social change, those that will have a short-term and perhaps long-term benefit if we recognize them as such and do some repair work on them. Indeed, fixing these kinds of <strong>Political Follies</strong> could serve as a model for fixing the long-term <strong>Mother of all Follies</strong>&#8211;the environmental one.</p>
<p>We will go through a period in which the environmental changes will seem permanent, because of the long half life of carbon dioxide in the atmosphere (50-200 years). But our models of global climate change are too primitive yet to fully understand the scope of what lies ahead of us. Yet the predictions of global climate change have thus far been too conservative, particularly in projecting the rate of loss of the polar ice caps, since it is now clear that the slowly melting ice cap model, the ice cube in a glass of water model, does not account for what really takes place during polar ice cap melting. But again, fixing the <strong>Mother of all Follies</strong>, will require that we have to fix the <strong>FC</strong> of political origins, those that can be solved through the political and social changes demanded by our current state of a very un-American America. <strong></strong></p>
<p><strong>The Economic Crisis of Today: </strong>Our current economic crisis, and the poor solutions we have used to fix it, will mean borrowing ourselves further into a hole without fixing some of the most critical elements the country faces, such as our broken health care system. Our solution to the meltdown is likely to mean that we will no longer control our own financial destiny, at least not on the sea of international currencies. We face the very real prospects that other countries will use our current state of financial collapse as a tool to reduce our influence in the World, even though at the moment it seems like we have dragged the rest of the countries down with us. But the countries that are buying our debt, like China, have a grip on our economy that we have never allowed before. Inflation of the dollar is very likely to be the only way out for America to reduce its debt and, with a further declining value of the dollar, there could well be pressure to push for another currency, like the Euro, as the basis for a new, more stable international exchange system, even though, right now, the dollar looks pretty stable. But the amount of money committed by our government to fix this economy is so far hovering around $7 trillion (loans, promises, purchases, stocks), a sum unimaginably large and unimaginably impossible to contemplate as an entry in the credit and debit columns. However, much of the borrowing that we are doing could be eliminated and we could stabilize our own economy if we dramatically reduced our military spending and began investing in the areas that help bring us an innovative economy, not the one we have today. Converting our military-industrial complex into the innovative technologies needed to address greenhouse gas reduction, as a new component of our economic engine, is one way to think about getting us out of a permanent war footing that stagnates our economy and the way we look at the world. Remember that we spend more than $1 trillion dollars each year on military and military-related costs, so that in principal, we could fund our own bailout without heavy borrowing. But these huge debts we face, are only going to multiply if we continue to go down the road of treating the military budget as untouchable. Massive public and private debt through military spending, wars, excessive speculation and credit card frenzies are the result of the accumulated <strong>Follies</strong> that are now arriving at our doorstep, all derived from the concept of <strong>Folly Compounding Interest (FCI)</strong>,<strong> </strong>addressed below.<strong> </strong></p>
<p><strong></strong> <strong>Fixing Follies Early: </strong>There is great danger in delaying the corrections needed to avoid serious <strong>FC.</strong> The greatest of these is that by putting off the fix for your <strong>Folly</strong> for a very long time, you may have forgotten what the folly was that started to get you into trouble in the first place, and, instead of fixing the original <strong>Folly</strong> , you fix the wrong thing, perhaps you actually introduce another <strong>Folly,</strong> which itself begins to accumulate as <strong>FCI</strong>. Worse, you might unravel some of the good stuff, keep the doodo, add some doodo of your own and then let somebody else worry about it later. Does that in any way feel like what we are faced with as a result of the presidency of GW Bush and his partner in crime Dick Cheney? It feels that way to me: nothing but a sea of doodo in front of us. Fortunately, we don&#8217;t have to worry about the free market hoax as a serious economic strategy, since we recently socialized a good part of our financial system. But of course, we only fixed things at the top, further depriving us of resources to fix things that truly need fixing. <strong></strong></p>
<p><strong>Huge Problems for a New Administration: </strong>Ordinarily, a new administration coming into the American Presidency has to face a difficult issue or two. But in this case, what Bush leaves behind is so extensive and pervasive, almost across the board, that it seems like a vast sea of problems, way beyond counting with just the fingers of your hand and way beyond simple solutions. No incoming President in our history has ever had to face two different ongoing wars (a third one is the &#8220;war on terror&#8221;). And to face them with a military that is shattered in its morale and strained to the breaking point from the stress of excessive, unfair, over-taxing service. There is a recent report out that claims the suicide rate of soldiers who have been in Iraq, after coming home, is such that the death toll from that source is higher than the death toll of soldiers in combat.</p>
<p><strong>Domestic Issues: </strong>Our medical care system is an embarrassment and badly broken as an effective and fair health care delivery system: it is too expensive and serves too few people. It doesn&#8217;t look anything like a solution by the so called &#8220;can do&#8221; Americans. Wages have declined over the past eight years for the middle class and were stagnant for a good part of the last 25 years; good jobs have been replaced by bad ones. People are losing their homes through money-gouging schemes that banks themselves have created in another far more extensive version of the Savings and Loans scandal of the 1980s. On Wall street, we have privatized profit and socialized risk. We have a magnitude of public expenditures on the military that is a noose around our neck with a budget of about $1.1 trillion, when all military items are added up, including the DOE costs for maintaining our nuclear arsenal, which itself remains more of a threat to all Americans than a source of security. It would seem that these many problems, none of which can be solved with a single band-aid, must have multiple causes. At first it might seem impossible that all of our current <strong>Follies</strong>, each of which is gathering <strong>FCI</strong>, can be traced to a single source.<strong> </strong>Yet, it is intriguing to at least explore the possibility that we can in fact, trace all of our current problems to a single <strong>Folly</strong> which we germinated and hatched in one of the past iterations of America&#8211;this would be the <strong>Mother of all Political Follies.</strong> Is it even remotely possible that one errant move of national dimensions in our past behavior has led to our current state of multifarious misery? That is the subject of this little note. But before exploring the issue in any significant detail, we must explore the nature and origin of <strong>Follies</strong> in our history and better understand <strong>FC</strong>, before switching to the <strong>Mother of All Political Follies.</strong></p>
<p><strong>Folly Compounding is Endemic to Institutions</strong>. All institutions make mistakes and countries tend to make very big ones. When a<strong> Folly</strong> befalls a company, which has a profit motive and a bottom line, it usually needs to be corrected quickly, or else the company could go out of business. British motorcycle manufacturers for example, were at one time king of the hill, with Norton, Triumph and others at the head of the class. Yet, by resting on their laurels, they fell victim to the energetic post-war Japanese, who provided, among other things, electric start motors, which helped propel them into the front ranks of motorcycle manufacturing. Today it looks like something similar may be happening to the American automobile manufacturers as a result of a kind of ossification in corporate leadership that maybe more related to the class dividing line of workers and management.<strong> </strong></p>
<p><strong>Follies are hard to fix for a Country: </strong>For a country, where there is no profit motive per se (it primarily serves a security function for those engaged in undertaking high profit activities), the motivation for correcting mistakes is always in the context of political survival rather than the health of the country. It&#8217;s good if they&#8217;re congruent, but GW has demonstrated to us how completely incongruent their alignment can be. It is far more likely for a country to get ossified from its <strong>Follies</strong> than a person or a business. And, the primary reason for this relates to the concept of <strong>constituency,</strong> because national political <strong>Follies</strong> are created by, and need to serve, a political alignment that brings you to power in the first place. And quite often, in modern America, that political alignment means telling the American people that one or more of the greatest <strong>Follies</strong> committed in their name, was in fact, a great American initiative. In America, political influence has created a false history of the country, such that a gifted politician, fed by a party with deep pockets, has no trouble convincing a large segment of our population, that pursuing <strong>Follies</strong> can be a noble cause. Nations suffer when they cannot properly identify their <strong>Follies</strong> and fix them before <strong>FCI </strong>comes due as a massive payment of unapproachable dimensions. It is not possible to change course unless you want to sacrifice your own career, which few people do. Under those circumstances, a politician survives by helping his constituency find better words for their <strong>Folly</strong>, words that allow the<strong> Folly</strong> to continue by another name: the invasion of Iraq had to be sold as a search for &#8220;weapons of mass destruction&#8221;  (WMD), not for oil and that myth still exists for many Americans today, particularly those with a deep need to believe their country can do no wrong. Unfortunately, these people are often the families and friends of soldiers that get called up to fight these wars and propagate the folly.  As another example. the Southerners didn&#8217;t fight intensely over slavery, but over <strong>States RIghts</strong>&#8211;the political version, which goes down more smoothly than the more barbaric term &#8220;slavery.&#8221; When corrected early on, a <strong>Folly</strong> does not accumulate <strong>FCI</strong> but, unfortunately, some <strong>Follies</strong> are seemingly impossible to avoid and invoke <strong>FCI</strong> not out of choice but out of circumstances.</p>
<p><strong>The Civil War as FC. </strong> Some <strong>FC</strong> may be unavoidable and you may even realize at the time, that one preferred choice may necessitate adopting a <strong>Folly</strong>, perhaps a major one. When the founding fathers of America couldn&#8217;t resolve the issue of slavery at the time the union was first formed, seventy years later we had the bloodiest conflict in our history in the form of a civil war and, still alive today, we face the aftermath of that war and the slavery mentality in the form of racism and prejudice that has become a major political tool, stimulating the great realignment politics of the 20th Century, in which the Republican party converted Southern Democrats into Republicans, feeding the political horror shows of Reagan, Bush I and Bush II.</p>
<p><strong>The Benefits of Slavery: </strong>One must keep in mind that the <strong>Folly of slavery</strong>, of allowing slavery to become rooted as an economic system, without which the slave states could not exist as they did, was not restricted to the South. During the peak of slavery, a very large fraction of wealthy British had acquired their wealth through the slave trade. Northern Americans profited from slavery through ship building and financing and many of the most successful slave traders were in fact Northerners by residential criteria. It&#8217;s been estimated that until the 19th Century, about 1/3 of wealthy British owed their wealth to the slave trade. The South was the recipient of the slave trade, but not necessarily the profiteer of the slave procurement system. The bill for perhaps the unavoidable <strong>FC </strong> of slavery came due during the civil war, which involved 3 million armed fighting men and 600,000 lives lost, many of whom died of poor medical care after being wounded (it was that event that stimulated the beginning evolution of medical care to move away from the primitive colonial medical methods, to adopt more modern techniques and ideas and eventually this process led to the fusion of science into medicine towards the end of the 19th century).</p>
<p><strong>Still Paying for the Civil War:</strong> If the heavy price of the Civil War in lives lost and mass carnage wasn&#8217;t enough, in many ways it proved to be something of a down payment for future atrocities and future wars. Indeed, we continue to pay on that bill in ways that seem challenging at each new turn. Like global climate change, the impact of the Civil War will likely be with us forever. The historic institution of slavery created huge wealth for many and an unsustainable economy for a significant population of Americans. Yet, the very nature of slavery was such an anathema to the founding of our nation, such a completely farcical notion in the face of the wording found in the Declaration of Independence, that &#8220;all men are created equal&#8221; that continuity with the past had to be sharply altered. Otherwise it was hard to sleep. You can only wonder if addressing global climate change will prove to match the titanic struggle we went through over slavery. It seems to be shaping up that way. There is after all, a giant economy and huge profits derived from fossil fuels and the suppression of science that tries to tell us about the <strong>Folly Compounding</strong> nature of pursuing cheap carbon-based energy sources.</p>
<p><strong>The Civil War did not end FC from Black enslavement. </strong> As devastating as the civil war was, it didn&#8217;t really solve the problem of slavery. It was only the beginning of a solution as we faced a long interim period of converting from slavery to enslavement. If you believe that the civil war ended slavery in the South, think again. In <a href="http://www.slaverybyanothername.com/">Douglas Blackmon</a> &#8216;s book &#8220;<em><strong>Slavery by Another Name</strong> </em> &#8221; (a summary of which can be read/watched on <a href="http://www.pbs.org/moyers/journal/06202008/profile2.html">Bill Moyers </a> Journal) the author discusses how post-slavery enforced labor camps created a new form of slavery in the South that re-enslaved thousands of blacks who became indentured laborers. Blackmon has compiled strong documentation that Southern states, which had Slave Codes that regulated the behavior of slaves before the civil war, formulated new codes after reconstruction that allowed them to bring back slavery in a new form&#8211;forced labor camps. Immediately after the civil war, Southern States tried to replace &#8220;Slave Codes&#8221; with &#8220;Black Codes&#8221; to achieve something similar in creating cheap black labor in the South. But these laws were struck down and the South responded by creating new laws that would fall on blacks to effectively recapture their free labor. These new laws were more subtle and included the concept of &#8220;vagrancy&#8221; which itself became a code word for rounding up blacks and getting them into forced labor camps from which they might have escaped previously or be recruited anew. These new laws helped to create labor camps that effectively replaced slavery, and, in essence, accomplished very nearly the same thing. From Blackmon&#8217;s interview with Bill Moyers: &#8220;Well, and but what the picture also demonstrates [referring to a photograph in his book] was the level of violence and brutality, the venality of things that were done. And so, this kind of physical torture went on, on a huge scale. People were whipped, starved. They went without clothing. There were work camps where people reported that they would arrive looking for a lost family member, and they would arrive at a sawmill or a lumber camp where the men were working as slaves naked, chained, you know, whipped. It was it&#8217;s just astonishing, the level of brutality.&#8221; Blackmon continues&#8211;&#8221;And some of the most prominent families and individuals in the creation of modern Atlanta, their fortunes originated from the use of this practice. And the most dramatic example of that was a brick factory on the outskirts of town that, at the turn of the century, was producing hundreds of thousands of bricks every day.The city of Atlanta bought millions and millions of those bricks. The factory was operated entirely with forced workers. And almost 100 percent black forced workers. There were even times that on Sunday afternoons, a kind of old-fashioned slave auction would happen, where a white man who controlled black workers would go out to Chattahoochee Brick and horse trade with the guards at Chattahoochee Brick, trading one man for another, or two men.&#8221;</p>
<p><strong>The Black Law of Vagrancy</strong>: During the forced labor camp era in the South, you could be arrested on the streets and charged with vagrancy, appear before a judge who ordered you moved to a labor camp from which it was testified you escaped. Apparently the North looked the other way after reconstruction as if to say &#8220;we will not tolerate slavery in the North, but if you are a Black man and decide to stay in a former slave state, you&#8217;re on your own.&#8221; These labor groups existed throughout the South until the beginning of the Second World War. So when you walk the streets of Atlanta think about the fact that the city probably could never have been built without modern slave labor. It just wasn&#8217;t called slavery.</p>
<p><strong>A Modern carryover of Slavery. </strong> In modern times, post-Barry Goldwater, manipulation of this &#8220;Southern block&#8221; of former slave states created the new political coalition that polluted the Republican Party and gave us Reaganism. Modern Republicanism was built on the unethical manipulation of Southern Whites who were pissed off with the Democratic Party, because of Civil Rights Legislation, passed when Lyndon Johnson was President. It was Barry Goldwater himself who suggested, after his stunning defeat to Johnson in 1964, that the Republican Party should recruit the Southern States who were ready to jump ship from the Democrats after the Civil rights legislation passed under Johnson; that was the beginning of Nixon&#8217;s &#8220;Southern Strategy.&#8221; It proved to be the most significant political realignment of the post civil war era and it still dominates our political landscape. Hopefully the 2008 political victory of Obama has helped to destroy this block of voters that eliminated any liberl, progressive legistation from ever passing. You may notice that until the recent healthcare bill was passed this year (2010), no progressive legislation had been passed by our national congress since the civil rights legislation of the 1960s. The power of the South can only permanently be eliminated by eliminating or changing the senate to a proportional system and eliminating the electoral college system all together.  Otherwise, unified Southern power can be reborn again, many times over.</p>
<p><strong>Could we have done without Slavery? </strong>Would we have been better off today by insisting on a slave-free union written into our constitution when we first formed our country? That is what some, like John Adams wanted to do. But it proved to be a bridge too far. One of the most prominent states, Virginia, was a slave state and its most prominent political figure of that era and author of the Declaration of Independence, Thomas Jefferson, owned slaves and sired children by at least one of them (although he wanted to rid Virginia of slavery earlier in his career and concluded, by the opposition that he ran into, that the time was not ripe for such a sea change in the culture, that it would have to wait until some future date when the country was more mature. Of course, that maturity never came). Even if one could have formed a slave-free union and defeated the British, a new smaller union, one formed of slave-free states might not have survived the war of 1812, if the Southern block served as allies with the British, permanently changing the landscape of America and perhaps restoring British rule, at least in some regions of the country. It was not until the war of 1812 was concluded that the British decided against ever seeking dominion in North America again. As an aside, perhaps the American Indian culture would have been better off, for it was their alliance with the British during the war of 1812, that resulted in the Indian purges by Andrew Jackson, as he drove some southern Indians into Florida, and forced the Cherokee Indians of Georgia to march the &#8220;Trail of Tears&#8221; to relocate into what is now Oklahoma, ostensibly as punishment for their alliance with the British, but in reality it served as continuity for American expansionism. Thus, Indian genocide was greatly accelerated by the War of 1812 (Northern Indian alignment with the British during the Revolutionary war also figured in the hardened attitudes that the new American government had towards Native Americans).</p>
<p><strong>One last try for the British: </strong>Until the battle of New Orleans, which the Americans were supposed to lose, Britain had a strategy for retaining American holdings. Even though the 1812 peace agreement was signed in London before the Battle of New Orleans, Britain insisted that it had to be carried over to the US for its signature there, hoping that in the intervening travel time, the battle of New Orleans would be a decisive victory for them and the treaty would be renegotiated or canceled, giving Britain a new opportunity for continued presence in the New World. But that all ended when Andrew Jackson pulled off a stunning victory in the Battle of New Orleans. As a result, the British never again challenged American hegemony in North America, by trying to establish a foothold in America. Of course, the American aim, of driving out the British in Canada did not succeed, as our invasion into Canada was a bit like our invasion of Iraq.</p>
<p><strong>More on Follies: </strong>Part of <strong>FC </strong> is institutionally endemic, because when large organizations make decisions of great momentum, often when they first get started, or get a fresh start for some reason, they very rarely change or adapt to new circumstances. Indeed institutions or countries are designed to propagate <strong>FC:</strong> that&#8217;s why they can accumulate such huge levels of <strong>FCI</strong> as it is hard or perhaps impossible to avoid. This is not because they feel they made the right decision in the first place, but rather their decisions create <strong><em>constituencies</em></strong> and an internal momentum, such that going back on the foundations of their decision-making might risk the entire enterprise and certainly put those in charge at greater peril, politically or otherwise. Once you make a big <strong>folly</strong>, it is hard to undo it. Indeed preservation of the <strong>folly</strong> means preservation of the <strong>folliers</strong>. I have heard in recent months elected members of the House of Representatives take the floor to remind Americans that there is no greater duty to country than that of continuing to fight communism. Presumably, they are referring to Cuba or North Korea as the remaining giants of communism, as China is now evolving into a new relationship with the United States, in this case, an economic one (mind you, our current and developing relationship with China was initiated by Nixon when he realized that he could not solve the war in Vietnam without going through China. So forgetting that China was a communist country was more like a forced choice on Nixon, rather than a contemplative option). For the Chinese, the American loss in Vietnam was an overwhelming, but expected victory.</p>
<p><strong>Folly Compounding by undoing the wrong Follies: Folly</strong> compounding<strong> </strong> is different for an individual when compared to a nation, largely because a person has only one or at most a small group of people to worry about, not a large constituency. The individual is always better prepared to correct follies, especially those that have significant financial implications. The ultimate financial crisis can lead to bankruptcy which at least gives you something like a fresh start. But for countries, such as the United States, once an initial decision is made, succeeding presidents tend to enforce those decisions rather than unravel them: if you try to unravel prior decisions you always run the risk of unraveling the unraveler. After the Bay of Pigs disaster for example, President John F. Kennedy might have wanted to expunge the CIA, and apparently intimated that in one of his comments. But, he never really had any intention of doing so (despite numerous rumors that he did), because had he seriously tried it, he would have unraveled all the narratives of the post-war era and too many American heroes would have bit the dust. Any attempt on JFK&#8217;s part to do that might well have put the Democratic party into the dust bin of history. Even by the 1960s, the false narrative of our country was not a pretty story. But if the <strong>Follies</strong> of a predecessor might get recognized early on as a <strong>Folly</strong>, it is far easier to let the <strong>Folly</strong> continue to perpetuate itself, continue to grow at compound interest rates, so that the new guy can make <strong>Follies</strong> of his own and look forward, rather than spend his time unraveling the <strong>Follies</strong> of his predecessor(s) and always be looking through the rear view mirror. Every incoming president wants to do something new, and only in our recent history have we had presidents (like Reagan and G.W. Bush) who were seriously committed to undoing what others had done before them (OK Jefferson did it to Adams&#8217; presidency during his first term, but that was pre-industrial). For Reagan it was more subtle, like hiring incompetents to head organizations like the EPA, whereas for GW it was not subtle at all, as he tore up prior laws and international treaties and went out on his own (Under GW Bush, the Clean Air Act is gone, as is the Endangered Species Act). Unfortunately, these new undoers, Ronald Reagan and G. W. Bush, undid the wrong stuff and further added to <strong>FC </strong>and the <strong>FCI</strong> that goes with it. We have only begun to contemplate the payback in store for us from the changes in the environment and our climate. The only thing we know for sure is that the worst is yet to come.</p>
<p><strong>The Bill for Folly Compounding:has it arrived? </strong>The responsibility of a new administration is to plan a new set of programs, many of which are likely to initiate new follies and, at the same time, it&#8217;s important to put a band-aid on the follies of your predecessor so that the bill for the old ones won&#8217;t come due during your presidency, otherwise you will get the blame. The Republican Party of today does not object to Obama or McCain becoming President this time around, because there are so many <strong>Follies</strong> coming due that the new President will get blamed for his inability to solve them. It seems to be turning out however, that G. W. Bush and his neocon buddies weren&#8217;t smart enough to band-aid the old follies with ones that stick and we may be witnessing the bill for all the old <strong>Follies</strong> coming due during the last months of his presidency. Although, with nearly two months to go, the bill could still get higher (note added later&#8211;it did!).</p>
<p><strong>America&#8217;s last gasp Folly? </strong>The last log to put on the fire for the American economy was the housing bubble, created by low interest rates by the Fed and sub-prime mortgages conjured up largely by investment banks as securitized stocks. These instruments were so complex that few understood them. Now that it is burning out, it seems like it might turn into a nuclear star, the predecessor to a black hole. Wall Street got hooked on bubbles. The dotcom bubble was created out of hype, when internet companies could issue stocks one day and see their worth soar to hundreds of times the opening share price without ever showing a profit. Any fool could tell you that this bubble couldn&#8217;t last and when it burst, the feds quickly moved in to help create a new bubble&#8211;the housing bubble&#8211;seemingly the last log to put on the fire. There is no economic factor or bubble on the horizon that is waiting in line to replace the speculative housing bubble: with a consumer-based economy and so much public and private debt, at such high interest rates when credit cards are used to finance the debt, the cupboard is now bare. The bursting of this bubble has now led to $ trillions in debt and loan guarantees. This is nearing a 10 on the Richter Scale. It may not seem believable that the huge financial meltdown we are going through had its origins in the era immediately following the end of WW II, when we stepped into a leadership vacuum, without clarity of mission or technique. Instead of learning from the FDR era about going softly on issues such as how we would deal with Russia, the right-wing was able to veer Truman into the same anti-communist  frenzy that had been  unleashed during World War I when the Russians quit the war as a result of their revolution. We sent American troops into Russia in that period to help the White Russians overcome the Bolshevicks. That intervention in another country&#8217;s internal struggle was against the very principles we were founded on as a nation. And, many Russians still remember the U.S. treachery in those years, fed by the rabid anticommunist frothing churned up by the right wing Republican fanatics. And, part of the solution to these problems lies in the 900 lb gorilla in the room that no one wants to talk about yet&#8211;the excessive military expenditures that drain our resources. But this too is a double-edged sword, as our &#8220;bomb economy&#8221; puts a lot of people to work in the defense industry. Bush may be too mired in ideology to generate the vision necessary to find at least a temporary solution (in case you haven&#8217;t noticed how many untoward disasters that are all around us and seemingly have us properly on the edge) to the most pressing problems that are currently falling into his watch. One needs to face the housing disaster as a national disaster, like Katrina, but do it this time so that it works. Get people back into their homes and stop the financing that has allowed wealthy people to make more wealth off of the poor. Reduce the interest rates on credit card debt and make it easier for people to get out of that form of debt. Yes banks will fail, they are failing now, but we have faced that problem many times before: remember the Savings and Loan crisis of the 1980s? Yes, it may no longer be possible for a financial wizard to make hundreds of millions of dollars each year for doing very little, except contributing to the national level of <strong>FCI.</strong> <strong>Folly Compounding</strong> gets harder and harder to fix the longer you wait. If you wait too long, no one can remember what the folly was in the first place that got you into your current dilemma.</p>
<p>There is always great opposition to fixing <strong>Follies. </strong>The Republicans don&#8217;t want anyone to go back and examine how we really got into our present fix, with a bloated military, runaway military expenditures, the need to create new demons and dragons to slay, calling ourselves a superpower, all the while internally evolving into a third-world country. No leader, no party, no single person on the political horizon with the exception of Ralph Nader, Noam Chomsky and Chalmers Johnson, wants to connect the dots between our huge military expenditures and our inability to provide health care for our citizens or our concern for the internal economic stability of our country. That is the <strong>FCI</strong> bill that is coming due today. We are just seeing the tip of the iceberg. We are in a country where any wealth we could apply to fix our current fiscal problem goes to the military to fight of our enemies, most of which are imaginary. As a result, all of our financial bailout is created by money borrowed through the printing press.</p>
<p><strong>When did we begin Folly Compounding? </strong>No one seems willing to go back far enough to recognize that our biggest source of <strong>FC</strong> began at the close of WW II, when we launched the <strong>Mother of all Political and Social Follies</strong>, by making Russia, China and communism into a giant monolithic threat that seemingly wanted to enslave us all, all of us wee little capitalists. This threat was created by the rabid right-wing elements who wanted to preserve capitalism at all cost and sucked the inexperienced Truman into being the guy with the banner. In retrospect it was all too easy. But Truman was aided by one big ace in the hole that made his creation of the Cold War too tempting: Leslie Groves, the air force general who guided the development of the Manhattan Project, which created the atomic bomb, promoted the idea that, by dropping the bomb on Japan, we would be serving notice to the Russians, letting them know that this new ultimate death weapon could be used against them and this single act (Hiroshima and Nagasaki) would give Americans hegemony over the Russians and the threat of advancing communism for at least forty years. In the words of Groves, &#8220;the Russians couldn&#8217;t even build a decent jeep.&#8221; It was in fact Truman&#8217;s adoption of this attitude, however naive that it was (many have argued for example that the Russian T34 tank was a good match for the German Panzer tanks, much better than our own Sherman tanks, which were poorly matched against them when head to head confrontations began after D-Day and in Africa and Italy). It was the seemingly seductive gift of the atomic bomb that made Truman jump onto the slippery slope of using militarism as the chief weapon against the contrived threat that the Russians would be advancing communism throughout the World, now that they were a true superpower, created by their dominant role in defeating Germany in WW II. The Russians did not want the Cold War. Stalin had lost 20-24 million people and badly needed time to heal as a nation. He did not support the communist party&#8217;s in Europe in the aftermath of the war, because he didn&#8217;t want another conflict to absorb his energy. He had too many things to do at home. At the end of WW II, the great Russian army that defeated Germany was largely demobilized&#8211;they had to rebuild their country.</p>
<p><strong>When the C</strong><strong>old War Began: </strong>It has been argued that only days after FDR died (1945), Truman met with Russian Ambassador Molotov and chewed him out for the Russian demands in controlling Poland. This was a little odd, since Russia had experienced Polish soldiers who participated with the German army during the invasion of their homeland and the Battle of Stalingrad: why wouldn&#8217;t the Russians insist on control of Poland after WW II? The old axium that to the victors go the spoils is still true in case of war. Of course there were Russian atrocities against the Poles when Hitler and Stalin signed a pact and carved up Poland before the Germans opened up their fatal second front against Russia. The abrupt hostile attitude and contempt that Truman showed for Molotov has been used by historians to mark the beginning of the Cold War and, for America, it was the beginning of their greatest <strong>Folly. Folly</strong> by fiction is the greatest of all <strong>Folly</strong> sins, because to fix those, you have to recognize the fiction before you can get to the <strong>Folly. </strong>The cold war was conceived and executed by a small group of Americans in the Truman administration who would never have had the authority on policy had it not been for WW II, which gave them the access they should never have been allowed to have. The Cold War was nothing more than a policy to propagate world-wide American hegemony.</p>
<p><strong>Follies are propagated: </strong>As another example (hardly trivial for those on the receiving end) of this kind of propagating <strong>Folly</strong>, you can see it in how we support our military, more specifically, how we support the soldiers on the ground. We have all been disgusted by the lack of good armor for our troops in Iraq, where roadside bombs have been the single biggest cause of death and injury, a situation in which simple armor plating of the vehicles could save lives and reduce injury and ultimately, long-term care costs to those who get injured. Although conditions have improved, most of us reel in irritation and feel that soldiers are underpaid and certainly under protected. The revelations about the poor health care conditions at Walter Reed Hospital confirmed and expanded our disgust with our own government. Can&#8217;t the world&#8217;s only superpower protect its soldiers and care for them any better than this? But that attitude is endemic to the way we have always looked at our foot soldiers, the grunts in the trenches. George Washington almost quit as the commander of the Continental Army because Congress would not adequately fund his troops, many of whom went without shoes and adequate clothing. The winter at Valley Forge was nothing short of a nightmare for Washington. His army was replete with desertions, infighting, quarrelsome interactions and bad morale. The only thing that kept the Valley Forge army together that winter was Washington&#8217;s constant visits to the camp and his engulfing presence. But once this policy was formulated, that we would be stingy with the troops, it became our cultural standard and has been carried forward as part of our modern view of the military at the level of the grunt: don&#8217;t spend any more than you have to on the soldier who does the actual fighting. If any succeeding president wanted to undo what congress established during the revolutionary war, it would be challenging and most presidents want to promote continuity of presidential lineage, not a series of disjunctive changes of the guard, where you spend most of your time unraveling the old stuff and much less time threading some new. With the exception of GW Bush, no president wants to be part of a historical yo-yo. In the case of the foot soldier, any advantages that our modern troops have over Washington&#8217;s, were carved out of the need to give incentives for recruiting an army of adequate size and skill, particularly as the population from which they were derived became more educated and sophisticated. It would be far better if we completely outsourced our military at the foot soldier level. But, will the Chinese be willing to serve their army and ours?</p>
<p><strong>How is our treatment of soldiers relevant for </strong><strong>Folly Compounding? </strong> Nixon eliminated the military draft in 1969 and the last drafted soldier to serve was called up in 1973. Since then we have an all  volunteer army. At the present time, the unpopular war in Iraq has seriously compromised our ability to recruit qualified soldiers. This inability to recruit quality personnel for the military has forced the military to reduce the standards for army recruits, such that high school dropouts and people with marginal ability or those with criminal records can qualify today, where they were banned previously. These soldiers are much more likely to engage in torture and abuse, simply because of their background. More importantly, professionalizing the army, as we have done, puts the nation at greater risk for a military junta or takeover. You have only to look at the composition of our police and military to know which political philosophy would prevail in a military takeover. So it might be the case that this source of <strong>Folly Compounding</strong> is yet to extract its ultimate price. The other component to this issue is that by calling up the National Guard to serve in Iraq, we have robbed the governors of access to a military force when confronted with an emergency. All these elements lie smoldering under the surface and, by the time pressure for more army personnel comes up, the escalation to a permanent war footing may be necessary, at which time reconstituting the draft may be required. Currently the army is stretched to the breaking point and the National Guard is completely dispirited.</p>
<p>One feature of <strong>Folly Compounding</strong> that consistently rings true, is that looking back, it seems utterly irrational when you try to visualize how we moved from enemies to friends or the other way around. Continuity is not among the landmarks of our retrospective trail. Take for example how we react to Cuba vs China. Both are communist states, the presumed mortal enemy of our capitalist society. Yet, we simply disregarded the communist state of China to engage them in an act of symbiotic economic interdependency, but oh yes, Cuba is different&#8212;it&#8217;s a communist state and we have no economic or political will to change our attitude about that country right in our own backyard. For Cuba, it&#8217;s the ideology stupid! But it&#8217;s not the ideology of the political system that counts, it&#8217;s the ideology of corporate America. We will have an embargo against Cuba until we get to use Havana again as a vacation/gambling resort and Castro is no longer around.  It&#8217;s that simple. Hypocrisy doesn&#8217;t even matter anymore. We no longer have a free press that is willing to draw attention to our corporatist state and the false history that is needed to sustain it. We have reached a state in our society where outright plain lies spoken by our president are never challenged in the press. You have to go to the blogs to find reality.</p>
<p><strong>The Roman Empire was a classic example of </strong><strong>Folly Compounding</strong>: the only problem is that no one knows with certainty which of her many follies was the most important one accounting for her decline and fall.  Did she jump into the dust bin of history by the sheer weight of too many accumulated <strong>Follies</strong>, or was there one in particular that outweighed all the others? Corruption? Too many wars? To many armies to feed and support? Bloated aristocracy? Blowbacks from all the indigenous people she had trampled and slaughtered? For the last sixty years, America has been <strong>Folly Compounding</strong> and, at the moment, it does not look to anyone that we will last anything comparable to the duration of the Roman Empire, which lasted about a thousand years.</p>
<p><strong>Our one-time attempt to erase our Folly: a decade of restoration: </strong>There is one sliver of hope that we can draw on from a long forgotten page in our post war history which gives us encouragement that something like a cure can still be found. Perhaps our economic collapse has given us an opportunity to address these problems as we did previously. Lately, we hear a lot more people asking &#8220;what would FDR do?&#8221; The Google list for &#8220;FDR&#8221; has exploded with new options for information. But we should also think about Googling sputnik, the Seaborg Report or Vannevar Bush. In fact, we did go through a brief ten-year period (1958-1968) where it looked like America might recover, as she attempted to set a new course for herself and tried to right her tilted ship of state. This happened as a result of <em><strong>Sputnik</strong></em>, the Russian satellite launched in 1957. <strong><em>Sputnik I</em></strong>, followed a month later by <em><strong>Sputnik II</strong></em> shocked the world and terrified the hard right-wingers. Physicist Edward Teller, the patron saint of the hydrogen bomb, said the United States had lost &#8220;a battle more important than Pearl Harbor.&#8221; Senator Henry Jackson, a war hawk Democrat, proclaimed that <em><strong>Sputnik</strong></em> was a &#8220;devastating blow to the prestige of the United States as a leader in the scientific and technical world.&#8221;  The hardliners throughout the country were flummoxed. They couldn&#8217;t respond with more military buildup and a new round of nuclear warheads (although they did that too), because the lesson of <em><strong>Sputnik</strong></em> was a lesson of being bested in the game of science and technology. For the Russians,<strong><em> Sputnik</em></strong> was a major propaganda victory and yet it was a scientific disaster. Before <em><strong>Sputnik</strong></em> was sent into space, Russian technicians were having a hard time getting the Geiger counter on the satellite to send signals to a receive for making measurements of radiation in space. Kruschev was so worred about getting the Russian satellite up there first (it was a geophysical year and others, including the U.S. were trying to launch a satellite as well), that he sent it up without the ability to make measurements. Ironcially, several months after <strong><em>Sputnik</em></strong>, the Americans sent up their first satellite&#8211;<em><strong>Explorer I</strong></em>&#8211;which did have measurement tools and was able to measure the first of the two Van Allen Radiation Belts. With the launch of <em><strong>Explorer I</strong></em> America grabbed the lead in the science of space exploration, while ceding to the Russians the propaganda victory in the struggle between two political systems. Scientists in America had argued since the close of WW II that new government expenditures for research had gone mostly to the military and that basic science research was not developed as promised after the war. <strong><em>Sputnik</em></strong> forced America to re-examine her research investment priorities. Clearly something in America was wrong if the Russians, germinating from a supposedly inferior system, could best the United States in an area that they had claimed for themselves. America was first with the bomb, how could they not be first into space?</p>
<p>Eisenhower assigned a committee to make recommendations about how to respond to<em><strong> <span style="color: #888888;">Sputnik</span></strong></em>. The Seaborg report of 1960 concluded that the Russians were ahead of America because their students were better trained in math and science. America had too few research universities for proper science exposure to its student population. More would have to be built. A doubling of research universities had to be initiated. The Seaborg report further emphasized that the kind of investment they were proposing represented a sound investment in America and her future. In addition to the construction of more research universities, the Seaborg report emphasized that support for students and the infrastructure for training future Ph.D.s would be a necessary system of support. Prior support of universities had been too narrowly focused.  A national consensus developed that America should increase the number of research universities  (there were about 16 in that era, about the same number as those that existed in the 1930s) and embellish those that were already designated as such (based on the % of nation&#8217;s Ph.D. students). So began the <strong>Golden Era of the American Research University</strong>, in which new  universities began and  students were encouraged to go to college and received support through student loans and scholarships. Low interest student loans were made available and funding for graduate students was  expanded together with a gigantic expansion of the research facilities throughout the country. Collectively this  formed a new industry, one  never before seen in this country&#8211;an industry to educate and grow, with a new emphasis on science, engineering and technology all viewed as a new investment strategy for America.</p>
<p><strong>More on <em>Sputnik. </em></strong>The new national mood created by the response to <strong><em>Sputnik </em></strong>reflected one of the great transforming moments in American history. Although Americans were encouraged to study Russian, as they seemed to be the dominant scientific community of the post-<em><strong>Sputnik</strong></em> world, there was palpable relief from the old McCarthy era days when students had to get under desks to practice drills for an atomic bomb attack, as one of the means for indoctrinating the country against an enemy that did not exist. Instead of beating America&#8217;s chest for developing American hegemony on the basis of military achievements and deployments, we began to emphasize the fundamentals of education and began to appreciate more intellectual developments and individual cognitive growth: America needed to get a lot smarter. The projected growth for  the American research university system was pegged at 15% per year and in 1968, the research university program reached its highest percent spending of the economy at .025%. The country was aroused and responded dramatically to these new education and research opportunities. This new effort became the center piece of Kennedy&#8217;s &#8220;<strong>New Frontier&#8221; </strong>that brought him into office, as he promised continuity with the program and expansion of teacher education throughout the country. This ten year period, the Golden Era, proved that America can do remarkable things when a national focus is made that improves the lives and outlook for all Americans. No child left behind did not need to be included in the dialog, because the great civil rights awareness was just appearing on the horizon as a national dilemma. The scientists and engineers brought into universities in that era changed the face of science and brought the new disciplines of molecular biology and neuroscience into the American sphere of influence, while keeping other disciplines such as physics, as premier disciplines in American universities. Indeed the term &#8220;neuroscience&#8221; is an American term brought into existence in the 1960s, when the Society for Neuroscience was formed in the United States. But, tragically, this new emphasis on education and research, though it restored American prestige by putting a man on the moon ahead of the Russians in 1969, did not continue in the same way, as the Vietnam War began to capture the resources that had been flowing into our higher education system. In addition to that, the civil rights movement clearly established that America had a long way to go before justice for all its citizens could be established. But, by investing in education and expanding our research universities in the 1950s and 1960s, we are better prepared today to soften the blow that currently rests on our doorstep. Indeed, without that investment in the 1950s and 1960s, we would not be as prepared as we are today to rebuild our economy along the lines that can take advantage of the investments we made in that long forgotten Golden Era. So, there is a way out&#8211;we did it once before. While we look back to FDR for hints about dealing with our fiscal crisis, we should look back at <em><strong>Sputnik</strong></em> as an example in our history where, for a decade, we started to get things right. But, after this brief flurry of relief, when America had an opportunity to right the ship and set a new course, whamo, we got back on the <strong>Folly Compounding</strong> train through Vietnam, the rise of Southern politics and the corporatist reaction to Rachel Carson&#8217;s <strong><em>&#8220;Silent Spring&#8221; </em></strong>which put the brakes on our development of higher education and turned on the spigot once again as we turned our back on that enriching decade to reassert our pursuit of compound interest on our <strong>Follies</strong>. Vietnam is part of the bill that seems to be coming due right before our eyes. But that too is only part of the story.</p>
<p><strong>Do we finally recognize our Follies? </strong>GW Bush, our current president, has been able to achieve something no other president in the history of the United States has managed to do: he has shown us how you can <strong>Folly Compound</strong> on a scale so unimaginable that almost everyone today either understands or feels what <strong>Folly Compounding </strong> is or does to the country as well as the individual citizen. The financial cost and the social implications of what he has done to our treasury and the cultural threads that bind us together are both visible, palpable and planted somewhere in our gut. We can see in the course of a single presidency what has taken nearly 6 decades to otherwise achieve. Bush has the unique distinction of not only spawning a whole new slew of <strong>Follies</strong>, but he has done what presidents seldom do&#8211;he did go back and undo his predecessors decisions and convert good decisions into a new brand of <strong>Folly.</strong> Bush didn&#8217;t undo any of  his predecessors <strong>Follies</strong>, but instead undid their positive contributions. Things like the Clean Air Act and the Endangered Species Act. He undid those good deeds that worked well and kept his predecessors bad ones, tilting the windmill ever further towards the point of no return. Many have argued that we are just one or two terrorist attacks away from a military dictatorship. GW had already cleared the way for this action, since he struck down <a>Posse Comitatus</a>, thus making it legal for our military to patrol the U.S. The military establishment of NorthCom should frighten every American, because it is a new military field of operation, targeted at the United States with the possibility of using our own military for a takeover of the country, if the situation warrants it. But who decides whether any situation requires military action and martial law? Yep, GWB. Bush has &#8220;legally&#8221; established that in the &#8220;War on Terror,&#8221; the U.S. is a potential battlefield and the &#8220;decider&#8221; will choose whether the conditions warrant military action. It will be a stain on all of us that GWB and Cheney were not impeached during their tenure as president and vice-president. Will that failure become America&#8217;s greatest <strong>Folly?</strong></p>
<p><strong>The National symptoms of Folly Compounding: </strong>Even in the face of such a devastatingly high level of <strong>Folly Compounding</strong> , for some, recognition of this phenomenon still travels below the radar screen of verbalization. Perhaps this is still true for the majority of our citizens: for them, the awareness of <strong>Folly Compounding </strong> comes in the form of a gnawing, uncomfortable rumbling in the gut, accompanied by a low grade nausea, possibly with gas or the disquieting sensation of convulsive-like, peristaltic waves gurgling in our abdomen and rippling within our gut. At times this discomfort makes one feel as though the lunar tides have settled in the abdomen as a full-blown nighttime repetition of what one goes through less subtly during the day. Antacid sales go up and Insomnia, depression, poor performance on the job, being easily distracted, more irritable mixed with confusion and anger are all part of the <strong>Folly Compounding </strong> syndrome when it reaches the subconscious level of our citizenry, those who don&#8217;t know quite know enough to verbalize the problem. You don&#8217;t know what it is, but your gut is telling you that something is very wrong. For these types, things just aren&#8217;t right&#8211;there is a feeling of doom lurching around the corner. They will know a better country when they see one or feel it in their gut. Religion might be their antidote and perhaps it already is. There is a mood shaped by these tormented intestinal rumblings, a thread throughout the nation, a feeling that something bad has happened, but something worse is on its way. Perhaps we are ripe for an alien invasion, as the Martians have been waiting for signs of weakness and now they feel the time is ripe for a launch. But, for others, they know exactly what is going on and why. Their insight has reached the stage of verbalization and perhaps well beyond. Yet, for this group too, our present circumstances leaves them somewhat paralytic, facing a sense of despair about the future, because political realities are such that change in a big way, something that might put limits on <strong>Folly Compounding</strong>, and begin to reign them in, those seismic events usually require a major disaster, a sea change that leaves no doubt that mistakes were made and choosing to go down the road we have been on was a disaster: we need a brand new direction. We need to re-lurch the ship. Do something that will register on the Richter scale. The listing ship is there, but the will to right it has yet to emerge.</p>
<p><strong>America has lacked palpable disaster: </strong>In a way, America has never had a major disaster visited upon it from another shore. Our major <strong>Follies</strong> have come when we have attempted to influence other countries through our growing militarism. But, we have yet to recognize these missteps for what they really represented. So, Korea, Vietnam and Iraq should have been viewed in that way and, had that kind of viewpoint prevailed, then <strong>Folly Compounding</strong> might have had a much more restricted visitation in setting the course of our current and future history. One might argue that 9/11 was America&#8217;s first disaster of foreign origin, but that is stretching the meaning of the concept and the significance of the event. 9/11 was visually horrific, but nothing less or more than a &#8220;blowback,&#8221; the stage for which we created for ourselves and upon which we became the principal actors. It did not signify an act of war, but rather an act of terrorism combined with pure luck and extremely poor awareness on our part about the dangers we create for ourselves, the alarm for which should have been the World Trade Center bombing of 1993, an event that should have set off an alarm and triggered a more rational way of dealing with our own domestic security. The same person who financed the <a href="http://en.wikipedia.org/wiki/Khalid_Shaikh_Mohammed">World Trade Center bombing, Khalid Shaikh Mohammed</a> also helped plan 9/11. Preceding 9/11, the same group had planned a terrorist attack in the Philippines that involved boarding numerous planes and using them to crash into selected targets. But the story behind the 9/11 attack, a story of <strong>Folly Compounding, </strong> began in the 1970s during the Carter administration, when we were feeling so clever and invincible about ourselves. We rope-a-doped the Soviets into invading Afghanistan and as a reward, got 9/11, Iraq, the Taliban, Pakistan and a new narrative for the false history of America. Charlie Wilson&#8217;s War was a <strong>Folly</strong> and another example of the short-term thinking that dominates our government strategy. 9/11 was another notch in our <strong>Folly Compounding</strong> belt, but much of the country has yet to recognize it as such, for the Republicans have been successful in telling and warning the country &#8220;don&#8217;t go there.&#8221; If you go there you will suffer &#8220;paralysis by analysis.&#8221; It is the Republican tendency for developing irrelevant jingoism that seems to work for them as it distracts the public. Only in the last few weeks of our post-war history is this Republican form of  sloganism beginning to ring very hollow. It seemed to ring hollow in the 2008 election.</p>
<p><strong>The origins of modern Folly Compounding: </strong>Since the close of WW II, the United States has embarked on <strong>Folly Compounding</strong> by generating great, disjunctive moments in our history where abrupt, hard political turns were made that lurched America inexplicably in new directions: two of these seismic shifts were destructive and one was restorative. All three bear examining. Yet these giant political lurches, a <strong>Folly Compounding </strong> spree if you will, begged most fundamentally at the question of why. Why does a country seemingly on the verge of a breathtaking pinnacle of opportunity for peace, social tranquility and economic prosperity, choose instead the most paranoid and destructive option of all available choices? How did a country that had come through a challenging but uniting war, under strong, popular Democratic leadership, a leadership that advocated a vision for a peaceful future, with reduced imperialism as a global objective, how did that country make such a hard right turn after WW II? How did America make such counter-intuitive choices? No single American ever voted for the option of the Cold War and it was never really a matter of public debate. How did the promises and vision of FDR suddenly get trashed by Truman, with the country veering sharply right, setting us on an new unchartered course which so abruptly changed our anticipations, that we had to begin the process of inventing a national mythology just to live with it all: the lurches were too unnatural, our enemies too unreal and too invisible. The Red Scare of the 1950s was an essential component to the plan for lurching the nation. We remain in a lurched posture today.</p>
<p><strong>Let the Follies begin! </strong>No on knew it at the time, or could possibly foresee, but the childlike paranoia that was forced onto the American consciousness, beginning with the death of FDR near the end of WW II, would initiate the process of <strong>Folly Compounding</strong> , the bill for which has been accumulating interest and is coming due in our current generation, perhaps beginning in the last few years. It certainly accounts for a great deal of our current financial crisis. Tragically, the generation who will have to pay this bill was not even born when our greatest <strong>Folly Compounding</strong> adventures began. The seeds were sown, the plants emerged and the harvest has begun. Why did we set sail on a ship of militarism when other options were so readily available and so seemingly more attractive? In the space of a single war and two decades of an uneasy peace, a country that didn&#8217;t want anything to do with foreign affairs after WW I became the country that wanted to dominate the World&#8211;big time&#8211;after WW II. Perhaps it is inevitable that complex cultures choose <strong>Folly Compounding</strong> almost unavoidably.  But if so, that too only serves to emphasize and repeat the question&#8211; Why? You can have a citizenry that is educated and thoughtful, but as one ascends the ladder of their political leadership, the brain mechanisms that subserve national behavior become more and more dominated by the amygdala of the brain, rather than the frontal lobes of our cerebral cortex. We initiated and sustained sea changes in our culture through giant ideological transitions, each of which demanded a new narrative for the country in order to be seemingly coherent about the need for change and the justification for such a dramatic transition. In each case these new narratives so stretched our conceptual boundaries, that for some, a religious epiphany was required to gleam any sense of clarity about the motivation for such dramatic changes or derive any meaning to the transition. Continuity was always absent. Indeed, continuity was the mortal enemy of where we were going. To decipher these transitions, we needed a royal version of a Rosetta stone, since the facts before us seemed so disjunctive. We needed more than one Rosetta stone as we embarked on our adventure of <strong>Folly Compounding</strong> and all of them would come from Washington. The beltway was the eager, willing mint for the new coin of the realm, the Rosetta stones to guide our future and soothe those who had any doubts. We needed reliable new narratives and the ability to interpret them. But, eventually, we ran out of good narratives and the Rosetta Stones became useless and costly. Our current president, GW Bush never learned the art of minting high quality Washingtonian Rosetta stones. Now he waits for the cold harsh judgement of history. Yet, by not minting any new Rosetta stones, Bush was seemingly an ally to those who thought it was high time to take the rose-colored glasses off. With GWB, almost everyone agreed that the emperor&#8217;s clothes had come off.</p>
<p><strong>The hard right wasn&#8217;t so hard: </strong>It turned out that the hard right in our history wasn&#8217;t so difficult to make after all. Red-baiting was the ready tool available to apply to any politician or citizen who disagreed with our new direction. The wicked new right suddenly found themselves with allies and power they never counted on before, most notably in the form of Harry Truman and key people in the administration, such as Leslie Groves (who ran the Manhattan project that created the atomic bomb) and James Forestall, Secretary of the Navy and eventually Secretary of Defense under Truman. The list goes on, but it isn&#8217;t all that deep. Aided by the hardliners in the administration, some of whom rose through the wartime footing to gain positions of influence that otherwise would never have been available to them, a small group got hold of the steering wheel of the nation and forced a hard right turn, lurching us into the era of <strong>Folly Compounding.</strong></p>
<p><strong>Justifying the turn: </strong>The social methods used to justify this sea change in our political course, selected one of the most effective methods from the new shelf of social indoctrination: take the single, best known members of our culture, those who work in Hollywood and the entertainment industry and persecute a few of them as communists, getting them blacklisted from their livelihood and use their popularity against them, to infect Americans with the new virus&#8211; the virus that our enemies are right here in America&#8211;the communists and &#8220;pinkos&#8221; among us. But, unlike today, the enemies of that era were not terrorists, even though we thought that somehow they wanted to fuck things up. We weren&#8217;t sure what they were doing, but they could be our neighbor, you never knew. We also knew that they all had good jobs, so they must be smart, because they spent most of the day trying to fuck up the country. The Communist scare had nothing to do with reality and in burying reality for all time in America, we launched our ship on the sea of <strong>Folly Compounding</strong> that would reshape the world according to our own view of it. We would eventually discover, that viewing the world from space, showed us we were a blue planet, but Washington was busy trying to paint the world bright red, or at least pink.</p>
<p><strong>We turned against our own history: </strong>The greatest irony for Americans was that when we launched our ship of <strong>Follies</strong> at the end of WW II, we did so against the countries that were trying to copy our own historic agenda. The close of WW II had very little to do with advancing international communism and everything to do with countries that, seeing an opportunity, a break in the imperialist grip on the world, they wanted to take advantage of the change in world order to throw off the shackles of imperialism and focus on their own national development and unification. It was not a new world trying to enslave us, but a new world trying to emulate our own history. What we didn&#8217;t see at the end of WW II was that the rest of the World, especially those countries that had been enslaved by imperialism, wanted to use the American model to create Independent, nationally oriented states free from the imperialism that had enslaved much of the undeveloped world. But we took the low road. Instead of Truman responding to Ho Chi Minh&#8217;s letter asking for help to prevent the French from coming back to Indochina, Truman opposed FDR&#8217;s intentions and sided with the French, who joined in our new narrative and borrowed our Rosetta Stone as they declared that they would re-enter Vietnam and prevent the Communists from taking over. The French and eventually all other nations learned how to play the American fiddle&#8211;just say communism and America would come to your rescue no matter how absurd the circumstances. So, to make this all work, we took all aspiring nationalist leaders and turned them into communists. Just like the message at home: if you leaned left you were a communist or a communist sympathizer&#8211;a &#8220;pinko.&#8221; In any case, you were on the wrong side of our line in the sand, the imaginary line that separated those we would support and those we would oppose. It was a black and white world or a blue and red one. Now the real trouble with this line was that it was more properly termed &#8220;antidemocratic&#8221; and &#8220;pro dictatorship&#8221; for there is not a single instance in which our foreign policy supported the overthrow of a repressive dictatorship in support of democracy. There are many instances, beginning in Guatemala and Iran in the early 1950s, where we participated in the overthrow of Democratically elected leaders to favor repressive regimes that allowed our continued growth of American Corporatism, which was in fact, the real line in the sand. Truman tilted, but he wasn&#8217;t the real leader of the tilt machine. <strong></strong></p>
<p><strong>Ronald Reagan as an anticommunist: </strong>A new star was born in that post-war era. Ronald Reagan, whose own reach for stardom as an actor was diminishing, as he lacked the innate skills to get there, found a new occupation, one that would carry him to the pinnacles of power in America. He willingly cast aside his FDR liberalism (I think he voted for FDR during each of his Presidential campaigns), to become the national shill for promoting the idea that America was rotting from within. We had disloyal Americans, not only in Hollywood, but throughout the country, that were secretly working to sell the free America we had been working for, to some kind of takeover by the Soviets, enslaving America to the antithesis of its national objectives. You had to forget the fact that moments ago, the country that we now proclaimed to be our mortal enemy, the Soviet Union, was our badly needed ally. You had to dash those memories, they were fallacies of the real world and once you expunged your brain of those misunderstandings, you could appreciate that WW II was merely an interruption of a few years from the titanic struggle between two systems, a good one and a really bad one. It&#8217;s freedom or enslavement. Anyone who disagrees is suspect and must be working for the other side. If you weren&#8217;t a communist, you must be a Commie Sympathizer. It didn&#8217;t matter that the Communist Party was a legal, recognized political party in America, nor did it matter if you really belonged. What really mattered is that by making a fool out of you, our government could scare the country. If you have ever watched any of the hearings of the House Un-American Activities Committee (HUAC), you can see that the willing door to door salesmen for this charade were the race-baiters, red-baiters, red-neck members of Congress, many of whom were from the South, with a new opportunity to launch their own national careers by finding communists underneath the carpet. If it couldn&#8217;t be proven or if you didn&#8217;t admit that you were a card-carrying member of the Communist Party, then your liberal views or your left-leaning philosophy meant you had to be a &#8220;Commie Sympathizer&#8221; or &#8220;Pinko&#8221; which was every bit as bad as being the card carrier. Nor did it matter that some people joined the Communist Party in the 1930s expressly to support the anti-Franco democrats in Spain. Franco had lavish support from Nazi Germany and Mussolini&#8217;s Italy, but FDR refused to support the government of Spain engaged in fighting Franco. Many of the young who joined the CP in the 1930s were young academics and they would pay by losing their academic appointments. This happened throughout the country, but was too far below the radar screen of the more celebrated events, like  by McCarthyism and finding communists in the State Department and Hollywood. J. Robert Oppenheimer paid a similar price, but he did not ever belong to the CP: He was merely in the way of America&#8217;s launching of <strong>Folly Compounding</strong> , which he tried, single-handedly, to prevent and for which he paid a heavy price. But that was bomb science, what did that matter?</p>
<p><strong>Committed for good: </strong>When the vote was finally taken, America&#8217;s passive stand on the unfolding events of <strong>Folly Compounding</strong> contributed effectively to the new lurch in our history. The right-wing learned to coin labels before we had good label makers. So successful was this national hysteria, that the word &#8220;socialism&#8221; would be cast aside as just another form of communism and eventually &#8220;liberalism&#8221; would become an equally unacceptable word for you to apply to your politics or your beliefs. Red-baiting was out to label communists, socialists and liberals as part of the same ugly block of un-Americans. Atheists and agonistics are all in the atheist camp&#8211;the evil anti-deists who don&#8217;t deserve to live in America and who must be left-leaning and dangerous. So successful was this campaign of national hysteria, that even today, you have democratic politicians that avoid the word &#8220;liberal&#8221; as if it was roughly equivalent to &#8220;tertiary syphilis.&#8221;</p>
<p><strong>The new historians: </strong>As we embarked on the first round of <strong>Folly Compounding</strong> , it was clear only to a few that our history would no longer be history by historians, but history by politicians, who wrote history by decree and not by acts of scholarship. Scholarship too was the enemy of the new narrative. Indeed, Washington would eventually insist that their Rosetta stones, minted fresh for each transition, each new narrative, were the only legitimate means of interpreting the new world, the one they created for us. Secrecy was essential: if you only knew what we knew about our enemies, you would think of nothing else, you would be paralyzed. So, let us worry for you. Turn on your TV, watch the soaps and take some Valium. For each Rosetta stone, and there were many, a national constituency was formed among the stone believers, who claimed a tiny slice of truth imparted by their special reading of the stone, the interpretation of a temporary narrative; these were like roadside bombs or casualties we had to leave along the roadside as the need for new narratives was always in our future. To hell with the rear view mirror. Americans were naive about the world and they wanted to keep it that way. So, the Rosetta stones from Washington were welcomed into our homes because their arrival meant we didn&#8217;t have to learn anything about the world around us: we could focus on movie stars (those not blacklisted), video games, cars and our teenage children. The new Michael Jordan shoes of that era got more attention that did our own history or any grasp of whether we lived in a nation of <strong>Folly Compounding</strong>. <strong></strong></p>
<p><strong>Swift boaters remind us of past Follies: </strong>The Swift boat Vietnamers who targeted John Kerry during the 2004 presidential campaign, never got beyond what is by now an ancient Rosetta stone. For most people, the Rosetta Stone that interpreted our narrative for Vietnam has been discarded. But, not everyone threw theirs away. Those who got hit by this special roadside bomb we call Vietnam, might have been forgotten, but, they could be called upon for special duty through political support in a tight election, since their Rosetta stone had told them that Vietnam was a noble cause, a near victory denied to us by the traitors at home, the cowardly liberals, our internal enemy. Wasn&#8217;t after all the Tet Offensive really a military victory for our noble anti-communist crusade? Then too wasn&#8217;t it painful to watch John Kerry, a very legitimate Vietnam Hero, be afraid to stand up and claim his proper title as a legitimate war hero, in the face of the Swift Boat Vietnamers who claimed he was something other than what he really was. How silly, but how American.</p>
<p><strong>Sixty years of narratives: </strong>For the last sixty years, we have been piling up stacks and stacks of narratives, that can only be interpreted through the Rosetta Stones minted by Washington and, in the process, we have been adding to our <strong>Folly Compounding</strong>, until we were visited upon by the presidency of G.W. Bush, who is currently going through an implosion type of presidency. GWB assumed an office for which he has no skills; he was unable to provide any new Rosetta stones. He didn&#8217;t have the talent. He had to retread the old ones, and in doing so, one could see the country unraveling. One could finally begin to see that the old Rosetta Stones had lost their luster and completely lost their power: <strong>Folly Compounding</strong> hit in a dramatic way on 9/11, to which Bush responded by attempting to reinforce the old narratives only to find they really didn&#8217;t work anymore and it was even a source of national embarrassment to hear them once again. Fewer and fewer believed them. Simplistic platitudes like &#8220;freedom&#8221; didn&#8217;t fit. We were free but getting poorer. Who profited by ridding the world of communism? Perhaps the Russians and the Chinese? No new narrative could be generated by the talentless group that remained in charge of the Rosetta stone mint. As much as anything, it was the sheer lack of talent that prevented Bush and his crew from formulating a new believable narrative. Iraq started to do for America what Vietnam could not achieve: the complete unraveling or our post-war narrative. Bush and Cheney have been reduced to a single hope: to prevent America on their watch from waking up from the national nightmare of their leadership and their view of the world and realize the magnitude of <strong>Folly Compounding</strong>. But in the past few weeks, we have witnessed a glimpse of all this that is coming due from our <strong>Follies</strong>. The compound interest over sixty years had produced a national treasure of <strong>Follies</strong>, we just didn&#8217;t know when the real bill would arrive, or in what form it would really take. All Bush needed was to get to 51% of the vote and then he didn&#8217;t need any narratives, or so he thought. He could do what he wanted. The process was simple, the way had been paved so well by his predecessors. But every new misadventure requires a new narrative and Bush proved too lazy or too unskilled to formulate his badly needed new narrative for Iraq and the &#8220;war on terror.&#8221; And, it was too late to repaint the world again. We had done that once before and found the color we applied lacked the color and hue of the one we saw on our television screens from outer space: we live on a blue planet and Bush wanted us to believe it was red. He was a very poor salesman. His attempt at a new narrative, the &#8220;War on Terror&#8221; seemed oddly phrased, as if we were going to war against an emotion, not a country. But this attempt at a new narrative for America, expanding the military budget to new heights to confront an enemy of a few dozen to a few hundred to a few thousand? This war was hard to swallow, even for those committed to expansion of our military hardware. In the meantime, we were storing too many cluster bombs.</p>
<p><strong>Bush is the reward for our Follies: </strong>GW Bush was the inevitable president. Inevitably incompetent, but just competent enough to reveal the complete incongruity of all other narratives that preceded him and the stupidity of those that proposed and propagated them. Reagan and Reaganism have not toppled yet, but Reagan&#8217;s likeness will never be on Mt. Rushmore. Yet these forces were just stupid enough to ruin the country, a country that was always a fragile enterprise from its very beginning&#8211;an experiment from the get-go. Our Declaration of Independence is like a manifesto for Ayn Rand and our Constitution reinforced the federalist role for our fledgling country: take your pick. And they lasted long enough to generate new constituencies for their policies and watch the <strong>Folly Compounding</strong> gather interest. There is always a constituency for new narratives or even the attempt the create one. So, like it or not, the country now has a new constituency that likes torture, especially the type that was so successful during the Spanish Inquisition, that of waterboarding. How many voters will now believe that torture should be part of our policies for making war or responding to a threat? A thousand? A million? Many million? Who knows? Is waterboarding <strong>Folly Compounding?</strong> Will we pay a future debt for our use of torture? Is there another blowback in our future.</p>
<p><strong>Bush as the decider and aggressor: </strong>Bush succeeded in only one way: he made his followers feel that America could lead in one international dimension only&#8211;that of aggression. We could still be the world&#8217;s leader in that important arena. We had a huge military and enough military bases throughout the world to launch a global threat at any moment and we would get better and better in time, because we were going to arm space itself to push for the final victory of permanent American hegemony over all our rivals. To permanently maintain this military largess, it would be necessary to permanently impoverish the country, a country that is only beginning to understand that there is a bill out there that will need to be paid, a <strong>Folly Compounding</strong> bill against our future. We are already paying that bill, but far more will be required of us, especially as we lose our national wealth, largely created by manufacturing. As one example, we have the highest per capita health care costs in the World, yet have 47 million Americans are uninsured for health care. Every year workers get less and less health care coverage, as our declining national wealth drives us into a state of numbed paralysis and unidentifiable aches and pains.</p>
<p><strong>Bush gave us reality: </strong>Under Bush, the emperor&#8217;s clothes fell off and the entire bottom fell out of the large bushel of narratives: there were too many and one could not distinguish between them, it became mix and match, take your pick, relax and smoke a new narrative. A Chinese feast of narratives was available. Narratives are always best, especially if you are going to recycle one, if they begin or are attached to a sound byte jingo. So, &#8220;better a smoking gun than a mushroom cloud &#8221; uttered by C. Rice in response to questions about the motivation for invading Iraq and whamo, the recycled narrative will have a bit more life to it. Could the Republican reliance on jingoism have more life? Not according to the polls, where Bush&#8217;s popularity continued to erode no matter what got recycled or what jingo could be brought to bear on the subject at hand. Jingoism was dying. It couldn&#8217;t pay the bills. <strong>Folly Compounding</strong> was now a dark cloud on the horizon, a looming ugly mass of growing magnitude. People were tired of hearing Bush say that he stood for &#8220;freedom&#8221; when he appeared that he didn&#8217;t really know anything at all about the concept. And, since terrorism is really a technique, applied by all insurgents against those in power, including the American revolutionaries against the British, Bush was asking us to go to war faithfully with him against a technique that was central to our own national aspirations: a jingo or two and perhaps you can get a way with it. But, that lethal combination of poor jingoism and terminology requires a quick entry and exit strategy and Bush was unable to engineer and fulfill that requirement through sheer incompetence.</p>
<p><strong>Short-lived narratives: </strong>The multitude of narratives made it possible for G.W. Bush to incite the introduction of al-Qaeda into Iraq which was followed by the instantaneous new narrative as the reason for our invading that country, followed by using that as the main reason for staying there. A cyclical merry-go-round. But, on this one, you can&#8217;t get off. Indeed, we are now in &#8220;the long war&#8221; a never ending engagement against those that want to do us harm and send a bomb our way. According to Bush, we are not really fighting Iraqis, but terrorists, among whom al-Qaeda is the dominant force. Likewise, the Democracy and secular government we were bringing to Iraq was oddly juxtaposed to our engagement in a civil war to eliminate the secular Sunnis and support a conservative Muslim government, more closely allied with Iran. Indeed, it is more accurate to say that we are fighting a proxy war for Iran, without their direct approval, even though Iran thinks it is a good idea for Americans to stay there for a while&#8211;to lighten their ultimate load. The list goes on and on and on. Surely no one is dumb enough to swallow all this. Then again, we have the Swift Boaters and the Evangelicals. A house of cards and all the cards were stacks of narratives, none of which could fit. What then really happened to generate our spaghetti of narratives, our Chinese feast of options? A continuous thread of continuity exists in our post-WW II history with our problems of today.  The anti-communist strategy we developed under Truman began to dictate who our leaders would be. Ronald Reagan would never have made it to the White House had the anti-communist strategy not been successful. His rise in visibility was generated by his role in serving the interests of the House Un-American Activities Committee, when he was president of the Screen Actors Guild. His indoctrination from FDR supporter to flaming right-winger was done when he worked for GE as host of the General Electric Theater and worked under the tutelage of GE Vice President <a href="http://hnn.us/articles/32681.html">Lemuel Boulware</a>. It was Boulware&#8217;s influence that tipped the scales, as Reagan supported Goldwater for the Presidency in 1964 (before that he had supported and voted for FDR, Truman and Eisenhower as a member of &#8220;Democrats for Eisenhower&#8221;).  Reagan supported Helen Gahagan Douglas in her U. S. Senate contest against Republican Richard Nixon. His conversion began with his tilt by the anti-communist lurch of the country and was then reshaped into staunch conservatism by his experiences with GE. He was a gifted politician, proving that grade B acting can lead to a galvanizing politician, but he was a dupe, a shill for the right-wing and the single most disastrous President we have ever had, simply because he started to unravel the country from its most successful economic period in history that began with FDR and the New Deal.  GW Bush is the culmination of linear history in which he and his family are tied to Nazism and Hitler before and during World War II and the reshaping of the right-wing as the army against communism, armed with the supposed advantage of &#8220;the bomb.&#8221;</p>
<p>Next: Part II, where we really begin to connect the dots.</p>
<p>RFM</p>
<!-- PHP 5.x -->]]></content:encoded>
			<wfw:commentRss>http://themillercircle.org/2008/12/folly-compounding-in-america-the-stuff-of-broken-empires-part-1/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
</rss>
