A Black political strategy for debt markets. Stay out of them.

You cannot resolve poverty within the black population by attempting to put more blacks into credit markets. Poverty is a function of capital: the less capital you have, the greater the likelihood that you that you will be poor.  Specifically, the more income-generating capital you own, the less likely that you will be poor.  The black political elite believe that if more middle income and poor blacks can borrow money, they would be able to purchase homes, cars, appliances, and the other trappings of consumer life; thus, living the American dream while claiming a stake in assets.  This approach is wrong because it fails to properly address the first act that was necessary for capital acquisition in America and also fails to reconcile the original acts of acquisition with the current barriers to capital acquisition and the alternatives available especially to non-affluent blacks.

Original capital acquisition in America was the result of theft.  This may sound cynical unless you have looked at the history of capital acquisition in America from the beginning of its colonization by European countries.  Take for example the language used by U.S. Supreme Court chief justice Marshall in Johnson v. McIntosh when discussing the principle of acquisition of discovery:

“While the different nations of Europe respected the right of the natives, as occupants, they asserted the ultimate dominion to be in themselves; and claimed and exercised, as a consequence of this ultimate dominion, a power to grant the soil, while yet in the possession of the natives.  These grants have been understood by all, to convey a title to the grantees, subject only to the Indian right of occupancy. The history of America, from its discovery to the present day, proves, we think, the universal recognition of these principles.”

Chief Justice Marshall then goes on to describe how England went about implementing this universal law:

“So early as the year 1496, her monarch granted a commission to the Cabots, to discover countries then unknown to Christian people, and to take possession of them in the name of the king of England. In this first effort made by the English government to acquire territory on this continent, we perceive a complete recognition of the principle which has been mentioned. The right of discovery given by this commission, is confined to countries ‘then unknown to all Christian people’; and of these countries Cabot was empowered to take possession in the name of the king of England.  Thus, asserting a right to take possession, notwithstanding the occupancy of the natives, who were heathens, and at the same time, admitting the prior title of any Christian people who may have made a previous discovery.”

In short, we came and discovered the place. The natural capital lying above and below the land is ours and you leave when we say so.  Chief Justice Marshall said as much when he continued:

“Discovery gave an exclusive right to extinguish the Indian title of occupancy, either by purchase or by conquest … The title by conquest is acquired and maintained by force.  The conqueror prescribes its limits.”

This acquisition by discovery drove, in my opinion, the philosophy of manifest destiny; that white America was destined to spread western civilization and republican democracy to unoccupied territories from whence Native Americans had either been eliminated or removed. The Homestead Act of 1862 and resulting grants of land, this time from the American government, put into the hands of people of European descent more natural resources including land and access to minerals and fuel sources for little or nothing.

Americans of European descent had a considerable head start. But other than establishing that original land acquisition in America is mostly the result of theft, what does this have to do with capital and credit markets? Because land and other natural resources are the anchors for debt markets. They serve as the collateral that backs up loans that are invested into the debt markets. In other words, they create the funding used to underwrite consumer and other debt.  Make the wrong bet and you could lose the family farm. Make the right bet and you have expanded your commercial enterprise from farming into other lines of business.  Occupying the credit generator/underwriter portion of the debt market is where the wealth creation takes place. Asking blacks to occupy the consumer portion of this market, especially when blacks do not have substantial land or mineral resources ownership is the same as putting blacks back on the plantation.

The black political elite cannot take the black population back in time where blacks can set up their own system of original theft in North America.  The black political elite could discourage blacks from entering a credit system that charges them an interest rate on loans that exceeds those as whites, that treats a black couple looking for a mortgage as a credit risk even when that couple has more than sufficient income to qualify for a loan.

One policy recommendation is that while blacks pursue as many income opportunities as possible that they avoid credit markets.  Blacks do not have the political power nor does the rest of America have the political will to offer up another “Oklahoma land rush” specifically tailored for black Americans.  Blacks do have more control over their spending. Paying off debt (much easier said than done) and not purchasing any more money not only leaves more money in the pocketbooks of black people, but sends a message to the bond markets and eventually the U.S. government that if either the markets or the government want blacks to get back into the consumption game, then there will have to be major changes in capital allocation policy.

America needs a new civil rights paradigm; one that puts the individual first

There is racism in America. America’s institutions were designed to route capital away from various groups based on race. America’s founding was race-based evidenced by a European policy of removal of Native American tribes from ancestral homes in North America where removal was based on a theory of discovery that, on one hand acknowledged the occupancy of America by Native Americans, but on the other hand, chose to abide with what it identified as a global rule where the country discovering the occupied land can declare acquisition by discovery of the occupied land and remove the occupants by force.

Europeans used a similar argument when it entered the African slave trade and removed people from their homes in Africa and transported them to North America. Like the Native American, Africans were given sub-human status justifying their removal as nothing but chattel property for use as unpaid labor.

America’s history is steeped in racism and as part of its redress federal, state, and local governments have embarked on an almost 60-year initiative to guarantee the rights of individuals to receive “equal treatment” by prohibiting discrimination against classes of individuals (race, age, gender, sexual orientation, etc.) who are pursuing certain endeavors, activities, or opportunities including education, employment, housing, borrowing on credit, housing, or voting.

I see two problems with these attempts at redress of wrongs allegedly perpetrated on certain groups. First, there is the total disregard of the individual where civil rights laws attempt to extend the “tyranny of the masses” that is becoming increasingly virulent in democracy. Groups of unknown individuals identified only by the class that they may fall in may now, backed by the force of the State, restrict the ability of the individual or an association of individuals from engaging with who they want or engaging in certain aspects of the market on terms that best serve their individual or group interests.

The second problem, particularly as it involves blacks in America, is that civil rights laws create a reliance on another group’s “safety pin”, a false and dangerous narrative that says that blacks should seek protection from a group whose wealth has been built on a history of systemic and systematic initiatives designed to keep power. There is a fallacy that the group that has kept its boot on the neck of black people is expected to remove the boot solely on the power of morals.  Rather than seek true economic and political empowerment via total independence, the current civil rights framework has the group with the boot creating the framework for redress on its terms while blacks hope and pray that the pressure of the boot is relieved just enough so that they can swallow a couple mouthfuls of fresh air.

Both problems, the attack on the individual’s freedom to disassociate and the lack of empowerment for and among blacks promoted by the civil rights framework, are best addressed by the dismantling of the current framework. Dismantling the framework eradicates the erroneous interpretation of the role of the State as protector of the individual and introduces many blacks to the reality that true empowerment comes from the ability to set your own course toward liberty.

Civil rights is anti-individual and anti-empowerment. The framework must be abandoned. It fosters weakness.

Blacks live in a population, not a community

Black Americans have built their collective around a history of pain and suffering, a misery that a significant portion of the black population have never directly experienced. A part of the reason for the collective mentality stems from being a libations people. Some blacks in America have continued some semblance of the practice of commemorating the ancestors. All groups have some degree of reverence for the elders but I find that blacks in particular take the reverence to another level. Take for example John Lewis, the representative to Congress from Georgia’s 5th district. Mr Lewis, who has served in the U.S. House of Representatives since 1987, rarely fails to remind us of his experiences marching with Dr Martin Luther King. For black Americans to turn Mr Lewis out of office would be sacrilege even though his effective over the years is highly questionable. As a messenger who reminds black Americans of pain and suffering, Mr Lewis is one of many architects of the narrative of a black community.

I have argued before that blacks do not have a community. At the risk of sounding like a fan of “trap music”, the poor and middle-income strata of blacks live in a mental, spiritual, political and economic ghetto where payday lenders, pawn shops, and tax preparers offering advances on internal revenue refunds make up the population’s financial district. Ride on MARTA in Atlanta and you observe that mobile broadband is the low cost digital source of entertainment for blacks in this income bracket. Over-indexed on both mobile broadband and social media, Facebook and Twitter are the databases and noise exchange platforms for the population.

Philosophically, Black Americans view the real world as a hostile place driven by ever present racism and a slave history that white Americans have not yet reconciled with their current privilege. Since this attack is directed at people with dark skin who can trace their lineage to Africa, most reactions from the black population comes from a collectivist albeit not entirely monolithic place.  Blacks feel trapped; they feel under siege.

Notice that I have been using “population” more than the typical word, “community.” Blacks do not have a community. Many view community as a social term. The social taint of the word is secondary. Community is an economic term with the accompanying social ordering of its members based on their contribution to the extraction, organization, and distribution of resources. At the base of a mining community is a mine and surrounding that mine is an ordering of human resources organized in such a way where you recognize leaders and followers; where you can identify where political and economic power is deployed and which classes are exercising what levels and amounts of that power.

It is the social orderings stemming from political and economic power that serve as platforms for a group’s culture, for the groups values as transmitted by the group’s leaders. I don’t see that in the black population.

Didn’t see it in Canarsie or Crown Heights. I haven’t seen it in West End Atlanta. I haven’t seen it in Baltimore. I haven’t seen it in Charlotte Amalie.  I saw populations of black people employed by non-blacks who actually owned the “vibranium.” I don’t see a community.

This lack of community along with the lack of values spawned from political and economic decision- making means, in my opinion, less of a barrier to pursuing individual self-interests.  Claims of community are empty for the black population where so-called community leaders and leading politicians have not been able to make heads or tails out of the centuries old relegation of blacks to the bottom of the political and economic totem pole. This major flaw in the community narrative is the cue for more blacks to “go their own way”, getting away from the false premise that skin color and pain throughout history should be enough to sustain monolithic thinking and poor political and economic gains.

Fox News, kneeling, and the #NFL

Took five seconds to watch a Fox News Facebook stream where the secretary of the Department of Homeland Security is discussing security for some event happening in Minneapolis on Sunday around 6:18 pm.

What I found interesting were the live comments in the timeline next to the video. Let’s just say that President Trump via his State of the Union last night has added to the attempts by many to equate “African American” with “anti-American.” A lot of the commenters expressed their displeasure with athletes who want to “kneel before Zod” versus placing their hands over their hearts acknowledging one nation under “God.”

It probably helped him that the Congressional Black Caucus was there to “stare racism in the face” as they did no clapping or standing for any parts of his speech while looking resplendent in all black and kente cloth. That was to be expected. However, in politics, optics always wins and in an economy where most Americans are not enjoying any upside from the surge in Wall Street (with the exception of the last two or three days), Mr Trump has provided certain factions of white America with an insidious excuse to point fingers ….

….fire rises….

Black Americans should think like sovereigns

Since their emancipation from physical slavery in 1865, black descendants of slaves brought to what is now known as the United States have fought for full incorporation as citizens. For blacks, incorporation meant the right to own property, vote, move freely across provincial borders, and be free from racial violence whether perpetrated by individuals or the State.

The primary reason for the incomplete incorporation process was the view of the European that blacks, based on their race, did not have equal value as humans, a view that one group must have in order to justify enslavement. Another reason closely related to race is based on the process of becoming a nation-state, a process that caught blacks in the crossfire.

By the time blacks were physically emancipated from slavery, the United States was becoming a nation-state. Having abandoned the British monarchy 89 years earlier, by 1865 America was expanding westward riding the wave of white, Anglo-Saxon manifest destiny.  During the period after 1865, the United States continued its campaign of pacifying indigenous tribes while importing and regulating the movement of Chinese. And while there was internal conflict between other European ethnic groups and Anglo-Saxons, these groups were able to be incorporated much easier than indigenous tribes, the Chinese, or former slaves of African descent.

The Chinese and other Asian groups have managed to balance maintaining their culture while incorporating to some degree into the American political economy.  While state and federally recognized indigenous tribes have limited sovereignty and ownership or use of certain lands, these groups see internal and external threats to their culture including poverty, alcoholism, encroachment on tribal lands by certain corporations, and subjugation to blood quantum tests.

The common thread, in my opinion, between Asians and indigenous tribes is that they have some land to fall back on; some physical reference point that anchors their history and existence. Blacks in the United States do not have that advantage. Besides historical records of slavery and the use of DNA testing, blacks have little connection to the African continent. America is their “soil”, their roots and some would argue that their status as descendants of involuntary migrants and slaves means a perspective significantly different from people who came to the U.S. voluntarily.

The downside of the “involuntary migrants and slave status” argument is that it falls on the deaf ears of those for whom the United States was created. If such an argument was effective, incorporation of blacks into American society would have occurred a century ago. Moral or emotion-driven arguments do not result in acquiring and distributing sufficient resources necessary for individuals in a community to sustain themselves. The current approach asks that a white-dominated government distribute temporary, sub-par benefits that act as a replacement for capital.

Sub-par public educational services do not teach children critical thinking skills that go along with the life skills provided by their households. Sub-par medical services while subsidizing drug prices thus the revenues of the drug industry do not provide the wellness information that keeps individuals truly healthy. Sub-par public safety that subsidizes police terrorism not community security does not benefit blacks either. The American political system feigns a sub-par community approach when in reality it is a temporary bandage designed to keep the barbarians from knocking down the gate.

The American political economy has been telling black Americans to “go your own way” for some time now. Maybe it is time to listen.

 

Government defined by distraction

The past 85 years have created an illusion as to what American government is. In the 1930s, government became a fuel injector for the American economy where the Executive branch pumped money into public works programs designed to employ idle labor. New regulatory regimes were created to regulate away the excesses of speculation and manage the extraction and use of natural resources.

By the 1960s, government took on the additional role of social justice guarantor, crafting and delivering legislation designed in part to further incorporate black Americans into national society and to provide other social services including healthcare to children and the elderly.

Through its military and science branches, government continued its research, development, and investment into computer networks and outer space. It was out of these activities that the internet was spawned allowing my five faithful followers to read this blog.

It is no wonder that Barack Obama said in 2012 with some authority the following:

“If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.”

The reality is that government as a noble entity is a myth; that the past eight plus decades have been a distraction from what we should only expect from government; that it is an entity that expands its control over jurisdictions anywhere in the world for the benefit of its financiers. What we should expect from government should be more in line with Donald Trump’s views on Iraqi oil:

“If we kept the oil, you probably wouldn’t have ISIS because that’s where they made their money in the first place, so we should have kept the oil, but, OK, maybe we’ll have another chance.”

While many were taken aback at the bluntness of Mr Trump’s statement, the President honed in on the primary expectation we should have of government, an entity that acquires and manages resources.

Americans have an issue with ugliness being exposed. They are weary of the guilt-fest they have endured over the past sixty years in particular, from scenes of police dogs attacking black Americans in Birmingham, Alabama to American military personnel being accused of murdering civilians in Iraq. But in the words of Mr Trump, “There are a lot of killers. We have a lot of killers. Well, you think our country is so innocent?”

Unbeknownst to him, Mr Trump summed up the core expectation of government; that of acquirer of resources. Any “noble” distribution is a response to the distractions caused by the powerless who are able to sneak into democracy’s nooks and crannies to agitate just long enough for social benefits that pale in size to the benefits flowing to the holders of government bonds. An irony, that there is distraction on both sides ….

 

West End Atlanta is a low value information commodity

Atlanta’s West End has no political power and appears to mirror the stagnant thinking of its representation on its city council. In the nine years that I have lived in the West End, I have yet to see how the power to “get what you want, when you want it, from who you want it from” has been applied to help its current citizens.

West End Atlanta should be the southwest version of Buckhead, especially given its proximity to City Hall, the downtown district, a MARTA transit station, and the airport. Instead, it’s the home of too many fast food restaurants, above average crime, and a high level of poverty. It doesn’t surprise me that West End’s city council member, Cleta Winslow, does not give the media interviews.  She would rightly be called to task about the state of poverty in her district. Not only the poverty, but the stagnation in mindset and lethargy in body language, the manifestation that stems from accepting less. It is very negative energy.

Blacks in West End give me the impression that they are just hanging around waiting to die.

If the 30310 zip code is going to improve, it won’t be as a result of current political leadership. After 23 years, Ms Winslow is merely a caretaker, or should I say undertaker. Individuals, particularly individuals of African American descent, are going to have to do this on their own.

One approach is to get more young, black producers to buy into the neighborhood. We need engineers and technologists to support and promote the attempts I see in the neighborhood to provide urban farming. The West End needs a self-contained political economy based on self-reliance.

Another, more important approach is to develop a tribal aspect to the West End’s social ordering. The West End needs to go from just a proclamation that “We here”, to an affirmation that, “We are here to stay. Let’s work.” The West End’s lack of progressiveness comes from a fear of being cohesive. This fear is a common thread running through most Black Americans. There is no conqueror mentality, just a “keep on, keeping on” mantra that adds to the lethargy of the West End’s inhabitants.

This attitude has made it easier for whites to gentrify the West End. It has been a slow and steady process. It is no shocker for me now to see mostly smiling white couples out walking their dogs or jogging along the Beltline while pushing a baby carriage. They are here, with conqueror mentality in tow.

In my title I asserted that the West End represents a low value information commodity. The West End Atlanta is low information value not simply because of the level of poverty, but because of the poor mindset and lack of cohesion. The most valuable information from the 30310 is that the area is wide open for plunder.