Tag Archives: libertarian

Eagle, Earnings and Eminent Domain

Lundin Mining CEO Paul Conibear seems to have expected questions about the Eagle Mine on this morning’s Q4 2013 earnings call. At the outset, he announced that Senior Vice President Paul McRae was on hand to answer any questions about Eagle analysts might have. But to my surprise there was not a single question about Eagle. Analysts seemed content to rely on the company’s guidance.

Conibear sounded an optimistic note. Despite a “brutal winter,” he said, Eagle is fully on track for production of nickel and copper concentrates by the end of 2014. Underground drilling at the mine proceeds apace, and the mill is “a beehive of activity.”

Neither he nor McRae were called upon to address transportation at the mine, which is still unresolved and may soon run into new legal challenges.

At the start of this week, the Marquette County Road Commission announced that they “can” – or at least they “plan” — to use eminent domain to seize property for County Road AAA. This came as a surprise to some people at the hearing and to the owners of a piece of land along the AAA route known as the Hingst property. The Hingst are not interested in selling. So whether the Road Commission can do what it plans to do may be left for the courts to decide.

The analysts on this morning’s call seemed either unaware or unconcerned that Eagle’s haul road might be delayed by litigation – or that the route between the mine and the beehive of activity at the mill is approaching a legal crossroads. Of course, Lundin Mining has deep pockets and can continue to fight legal challenges as they arise; but eminent domain controversies are not always easily or speedily resolved and the county may not have the stomach for protracted litigation over property rights and the divisiveness it can create.

You wouldn’t imagine that anything can stand in the mining company’s way from local news coverage of the AAA road. Interviewed by Molly Smerika of ABC10 News, Marquette County Road Commission Engineer Manager Jim Iwanicki tried to tout the public benefits of the AAA, advancing the disingenuous argument that the haul road will be a “public road, for everybody”; and Smerika didn’t bother to ask what he meant by that, or just how the Eagle Mine trucking route will serve the public good.

Smerika even gave Iwanicki a pass on the specious claim that the local “tourism industry” will benefit from the 55 MPH haul road. What could be more relaxing than a high-speed drive in heavy truck traffic? Spectacular roadkill the whole family can enjoy.

In that same interview, Iwanicki mistakenly calls the mining industry a “benefactor” of the AAA road. He clearly meant “beneficiary,” but it’s a telling slip. Lundin has taken over where Rio Tinto left off, as the chief if not the sole driver of infrastructure development and, it appears, public policy in Marquette County. After the CR 595 fiasco, the Road Commission seems determined to deliver for the mining company; but until the county takes the Hingst property, there is still room for doubt whether the confident guidance on the Eagle project we heard this morning is fully warranted.

David Koch and the Limits of Tolerance

“I believe in gay marriage.” So, in an interview with Politico last week, GOP megadonor David Koch came out in support of marriage equality. His remarks were widely reported as a “break” from the official Republican party line and Mitt Romney’s position on gay marriage. But Koch “joins a near-majority of young Republicans under the age of 35 who support marriage equality,” according to Human Rights Campaign. Among libertarians, gay marriage tends to be a non-issue. There’s little reason to be surprised or scandalized.

The whole affair reminds me of an exchange that Peter Hallward had in an interview with Noam Chomsky a short while ago. Chomsky and Hallward are talking about gains in the areas of human and civil rights, Chomsky maintaining that “the country has become a lot more civilized” in the past forty or fifty years, since the 1960s.

“Elementary rights” – Chomsky mentions women’s rights and gay rights, and the repeal of anti-sodomy laws – “were more or less marginalized until pretty recently, but now we can almost take them for granted.” (My emphasis here would be on almost.) Hallward readily concedes that human and civil rights gains were “hard won,” but hastens to add that ultimately “they don’t conflict with class interests.” Chomsky concurs:

The ruling classes are able to accommodate civil and human rights, pretty easily. In fact if you look at the opinions of CEOs, you find that their social attitudes tend to be fairly liberal. These things don’t affect their position. When you start to touch on questions relating to authority and the concentration of power in the system you run into more challenging barriers. But still, the freedoms that exist elsewhere give you the opportunity to work against those barriers.

Along with his brother Charles, David Koch certainly represents a concentration of power in the system. So does Goldman-Sachs CEO Lloyd Blankfein, who recently appeared in a Human Rights Campaign video advocating same-sex marriage. “America’s corporations learned long ago that equality is just good business and is the right thing to do,” says Blankfein in the video, urging us to join him “and the majority of Americans who support marriage equality.” And there is no reason to doubt Blankfein means what he says here. The Goldman CEO has helped advance legislation for marriage equality in New York, and under his leadership Goldman has made it a policy to reimburse employees for the extra taxes they pay on domestic partner benefits. (And that’s a draw for talented people – a big plus for Goldman.)

All this might lend Goldman the aura of a “socially responsible” company. But it’s worth noting that this issue is a good distance from the space where Goldman operates. “If Mr. Blankfein was taking a radical stand on pay you could say wow, that’s big,” Paul Argenti said when asked to comment on Blankfein’s video appearance. “But [marriage] equality is simply not an issue you associate with Goldman.” Advocating for marriage equality likely won’t raise serious questions about the role Goldman plays in the system of global finance, or the influence the investment bank exercises over American economic policy. (Those issues, by the way, are the focus of a new documentary based on Marc Roche’s book The Bank: How Goldman Sachs Rules the World, set to air on tonight on the French-German Television channel, Arte.)

Of course it’s better to have business moguls and power brokers like Koch and Blankfein join hands with young Republicans on the side of marriage equality or civil and human rights. No doubt about it. But before we break out into a chorus of Kumbayah it’s important to consider the limits of their tolerance – which is essentially what Chomsky is asking us to do – and ask where they draw the line. That’s where they will come out to fight.

The Delta Response to Gamma Rats and Sociopaths

Doug Casey may not believe, along with Margaret Thatcher, that there’s no such thing as society, but he seems to have given up on ours. An investor and a self-styled libertarian, Casey thinks the country is done: “All the institutions that made America exceptional – including a belief in capitalism, individualism, self-reliance and the restraints of the Constitution – are now only historical artifacts,” he wrote in a post this past week. The “moral rot” runs so deep, Casey argues, that there is no fixing the institutions; the rot has become institutionalized.

How did things get so bad? Casey has a simple answer, one that doesn’t require much reading of history or economic analysis: sociopaths. Sociopaths “are now fully in control of major American institutions. Their beliefs and attitudes are insinuated throughout the economic, political, intellectual and psychological/spiritual fabric of the US.” These “really bad actors” – Casey estimates that they make up about 4 percent of the population –“are drawn to government and other positions where they can work their will on other people and, because they’re enthusiastic about government, they rise to leadership positions. They remake the culture of the organizations they run in their own image.”

Casey is hardly the first to claim that sociopaths have taken over. The movie The Corporation popularized the trope. If in the wake of Citizens United corporations are persons, then (runs the argument) they are the kind who belong in a straitjacket. Since then, and especially since things went bust in 2008, it’s become popular to characterize CEOs and Wall Street investors as sociopaths; it borders on cliché. Casey’s simply transferred the argument to government: no surprise, really, that it is as dysfunctional and destructive as the other centers of power in twenty-first century America.

Casey recommends flight over fight. He argues that it makes better sense than ever to become an International Man (the initial caps are his: the International Man appears to have achieved an iconic status in his mind), and find a safe haven to keep one’s assets and one’s life out of the reach of the sociopaths. Casey sees this flight from society not as the act of a misanthrope, but a “gamma rat”:

You may recall the ethologist’s characterization of the social interaction of rats as being between a few alpha rats and many beta rats, the alpha rats being dominant and the beta rats submissive. In addition, a small percentage are gamma rats that stake out prime territory and mates, like the alphas, but are not interested in dominating the betas. The people most inclined to leave for the wide world outside and seek fortune elsewhere are typically gamma personalities.

I have to admit that the fantasy of becoming an International Man holds its attractions – a hoard of wealth, prime real estate, the finest mates (check their teeth and gums, just to make sure). But it is, ultimately, a fantasy of power and control that betrays a feeling of powerlessness and a loss of control.  The International Man would have us believe that he is a refugee, fleeing persecution, but he doesn’t ask for pity or succor; he demands privilege and exemption from all that is common.

He is shrewd and selfish, not heroic. Odysseus, arguably the first international man, was wily, but he suffered heroically because he longed for home. The gamma cannot be nostalgic; home is where he finds or makes his fortune, until the taxman catches up. He fancies himself a hobo or tramp, but he has investment assets, property and multiple passports. He wants to own but not owe – not nothing to nobody, nohow. He accumulates wealth but, it would seem, cares nothing for common wealth; that may make him rich, but it also makes him the enemy of prosperity.

If the International Man is iconic, he would appear to be an icon of idiocy, in the classical sense of that word. Arendt puts it this way in The Human Condition: “a life spent in the privacy of ‘one’s own’ ([in Greek,] idion), outside the world of the common, is ‘idiotic’ by definition.”

What else should we call a person who sees bad actors taking control, institutions failing, society collapsing, and decides to get out while he still can? What would be his motto? Ask not what you can do for your country, but what you can grab for yourself?

More importantly, what would it take to go beyond gamma – to delta, let’s say, where you can apply yourself to meaningful work, and to building the next society?

The delta understands social collapse and institutional failure not simply as a crisis, but as an opportunity to create something new. The delta wards off doom by doing humble work, tinkering, fixing and reclaiming. As I conceive it, delta is all about tikkun — doing the difficult work of “world repair,” not throwing one’s hands up in despair. It takes imagination. Poets, painters and teachers can be deltas; they give us new models to work with. So can inventors and entrepreneurs. In fact, I would put social entrepreneurs and socially responsible investors at the forefront of the delta group. And delta is on the rise: B-corporations, which work to produce public benefits, have won legitimacy in seven states; legislation in pending in seven others.

Deltas work at a remove from the dysfunctional centers of power, on the edges of organizations, independently and within small groups, where they can experiment and learn from each other. The delta looks for alternatives to the destructive power dynamics of the alphas and the betas – flatter organizations, fair dealing, transparency and collaboration. If the gamma is entirely self-directed, even to the point of idiocy, the delta is other-directed, altruistic, a maker of community. Deltas stay networked, because they recognize the limits of the self, and know that our lives and our liberty take on meaning only with and in relation to others, no matter how much we may fantasize about going it alone.