Capitalism's End Times: A Review of Kevin Phillips' AMERICAN THEOCRACY By Anthony Monteiro Kevin Phillips American Theocracy: The

Perils and Politics of Radical Religion, Oil and Borrowed Money in the 21st Century is a stunning political and intellectual achievement. In several respects it is courageous; given that Kevin Phillips almost 35 years ago began his career as a Republican strategist. It is not without flaws, especially in Phillips understanding of race, slavery and colonialism in the creation of capitalism and the role they play in its current crises. The classical statements on race, slavery and colonialism and their relationships to the world system, imperialism, exploitation and war are found in W.E.B. Du Bois The African Roots of the War, (1915), Black Reconstruction in America (1935) and The World and Africa (1947). In Black Reconstruction in America Du Bois insists that the overturning of Reconstruction after 1877 starts a cycle of restricted democracy, which ended up as democracy essentially for whites. This set the stage for American expansionism and empire. In The World and Africa he asserts that the collapse of the Euro-American world will be an outcome of the collapse of its foundations in Africa, Asia and Latin America, creating a crisis of white supremacist rule worldwide. Some of these matters will be dealt with later in this essay. Put succinctly, however, this book is an examination of late American capitalism. The basic thesis of the book is that America is in the throes of several converging crises: a crisis of ideology, manifested in the rise of Christian and, to a lesser extent, Jewish fundamentalism, and their becoming a significant part of the ideology of the state and the Republican Party; a crisis of oil dependency, which is deepened as the worlds supply of oil peaks; and a crisis of debt, manifested in historically unprecedented levels of private, business, government and foreign indebtedness. Phillips argues that the George W. Bush presidency is at the center of these converging crises. It is entangled in oil and debt capitalism and is deeply implicated in the right-wing evangelical ideological movement. Due to these entanglements it can only deepen these crises. Phillips does not suggest that a Hillary Clinton or John Kerry presidency would make a significant difference. He argues that the GOP government in Washington is a Southern-dominated, biblically-driven rogue coalition, like the Southern slavocracy before Lincolns election.

Phillips sees the current crises as symptomatic of national decline. They transcend the Bush presidency; they are systemic, meaning they manifest a crisis of American capitalism. These symptoms were present in almost exact form in past capitalist hegemons, i.e. Spain in the 17th century, the Netherlands in the 18th century and Britain in the late 19th and early 20th century. Each of these nations were imperial empires. Each, like the US, experienced imperial overreach and imperial hubris. His examination is at once historical, examining long trajectories of national development and decline; systemic, rooted in economic and political analysis; and ideological, wherein he asserts the active role of ideology, in particular fundamentalist Christianity, in the shaping of the contemporary American state and foreign policy. The focus on systemic crises in American capitalism makes this work, even if unintended, a radical critique of American capitalism. The book is divided into three parts: oil, radical religion and debt. Each is a specific study of an aspect of 21st century American capitalism. Foreign Oil and American Capitalism He begins with oil. This beginning is particularly timely as oil per barrel topped $75 with the prospect of its reaching $100 not far off. The narrative starts in the mid-1970s when US oil reserves peaked, several Middle East oil producers (Iraq, Libya and Iran) nationalized Western oil interests and when OPECs size and influence over global oil markets increased. Phillips observes: When we look back on the three subsequent decades, it is now possible to describe a much grander convergence of forces: (1) oils ever tightening grip on Washington politics and psychology; (2) the cumulative destabilization of the Middle East; (3) the rise of varying degrees of radical Christianity, Judaism and Islam around the world; (4) the biblical and geopolitical focus on Israel; and (5) the reemergence during the 1990s of eastern Europe, the Middle East and the Caspian republics (of the former Soviet Union [AM]) as the unstable, but pivotal thirty nation borderlands of the rogue Eurasian heartland. (41) Since the 1970s US foreign policy has been disproportionately driven by oil and the overarching need to insure that foreign oil flows uninterruptedly to the US. Connected to an oil driven foreign policy were the aims to block Soviet (perhaps now Chinese) access to the Persian Gulf, maintain the House of Saud in power in Saudi Arabia and insure that OPEC upholds the dollar as the currency through which oil is traded. This last assures the recycling of petrodollars (dollars accumulated in oil producing nations central banks) to purchase US Treasury bonds and weapons systems.

Iraq and the Hundred Years Oil Wars Phillips argues that the US has been in a 30 years oil war. The two Iraq wars, 1991 and 2003, are its decisive events. Iraq is strategic in completing three interrelated parts of US 21st century oil policies. They are rebuilding of Anglo-American oil reserves, transformation of Iraq into an oil protectorate-cum-military base, and reinforcement of the global hegemony of the US dollar. (76) Iraqs place was heightened by the 1990s when it was suspected that Iraq might have more oil reserves left than Saudi Arabia. The Middle East and oil have fuelled a hundred years war, pitting British, German, American, French, Russian, Israeli and Arab interests against one another and in fleeting coalitions against one or another combination of the players. Iraqs central place in the hundred years struggle to control Middle East oil goes back to the pre-World War I proposal by the Germans to build a Berlin to Baghdad railway as a way to connect Mesopotamian oil fields to German industry and its war machine. By the 1990s sharp and it seems enduring conflicts and contradictions over oil had emerged: on the one side American imperialisms drive to achieve hegemony and on the other the French, Russian, German and Chinese efforts to get access to Iraqi oil. In this mix China has emerged as a critical competitor to the US. For instance, in April 2006 following his visit to Washington President Hu of China flew directly to Saudi Arabia and China and Saudi Arabia signed mutual defense, security and economic cooperation treaties. Hus trip came three months after King Abdullahs visit to China, his first overseas trip as head of state. On the other hand, in 2001 Dick Cheneys National Energy Policy Development Group linked foreign oil needs and national security and the capture of new and existing oil and gas fields. Phillips points out that these policies of containing Iraq in order to control access to its oil fields goes back to the Clinton administration. Clinton signed off on air strikes against Iraq in January and June 1996 and deployment of troops on Iraqs borders in 1997-98 after Baghdad proposed oil concessions to Russia, China and France. (82) The Bush-Cheney administration continued Clintons policies, upping them to include full scale war and an energy forward strategy which was based on hamstringing Iraq with respect to negotiations with China, Russia and France. At the same time the Bush Administration began negotiations with the Taliban in Afghanistan to accept the construction of an American pipeline from Turkmenistan (a former Soviet Republic) through Kabul to Karachi, Pakistan. As this policy played out, US foreign policy became militarized. Richard Holbrooke, In the Beginning: A Fresh Look at the Early Years of American Empire (Foreign Affairs, Nov/Dec, 2002), states, the American military has assumed an unprecedented role in the conduct of foreign policy. Phillips insists that the US military has become a global oil protection service and the war on terrorism is being conflated with wars for oil.

Africas Oil and Global Resources Wars When all the pieces are put together the wars on terrorism and the Iraq wars are what Michael Klare claims are resource wars, where oil is not a mere commodity, but a matter of national security. In this scenario resource wars could extend beyond the Middle East to Russia, China, Africa and Latin America, especially Venezuela. There have, however, been counter moves by China and Russia, a significant example being the Shanghai Cooperation Organization, established to blunt the imperial overreach of the US in South and Central Asia. The Shanghai Cooperation Organization, now five years old, consists of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Observer nations include, India, Iran, Mongolia and Pakistan. Beijings aggressive challenges to American trade hegemony is expressed in what Joshua Cooper Ramo calls the Beijing Consensus (Chinas counter to the neoliberal globalist policies of Washington) another global counter move to contain the US militarily and economically. Ramo insists, The Washington Consensus was a hallmark of end-of-history arrogance; it left a trail of destroyed economies and bad feelings around the globe. Chinas new development approach is driven by a desire to have equitable peaceful high-quality growth, critically speaking, it turns traditional ideas like privatization and free trade on their heads. (Joshua Cooper Ramo, The Beijing Consensus, Foreign Policy Centre, 2004). Under the cloak of fighting terrorism, talks have begun between Washington and several African nations to build permanent naval and military bases in West Africa, particularly Senegal, Ghana and Mali - a rising oil region. The Wall Street Journal indicates that the key mission for US forces in Africa is to guarantee that Nigerian oilfields, that in the future could account for 25% of all US imports, remain secure. US military officials have visited Gabon and Sao Tome where they are considering building a deepwater port. The US European Command has recently stated its carrier battle groups would spend half their time going down the west coast of Africa. (85). The US oil strategy in Africa has ignited ethnic conflict, corruption, wealth and income disparities and interstate tensions. (Phillips, p86 - 87). Sudan and Chad and the political and ethnic struggles in Nigeria are case studies of these developments. Right-Wing Christianity: Oil, Race and the State While the transition is not neat, Phillips moves to right-wing religion as the second stool in the crisis scenario. He perceives Americas deep religious, ideological and cultural divisions as forms of warfare, specifically ideological civil war. These divisions are motor

forces of American politics and history. This thesis originates with his book The Cousins Wars (1999). Phillips says the great transformative events in the rise of England and then the United States were wars - bitter fratricidal wars - accompanied by Puritan and abolitionist sermons and battle hymns and principally fought to change the shape of internal politics, liberty and religion.(xiii) These cousins wars, where white English speaking people fought one another were the English Civil War 1640 - 1649, the American Revolution, 1775 - 1773, and the US Civil War, 1861 - 1865. I view these as wars to determine the nature of white state power, or of what I have else where called the racialized state. In an essay Race and the Racialized State: A Du Boisian Interrogation (http://www.sdonline.org/33/anthony_monteiro), I attempt to place the formation and development of the US state within the framework of dynamic and changing race relationships in the US and worldwide. I see the US state as fundamentally an institution of white racial hegemony and domination. The formation of the US in the context of the slave trade, plantation slavery, Jim Crow, imperial wars and de facto institutional racism are unavoidable in explaining the nature and practices of the US state. Phillips correctly traces the current religio-ideological conflicts and divisions among white Americans to the Civil War and Reconstruction. The late 20th century rise of rightwing fundamentalist Christianity based in the ideas of biblical inerrancy, the end of time theological mythology, the idea that white Americans are a chosen people, war, including nuclear war, in the Middle East to signify the return of the Messiah, and creationism and intelligent design as a substitute for science, is part of the Southification of the nation and American religion. The national divisions over Christianity are really divisions where race is overarching in determining white Americans understanding of class, gender, war and peace, science and ultimately the shape of 21st century capitalism. Phillips easily acknowledges how religion plays into all of the issues of division; his problem is to account for how race is factored in. The Southern Baptist Convention, the nations largest Protestant denomination, opposed the civil rights movement, was and is a center of white resentment against Blacks and more recently gays, lesbians and transgendered people. While accurately understanding the religio-ideological form of the divisions among whites, Phillips fails to acknowledge the substance of these divisions in race and racial inequality. He conceptualizes the South as more than a region; it is, he tells us, a culture and an ideology. In this respect he speaks of a greater South, which reaches, beyond the old Confederacy and its border states. The main institutional mechanism for the Southification of the nation is the Southern Baptist Convention and more recently, the

Republican Party. The Southern Baptist Convention (SBC) became the nurseries of American fundamentalism (153). Southern Baptists, during the long period of the cold war, the civil rights and black power movements, the anti-Vietnam War movement, the womens movement and the gay and lesbian movement, defined themselves as representatives of the white majority and of cultural and ideological normativity. Their goal was not to reject society, but to absorb it (158). Under the leadership of the SBC, Baptists linked Christianity to American patriotism and support for all wars and for huge military spending. Normalcy was associated most strikingly with some form of Southern white culture. Ultimately, they viewed themselves as the nation. New White Ethnic, Religious, and Ideological Identities Out of the Southification of a large part of the nation new ethno-religio-ideological identities have formed. White fundamentalist evangelical Christianity (Black hangers-on not withstanding) is an identity within the white population. It makes up about 40% of the white population and 60% of the Republican coalition. They view themselves as authentically American and authentically white. They are the political and ideological underpinnings of right-wing authoritarianism, and I would insist, crypto-fascism. This coalition, Phillips observes, is driven by the Souths haunted history, regional religion and combative temperament (172). Moreover. the twenty-first century Greater South commands a much bigger share of the nations population and resources then did the ill-fated Confederate States (173). In politics this produces religious excess, attacks upon science and plans for global war and crusaderism. To stay in power the Republican Party after Ronald Reagan was transformed into a reservoir of fealty to whiteness, manifested as white Southern folk culture and white resentment to Blackness. George Wallace, segregationist governor of Alabama, in the 1968 and 1972 presidential elections, first demonstrated this combination as a potent national political force. Phillips believes that one-third to one-half of the exodus to the Republican Party is explained by race. The fact of the matter is that new ethno-religio-ideological identities among whites in the post-civil rights era are necessary in the refashioning of whiteness and white supremacy to meet the new domestic and global situation especially as they relate to the color line. Phillips severely understates the role of race in the Southification of the nation. Yet, if not for race then why organize political and religious life around Southern values in the first place? What is the attraction of white Southern culture and religion if not their formation in the cauldrons of slavery and Jim Crow?

Moreover, creationism and intelligent design theories (based in so called biblical authority) uphold notions of fixed and permanent race relations based on white supremacy. The young Earth thesis (i.e. the Earth is between 6 and 10 thousand years old) ultimately suggests that the appearance of white people in Europe is coterminous with the creation of the planet and of human life. Stated another way, the beginnings of life are the beginning of white people as a distinct group in the genetic history of humanity. All of this, of course, denies the two million year history of anatomically modern humans on the African continent, as well as humanitys civilizational origins in Africa and Asia, at least 5,000 years ago. The end times narrative where the chosen and the righteous will be saved from Armageddon is coded in ways that suggests that white Southerners will rise again. In the end, the defeated South, in Gods plan will rise in the end days. Tim La Hayes Left Behind series of novels is the fictionalized version of this fiction. Religio-racism sees Americans, especially Southerners (in the expanded sense) as Gods chosen people, with a manifest destiny to rule the world and use for their benefit its peoples and resources. Fundamentalist Christianity and State Power Blind faith and religious excess have signaled and often initiated the decline of former capitalist hegemons (219). Phillips concern, and one of the places where his analysis of religious ideology is most poignant, is how religious fundamentalism becomes an organizing ideology of the state and Republican Party. This moves the state and a large part of political debate from the secular realm to religion. While Phillips does not extend his analysis of the state, it can be argued that the configuration of the state on the basis of evangelical Christian ideology reflects both a crisis of the state as well as a crisis of American capitalism itself. As the crises of the system accumulate religious state ideology asserts itself as all knowing, the defender of absolute truths rooted in biblical authority and the defender of those who believe in its truths. Phillips points to several Southern and Southwestern Republican Party conventions that endorse so called Christian nation party platforms (232). These platforms are based on Christian reconstructionist theology, the tenets of which range from using the Bible as a basis for domestic law, to emphasizing religious schools and womens subordination to men (233). The 2004 Texas Republican platform affirms the US as a Christian nation, regrets the myth of the separation of Church and state, calls for abstinence instead of sex education and broadly mirrors the reconstructionist demand for the abolition of a large group of federal agencies. (233) Theological

reconstructionists have called for the death penalty for homosexuals and adulterers, prostitutes and drug users; moderate reconstructionists called merely for jail time. Debt and Capitalist End Times The last leg in the three cornered stool is debt. Phillips asks, how long can an economic system grow which in 2004 credit market debt reached 304% of gross domestic product, net foreign debt was $3.3 trillion, assets of the financial services sector of the economy were $45.3 trillion, and financial sector profits significantly exceeded those in manufacturing and services? His answer is not long. Phillips calls this the financialization of the American economy where debt and debt services are more important than producing useful commodities. The financial services, broadly construed, have taken over the dominant economic, cultural and political role in the national economy (268). Since that sector of the dominant economic class, which V. I. Lenin, John Hobson and Rudolph Hilferding called finance capitalist, are non-productive and parasitic, they, as Phillips suggests, undermine the economic system. No presidential clan has been so involved in banking, investment and money market management over so much time, as the Bush clan (284). Lifetime patrons of George W. Bush are Morgan Stanley, Merrill Lynch, Pricewaterhouse Cooper and MBNA, the credit card giant. Phillips asserts that over the last part of the 20th century the federal government chose finance to be ascendant over manufacturing. Americas productive sector, manufacturing, lost its markets, profits and prime political access (288). Furthermore, between 1995 and 2000, 11,000 bank mergers occurred and new mega financial holding companies were created; all predicated upon bank deregulation. Three US banks, Citigroup (the worlds largest), Bank of America and JP Morgan, became super banks. It is not coincidental that at the time the leading sector of the economy was assumed by finance and oil (a declining global resource) that right-wing Christianity emerges as a state ideology under Republican rule. Phillips point is that an economy that unduly relies upon an outdated, limited and expensive source of energy, substitutes finance and money markets over manufacturing and production, whose foreign policy is defined by imperial overreach and where religious dogma that denies science in the name of biblical inerrancy has the upper hand among a sizable part of the population, these are markers of national crisis leading to national decline. Judas Capitalism and End Times

Business Weeks William Wolman calls the American economy a Judas economy dominated by debt and financiers. He identifies this with late stage capitalism. In an ironic sense evangelical Christianitys concern with the end times might really reflect its followers sense that American capitalism could be in its end times. The tragedy is that without struggle and programmatic unity among the victims of the Judas economy the chosen might only be the super rich. If the meek are to inherent the earth deep and radical social reforms must be fought for. In the course of which Christianity must redefine its essence, much in the way Martin Luther King Jr. proposed in the 1960s: i.e. spiritual vitality and questioning, anchored in the Christian duty to act on behalf of peace and social justice. The state and the economy must be democratized in ways similar to Franklin Roosevelts New Deal and Lyndon Johnsons partially successful Great Society. Education and jobs must be the center of a national youth program. Anti-racism and gender equality along with immigrant rights must be intertwined into all movements for change. Uppermost has to be the struggle against wars and the military industrial complex. Phillips looks at oil, debt and religion. In the end he is looking at American capitalism. Some reviewers commented that this is a pessimistic book, even conspiracy theory driven. For ordinary people late stage capitalism, like late stage cancer, is not an optimistic picture. Phillips book glimpses the now times of American capitalism. Human beings will decide the end times.

-- Anthony Monteiro teaches in the African American Studies Department at Temple University. He is a scholar/activist. He writes in areas having to do with W.E.B Du Bois Studies, Marxism and race. He lives in Philadelphia where he is active in social, economic and politcal struggles. Send your letters to the editor to paletters@politicalaffairs.net http://www.politicalaffairs.net/article/articleview/3886/