Tuesday 10 February 2015

Don't Bank On It!



 


The breaking scandal in Europe that the HSBC bank has been actively assisting its larger clients  in tax avoidance (background BBC story here) is not only further illustration (after the ‘Great Recession’ of 2007-2008) of how endemic ethical malfeasance is in the international finance sector, but also perhaps of a small, albeit significant, shift of emphasis from the state to the corporate and financial sector as the central loci of realpolitik conspiracy in the early 21st century.  

In a broad historical sense, conspiracy theories (in the West at least) have generally followed two main  templates centered around the state. 

The first template, and the oldest historically, is the people vs the state – that is, groups in the wider populace at large are conspiring against the state or its historical equivalents such as the monarchy, regional fiefdoms, or dominant institutions such as the Catholic church.  An example of a genuine realpolitik conspiracy in this sense is the Gunpowder Plot of early 17th century England, in which Catholic dissenters sought to blow up the British Houses of Parliament; an example of this type of thinking manifesting in more ideological forms the accusations by 18th century ur-conspiracists like John Robison and Abbe Barruel that the French Revolution was instigated by Masons and Illuminati seeking the overthrow of the monarchy to their own evil ends. 

While ‘conspiracies against the state’ are still common in conspiracy culture (e.g. the official narrative of the JFK assassination, that the disgruntled ex-Communist Oswald killed the President of the USA) they have been mostly surpassed by the second template – the state vs the people. These conspiracy theories claim that the state itself is conspiring against the citizenry it is ostensibly working on behalf of in democratic societies. That this template is pre-eminent in a contemporary conspiracy culture dominated by Amerocentric perspectives is of little surprise considering that suspicion of the ‘State’ or ‘government’ has long been a feature of American political life (ref. the seminal essay by the American political historian Richard Hofstadter from which this blog takes its name). while always present, this template seems to have become entrenched as the dominant mode of American conspiracism during the 1960s and 1970s. 

 

Significant factors playing a role here include the demonization of the American ‘establishment’ by the counterculture; the systematic abuse of government authority revealed by the Watergate scandal which led to a pervasive loss of trust in, and suspicion towards, the Government; and evidence that American intelligence agencies such as the CIA and FBI were engaged in unconstitutional and unethical activity against the American public (and other countries) under the justifying framework of the Cold War. Examples of this template in contemporary conspiracy culture include the New Age Illuminati conspiracy mythos, which interprets almost all aspects of popular culture as one massive ‘psychological operation’ or ‘psy-op’, using secret government-developed techniques of mind control to subliminally condition the populace into a state of passive acquiescence to Illuminati control. These beliefs have some genuine realpolitik conspiracising at their root, notably the revelations in the 1970s that the CIA had undertaken psychological warfare experiments on American civilians under the Cold War MK-ULTRA program, instigated as a response to American paranoia about Communist regimes alleged prowess brainwashing (as reflected in the excellent 1962 Hollywood thriller The Manchurian Candidate).  Similarly,  the 9/11 truth movement is based on the premise that the 2001 attacks on the twin towers were ‘false flag’ events staged by the American government and related elites to bolster their power through geo-political conflict and the narrowing of civil liberties. 

I’ll muse here that the HSBC scandal, along with a lot of other high-profile discussion of corporate tax avoidance over the last couple of years, is representative of a third template for the relationship between conspiracy and the state: corporations/big businesses vs both the public and the state. The notion of big business conspiring against the public is nothing new, of course, having a long pedigree in Marxist-derived thought, such as the work of the Frankfurt School. However, such conspiracy discourses generally conflate corporate power and state power,  i.e. big business and the government are effectively seen as one and the same – the democratic duties of the state having been co-opted by business interests, with government functioning as a façade disguising the extent to which genuine democracy has been thwarted (Noam Chomsky is a notable proponent of this perspective in relation to American politics). 

 

Why I’m postulating these realpolitik conspiracies of corporate tax-avoidance by corporations as a notable variation on established templates of conspiracist thinking about the state is because they contain an emotional subtext in which the state, along with the public, are configured together as victims of the conspiratorial activity of business. As corporate tax evasion is hurting the state in terms of one of its main democratic roles and functions - to provide services to citizens through tax revenue, the discourses of these stories implicitly affirm the democratic union between public and state against the rapacity of capitalism, a union that is at the basis of the values of social democracy that are still core ideals of Western societies.  However, this reading only applies to the subject of taxation as, in most other recent cases of corporate malfeasance, governments are considered to be a vassal of big-business power. For example, the failure of the Obama administration to adequately punish and reform the American finance sector, whose criminal activities were instrumental in instigating the global financial crisis, is usually explained in relation to American politicians’ intrinsic class and career links to big business. Nevertheless, it will be interesting to see if the rise of populist political movements around the world, as a response to the ongoing repercussions of the global financial crisis, will contribute to a more explicit rehabilitation of the state in future conspiracy theories of a realpolitikal bent.

The HSBC scandal – made public by a former finance sector employee who hacked incriminating files and provided them to  news outlets - is also noteworthy as another event that further entrenches the ‘whistleblower’ as the key figure of 21st century democracy. Democracy in the 20th century was typified by the dramatis personae of the statesman – the elected politician who enacted the democratic spirit of a nation, through thought and deed, against the adversities of war and economic depression (e.g. Churchill and WWII; Roosevelt and the New Deal; Kennedy and the Cold War). However, as discussed above, the neo-liberal era of the last thirty or so years has been marked by a cynical perception of politicians as less upholders of democratic ideals than opportunists and careerists furthering the interests of capitalist elites over the public good. The sense that democracy has been irrevocably compromised by neo-liberal ideologies is reflected in the fact that very few leading contemporary politicians are seen to embody the ‘essence’ of democracy as the statesmen outlined above (George W. Bush & Tony Blair, anyone?) 

Instead, it is whistleblowers (along with investigative journalists) who seem today to really personify and enact the democratic ethos. These are generally ‘little people’ in big organisations who risk their jobs and reputations on behalf of the principle of transparency – that the workings of political and economic power should be clearly visible to the public gaze to prevent the abuse of that power. While every nation has its whistleblowers, the last few years have seen certain individuals, such as Chelsea Manning, Julian Assange, and Edward Snowden, gain international attention due to the ethical and political implications of the information they have released and/or publicized regarding the non-democratic nature of classified American military and intelligence activities. 

The whistleblower is also a key figure in conspiracy culture, with many conspiracy theories having their basis in claims of cover-ups made by individuals who claimed to have insider knowledge of government organisations or corporations. For example, American ufology today is almost entirely predicated around outrageous stories of crashed UFOs and alien-government alliances made by ex-military or intelligence personnel. Such whistleblowing also enables conspiracy theorists to assume the mantle of investigative journalists, making public information which would otherwise remain conspiratorially hidden from the public eye. 

 

The difference, of course, is that genuine whistleblowers are usually able to provide some legitimate evidence of their claims (such as authentic government documents), whereas the likes of UFO whistleblowing remains purely in the realm of fantastic anecdotes, suggesting that the whistleblowing is motivated more by psychological factors rather than an adherence to democratic ethics.