Category Archives: Business/Economics

What Economic Recovery? Is the U.S. Congress stealing U.S. Postal Service money?

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge.  The U.S. Congress controls what the USPS can charge, and, according to testimonies by the U.S. postmaster general, Patrick Donahoe, and Fredric Rolando, president of the National Association of Letter Carriers, the U.S. Congress has forced the USPS to over pay into several federal funds.

Remember, the money made by the USPS does not come from taxes, and yet they’re being forced to over pay into federal funds.

Postmaster Donahoe has asked Congress to refund the over payments and they refused!  Congress is also refusing to allow the USPS access to it’s own money in the other funds.  Why?  Can it be that the U.S. Congress is using the non taxpayer Postal funds to pay for the day to day operations of the Congress?  Afterall, the U.S. government is broke, and they sure haven’t had any problems stealing from the taxpayer funded Social Security accounts!!!

What Economic Recovery? U.S. Congress wants to shut down U.S. Postal Service, why else are they restricting USPS access to their hard earned money? 9 million jobs lost?

September 6, PBS Newshour’s Gwen Ifill interviewed U.S. postmaster general, Patrick Donahoe, and Fredric Rolando, president of the National Association of Letter Carriers.  They both pointed out that the U.S. Congress is holding back on money earned by the USPS, and that was a primary reason the Postal Service is in trouble.

FREDRIC ROLANDO: “I’m here to tell you that the Postal Service is not broke. The Postal Service just needs access to its own money. And Congress needs to get busy and give them that access.”

“The $20 billion-plus dollars that you read about in losses is nothing more than a congressional mandate that requires the Postal Service, required the Postal Service to take all of their cash and put it into a pre-funding account.”

“The Postal Service actually has somewhere between $50 billion and $125 billion in their other funds that is not taxpayer money. They haven’t used a dime of taxpayer money in over 30 years! And the Congress just needs to act responsibly and quickly to give them access to that — those funds.”

PATRICK DONAHOE: “Fred is exactly right around the issues that we have faced in the last few years.”

“In that same time, we have been required [by Congress] to prepay employee retirement funding.”

GWEN IFILL: “What does Congress have to do with that? When you say that Congress needs to make changes to get you access to this cash, what can Congress do?”

PATRICK DONAHOE: There are two proposals on the table, the one Fred referred to, where we would get money back. The other proposal is the Postal Service taking over our own retirement system, operate it just like a private business. And we would no longer need that pre-funding.”

“…we have overpaid [forced by Congress] into our other retirement fund $6.9 billion. We want all that money back right now.”

FREDRIC ROLANDO: What Congress needs to do is give the Postal Service access to, like I said, between $50 billion and $125 billion…”

“There’s $50 billion to $75 billion in surplus pension funds. There’s about $42 billion in the future retiree health benefit funds, again, all postal funds, no taxpayer money involved.”

“…this is just cash money that the Postal Service needs access to. We’re not looking to in any way diminish what needs to be done for future pensions or future retirees.  It’s just that you don’t have to do 75 years worth of pre-funding in a 10-year period. You could re-amortize what needs to be done.”

“…because any business wouldn’t put $20 billion of cash into future pre-funding, nor would they leave $50 billion to $75 billion of pension surplus in that account, when they’re going through the transition that the Postal Service is going through right now.”

“If Congress doesn’t act, the postal industry, about nine million jobs are in danger…”

PATRICK DONAHOE: “We will be out of cash next August. That’s the issue.”

 

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

United Police States of Corporate America: People with mental problems thrown in prison, unwritten crime of being mentally ill, big money maker for Corporate Prisons

“When I became a judge I had no idea that I was becoming a gatekeeper to the largest psychiatric facility in the state of Florida – the Miami-Dade Jail.”Steve Leifman, Miami-Dade County judge

Not only does the United States have the most people in prison, in the whole world, but it also has the most people with mental problems in prison.

A National Public Radio report says that the University of South Florida looked at who was the most frequently jailed people in the Miami-Dade County prison system.  It turns out that people with mental problems are the most frequently jailed people: “Over a five-year period, these 97 individuals were arrested almost 2,200 times and spent 27,000 days in the Miami-Dade Jail. It cost the taxpayers $13 million.”-Steve Leifman, Miami-Dade County judge

Most states don’t use mental health facilities, no thanks to former President Ronald Reagan’s decision to cut funding in the 1980s, so most people who commit crimes because of their mental problems end up abused in prisons.

“It seems to me that we have criminalized being mentally ill.”-Greg Hamilton, Travis County Sheriff, Texas

Sheriff Hamilton says because there is little funding for hospitals to care for mental patients, the prison system becomes the default ‘treatment’ center.

The amount of time a person with mental problems stays in a Travis county jail is between 50 and 258 days.

According to a 2009 Corrections Today interview with Judge Leifman, 90% of U.S. hospital beds for mental health patients have been closed, and there’s been a 400% increase in the mentally ill offenders entering prison!

According to a May 2011 Daily Kos posting: “There are three times as many men and women with mental illness in U.S. prisons as in mental health hospitals.”

“The costs of keeping a mentally ill individual in a penitentiary are three to six time what it costs to treat them at an outpatient mental health center.”

“The U.S. prison system had become the largest mental health provider in the country – with nearly 50% of inmates reporting mental health problems.”

“According to the most recent survey by the Bureau of Justice Statistics, 81% of mentally ill inmates currently in state prison, 76% of mentally ill inmates in federal prison, and 79% of mentally ill inmates in local jails have prior convictions.”

“Mentally ill prisoners are more likely than others to end up housed in especially harsh conditions, such as isolation, that can push them over the edge into acute psychosis.”

“…there are powerful economic drivers to keep locking more and more of them up. In fact incarceration and detention has turned into a multibillion dollar growth industry.”

“…the [privately run Corporate] prison industrial complex is primarily motivated by economics, such that a formidable amount of prison industry capital is devoted to creating prisoners…”

In other words the exploding growth of Corporate run prisons demands more prisoners, so that the Corporate run prisons can make the money to pay back investors.  Mentally ill people are easy targets.

 

 

 

What Economic Recovery? U.S. Postal Service problems having domino effect on Corporate America

Some people don’t think much of the USPS (United States Postal Service), many people, including main stream journalists, don’t know that the USPS does not get any taxpayer money!  How about the fact that dozens of U.S. and European corporations rely on the USPS for business?

I’m not talking about shipping their products.  Corporations actually have major contracts to provide the USPS with products or services.  Now they’re feeling the pinch of the collapsing USPS budget.

Here’s a list of major companies being directly affected by the problems at the USPS: Fed Ex, Siemens, Northrop Grumman, Pat Salmon & Sons and Campbell-Ewald, to name a few.

Fed Ex is the biggest contractor with the USPS, in 2010 they were paid $1.4 billion for their service to the USPS (that’s only 3.5% of Fed Ex’s total revenue): “FedEx values its alliance relationship with USPS, both as a supplier and a customer.”-Maury Donahue, FedEx spokeswoman

Northrop Grumman made $495 million off their USPS contract.

The German company Siemens made $135 million in 2010: “We’re affected by their budget and their spending, It causes us to react and adjust.”-Daryl Dulaney, CEO of the Siemens Industry division New York

Siemens was involved with mail processing equipment, until this recent announcement by the USPS: “…will not be buying mail processing equipment, period.”-Sue Brennan, USPS spokeswoman

Privately held Pat Salmon & Sons trucking made $143 million in 2010.

Shipping contractors, like Fed Ex and Pat Salmon, have been hit hardest by the USPS budget crisis.  According to David Hendel, with postal contracting specialist Husch Blackwell LLP, the USPS is asking truckers to essentially work for half pay: “If the contractor will not agree to this, the Postal Service is threatening to terminate their contract.”

The only company that seems to be making more money off the USPS budget crisis, is advertiser Campbell-Ewald. The USPS has poured money into an advertising campaign trying to promote their service.

Basically the U.S. Postal Service wants to end Saturday mail delivery, cut 220,000 jobs by 2015 and close at least 3,700 post offices.  As you can see the cuts will affect far more than just Postal employees and customers.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

 

A true entrepreneur: Chinese man to grow Green Tea with Panda Crap, justifies charging outrageous prices for it

A teacher at southwest China’s Sichuan University learned that Panda’s use only 30% of what they eat, so that means 70% of what they crap is still full of wholesome nutrition.

An Yanshi, the university teacher, is so convinced that he could get people to pay insane prices for Green Tea grown in Panda crap that he even got a patent for his idea!

An Yanshi thinks he can get people to pay as mush as $34,422 for half a kilogram (one pound) for the Panda Manu Tea!!!  I wounder if this guy is smoking the tea instead of drinking it?

An official with the China Conservation and Research Center for the Giant Panda, pointed out that the university teacher needs to do a study to see if Panda crap will actually make a difference in how Green Tea grows, before he starts charging people sky high prices.

 

 

Closer to a one world government: Super Sovereign Credit Agency to be created

“We hope that the agency will gain a leading position in the global rating market within the next five years. We’re fully aware that a globally recognized organization can never be propped up by one agency, so we will bring in more countries.”-Guan Jianzhong, CEO of Dagong Global Credit Ratings

China’s Dagong Global Credit Ratings will play a key role in the new global super-sovereign credit rating agency.

It will be established by Europe, the United States and the BRICS (Brazil, Russia, India, China and South Africa).  Its headquarters will probably be based in Europe.  Details will be finalized in Frankfurt later this year.

Initial plans include representatives from National Information & Credit Evaluation in South Korea, the Scope Group from Germany, and RusRating from Russia.

There are currently 152 rating agencies worldwide, but recent actions by the “big three” credit raters (downgrading governments, like the United States) has led many governments to decide to create one single credit rating agency.

Ahmed Sule, a strategist for Diadem Capital in United Kingdom, said any new credit rating agency would have to prove itself: “The agency would have to be independent and autonomous; this could be a challenge but the agency would have to work toward this independence if it is to be accepted by the international capital market.”

In July, a French magazine, Capital, revealed that a single European credit rating agency was in the works.

 

Think the people of the United States lead the world in hatred of Immigrants? Nope, try moving to tiny Belgium!

In a survey done by Ipsos Mora y Araujo, citizens of 24 countries were asked how they viewed immigrants.  The United States did not lead the way with immigrant haters, still more than half of U.S. citizens hate immigrants.

The Ipsos survey asked various questions regarding immigrants, but basically most European and American residents don’t like immigrants, which is ironic considering that most European and American countries are made up of immigrants.

The country that leads the way in hatred of immigrants is Belgium, with 72% of respondents saying immigrants are bad for their country.  Argentina, United Kingdom and United States are on the same wavelength, with about 61% of their citizens hating immigrants.

50% of Australians and 41% of Canadians say immigrants make it harder to find a job.  One Canadian respondent explained their view of immigration as ‘yes, you can move here, but just not where I live’.

So where to move, now that it’s becoming clear that the United States isn’t a place where you can achieve your dreams?

47% of Brazilians say immigrants are good for their economy, and 49% say immigrants make Brazil an interesting place to live.  Could explain Brazil’s exploding population numbers.  Brazil now has the 5th largest population in the world.  Officially 192 million people live in Brazil, that’s almost equal to all the other South American country’s populations combined!

THE THEORY AND PRACTICE OF OLIGARCHICAL COLLECTIVISM, or Maintaining Power through a Continuous War on Terror, or War is a Competition to Control the most Slave Wage Workers

War is Peace

The splitting up of the world into three great super-states was an event which could be and indeed was foreseen before the middle of the twentieth century. With the absorption of Europe by Russia and of the United States by the British Empire, two of the three existing powers, Eurasia and Oceania, were already effectively in being. The third, Eastasia, only emerged as a distinct unit after another decade of confused fighting. The frontiers between the three super-states are in some places arbitrary, and in others they fluctuate according to the fortunes of war, but in general they follow geographical lines. Eurasia comprises the whole of the northern part of the European and Asiatic land-mass, from Portugal to the Bering Strait. Oceania comprises the Americas, the Atlantic islands including the British Isles, Australasia, and the southern portion of Africa. Eastasia, smaller than the others and with a less definite western frontier, comprises China and the countries to the south of it, the Japanese islands and a large but fluctuating portion of Manchuria, Mongolia, and Tibet.

In one combination or another, these three super-states are permanently at war, and have been so for the past fifty two years. War, however, is no longer the desperate, annihilating struggle that it was in the early decades of the twentieth centary. It is a warfare of limited aims between combatants who are unable to destroy one another, have no material cause for fighting and are not divided by any genuine ideological difference. This is not to say that either the conduct of war, or the prevailing attitude towards it, has become less bloodthirsty or more chivalrous. On the contrary, war hysteria is continuous and universal in all countries, and such acts as raping, looting, the slaughter of children, the reduction of whole populations to slavery, and reprisals against prisoners which extend even to boiling and burying alive, are looked upon as normal, and, when they are committed by one’s own side and not by the enemy, meritorious. But in a physical sense war involves very small numbers of people, mostly highly-trained specialists, and causes comparatively few casualties. The fighting, when there is any, takes place on the vague frontiers whose whereabouts the average man can only guess at, or round the aircraft carriers which guard strategic spots on the sea lanes. In the centers of civilization war means no more than a continuous shortage of consumption goods, and the occasional crash of a rocket bomb which may cause a few scores of deaths. War has in fact changed its character. More exactly, the reasons for which war is waged have changed in their order of importance. Motives which were already present to some small extent in the great wars of the early twentieth centuary have now become dominant and are consciously recognized and acted upon.

To understand the nature of the present war—for in spite of the regrouping which occurs every few years, it is always the same war—one must realize in the first place that it is impossible for it to be decisive. None of the three super-states could be definitively conquered even by the other two in combination. They are too evenly matched, and their natural defences are too formidable. Eurasia is protected by its vast land spaces. Oceania by the width of the Atlantic and the Pacific, Eastasia by the fecundity and indus triousness of its inhabitants. Secondly, there is no longer, in a material sense, anything to fight about. With the establishment of self-contained economies, in which production and consumption are geared to one another, the scramble for markets which was a main cause of previous wars has come to an end, while the competition for raw materials is no longer a matter of life and death. In any case each of the three super-states is so vast that it can obtain almost all the materials that it needs within its own boundaries. In so far as the war has a direct economic purpose, it is a war for labor power. Between the frontiers of the super- states, and not permanently in the possession of any of them, there lies a rough quadrilateral with its corners at Tangier, Brazzaville, Darwin, and Hong Kong, containing within it about a fifth of the population of the earth. It is for the possession of these thickly-populated regions, and of the northern ice-cap, that the three powers are constantly struggling. In practice no one power ever controls the whole of the disputed area. Portions of it are constantly changing hands, and it is the chance of seizing this or that fragment by a sudden stroke of treachery that dictates the endless changes of alignment.

All of the disputed territories contain valuable minerals, and some of them yield important vegetable products such as rubber which in colder climates it is necessary to synthesize by comparatively expensive methods. But above all they contain a bottomless reserve of cheap labor. Whichever power controls equatorial Africa, or the countries of the Middle East, or Southern India, or the Indonesian Archipelago, disposes also of the bodies of scores or hundreds of millions of ill-paid and hard-working coolies. The inhabitants of these areas, reduced more or less openly to the status of slaves, pass continually from conqueror to conqueror, and are expended like so much coal or oil in the race to turn out more armaments, to capture more territory, to control more labor power, to turn out more armaments, to capture more territory, and so on indefinitely. It should be noted that the fighting never really moves beyond the edges of the disputed areas. The frontiers of Eurasia flow back and forth between the basin of the Congo and the northern shore of the Mediterranean; the islands of the Indian Ocean and the Pacific are constantly being captured and recaptured by Oceania or by Eastasia; in Mongolia the dividing line between Eurasia and Eastasia is never stable; round the Pole all three powers lay claim to enormous territories which in fact are largely unihabited and unexplored: but the balance of power always remains roughly even, and the territory which forms the heartland of each super-state always remains inviolate. Moreover, the labor of the exploited peoples round the Equator is not really necessary to the world’s economy. They add nothing to the wealth of the world, since whatever they produce is used for purposes of war, and the object of waging a war is always to be in a better position in which to wage another war. By their labor the slave populations allow the tempo of continuous warfare to be speeded up. But if they did not exist, the structure of world society, and the process by which it maintains itself, would not be essentially different.

The primary aim of modern warfare (in accordance with the principles of doublethink, this aim is simultaneously recognized and not recognized by the directing brains of the Inner Party) is to use up the products of the machine without raising the general standard of living. Ever since the end of the nineteenth century, the problem of what to do with the surplus of consumption goods has been latent in industrial society. At present, when few human beings even have enough to eat, this problem is obviously not urgent, and it might not have become so, even if no artificial processes of destruction had been at work. The world of today is a bare, hungry, dilapidated place compared with the world that existed before 1914, and still more so if compared with the imaginary future to which the people of that period looked forward. In the early twentieth century, the vision of a future society unbelievably rich, leisured, orderly, and efficient—a glittering antiseptic world of glass and steel and snow-white concrete—was part of the consciousness of nearly every literate person. Science and technology were developing at a prodigious speed, and it seemed natural to assume that they would go on developing. This failed to happen, partly because of the impoverishment caused by a long series of wars and revolutions, partly because scientific and technical progress depended on the empirical habit of thought, which could not survive in a strictly regimented society. As a whole the world is more primitive today than it was 102 years ago. Certain backward areas have advanced, and various devices, always in some way connected with warfare and police espionage, have been developed, but experiment and invention have largely stopped, and the ravages of the atomic war of the nineteen- fifties have never been fully repaired. Nevertheless the dangers inherent in the machine are still there. From the moment when the machine first made its appearance it was clear to all thinking people that the need for human drudgery, and therefore to a great extent for human inequality, had disappeared. If the machine were used deliberately for that end, hunger, overwork, dirt, illiteracy, and disease could be eliminated within a few generations. And in fact, without being used for any such purpose, but by a sort of automatic process—by producing wealth which it was sometimes impossible not to distribute—the machine did raise the living standards of the average humand being very greatly over a period of about fifty years at the end of the nineteenth and the beginning of the twentieth centuries.

But it was also clear that an all-round increase in wealth threatened the destruction—indeed, in some sense was the destruction—of a hierarchical society. In a world in which everyone worked short hours, had enough to eat, lived in a house with a bathroom and a refrigerator, and possessed a motor-car or even an aeroplane, the most obvious and perhaps the most important form of inequality would already have disappeared. If it once became general, wealth would confer no distinction. It was possible, no doubt, to imagine a society in which wealth, in the sense of personal possessions and luxuries, should be evenly distributed, while power remained in the hands of a small privileged caste. But in practice such a society could not long remain stable. For if leisure and security were enjoyed by all alike, the great mass of human beings who are normally stupefied by poverty would become literate and would learn to think for themselves; and when once they had done this, they would sooner or later realize that the privileged minority had no function, and they would sweep it away. In the long run, a hierarchical society was only possible on a basis of poverty and ignorance. To return to the agricultural past, as some thinkers about the beginning of the twentieth century dreamed of doing, was not a practicable solution. It conflicted with the tendency towards mechanization which had become quasi-instinctive throughout almost the whole world, and moreover, any country which remained industrially backward was helpless in a military sense and was bound to be dominated, directly or indirectly, by its more advanced rivals.

Nor was it a satisfactory solution to keep the masses in poverty by restricting the output of goods. This happened to a great extent during the final phase of capitalism, roughly between 1920 and 1940. The economy of many countries was allowed to stagnate, land went out of cultivation, capital equipment was not added to, great blocks of the population were prevented from working and kept half alive by social programs. But this, too, entailed military weakness, and since the privations it inflicted were obviously unnecessary, it made opposition inevitable. The problem was how to keep the wheels of industry turning without increasing the real wealth of the world. Goods must be produced, but they must not be distributed. And in practice the only way of achieving this was by continuous warfare.

The essential act of war is destruction, not necessarily of human lives, but of the products of human labor. War is a way of shattering to pieces, or pouring into the stratosphere, or sinking in the depths of the sea, materials which might otherwise be used to make the masses too comfortable, and hence, in the long run, too intelligent. Even when weapons of war are not actually destroyed, their manufacture is still a convenient way of expending labor power without producing anything that can be consumed. An aircraft carrier, for example, has locked up in it the labor that would build several hundred cargo-ships. Ultimately it is scrapped as obsolete, never having brought any material benefit to anybody, and with further enormous labors another aircraft carrier is built. In principle the war effort is always so planned as to eat up any surplus that might exist after meeting the bare needs of the population. In practice the needs of the population are always underestimated, with the result that there is a chronic shortage of half the necessities of life; but this is looked on as an advantage. It is deliberate policy to keep even the favoured groups somewhere near the brink of hardship, because a general state of scarcity increases the importance of small privileges and thus magnifies the distinction between one group and another. By the standards of the early twentieth century, even a member of the Inner Party lives an austere, laborious kind of life. Nevertheless, the few luxuries that he does enjoy his large, well-appointed flat, the better texture of his clothes, the better quality of his food and drink and tobacco, his two or three servants, his private motor-car or helicopter—set him in a different world from a member of the Outer Party, and the members of the Outer Party have a similar advantage in comparison with the submerged masses whom we call ‘the proles’. The social atmosphere is that of a besieged city, where the possession of a lump of horseflesh makes the difference between wealth and poverty. And at the same time the consciousness of being at war, and therefore in danger, makes the handing-over of all power to a small caste seem the natural, unavoidable condition of survival.

War, it will be seen, accomplishes the necessary destruction, but accomplishes it in a psychologically acceptable way. In principle it would be quite simple to waste the surplus labour of the world by building temples and pyramids, by digging holes and filling them up again, or even by producing vast quantities of goods and then setting fire to them. But this would provide only the economic and not the emotional basis for a hierarchical society. What is concerned here is not the morale of masses, whose attitude is unimportant so long as they are kept steadily at work, but the morale of the Party itself. Even the humblest Party member is expected to be competent, industrious, and even intelligent within narrow limits, but it is also necessary that he should be a credulous and ignorant fanatic whose prevailing moods are fear, hatred, adulation, and orgiastic triumph. In other words it is necessary that he should have the mentality appropriate to a state of war. It does not matter whether the war is actually happening, and, since no decisive victory is possible, it does not matter whether the war is going well or badly. All that is needed is that a state of war should exist. The splitting of the intelligence which the Party requires of its members, and which is more easily achieved in an atmosphere of war, is now almost universal, but the higher up the ranks one goes, the more marked it becomes. It is precisely in the Inner Party that war hysteria and hatred of the enemy are strongest. In his capacity as an administrator, it is often necessary for a member of the Inner Party to know that this or that item of war news is untruthful, and he may often be aware that the entire war is spurious and is either not happening or is being waged for purposes quite other than the declared ones: but such knowledge is easily neutralized by the technique of doublethink. Meanwhile no Inner Party member wavers for an instant in his mystical belief that the war is real, and that it is bound to end victoriously, with Oceania the undisputed master of the entire world.

All members of the Inner Party believe in this coming conquest as an article of faith. It is to be achieved either by gradually acquiring more and more territory and so building up an overwhelming preponderance of power, or by the discovery of some new and unanswerable weapon. The search for new weapons continues unceasingly, and is one of the very few remaining activities in which the inventive or speculative type of mind can find any outlet. In Oceania at the present day, Science, in the old sense, has almost ceased to exist. In Newspeak there is no word for ‘Science’. The empirical method of thought, on which all the scientific achievements of the past were founded, is opposed to the most fundamental principles of Ingsoc. And even technological progress only happens when its products can in some way be used for the diminution of human liberty. In all the useful arts the world is either standing still or going backwards. The fields are cultivated with horse-ploughs while books are written by machinery. But in matters of vital importance—meaning, in effect, war and police espionage—the empirical approach is still encouraged, or at least tolerated. The two aims of the Party are to conquer the whole surface of the earth and to extinguish once and for all the possibility of independent thought. There are therefore two great problems which the Party is concerned to solve. One is how to discover, against his will, what another human being is thinking, and the other is how to kill several hundred million people in a few seconds without giving warning beforehand. In so far as scientific research still continues, this is its subject matter. The scientist of today is either a mixture of psychologist and inquisitor, studying with real ordinary minuteness the meaning of facial expressions, gestures, and tones of voice, and testing the truth-producing effects of drugs, shock therapy, hypnosis, and physical torture; or he is chemist, physicist, or biologist concerned only with such branches of his special subject as are relevant to the taking of life. In the vast laboratories of the Ministry of Peace, and in the experimental stations hidden in the Brazilian forests, or in the Australian desert, or on lost islands of the Antarctic, the teams of experts are indefatigably at work. Some are concerned simply with planning the logistics of future wars; others devise larger and larger rocket bombs, more and more powerful explosives, and more and more impenetrable armour- plating; others search for new and deadlier gases, or for soluble poisons capable of being produced in such quantities as to destroy the vegetation of whole continents, or for breeds of disease germs immunized against all possible antibodies; others strive to produce a vehicle that shall bore its way under the soil like a submarine under the water, or an aeroplane as independent of its base as a sailing-ship; others explore even remoter possibilities such as focusing the sun’s rays through lenses suspended thousands of kilometres away in space, or producing artificial earthquakes and tidal waves by tapping the heat at the earth’s centre.

But none of these projects ever comes anywhere near realization, and none of the three super-states ever gains a significant lead on the others. What is more remarkable is that all three powers already possess, in the atomic bomb, a weapon far more powerful than any that their present researches are likely to discover. Although the Party, according to its habit, claims the invention for itself, atomic bombs first appeared as early as the nineteen- forties, and were first used on a large scale about ten years later. At that time some hundreds of bombs were dropped on industrial centres, chiefly in European Russia, Western Europe, and North America. The effect was to convince the ruling groups of all countries that a few more atomic bombs would mean the end of organized society, and hence of their own power. Thereafter, although no formal agreement was ever made or hinted at, no more bombs were dropped. All three powers merely continue to produce atomic bombs and store them up against the decisive opportunity which they all believe will come sooner or later. And meanwhile the art of war has remained almost stationary for thirty or forty years. Helicopters are more used than they were formerly, bombing planes have been largely superseded by self-propelled projectiles, and the fragile movable battleship has given way to the almost unsinkable aircraft carrier; but otherwise there has been little development. The tank, the submarine, the torpedo, the machine gun, even the rifle and the hand grenade are still in use. And in spite of the endless slaughters reported in the Press and on the telescreens, the desperate battles of earlier wars, in which hundreds of thousands or even millions of men were often killed in a few weeks, have never been repeated.

None of the three super-states ever attempts any manoeuvre which involves the risk of serious defeat. When any large operation is undertaken, it is usually a surprise attack against an ally. The strategy that all three powers are following, or pretend to themselves that they are following, is the same. The plan is, by a combination of fighting, bargaining, and well-timed strokes of treachery, to acquire a ring of bases completely encircling one or other of the rival states, and then to sign a pact of friendship with that rival and remain on peaceful terms for so many years as to lull suspicion to sleep. During this time rockets loaded with atomic bombs can be assembled at all the strategic spots; finally they will all be fired simultaneously, with effects so devastating as to make retaliation impossible. It will then be time to sign a pact of friendship with the remaining world-power, in preparation for another attack. This scheme, it is hardly necessary to say, is a mere daydream, impossible of realization. Moreover, no fighting ever occurs except in the disputed areas round the Equator and the Pole: no invasion of enemy territory is ever undertaken. This explains the fact that in some places the frontiers between the superstates are arbitrary. Eurasia, for example, could easily conquer the British Isles, which are geographically part of Europe, or on the other hand it would be possible for Oceania to push its frontiers to the Rhine or even to the Vistula. But this would violate the principle, followed on all sides though never formulated, of cultural integrity. If Oceania were to conquer the areas that used once to be known as France and Germany, it would be necessary either to exterminate the inhabitants, a task of great physical difficulty, or to assimilate a population of about a hundred million people, who, so far as technical development goes, are roughly on the Oceanic level. The problem is the same for all three super-states. It is absolutely necessary to their structure that there should be no contact with foreigners, except, to a limited extent, with war prisoners and colored slaves. Even the official ally of the moment is always regarded with the darkest suspicion. War prisoners apart, the average citizen of Oceania never sets eyes on a citizen of either Eurasia or Eastasia, and he is forbidden the knowledge of foreign languages. If he were allowed contact with foreigners he would discover that they are creatures similar to himself and that most of what he has been told about them is lies. The sealed world in which he lives would be broken, and the fear, hatred, and self-righteousness on which his morale depends might evaporate. It is therefore realized on all sides that however often Iran, or Egypt, or Indonesia, or Sri Lanka may change hands, the main frontiers must never be crossed by anything except bombs.

Under this lies a fact never mentioned aloud, but tacitly understood and acted upon: namely, that the conditions of life in all three super-states are very much the same. In Oceania the prevailing philosophy is called Ingsoc, in Eurasia it is called Neo-Bolshevism, and in Eastasia it is called by a Chinese name usually translated as Death Worship, but perhaps better rendered as Obliteration of the Self. The citizen of Oceania is not allowed to know anything of the tenets of the other two philosophies, but he is taught to execrate them as barbarous outrages upon morality and common sense. Actually the three philosophies are barely distinguishable, and the social systems which they support are not distinguishable at all. Everywhere there is the same pyramidal structure, the same worship of semi-divine leader, the same economy existing by and for continuous warfare. It follows that the three super-states not only cannot conquer one another, but would gain no advantage by doing so. On the contrary, so long as they remain in conflict they prop one another up, like three sheaves of corn. And, as usual, the ruling groups of all three powers are simultaneously aware and unaware of what they are doing. Their lives are dedicated to world conquest, but they also know that it is necessary that the war should continue everlastingly and without victory. Meanwhile the fact that there is no danger of conquest makes possible the denial of reality which is the special feature of Ingsoc and its rival systems of thought. Here it is necessary to repeat what has been said earlier, that by becoming continuous war has fundamentally changed its character.

In past ages, a war, almost by definition, was something that sooner or later came to an end, usually in unmistakable victory or defeat. In the past, also, war was one of the main instruments by which human societies were kept in touch with physical reality. All rulers in all ages have tried to impose a false view of the world upon their followers, but they could not afford to encourage any illusion that tended to impair military efficiency. So long as defeat meant the loss of independence, or some other result generally held to be undesirable, the precautions against defeat had to be serious. Physical facts could not be ignored. In philosophy, or religion, or ethics, or politics, two and two might make five, but when one was designing a gun or an aeroplane they had to make four. Inefficient nations were always conquered sooner or later, and the struggle for efficiency was inimical to illusions. Moreover, to be efficient it was necessary to be able to learn from the past, which meant having a fairly accurate idea of what had happened in the past. Newspapers and history books were, of course, always colored and biased, but falsification of the kind that is practised today would have been impossible. War was a sure safeguard of sanity, and so far as the ruling classes were concerned it was probably the most important of all safeguards. While wars could be won or lost, no ruling class could be completely irresponsible.

But when war becomes literally continuous, it also ceases to be dangerous. When war is continuous there is no such thing as military necessity. Technical progress can cease and the most palpable facts can be denied or disregarded. As we have seen, researches that could be called scientific are still carried out for the purposes of war, but they are essentially a kind of daydreaming, and their failure to show results is not important. Efficiency, even military efficiency, is no longer needed. Nothing is efficient in Oceania except the Thought Police. Since each of the three super-states is unconquerable, each is in effect a separate universe within which almost any perversion of thought can be safely practised. Reality only exerts its pressure through the needs of everyday life—the need to eat and drink, to get shelter and clothing, to avoid swallowing poison or stepping out of top-storey windows, and the like. Between life and death, and between physical pleasure and physical pain, there is still a distinction, but that is all. Cut off from contact with the outer world, and with the past, the citizen of Oceania is like a man in interstellar space, who has no way of knowing which direction is up and which is down. The rulers of such a state are absolute, as the Pharaohs or the Caesars could not be. They are obliged to prevent their followers from starving to death in numbers large enough to be inconvenient, and they are obliged to remain at the same low level of military technique as their rivals; but once that minimum is achieved, they can twist reality into whatever shape they choose.

The war, therefore, if we judge it by the standards of previous wars, is merely an imposture. It is like the battles between certain ruminant animals whose horns are set at such an angle that they are incapable of hurting one another. But though it is unreal it is not meaningless. It eats up the surplus of consumable goods, and it helps to preserve the special mental atmosphere that a hierarchical society needs. War, it will be seen, is now a purely internal affair. In the past, the ruling groups of all countries, although they might recognize their common interest and therefore limit the destructiveness of war, did fight against one another, and the victor always plundered the vanquished. In our own day they are not fighting against one another at all. The war is waged by each ruling group against its own subjects, and the object of the war is not to make or prevent conquests of territory, but to keep the structure of society intact. The very word ‘war’, therefore, has become misleading. It would probably be accurate to say that by becoming continuous war has ceased to exist. The peculiar pressure that it exerted on human beings between the Neolithic Age and the early twentieth century has disappeared and been replaced by something quite different. The effect would be much the same if the three super-states, instead of fighting one another, should agree to live in perpetual peace, each inviolate within its own boundaries. For in that case each would still be a self-contained universe, freed for ever from the sobering influence of external danger. A peace that was truly permanent would be the same as a permanent war. This—although the vast majority of Party members understand it only in a shallower sense—is the inner meaning of the Party slogan: War is Peace.

THE THEORY AND PRACTICE OF OLIGARCHICAL COLLECTIVISM: SOCIALISTIC ELITISM, OR CORPORATE AMERICA