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Der Spiegal: Professor Noam Chomsky, cathedrals of capitalism have collapsed, the conservative government is spending its final weeks in office with nationalization plans. How does that make you feel?

Noam Chomsky: The times are too difficult and the crisis too severe to indulge in schadenfreude. Looking at it in perspective, the fact that there would be a financial crisis was perfectly predictable, its general nature, if not its magnitude. Markets are always inefficient.

DS: What exactly did you anticipate?

NC: In the financial industry, as in other industries, there are risks that are left out of the calculation. If you sell me a car, we have perhaps made a good bargain for ourselves. But there are effects of this transaction on others, which we do not take into account. There is more pollution, the price of gas goes up, there is more congestion. Those are the external costs of our transaction. In the case of financial institutions, they are huge.

DS: But isn’t it the task of a bank to take risks?

NC: Yes, but if it is well managed, like Goldman Sachs, it will cover its own risks and absorb its own losses. But no financial institution can manage systemic risks.
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If the presidential debate Friday night told us anything, it was that whichever of these candidates is elected, we can expect more wars, or at least more conflicts that put U.S. forces or citizens in danger for dubious reasons. Neither John McCain nor Barack Obama came close to questioning the "bipartisan" consensus on U.S. foreign policy, that the U.S. should be the prime mover and shaker in the world at large. They differ, and in some ways that are fairly important, on details. But on the central question of whether it is the United States’ job to go out there and fix the world, there was no disagreement.

To be sure, taking candidates at their word during a debate is not necessarily advisable for one who would be so foolish as to try to predict what they will do once in office. Politicians as a breed are not noted for being especially candid on the campaign trail, of course. Furthermore, every president faces unexpected foreign-policy challenges (Truman didn’t expect Korea, Carter didn’t expect Iran, Dubya didn’t expect 9/11, etc.). Still, the Bushlet has left some open sores out there in the rest of the world. So the next president is likely to have to deal with winding down the war in Iraq and figuring out what to do in Afghanistan and Pakistan, which will require reaching some kind of accommodation with Iran. Neither candidate seems to realize this, so they competed to see who could say the most childishly nasty things.

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Aghast at the atrocities committed by US forces invading the Philippines, and the rhetorical flights about liberation and noble intent that routinely accompany crimes of state, Mark Twain threw up his hands at his inability to wield his formidable weapon of satire. The immediate object of his frustration was the renowned General Funston. “No satire of Funston could reach perfection,” Twain lamented, “because Funston occupies that summit himself… [he is] satire incarnated.”

It is a thought that often comes to mind, again in August 2008 during the Russia-Georgia-Ossetia war. George Bush, Condoleezza Rica and other dignitaries solemnly invoked the sanctity of the United Nations, warning that Russia could be excluded from international institutions “by taking actions in Georgia that are inconsistent with” their principles. The sovereignty and territorial integrity of all nations must be rigorously honored, they intoned – “all nations,” that is, apart from those that the US chooses to attack: Iraq, Serbia, perhaps Iran, and a list of others too long and familiar to mention. (more…)

Anchorage

I’ve been in Alaska only a week, but I’m already feeling ever so much smarter about Russia.

I can’t quite see it from my hotel window, but, hey, I know it’s out there somewhere, beyond all the stuffed bears and cruise ships and glaciers and oil derricks.

The proximity of the country from which William Seward bartered to buy Alaska for $7 million — Seward’s icebox — is so illuminating that I suddenly realize that we would commit a grave error by overestimating Russia’s economic strength. After all, it represents only 2.8 percent of the world’s G.D.P., even though its gross domestic product has ballooned from $200 billion in 1999 to $1.7 trillion this year.

But I overanalyze. (more…)

The headlines say it all: “Russia Vote to Cement Putin Dominance“, “Russian Election Insider Outlines Fraud“, “Putin’s Phony Election“. Russia votes today in a sham of a parliamentary election – orchestrated by Putin himself – rife with enough anti-democratic trappings to make Stalin proud.

In many ways, Russia’s political landscape is a fascinating place. Most voters have no faith in Russian elections and 35% prefer the former Soviet system. Perhaps surprisingly, most Russians even favor the concentration of Putin’s power (though the efficacy of Putin’s electioneering may have something to do with it). (more…)