Tag Archive for 'Baudrillard'

The Bailout is not Happening

Look at any news outlet today and you will find references to the financial bailout of large corporations.  While it is restricted right now to financial and automotive sectors, I won’t be surprised if it expands.  There are a number of arguments in support of and against this bailout; however I want to take a different stance altogether: it isn’t happening at all.

Most people reading this are at least familiar with the factors that led to this: collapse of the financial market due to poor choices from most parties involved as an attempt to get more money.  Some have argued it goes back to subprime lending in the1990s.  I will suggest a specific date: 15 August 1971.  What was important then?  This was the date that the US, under President Nixon, began to move away from the “gold standard” of Bretton Woods.  I am not against this action, but its most important action was the dereferencing of the US dollar.  The dollar became a free-floating object without a fixed reference; it became a simulated identity.  As other monetary values (British Pound, Deutsche Mark, etc) became dereferenced as well, the financial market became both simulated and fragmentary.  The system became self-referential and self-perpetuating.  As the money flowed, monetary value was no longer limited to some externally-imposed “Real.”  Because of this dereferencing, we saw an increase of trade and stocks to the point where the total “value” of the US (measured by the GDP) was traded roughly every 3 weeks in the markets.  The amount traded annually far exceeded not just the GDP of a particular nation, but that of all nations combined, and this was just for one system!

The problem, however, happens to be found in the desire to recreate external references to this simulation.  The product of this recreation of reference is not a return to the original object, but rather a new simulation.  We have gone through so many simulations and simulacra that we are unable to relate to the original object and can only see it as another simulation in a procession of simulacra.  The”bailout as well as the financial crisis is not real.  It is just another game of simulation which results in the production of more simulations and the production of more desire.  The crisis is a non-event.  It cannot be avoided, yet it is not real either.

Some want to use this non-event as a call to socialism (e.g. Badiou and even Bush).  Others want to argue for capitalism and free-market.  I would like to argue that the only true “solution” to the bailout is to take the dereferencing of monies to its ultimate conclusion: the removal recognizing the lack of their value.  Since 1971, money has bean meaningless outside of the financial market.  It was an illusion created to produce more money.  It serves no purpose except to perpetuate itself.  In a money-less society (yes, it is another simulation), there would be no financial crisis.  It is in this society that we today live, but like the death of God in Nietzsche’s The Gay Science, it has not yet been recognized.  There is no bailout because there is no financial crisis.  There is no financial crisis because there is no economy to have a financial crisis.

Simulated Identities

Baudrillard has become somewhat famous in popular culture through the play on his ideas in the movie The Matrix where an astute viewer can see the image of his face appear as a ghostly haunting throughout the film (he also helped in the writing and production of the film). However, he has been “famous” for some time in contemporary philosophy as one of the pioneers in theorizing about the body and the images. In his book, Impossible Exchange, he proposes a progression of simulation which can be seen in two examples: capital and identity.

The first progression is that from the object to signs. In other words, an object begins with some kind of arbitrary value which is the basis for exchange. Money and capital as we know it did not exist at this level. We can see this in action with historical transactions between two entities: I exchange ten pounds of fertilizer and receive 25 gallons of milk. However, the progression to signs involves a kind of “standardization” in which each objects value is given a relatively static exchange ratio: a gallon of milk will be 4 units of this new sign–be it a dollar or whatever. At this point, the object becomes a commodity that is freely exchangeable in the market; it has become a simulation of the object.

This ability to be exchanged brings about the second progression: fetishism. A fetish is a perversion of the object that further removes it from the “real” object. It becomes a “pure, unrepresentable, unexchangeable object–yet a nondescript one” (Baudrillard, Impossible Exchange, 129). Here, the object is taken to the point of being a desire for the sake of desire. Zizek sees this best in the example of Caffeine free Diet Coke: it lacks everything that makes “Coke” “Coke” but it is the pure semblance of Coke, “an artificial promise of a substance which never [materializes]” (Zizek, The Fragile Absolute, 22). The fetish is not just a simulation of a simulation (what Baudrillard calls a simulacra) but it is also devoid of the “original” object: it is the nothingness itself.

Here we can see the final progression: the spectre (or phantasm). The object now becomes an unrepresented non-being which haunts the “real.” Not only does the object become a simulation, but even its component parts become simulated: Toyota cars are manufactured 60% in the USA. Perhaps the best example of this progression is in the phenomena called “reality TV.” These shows are no more real than “normal TV”: absurd scenarios with unreal events, simulated events, false personas, etc. Here, the actors are not given a particular role but rather play their own made-up role, an idealized, distorted self-image.

A direct corollary can be seen in that of The Matrix where those in the “real world” are projected back into the “virtual” world of the Matrix as imagined bodies. One’s identity in the “real world” is fragmented and distorted as the Matrix is treated as being more real than real, a hyperreality. As the end of The Matrix trilogy shows: there is no real distinction between the “real” world and that of the Matrix because one’s identity is a composite of fragments from many different “worlds” which reach across all the boundaries.

Where does all of this leave identity? A poster put up in Berlin in 1994 poked fun at loyalties to identities: “Your Chris is a Jew. Your car is Japanese. Your pizza is Italian. Your democracy–Greek. Your coffee–Brazilian. Your holiday–Turkish. Your numbers–Arabic. Your letters–Latin. Only your neighbour is a foreigner” (quoted from Zygmunt Bauman, Identity, 27). As the above progression of simulation is explored, it will become more obvious that “‘belonging’ and ‘identity’ are not cut in rock, that they are not secured by a lifelong guarantee, that they are eminently negotiable and revocable; and that one’s own decisions, the steps one takes, the way one act–and the determination to stick by all that–are crucial factors of both” (Bauman, 11).

More sine comment

After looking at my previous post of this nature, I realized it may have been misconstrued. The word sine is Latin for “without” and should not be confused with the mathematical term sine (typically written as sin, which should also not be confused with the notion of sin!). Anyhow, this is a quote of Stanislaw Lex, the Polish poet, from Baudrillard’s Intelligence of Evil:

Last night I had a dream about reality.
It was such a relief to wake up.

Sine Comment

Baudrillard, Simulacra and Simulation, 65.
From today, the only real cultural practice, that of the masses, ours (there is no longer a difference), is a manipulative, aleatory practice, a labyrinthine practice of signs, and one that no longer has any meaning.