Graeber, Dual Power, and Monetary Reform

A friend of mine asked me to explain what it means for Graeber to say that he is an anarchist in the context of money and banking and this was my response, expanded for the blog post:

Graeber calls himself a “little a” anarchist in that he is not tied down by the ideology or any of the big names in the canon and considers it a principle of practicing politics. Anarchism mostly just means “without rulers” and the model of decision-making, the process a meeting takes on, is more important to him and other practically-minded activists that also use it. It is called the consensus model and, when done right (which is actually much harder than he makes it out to be in my experience), it is an extremely powerful and uplifting tool for organizing ourselves. The ideal in the consensus model is that a solution to a problem is worked out through deliberation that everyone can agree on. Voting is not desired but sometimes necessary when the group gets too big, but the intention is that the best solution for all people involved is reached with everyone getting to participate.

So when he talks about himself as an anarchist, it is the consensus process and direct action outside of/without communication with government agencies that he is mostly referring to. It sure as hell worked wonders during the occupy movement, but there were plenty of other factors that propelled and also hampered that movement. When you break it down, (little-a) anarchism is about self-rule instead of command rule. In a general assembly, people don’t interrupt (I love this), get on a stack (a serial list of who will talk next), clarify and debate proposals, take “temperature-checks” (in lieu of voting), and communicate non-verbally with hand-signals. It is very involving and gives everyone a sense that their thoughts actually matter and will have an effect on the course of the greater body-politic.

This style of self-organization will have limits when it comes to making policy in the present state of government, so legitimacy in the agencies of power and our liberal society is definitely lacking. The model itself comes off as antagonistic to the rest of our law-based, market oriented society because it refuses to negotiate or make demands. Although, there is no reason why some group of folks couldn’t consent on doing so. An anarchist, on the other hand, tends to hate the state as a quasi-religious ideological tenet. It started out as a humanistic desire for a non-violent world where nations did not continually embroil their populations in ruinous wars. It has spread deeper into culture with punk music – “don’t tell me what to do!”, hippies – “make love not war, man”, and the general protest politics that got big in the sixties. From the mid 1800’s until then, it was mainly thought of in the political economy sense of an alternative to capitalism that espoused grassroots revolution against all forms of oppression. Worker movements like the IWW or Wobblies wanted to use the power of the recent uprisings for a world run by those who work rather than those who profit off of them. They tended to be nomadic and were better organized before they were crushed, provoking many strikes by workers toiling in horrid conditions.

There are anarchists who are utopian socialists and engage in prefigurative politics like the syndicalists, but they generally refuse to take power and limit themselves to something like: “destroy all the states in a total revolution with a maximally invigorated population!” What comes afterward is up to your imagination, but I think some of the more committed anarchists would just continue fighting whoever seizes the obviously inevitably power vacuum that would result – probably until they are all dead. I think Graeber and those like him would be less militaristic, opting instead for constant organizing to the side of whatever government takes shape. However, there is something inherently aggressive in occupying space and claiming it for your own, marching around nearby (loudly and breaking shit occasionally), and defying all other mandates and orders but those you have crafted on your own inside. He makes the point that the Occupy movement was the most non-violent movement of its size though, probably ever. He also makes the point that occupying is somewhat of an aggressive assertion of a mass of people.

Some anarchists like to emphasize the ancient times before states and organized religion as if they were the manifestation of a timeless grassroots earth-people. It’s actually kind of appealing, until you notice the romantic folly of mixing ideals from the present, the historical past, and the ancient past and saying that underneath them there’s a timeless one that I’ve got. Still though, mythology and elemental worshipping sounds better to me than monotheism – if you have to have something of a cohesive cultural understanding through spiritual agents.

As for the debt subordinating nations and democracy, he gets most of his economic insights from Michael Hudson. He’s just a far better writer. Hudson talks about the nefarious ways in which America subordinates other nations to its interests being largely a result of its international monetary practices between the large, economically and militarily powerful nations. The U.S. has operated on a double standard for decades and forced the victorious allies after both world wars to repay it for supplies. It was through unwavering debt repayment that the U.S. got Britain to relinquish its status as top nation in the world, and the money shortages after WWI due to debt services to the U.S. all but directly caused the Great Depression. Since then, as you probably know, nations are under the illusion that they need to borrow money before it is created. But is it a failure in economic thinking or a veiled threat from the U.S.? If nations begin to print their own money debt-free and do anything socialistic like nationalize their industries, their currency will be attacked and they will be targeted for regime change. The only nations big enough to challenge this system are on the move right now, but it is still unclear whether their policies will differ from the U.S., especially in terms of debt and money policies. The interests of bond and share holders and bankers earning interest at all levels of lending (even when it shouldn’t need to be lent), plus American hegemony across the globe has got to be what he means.

What gets me is how so few people know about this, yet it is the most powerful force shaping and constraining governments and people throughout the earth. There is a gigantic geopolitical battle going on right now over trade areas and currency, yet the American public is simply not informed about it. Did you hear about Putin’s proposal for a free-trade area throughout all of Europe? I think Eurasia might be slipping away from the U.S. I heard a military (probably Navy) commander speak on a Democracy Now sound bite about how the Trans-Pacific Partnership would be a major boon to his strategic efforts to control the Pacific – “as good as another aircraft carrier.” Hudson also points to the intertwining of neoliberal philosophy and American foreign policy.

To wrap up, I think anarchists like Graeber would be willing and able to understand this stuff. Between he and Taibbi, we finally have people that can communicate complicated stuff to the public. But anarchists strategy is all delegitimization and uprising; you can’t count on them to create a public bank.

[Going further]

Graeber discusses monetary policy in this article for the Guardian. In his usual flowing style, he covers the history of money and how debt is built directly into money at its very source of creation in a breeze. I’ve written about it previously so I won’t go into it in depth, but the important thing in my eyes vis a vis anarchism is this question of how monetary reform could ever come from an anarchist movement espousing a consensus process. Here enters the concept of dual power:

“…the Occupy movement is ultimately based on what in revolutionary theory is often called a *dual power* strategy: we are trying to create liberated territories outside of the existing political, legal, and economic order, on the principle that that order is irredeemably corrupt. It is a space that operates to what extent it is possible, outside the apparatus of government and its claims of a monopoly on the legitimate use of force.” The Democracy Project: A History, a Crisis, a Movement

A burning question for someone like me who is interested in the undeniable force and vivacity of grassroots political organizing and the comfort it brings at meetings, and reclaiming the power to create money for the public is this: how can we reconcile these two opposing positions in the vein of the old populist movements around the turn of the century? The self-imposed distance from the state will make anarchist movements unwilling to touch any kind of policy objectives, no matter how transformative and how beneficial they would be to the current economic realities that most people must endure today. And yet, the greatest impediment to the liberating goals of revolutionaries is the debt structured central bank and international financial institution rule – a rule that would most easily be broken by the reinstating of sovereign money creation by governments and not private banks. Public control of money creation and distribution is more powerful in terms of confronting global oppression than any seizure of power in the traditional revolutionary sense. Such a “reform” in any individual nation would certainly travel very far in our hyper-connected age, the ripple effects of which would eventually turn power relations upside down.

So do we abandon these practices and start campaigning for political parties that would enact these reforms, form “broad coalitions” with public interest groups, and appeal to big-spender representatives with a list of demands? We should never allow ourselves to be pressured into taking sides on anyone else’s terms before we consider the options placed before us and determine if such a decision is actually required of us. Graeber’s appeal to dual power allows us to consider two different opposing forms of power and organization at once, not having to make them both find a common ground. Consensus-based direct action works well in autonomous spaces for non-bureaucratic people. Representatives regulating the money supply of a nation and administering loans at the local level would work too. The latter operates with the backing of national governments and organized military violence. The former an ideal of peaceful villagers cooperating amiably. Neither models are wholly adequate, but neither do we have to insist that they work out their differences and gel together to make the one right model. Such would be a forced choice insisting that we have one political identity and eliminate all other contradictory beliefs.

Expanding on the dual power concept Graeber elaborates on four different recent political strategies for turning grassroots political movement into sustained machines that have influenced their regions greatly.

The Sadr Strategy: armed militias with top-down discipline like those found in Iraq, which are much more likely to eventually become political parties and require a culturally cohesive base.

The San Andés Strategy: Zapatista organizations that fight and negotiate with national governments to keep their seized territory.

The El Alto Strategy: as found in Bolivia, “using autonomous institutions as the base to win a role in government and maintaining them as a directly democratic alternative completely separate from government”, which then elect representatives while putting “enormous pressure [on them] to do exactly the opposite of what they elected them to do.” This gives those representatives even more negotiating power.

The Buenos Aires Strategy: “try to strip [the political establishment] of all legitimacy.” This apparently worked in Argentina to default on its international debt. “… doing so set off a cascade of events that nearly destroyed international enforcement agencies like the International Monetary Fund, and effectively ended the Third World debt crisis.”

One gets the feeling that to enact major monetary reform would require delegitimization from populist grassroots movements *plus* inside economic policy makers pushing good ideas for public financing.


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