AT&T-Time Warner merger to expand corporate, state control of media


By Barry Grey
24 October 2016

AT&T, the telecommunications and cable TV colossus, announced Saturday that it has struck a deal to acquire the pay TV and entertainment giant Time Warner. The merger, if approved by the Justice Department and US regulatory agencies under the next administration, will create a corporate entity with unprecedented control over both the distribution and content of news and entertainment. It will also mark an even more direct integration of the media and the telecomm industry with the state.

AT&T, the largest US telecom group by market value, already controls huge segments of the telephone, pay-TV and wireless markets. Its $48.5 billion purchase of the satellite provider DirecTV last year made it the biggest pay-TV provider in the country, ahead of Comcast. It is the second-largest wireless provider, behind Verizon.

Time Warner is the parent company of such cable TV staples as HBO, Cinemax, CNN and the other Turner System channels: TBS, TNT and Turner Sports. It also owns the Warner Brothers film and TV studio.

The Washington Post on Sunday characterized the deal as a “seismic shift” in the “media and technology world,” one that “could turn the legacy carrier [AT&T] into a media titan the likes of which the United States has never seen.” The newspaper cited Craig Moffett, an industry analyst at Moffett-Nathanson, as saying there was no precedent for a telecom company the size of AT&T seeking to acquire a content company such as Time Warner.

“A [telecom company] owning content is something that was expressly prohibited for a century” by the government, Moffett told the Post.

Republican presidential candidate Donald Trump, in keeping with his anti-establishment pose, said Saturday that the merger would lead to “too much concentration of power in the hands of too few,” and that, if elected, he would block it.

The Clinton campaign declined to comment on Saturday. Democratic vice-presidential candidate Tim Kaine, speaking on the NBC News program “Meet the Press” on Sunday, said he had “concerns” about the merger, but he declined to take a clear position, saying he had not seen the details.

AT&T, like the other major telecom and Internet companies, has collaborated with the National Security Agency (NSA) in its blanket, illegal surveillance of telephone and electronic communications. NSA documents released last year by Edward Snowden show that AT&T has played a particularly reactionary role.

As the New York Times put it in an August 15, 2015 article reporting the Snowden leaks: “The National Security Agency’s ability to spy on vast quantities of Internet traffic passing through the United States has relied on its extraordinary, decades-long partnership with a single company: the telecom giant AT&T.”

The article went on to cite an NSA document describing the relationship between AT&T and the spy agency as “highly collaborative,” and quoted other documents praising the company’s “extreme willingness to help” and calling their mutual dealings “a partnership, not a contractual relationship.”

The Times noted that AT&T installed surveillance equipment in at least 17 of its Internet hubs based in the US, provided technical assistance enabling the NSA to wiretap all Internet communications at the United Nations headquarters, a client of AT&T, and gave the NSA access to billions of emails.

If the merger goes through, this quasi-state entity will be in a position to directly control the content of much of the news and entertainment accessed by the public via television, the movies and smart phones. The announcement of the merger agreement is itself an intensification of a process of telecom and media convergence and consolidation that has been underway for years, and has accelerated under the Obama administration.

In 2009, the cable provider Comcast announced its acquisition for $30 billion of the entertainment conglomerate NBCUniversal, which owns both the National Broadcasting Company network and Universal Studios. The Obama Justice Department and Federal Communications Commission ultimately approved the merger.

Other recent mergers involving telecoms and content producers include, in addition to AT&T’s 2015 purchase of DirecTV: Verizon Communications’ acquisition of the Huffington Post, Yahoo and AOL; Lionsgate’s deal to buy the pay-TV channel Starz; Verizon’s agreement announced in the spring to buy DreamWorks Animation; and Charter Communications’ acquisition of the cable provider Time Warner Cable, approved this year.

The AT&T-Time Warner announcement will itself trigger a further restructuring and consolidation of the industry, as rival corporate giants scramble to compete within a changing environment that has seen the growth of digital and streaming companies such as Netflix and Hulu at the expense of the traditional cable and satellite providers.

The Financial Times wrote on Saturday that “the mooted deal could fire the starting gun on a round of media and technology consolidation.” Referring to a new series of mergers and acquisitions, the Wall Street Journal on Sunday quoted a “top media executive” as saying that an AT&T-Time Warner deal would “certainly kick off the dance.”

The scale of the buyout agreed unanimously by the boards of both companies is massive. AT&T is to pay Time Warner a reported $85.4 billion in cash and stocks, at a price of $107.50 per Time Warner share. This is significantly higher than the current market price of Time Warner shares, which rose 8 percent to more than $89 Friday on rumors of the merger deal.

In addition, AT&T is to take on Time Warner’s debt, pushing the actual cost of the deal to more than $107 billion. The merged company would have a total debt of $150 billion, making inevitable a campaign of cost-cutting and job reduction.

The unprecedented degree of monopolization of the telecom and media industries is the outcome of the policy of deregulation, launched in the late 1970s by the Democratic Carter administration and intensified by every administration, Republican or Democratic, since then. In 1982, the original AT&T, colloquially known as “Ma Bell,” was broken up into seven separate and competing regional “Baby Bell” companies.

This was sold to the public as a means of ending the tightly regulated AT&T monopoly over telephone service and unleashing the “competitive forces” of the market, where increased competition would supposedly lower consumer prices and improve service. What ensued was a protracted process of mergers and disinvestments involving the destruction of hundreds of thousands of jobs, which drove up stock prices at the expense of both employees and the consuming public.

Dallas-based Southwestern Bell was among the most aggressive of the “Baby Bells” in expanding by means of acquisitions and ruthless cost-cutting, eventually evolving into the new AT&T. Now, the outcome of deregulation has revealed itself to be a degree of monopolization and concentrated economic power beyond anything previously seen.

Dakota pipeline showdown at Standing Rock: When a powerful corporate chief is resisted by defenders of Native American ceremonial grounds

Kelcy Warren, Energy Transfer Partners’ well-heeled chief, meets his match in North Dakota with Lakota Sioux

Dakota pipeline showdown at Standing Rock: When a powerful corporate chief is resisted by defenders of Native American ceremonial grounds
(Credit: Afp/getty Images)

In bad movies (and bad history alike), the Native American ceremonial pipe figured prominently as symbol of defeat — typically in a cliched scene of subdued chieftains signing a treaty of surrender and passing around a “peace pipe” in a sorrowful gesture to seal the raw deal.

The reality is that the communal smoking of a ceremonial pipe, often filled with tobacco, is a centuries-old tradition rich in spiritual meaning for many Native people who see it as an eternal channel through which tribes seek metaphysical strength, courage and endurance. The ceremonial pipe both shapes and conveys Native people’s living history, a story that’s perpetually being written.

Indeed, a dramatic new chapter is unfolding this year in a volatile confrontation on a remote stretch of the Northern Plains in rural North Dakota. It’s a “Battle of Two Pipes,” pitting the cultural power symbolized by the Native American pipe against the bruising financial power of a giant pipeline, owned by Energy Transfer Partners.

In 2014, ETP, a Texas oil behemoth, went public with its scheme to build a massive oil pipeline from the fracking wells of the Bakken oil fields in northwestern North Dakota. ETP’s 30-inch-wide Dakota Access pipeline would cut a 1,172-mile-long scar diagonally through the heart of North Dakota, South Dakota, Iowa and Illinois.

If ETP’s $3.8 billion line is completed, it would carry 570,000 barrels of oil a day through most of the four states’ watersheds and wildlife habitats; it would transit hundreds of farms and ranches and make 200 river crossings. All the water and land in its path would be endangered, for one unpleasant fact about pipelines is that they regularly leak, sometimes rupture and can blow up (an especially relevant concern with fracked Bakken oil, which is not only some of the dirtiest crude on the planet but also is exceptionally flammable and “more prone to explosions than earlier thought,” according to U.S. officials).

Kelcy Warren is the honcho of Energy Transfer Partners and its parent financial outfit, Energy Transfer Equity, a fossil fuel colossus that also owns Sunoco oil and Southern Union gas. Warren’s company — with such an unkempt environmental record plus national notoriety for bulldozing over opposition from outraged landowners and communities — regularly has state and federal regulatory authorities to clear its pat. This is done the old-fashioned way: Warren, ranked by Forbes as the 86th richest American, pumps big bucks into the campaign coffers of key politicos, drawing from corporate funds as well as his personal $5.45 billion fortune.

Consider Warren’s recent Texas play. For the last two years, ETP has laid siege to one of the Lone Star State’s most spectacular and environmentally unique regions — the mountainous, desert ranch country of Big Bend, which includes historic sites and artifacts of Comanche, Mescalero, Chiso and other indigenous cultures dating back more than 14,000 years. Despite adamant local protests, ETP is presently ripping the land with the 148-mile-long, 42-inch Trans-Pecos Pipeline that will export gas from West Texas to Mexico. “We feel like we’ve been invaded,” said one member of the local citizens group, Defend Big Bend.

They have been — with the Obama administration’s approval and the collusion of their own state officials, who blithely handed the sledgehammer of the state’s power of eminent domain to the private corporation, letting it take people’s land for its own profit.

Why? Follow the money. Since 2013, CEO Warren has become Texas Gov. Greg Abbott’s No. 4 donor by personally bestowing $700,000 on the governor’s campaigns. Last November Warren’s coziness with Abbott came full circle when the governor awarded the pipeliner a seat on the prestigious Texas Parks and Wildlife Commission, ironically making Warren an environmental “steward” of state parks in the area he is presently despoiling.

And he plans on destroying more majestic American land, too, for Warren’s contested Dakota Access pipeline would run just outside of the town of Cannon Ball, North Dakota, along the northern edge of the Standing Rock Reservation. Warren was so obtuse that he didn’t realize (or care) that the tribe’s deep connection to the area adjacent to Standing Rock doesn’t stop at the reservation’s arbitrary boundaries: The Dakota Access pipeline project would gouge right through ancestral lands and burial grounds.

Corporate routers likely assumed that the reservation’s 8,500 mostly impoverished Lakota Sioux had no clout, so there was no need to get their permission, especially since the pipeline wouldn’t actually be on tribal land. Bad assumption. Imagine a corporation running a pipeline through Arlington National Cemetery.

Not since the days of General George Custer has an Anglo been as surprised as Kelcy Warren by a powerful force of Indians thwarting his ambition. You can learn more and donate to the tribes’ fight at and


Capitalism Is Doomed — Without Alternatives, So Are We

Published on

‘Though it appears as if rumors of capitalism’s imminent demise have been greatly exaggerated,’ writes Johnson, ‘there is good reason to believe that its remarkable ability to adapt and evolve in the face of frequent (self-induced) shocks has reached a breaking point.’ (Image: OpenClipArt)

In 1946, George Orwell pondered the fragility of the capitalist order.

Reviewing the work of the influential theorist James Burnham, Orwell presaged several concepts that would later form the groundwork for his best-known novel, 1984.

“Not only is the best of capitalism behind us, but the worst of it may lie just ahead.”

In his book The Managerial Revolution, Burnham envisioned, as Orwell put it, “a new kind of planned, centralised society which will be neither capitalist nor, in any accepted sense of the word, democratic. The rulers of this new society will be the people who effectively control the means of production.”

“The real question,” Orwell adds, “is not whether the people who wipe their boots on us during the next fifty years are to be called managers, bureaucrats, or politicians: the question is whether capitalism, now obviously doomed, is to give way to oligarchy or to true democracy.”

While Orwell was wary of Burnham’s worldview and of his more specific predictions, he agreed that the relationship between capitalism and democracy has always been, and always will be, a precarious one.

“For quite fifty years past,” Orwell noted, “the general drift has almost certainly been towards oligarchy.”


Pointing to the concentration of political and economic power in the hands of the few and acknowledging “the weakness of the proletariat against the centralised state,” Orwell was far from optimistic about the future — but he was quite certain that the economic status quo would eventually give way.

Recent events, and the material circumstances of much of the world’s population, have prompted serious examinations of the same questions Orwell was considering seven decades ago. And though it appears as if rumors of capitalism’s imminent demise have been greatly exaggerated, there is good reason to believe that its remarkable ability to adapt and evolve in the face of frequent (self-induced) shocks has reached a breaking point.

Widespread discontent over stagnant incomes and the uneven prosperity brought about by neoliberal globalization has, in 2016, come to a head in striking fashion; Donald Trump, Brexit, and the rise of far-right parties in Europe have many questioning previously sacred assumptions.

“Is the marriage between liberal democracy and global capitalism an enduring one?” asked Martin Wolf, a formidable commentator in one of the world’s leading business papers, the Financial Times.

This was no rhetorical softball; Wolf is genuinely concerned that the winners of globalization have grown complacent, that they have “taken for granted” a couple that was only tenuously compatible to begin with. He also worries, rightly, that they have downplayed the concerns of the “losers.”

Wolf concludes that “if the legitimacy of our democratic political systems is to be maintained, economic policy must be orientated towards promoting the interests of the many not the few; in the first place would be the citizenry, to whom the politicians are accountable.”

Not all members of the commentariat share Wolf’s willingness to engage with these cherished assumptions, however. Indeed, many analysts have reserved their ire not for failing institutions or policies but for the public, reviving Walter Lippmann’s characterization of the masses as a “bewildered herd” that, if left to its own devices, is sure to usher in a regime of chaos.

“It’s time,” declared Foreign Policy‘s James Traub, channeling the sentiments of Josh Barro, “for the elites to rise up against the ignorant masses.”

Apologists like Traub and Barro — just two among many — speak and write as if the leash previously restraining the “herd” has been loosened, and that the resulting freedom has laid bare what elitists have long believed to be the case: To use Barro’s infamous words, “Elites are usually elite for good reason, and tend to have better judgment than the average person.” They point to the rise of Donald Trump as evidence of an intolerable democratic surplus — evidence, in short, of what the masses will do if granted a loud enough voice.

Aside from being conveniently self-serving, this narrative is also false.

Far from loosening the leash, elites have consolidated power to an unprecedented extent, and they have used their influence to undercut democratic movements and hijack public institutions. The resulting concentration of wealth and political power is jarring, and it puts the lie to the farcical notion that elites are a persecuted minority.

But, in the midst of these anti-democratic diatribes, fascinating and important critiques of a rather different nature have emerged.

“Far from loosening the leash, elites have consolidated power to anunprecedented extent, and they have used their influence to undercut democratic movements and hijack public institutions.”

Instead of urging us to align Against Democracy, to use the name of a recent book by the libertarian political philosopher Jason Brennan, many are arguing that it is capitalism, and not the excesses of the democratic process, that has provided figures like Trump a launching pad.

In his book Postcapitalism, Paul Mason argues that the rapid emergence of information technology has corroded the boundaries of the market; “capitalism,” he insists, “has reached the limits of its capacity to adapt.” And its attempts to reach beyond these limits have fostered an economic environment defined by instability, crippling austerity for the many, and rapid accumulation of wealth for the few.

According to Oxfam, the global 1 percent now owns as much wealth as the bottom 99 percent. CEO pay has continued to soar. And though post-crisis reforms have carried soaring promises of stability, the financial sector is still far too large, and many of the banks harmed by the crash they created are back and nearly as powerful as ever.

Mason summarizes: “According to the OECD, growth in the developed world will be ‘weak’ for the next fifty years. Inequality will rise by 40 per cent. Even in the developing countries, the current dynamism will be exhausted by 2060.”

“The OECD’s economists were too polite to say it,” he adds, “so let’s spell it out: for the developed world the best of capitalism is behind us, and for the rest it will be over in our lifetime.”

Sociologist Peter Frase, in his new book Four Futures, implicitly agrees with many of Mason’s key points, but he then takes up the task of looking further ahead, of contemplating possible futures that hinge largely upon how we respond to the crises we are likely to face in the coming years.

For Frase, not only is the best of capitalism behind us, but the worst of it may lie just ahead.

Central to Four Futures are what Frase calls the “[t]wo specters…haunting Earth in the twenty-first century” — “the specters of environmental catastrophe and automation.”

Rather than attempting to predict the future, Frase — guided by Rosa Luxemburg’s famous words, “Bourgeois society stands at the crossroads, either transition to socialism or regression into barbarism” — lays out potential, contingent scenarios. And while Mason’s book exudes optimism about the advancement of information technology and automation, Frase is more cautious.

“To the extent that the rich are able to maintain their power,” Frase writes, “we will live in a world where they enjoy the benefits of automated production, while the rest of us pay the costs of ecological destruction—if we can survive at all.” And, “To the extent that we can move toward a world of greater equality, then the future will be characterized by some combination of shared sacrifice and shared prosperity, depending on where we are on the other, ecological dimension.”

It comes down, in short, to who wins the class struggle. “I am a very old-fashioned Marxist in that way,” Frase remarked in a recent interview.

None of the futures Frase maps out are inevitable, the result of historical forces that are beyond our control. He is contemptuous of those who cling to “secular eschatology”; capitalism’s collapse, he notes, will not likely be the result of a single, revolutionary moment.

In expressing this view he aligns with Wolfgang Streeck, who has argued that capitalism is “a social system in chronic disrepair,” and that while “we cannot know when and how exactly capitalism will disappear and what will succeed it,” we can know that a system that depends on endless growth and the elimination of all restraints will eventually self-destruct.

The disappearance of capitalism, though, as Orwell understood, does not necessarily imply the emergence of an egalitarian society, one in which resources are shared for the benefit of the many. But while few agree on precisely how to establish the framework for such a society, there are, Mason and Frase argue, policies that can move us in the right direction.

Both, for instance, support the idea of a universal basic income, which, in Frase’s words, would “create a situation in which it possible to survive without depending on selling your labor to anyone who will pay for it,” making automation a path to liberation, not destitution. And Mason rightly argues that, in order to avert catastrophic warming, we must radically reduce carbon emissions.

But the usual political obstacles remain, as does the fact that the “winners” are not likely to hand over their gains, or their positions of power and influence, without a fight. We cannot, then, passively rely on amoral forces like technology to bring about the necessary change.

“Technological developments give a context for social transformations,” Frase writes, “but they never determine them directly; change is always mediated by the power struggles between organized masses of people.”


The future is necessarily disobedient; it rarely conforms to even the most meticulous theoretical anticipations, to say nothing of our deepest desires or fears.

But one thing is clear: The future of capitalism and the future of the planet are intertwined. The health of the latter depends on our ability to dismantle the former, and on our ability to construct an alternative that radically alters our course, which is at present leading us toward catastrophe.

“One thing is clear: The future of capitalism and the future of the planet are intertwined.”

Whether the path to which we are ultimately confined is one that leads to a utopian dream or a dystopian nightmare is contingent upon our ability to connect the struggles that currently occupy the left — those fighting for the right to organize are confronting, at bottom, the same forces as those working to prevent the plunder of sacred land.

There are reasons to be both hopeful and pessimistic about the prospects of these struggles.

The campaign of Bernie Sanders, and the movements that emerged before it and alongside it, revealed that there is a large base of support for social democratic changes that, if enacted, would move us in the right direction.

The obstacles, however, are immense, as is the arithmetic: As Bill McKibben has noted, “The future of humanity depends on math,” and the climate math we face is “ominous.”

But, as Noam Chomsky has argued, the debate over the choice between pessimism and optimism is really no debate at all.

“We have two choices,” he concludes. “We can be pessimistic, give up and help ensure that the worst will happen. Or we can be optimistic, grasp the opportunities that surely exist and maybe help make the world a better place. Not much of a choice.”

Jake Johnson is an independent writer. Follow him on Twitter: @wordsofdissent

Clinton: The Silicon Valley Candidate

By refusing to release the transcripts of her paid speeches to Wall Street bankers, Democratic presidential candidate Hillary Clinton cast doubt on her independence from the crooks who run the financial system.  By contrast, Clinton’s program for “technology and innovation policy” has been an open book since June 2016.  What she publicized is as revealing – and as disturbing – as what she tried to keep secret.

Clinton paints her tech agenda in appealing terms.  She says it’s about reducing social and economic inequality, creating good jobs, and bridging the digital divide. The real goals – and beneficiaries – are different.  The document is described as “a love letter to Silicon Valley” by a journalist,[1] and as a “Silicon Valley wish list” by theWashington Post.[2]

On the domestic side, Clinton promises to invest in STEM education and immigration reform to expand the STEM workforce by allowing green cards for foreign workers who’ve earned STEM degrees in the US. The internet industry has been lobbying Congress for years to reform US immigration policy to gain flexibility in hiring, to ease access to a global pool of skilled labor, and to weaken employees’ bargaining power.[3]

Clinton’s blanket endorsement of online education opens new room for an odious private industry.  With buzzwords like “entrepreneurship,” “competitive,” and “bootstrap,” Clinton wants to “leverage technology”: by “delivering high-speed broadband to all Americans” she declares it will be feasible to provide “wrap-around learning for our students in the home and in our schools.”[4] Absent an overt commitment to public education, this is an encouragement to online vendors to renew their attack on the U.S. education system – despite a track record of failure and flagrant corruption. Still more deceitful is Hillary’s lack of acknowledgment of a personal conflict of interest.  According to a Financial Times analysis, after stepping down as Secretary of State in 2013, Hillary accepted hundreds of thousands of dollars for speeches to private education providers; her husband Bill has “earned” something like $21 million from for-profit education companies since 2010.[5]

Clinton’s proposal for access to high-speed Internet for all by 2020 would further relax regulation to help the Internet industry to build new networks, tap into existing public infrastructure, and encourage “public and private” partnerships. These are euphemisms for corporate welfare, after the fashion of the Google fiber project – which is substantially subsidized by taxpayers, as cities lease land to the giant company for its broadband project at far below market value and offer city services for free or below cost.[6] Clinton’s policy program also backs the 5G wireless network initiative and the release of unlicensed spectrum to fuel the “Internet of Thing.” (IoT). 5G wireless and IoT are a solution in search of a problem – unless you are a corporate supplier or a business user of networks.  This is an unacknowledged program to accelerate and expand digital commodification.

Clinton’s international plans are equally manipulative. She will press for “an open Internet abroad,” that is, for “internet freedom” and “free flow of information across borders.” Despite the powerful appeal of this rhetoric, which she exploited systematically when she was Secretary of State, Clinton actually is pushing to bulwark U.S. big capital in general, and U.S. internet and media industries, in particular.  Secretary Clinton’s major speech on Internet freedom[7]in 2010 came mere days after Google’s exit from China, supposedly on grounds of principle, making it plain that the two interventions – one private, one public – were coordinated elements of a single campaign.  Outside the United States, especially since the disclosures by Edward Snowden in 2013, it is increasingly well-understood that the rhetoric of human rights is a smokescreen for furthering U.S. business interests.[8] Reviving this approach is cynical electioneering rather than an endeavor to advance human rights or, indeed, more just international relations.

This in turn provides the context in which to understand Clinton’s vow to support the “multi-stakeholder” approach to Internet governance.  “Multi-stakeholderism” endows private corporations with public responsibilities, while it downgrades the ability of governments to influence Internet policy – as they have tried to do, notably, in the United Nations.  By shifting the domain in this way, the multi-stakeholder model actually reduces the institutional room available to challenge U.S. power over the global Internet.  It was for this very reason that the Obama Administration recently elevated multi-stakeholderism into the reigning principle for global Internet governance:  On 1 October, the U.S. Commerce Department preempted (other) governments from exercising a formal role.

This is, once again, the preferred agenda of Silicon Valley.[9] Aaron Cooper, vice president of strategic initiatives for the Software Alliance, a Washington trade group representing software developers, crowed in a Washington Post interview, “A lot of the proposals that are in the Clinton initiative are consistent with the broad themes that [we] and other tech associations have been talking about, so we’re very pleased.”[10]

To build up her policy platform in this vital field, Clinton has assembled a network of more than 100 tech and telecom advisors.[11] The members of this shadowy group have not been named, but they are said to include former advisors and officials, affiliates of think-tanks and trade groups, and executives at media corporations.  Apparently, just as with respect to Wall Street, the public has no right to know who is shaping Clinton’s program for technology.  Equally clearly, however, it is meant to resonate with Apple’s Tim Cook, Tesla CEO Elon Musk, and Facebook co-founder Dustin Moskovitz – all of whom have publicly rallied to her campaign.[12]

Some might choose to emphasize that the Republican candidate, Donald Trump, has not even bothered to hint to voters about his tech and information policy. Fair enough. Clinton’s program, though, is both surreptitious and plutocratic. It’s not that she’s not good enough – it’s that she’s in the wrong camp.  England’s Labour Party leader Jeremy Corbyn’s “Digital Democracy” program offers a better entry point for thinking about democratic information policy, as it includes publicly financed universal internet access, fair wages for cultural workers, release to open source of publicly funded software and hardware, cooperative ownership of digital platforms and more.  That would be a start.


[1] Noah Kulwin, “Hillary Clinton’s tech policy proposal sounds like a love letter to Silicon Valley,” recode, June 28, 2016.

[2] Brian Fung, “Hillary Clinton’s tech agenda is really a huge economic plan in disguise,Washington Post, June 28, 2016.

[3] Schiller, D. & Yeo. S. (Forthcoming, Fall 2016) Science and Engineering Into Digital Capitalism, in Tyfield, D., Lave, R., Randalls, S., and Thorpe, C. (Eds.), Routledge Handbook of the Political Economy of Science.

[4] “Hillary Clinton’s Initiative on Technology and Innovation,” The Briefing, June 27, 2016.

[5] Gary Silverman, “Hillary and Bill Clinton: The For-Profit Partnership,” Financial Times, July 21, 2016.

[6] Kenric Ward, “Taxpayers subsidize Google Fiber in this city with bargain land leases,”, August 16, 2016; Timothy B. Lee,”How Kansas City taxpayers support Google Fiber,” arstechnica, September 7, 2012.

[7] Hillary Rodham Clinton, Secretary of State, “Remarks on Internet Freedom,” January 21, 2010, The Newseum, Washington, DC.

[8] Dan Schiller, Digital Depression.  Urbana: University of Illinois Press, 2014: 161-69.

[9] Heather Greenfield, “CCIA Applauds Hillary Clinton’s Tech Agenda,” Computer & Communications Industry Association, June 28, 2016.

[10] Brian Fung, “Hillary Clinton’s tech agenda is really a huge economic plan in disguise,” Washington Post, June 28, 2016.

[11] Margaret Harding McGill & Nancy Scola, “Clinton quietly amasses tech policy corps,” Politico, August 24, 2016; Steven Levy, “How Hillary Clinton Adopted the Wonkiest Tech Policy Ever,” Backchannel, August 29, 2016 ; Tony Romm, “Inside Clinton’s tech policy circle,”Politico, June 7, 2016.

[12]Sen. Hilary Clinton,; Levy Sumagaysay, “Facebook co-founder pledges $20 million to help Hillary Clinton defeat Donald Trump,” The Mercury News, September 9, 2016;  Russell Brandom, “Tim Cook is hosting a fundraiser for Hillary Clinton,Verge, July 29, 2016.

This article originally appeared on Information Observatory.

Dan Schiller is a historian of information and communications at the University of Illinois. His most recent book is Digital Depression: Information Technology and Economic Crisis Shinjoung Yeo is an assistant prof at Loughborough University in London.

The Silicon Valley Candidate

Donald Trump: The Dress Rehearsal for Fascism

Posted on Oct 16, 2016

By Chris Hedges

  Republican presidential nominee Donald Trump speaks at an event hosted by the Republican Hindu Coalition in Edison, N.J., on Saturday. (Julio Cortez / AP)

Americans are not offered major-party candidates who have opposing political ideologies or ideas. We are presented only with manufactured political personalities. We vote for the candidate who makes us “feel” good about him or her. Campaigns are entertainment and commercial vehicles to raise billions in advertising revenue for corporations. The candidate who can provide the best show gets the most coverage. The personal brand is paramount. It takes precedence over ideas, truth, integrity and the common good. This cult of the self, which defines our politics and our culture, contains the classic traits of psychopaths: superficial charm, grandiosity, self-importance, a need for constant stimulation, a penchant for lying, deception and manipulation, and incapacity for remorse or guilt. Donald Trump has these characteristics. So does Hillary Clinton.

Our system of inverted totalitarianism has within it the seeds of an overt or classical fascism. The more that political discourse becomes exclusively bombastic and a form of spectacle, the more that emotional euphoria is substituted for political thought and the more that violence is the primary form of social control, the more we move toward a Christianized fascism.

Last week’s presidential debate in St. Louis was only a few degrees removed from the Jerry Springer TV show—the angry row of women sexually abused or assaulted by Bill Clinton, the fuming Trump pacing the stage with a threatening posture, the sheeplike and carefully selected audience that provided the thin veneer of a democratic debate while four multimillionaires—Martha Raddatz, Anderson Cooper, Clinton and Trump—squabbled like spoiled schoolchildren.

The Clinton campaign, aware that the policy differences between her and a candidate such as Jeb Bush were minuscule, plotted during the primaries to elevate the fringe Republican candidates—especially Trump. To the Democratic strategists, a match between Clinton and Trump seemed made in heaven. Trump, with his “brain trust” of Rudy Giuliani and Chris Christie, would make Clinton look like a savior.

A memo addressed to the Democratic National Committee under the heading “Our Goals & Strategy” was part of the trove of John Podesta emails released this month by WikiLeaks.

“Our hope is that the goal of a potential HRC [Hillary Rodham Clinton] campaign and the DNC would be one-in-the-same: to make whomever the Republicans nominate unpalatable to the majority of the electorate. We have outlined three strategies to obtain our goal …,” it reads.

The memo names Ted Cruz, Donald Trump and Ben Carson as candidates, or what the memo calls “Pied Piper” candidates who could push mainstream candidates closer to the positions embraced by the lunatic right. “We need to be elevating the Pied Piper candidates so that they are leaders of the pack and tell the press to [take] them seriously.”

The elites of the two ruling parties, who have united behind Clinton, are playing a very dangerous game. The intellectual and political vacuum caused by the United States’ species of anti-politics, or what the writer Benjamin DeMott called “junk politics,” leaves candidates, all of whom serve the interests of the corporate state, seeking to exaggerate what Sigmund Freud termed “the narcissism of small differences.”

However, this battle between small differences, largely defined by the culture wars, no longer works with large segments of the population. The insurgencies of Trump and Bernie Sanders are evidence of a breakdown of these forms of social control. There is a vague realization among Americans that we have undergone a corporate coup. People are angry about being lied to and fleeced by the elites. They are tired of being impotent. Trump, to many of his most fervent supporters, is a huge middle finger to a corporate establishment that has ruined their lives and the lives of their children. And if Trump, or some other bombastic idiot, is the only vehicle they have to defy the system, they will use him.

The elites, including many in the corporate press, must increasingly give political legitimacy to goons and imbeciles in a desperate battle to salvage their own legitimacy. But the more these elites pillage and loot, and the more they cast citizens aside as human refuse, the more the goons and imbeciles become actual alternatives. The corporate capitalists would prefer the civilized mask of a Hillary Clinton. But they also know that police states and fascist states will not impede their profits; indeed in such a state the capitalists will be more robust in breaking the attempts of the working class to organize for decent wages and working conditions. Citibank, Raytheon and Goldman Sachs will adapt. Capitalism functions very well without democracy.

In the 1990s I watched an impotent, nominally democratic liberal elite in the former Yugoslavia fail to understand and act against the population’s profound economic distress. The fringe demagogues whom the political and educated elites dismissed as buffoons—Radovan Karadzic, Slobodan Milosevic and Franjo Tudman—rode an anti-liberal tide to power.

The political elites in Yugoslavia at first thought the nationalist cranks and lunatics, who amassed enough support to be given secondary positions of power, could be contained. This mistake was as misguided as Franz von Papen’s assurances that when the uncouth Austrian Adolf Hitler was appointed the German chancellor in January 1933 the Nazi leader would be easily manipulated. Any system of prolonged political paralysis and failed liberalism vomits up monsters. And the longer we remain in a state of political paralysis—especially as we stumble toward another financial collapse—the more certain it becomes that these monsters will take power.

Fascism, at its core, is an amorphous and incoherent ideology that perpetuates itself by celebrating a grotesque hypermasculinity, elements of which are captured in Trump’s misogyny. It allows disenfranchised people to feel a sense of power and to have their rage sanctified. It takes a politically marginalized and depoliticized population and mobilizes it around a utopian vision of moral renewal and vengeance and an anointed political savior. It is always militaristic, anti-intellectual and contemptuous of democracy and replaces culture with nationalist and patriotic kitsch. It sees those outside the closed circle of the nation-state or the ethnic or religious group as diseased enemies that must be physically purged to restore the health of nation.

Many of these ideological elements are already part of our system of inverted totalitarianism. But inverted totalitarianism, as Sheldon Wolin wrote, disclaims its identity to pay homage to a democracy that in reality has ceased to function. It is characterized by the anonymity of the corporate centers of power. It seeks to keep the population passive and demobilized. I asked Wolin shortly before he died in 2015 that if the two major forms of social control he cited—access to easy and cheap credit and inexpensive, mass-produced consumer products—were no longer available would we see the rise of a more classical form of fascism. He said this would indeed become a possibility.

Bill Clinton transformed the Democratic Party into the Republican Party. He pushed the Republican Party so far to the right it became insane. Hillary Clinton is Mitt Romney in drag. She and the Democratic Party embrace policies—endless war, the security and surveillance state, neoliberalism, austerity, deregulation, new trade agreements and deindustrialization—that are embraced by the Republican elites. Clinton in office will continue the neoliberal assault on the poor and the working poor, and increasingly the middle class, that has defined the corporate state since the Reagan administration. She will do so while speaking in the cloying and hypocritical rhetoric of compassion that masks the cruelty of corporate capitalism.

The Democratic and Republican parties may be able to disappear Trump, but they won’t disappear the phenomena that gave rise to Trump. And unless the downward spiral is reversed—unless the half of the country now living in poverty is lifted out of poverty—the cynical game the elites are playing will backfire. Out of the morass will appear a genuine “Christian” fascist endowed with political skill, intelligence, self-discipline, ruthlessness and charisma. The monster the elites will again unwittingly elevate, as a foil to keep themselves in power, will consume them. There would be some justice in this if we did not all have to pay.

Posting New Secret Trade Docs, Wikileaks Further Exposes Corporate Plot

Published on

Despite its importance both the US Presidential candidates Hillary Clinton and Donald Trump have thus far given no position on the TISA Agreement.’

Members of the Confederal Group of the European United Left hold posters with the slogan ‘Stop Tisa’ (Trade in Services Agreement) during a voting session at the European parliament in Strasbourg, France. (Photo: Vincent Kessler /Reuters)

Even as it continued to post new batches of emails from Clinton campaign chairman John Podesta, Wikileaks on Friday also published new draft chapters of the Trade in Services Agreement (TISA) which shed new light on the pending deal that critics say puts global economies at further risk from powerful banks, financial institutions, and corporate greed.

“People want to live in a democracy; they want quality, accessible public services; a well-regulated financial sector; and decent jobs for all ― the opposite agenda of the deregulation, locked-in privatization, and antidevelopment fundamentals of the secret proposed TISA, according to today’s explosive leak.” —Deborah James, CEPRThe latest release follows a series of others by the pro-tranparency publication and comes just days ahead of the next round of TISA negotiations set to begin Monday in Washington, DC. The leaked documents included in Friday’s release include three draft chapters from the agreement—covering “Financial Services,” “Localization Provisions,” and “Bilateral Market Access.” The chapters are from June of this year and bring the number of documents related to the TISA negotiations published by Wikileaks up to 70 total.

Along with the Trans Pacific Partnership (TPP) and the TransAtlantic Trade and Investement Partnership (TTIP), TISA is actually the largest of the “Three Big T’s” of pending international agreements that seek to further shape the global economic and legal systems in favor of major corporations and elite interests. TISA is the largest of the three deals, and according to World Bank figures cited by Wikileaks, services that would be covered by the massive agreement comprise around 75% of the EU economy, 80% of the US economy and the majority of economies of most countries.

However, notes Wikileaks, “despite its importance both the US Presidential candidates Hillary Clinton and Donald Trump have thus far given no position on the TISA Agreement.”

According to one of the companion analyses by Wikileaks released alongside the TISA chapters, the current deal, if finalized, “would heighten risks of financial instability and handcuff governments’ ability to respond to a domestic or global financial crisis at a time when everyone (except the finance industry and its political allies) agree that we need more financial regulation, not less.”

In response to the latest leaks on Friday, the leaders of organized labor unions said it was more clear than ever that TISA “is no more than a corporate power grab and that negotiations must be stopped.”

In a joint statement, those unions said the wide scope of “the deregulatory agenda and attack on democratic governance” found in the TISA chapters “has been exposed” and criticized European Union governments for attempting to hijack control of every level of governance from the municipal to national levels of partner countries. Their review of the chapters found clear evidence that European countries are demanding deeper liberalization of public services both within the EU and beyond.

“The EU position ignores the potential danger of exporting aggressive privatisation policies to the developing world, which have already been shown to be the cause of social and political instability in many EU countries,” said Public Services International (PSI) General Secretary Rosa Pavanelli in a statement.

As Deborah James, Director of International Programs of the Center for Economy and Policy Research (CEPR) in Washington, DC, offered in her analysis of the leaks:

The leaked EU “requests” include asks that Costa Rica and Peru subject services offered at the subnational (local) level to the TISA liberalization rules. Unless the EU can demonstrate that all services offered in every municipality in these countries are already open to foreign suppliers, these are demands that would lock in any privatization of public services at the local level and open those services to competition from foreign services providers ― which the EU has constantly claimed it is not asking for.

The EU’s demands also include access to postal services in Chile, Costa Rica, Mexico, Pakistan, Panama, Peru, and Turkey, and in several developed countries participating in the talks. Many countries maintain cross-subsidization programs that are an important part of enabling national communication from rural areas. If countries make commitments in this sector, then they would have to provide the same subsidies to foreign corporations as their own domestic firms, and would not be able to renationalize the sector if privatization was found to have adverse impacts.

The EU’s demands also include access to sanitation, sewage, and other environmental services, which are often administered on a local level; telecommunications (including broadcasting); retail and distribution services; shipping; air and maritime transport; energy and mining services (which are extremely sensitive particularly in Latin America); and others. In addition, the EU is requesting more commitments on financial services in nearly every country.

Fred van Leeuwen, General Secretary of Education International (EI), said that in addition to TISA’s concerning contents, the secrecy surrounding how the deal is being negotiated remains troubling.

“These leaks give a clear indication of the dangerous direction of the TiSA negotiations,” The fact that citizens and civil society are still obliged to rely on leaks for getting a sense of the direction of the negotiations is deeply unsatisfactory.”

And Ron Oswald, General Secretary of the International Union of Food Workers (UIF), indicated that organized labor should really only have one set of demands at this point.

“It’s time to halt the negotiations, publish the secret texts and ensure the widest possible public debate to expose the full extent of the threat these treaties pose to democracy and the labour movement,” Oswald said.

And as CEPR’s James declared, “Globalization’s cheerleaders are all handwringing about the widespread opposition to trade pacts. But what they don’t acknowledge is that people around the world are not rejecting ‘trade,’ they are rejecting corporate control over our lives. People want to live in a democracy; they want quality, accessible public services; a well-regulated financial sector; and decent jobs for all ― the opposite agenda of the deregulation, locked-in privatization, and antidevelopment fundamentals of the secret proposed TISA, according to today’s explosive leak.”

Robert Reich: Donald Trump’s tax dodge

 … the real scandal is why these loopholes exist in the first place

The miscarriage of justice isn’t Trump took advantage of a tax break, it’s that the break exists in the first place

Robert Reich: Donald Trump's tax dodge hides the real scandal of why these loopholes exist in the first place
(Credit: Reuters/Brendan McDermid/Shutterstock/Salon)

This originally appeared on Robert Reich’s blog.

According to the New York Times, Donald Trump declared a $916 million loss on his 1995 tax returns – which could have allowed him to legally avoid paying any federal income taxes for 18 years.

The loss stemmed from Trump’s investments in the early 1990s.

Ordinary investors in Trump’s business empire saw the value of their shares plunge to 17 cents from $35.50, bondholders got pennies on the dollar, and scores of contractors went unpaid.

But Trump got a bonanza because the tax code allows “net operating losses” to cancel out taxable income in future years. And the bankruptcy code allows wealthy people to stiff the people they owe by reorganizing their debts under Chapter 11.

Trump didn’t do anything illegal. Real estate losses are notoriously easy to create. Trump bought buildings with borrowed money. He could then deduct interest paid on that debt. On top of that, he could take depreciation deductions, even when his real estate was appreciating in value.

Presto! Trump claimed almost a billion dollars of losses that would cancel his gigantic income gains for years to come.

Bankruptcy is also easy to utilize, if you’re wealthy enough to find a good bankruptcy lawyer who can use the bankruptcy code repeatedly to shelter your fortune and avoid paying your debts. Trump has used bankruptcy to stiff his creditors at least four times.

The real scandal here is that Trump and other hugely wealthy people can get away with this, and do so all the time. It’s just another way the system has been rigged – by rich people who buy off politicians to alter tax, bankruptcy, and other laws and regulations to their advantage, just like Donald Trump has done.

“As a businessman and a very substantial donor to very important people, when you give, they do whatever the hell you want them to do,” Trump told The Wall Street Journal in July 2015. “As a businessman, I need that.”

Trump isn’t and was never a smart businessman. He was and is smart at gaming the system. There’s a difference.

Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written 13 books, including his latest best-seller, “Aftershock: The Next Economy and America’s Future;” “The Work of Nations,” which has been translated into 22 languages; and his newest, an e-book, “Beyond Outrage.” His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His new movie “Inequality for All” is in Theaters. His widely-read blog can be found