I just finished listening to The Pillars of the Earth by Ken Follet. It’s an historical fiction novel saga of massive proportions revolving around the building of a cathedral and the original robber barons who didn’t give a flying fig for truth or beauty. Follet is a perfectionist when it comes to historical accuracy so I can only imagine what life must have been like to live under the rule of the despicable Sir William Hamleigh, the local lord. Sir William rapes, raids and plunders his own burghers with impunity. He owes his allegience to the King and the King doesn’t have time or interest in mitigating disputes or hearing the pleas of Hamleigh’s besieged populace. Essentially, the 12th century, pre-Magna Carta, was a lawless place. The church had ecclesiastical courts but the barons did what they pleased and everyone else was forced to eek out a living between tithing the church, paying their outrageous taxes and keeping their heads down whenever Hamleigh decided to torch their homes out of spite.
Virtue wins in the end, but it takes 45 years before the wicked get their comeuppance. Justice comes when the good guys take time to help themselves and their neighbors, don’t allow fields to go fallow, keep the poor on their land even when poor weather conditions make it impossible for them to grow food and pay their rents and taxes. They pitch in for community infrastructure projects, like building a wall and barbicon to keep their lord and his men-at-arms from entering and robbing the village at will. They volunteer their time on building the cathedral and in the process, create a bustling commercial zone where people from surrounding farms and villagers can ply their wares. If Sir William had just left well enough alone, he would have seen an increase in tax revenue and a healthier, more productive population. But nooooo, the wealth that was starting to build had to be siphoned off immediately by Sir William time and again.
History keeps repeating itself. In the past eight years, the robber barons have made a comeback. When Bill Clinton, the man of good government stepped down, he left a population that was prospering. There was a mild recession but in general, people had money in their pockets, were gainfully employed and there was a surplus. And the robber barons sat back in their saddles and decided it was plunderable. So, they manipulated the energy markets in California first and siphoned off the assets of vulnerable Enron workers when the whole scheme went south. But that was just the beginning. Then came collateralized debt obligations, credit default swaps and tranches. The Paulsen Bailout Bill was the biggest transfer of wealth from average taxpayers to the wealthy and powerful with virtually no accountability or oversight. And Barack Obama was all for it, even as Hillary Clinton tied desperately to get the country’s attention in order to fix the bill before it passed. But that wasn’t enough. Then the nobility at Halliburton got no-bid contracts to rape and pillage another country and hoard the oil. But that wasn’t enough. Now we know for sure what we suspected all along: speculators drove the price of oil up so that we, the hapless burghers, would spend $4.00/gallon in gas, driving food and heating costs up and bringing vulnerable families in shady mortgages to their knees.
But that wasn’t enough.
The plot of Follet’s book revolves around the White Ship disaster. King Henry I was a powerful Norman monarch who had a zillion illegitimate children but few true heirs. His only male heir is drowned in a shipwreck early in the book. Follet writes the shipwreck as sabotage, planned by the barons, in order to keep the monarchy weak. Henry’s only remaining heir is a woman, Matilda. Matilda has a cousin, Stephen, who promises the churches and barons everything they want. So, they give their allegience to Stephen, setting off a 20 year civil war that tears the country apart and leaves many rank and file English on the brink of starvation. Stephen *is* a weak king and alliances to him shift like the wind with the end result that the barons pretty much do whatever the F^&* they want, sucking up wealth with impunity and terrorizing the villagers. And Stephen can’t do a damn thing about it.
Plus ça Change™!
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Filed under: Barack Obama, Economy, Financial Meltdown of 2008 | Tagged: Enron, Ken Follet, oil speculators, Paulsen bailout bill, Pillars of the Earth, robber barons, White Ship | 60 Comments »