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Catastrophe averted?

The leaders of the rich countries went to Washington to save the world from sliding into deep recess

Vincent Cable

Shadow chancellor, Liberal Democrats

By the low standards of economic summitry, the G20 meeting rated quite high. There was a predictable, no doubt pre-written, communiqué, full of the usual banalities. And the meeting suffered from the absence of the world's most important politician, who hasn't yet taken up office. But, these necessary caveats aside, there were important achievements.

The first is that the meeting took place at all. The ludicrous pretence of the G8 (or G7) that the old western powers should set the global economic agenda has been punctured for good. On a purchasing power parity basis, China has the second-biggest economy in the world and India the fourth. It has been clear for some time that China is lender of last resort to the global system (by, in effect, underwriting US government paper) and the main source of global incremental demand (and commodity price inflation). The Chinese self-parody as the pupil sitting meekly at the feet of a dominant, but erring, master defies belief. It is obviously right that China, India and the other main non-G7 countries should be at the top table.

The second achievement was the clear realisation that unless governments hang together they will hang separately. Enough has been learned from interwar history for us to understand the follies of beggar-my-neighbour economics. Perhaps a warning shock was being sent across the bows of the incoming Obama administration not to reinvent the protectionist tariffs of the 1930s in a new guise, directed at China or Mexico in particular, or aiming to salvage the US auto industry through public subsidy. But this new-found concern for open markets has not yet communicated itself to EU or Indian or Chinese trade negotiators, who show no enthusiasm for lifting the block on trade liberalisation under the Doha round.

While trade policy is on the back burner, macroeconomic policy co-ordination is not. With a few exceptions - Germany notably - there is recognition of the need for aggressive monetary and fiscal policy and for large-scale intervention to recapitalise banks. These interventions can be and are being undertaken nationally. But governments acting in isolation attract critical attention from capital markets and currency speculators, as Gordon Brown is discovering. Structures like the G20 are the best safeguard against chaotic, unilateral action.

Will Hutton

Economic commentator

It was remarkable to gather so much economic and political power in one room to address a common agenda. That was the good news - along with commitments to co-ordinate fiscal expansion, to expand the lending power of the IMF and World Bank (Japan's $100bn loan to the IMF will increase the Fund's lending capacity by 40 per cent), to boost cross-border supervision, to tackle credit rating agencies, to reassess mad accounting rules and require member countries to attack the bonus culture in the financial services industry. A year ago such an agreement would have been inconceivable.

The bad news is that much of this is shutting the stable door after the horse has bolted. Four things have to be recognised: that the world has profound imbalances between high-saving, high-surplus areas in Asia and the Gulf and low-saving, structural deficit countries in the transatlantic economy (Germany excepted); that a system of floating exchange rates and private banks can no longer take the weight of recycling those savings; that unless the system is de-risked and the burden of adjustment is placed on deficit and surplus countries alike, the global system faces breakdown; and finally, that the business model used by the banks to recycle surpluses - securitisation and hedging in the $360trn global derivatives market - is broken.

In plain English, China must accept that its currency must appreciate; Britain and America, that they cannot run their economies on foreign savings; and all players that there has to be a system of semi-fixed exchange rates between the yen, the euro and the dollar.

One tough reality is that, for all their new economic weight, China, Brazil, Russia and India do not have fully convertible currencies - nor do they want to accept the discipline involved in having convertible currencies.

Ann Pettifor

Fellow, New Economics Foundation

Over the past decade, the Group of Eight leaders turned their exclusive annual meetings into jamborees. Rock concerts, protesters and celebrities added populist glitz. However, the real purpose of the meetings - international co-operation and co-ordination - was ducked. At last year's G8 Summit in Heiligendamm, Germany, George W Bush and Gordon Brown vetoed Angela Merkel's agenda item for co-operation over tighter international regulation and financial oversight of capital markets. That task, they argued then, could safely be delegated to "the invisible hand". Now that the fantastic, self-regulating machinery of free markets has proved grossly malfunctional, it is good to hear talk of enhanced co-operation and regulation.

But, in places, the joint statement issued by the 20 world leaders borders on the delusional. The phrase "We must . . . ensure . . . that a global crisis, such as this one, does not happen again" implies that they are avoiding the next war when they are still losing this one.

Even more questionable is the call for continued "economic growth". In a world of finite resources on a planet with limited capacity to absorb toxic emissions, and with bushfires encircling Los Angeles, we would have hoped that world leaders had some awareness of the threat of climate change and of the limits to economic growth. But no. The gravest threat to global security - our rapacious attitude to the earth's resources - is once again whipped up with talk of "market principles, open trade and economic growth".

Jesse Norman

Senior fellow at Policy Exchange

One might have thought the G20 summit a good moment for some straight talk from the Prime Minister. Instead, the political wind machine was cranked up to full blast. The summit would be a second Bretton Woods. Gordon Brown would forge a new global consensus on co-ordinated intervention to stimulate growth (while, of course, leading reforms to prevent the banking crisis from ever recurring). Luckily virtually none of this was true, or the summit would have been a hopeless failure. With fiscal measures already widely adopted, the G20 hardly needed Brown's leadership. No surprise that he returned empty-handed.

Labour has moved from despondency to a manic desperation to remain in office. The result is that the ever-fragile concept of truth in politics has wholly been cast aside. Thus the humiliating bank nationalisation has been dressed up as an act of far-seeing economic statesmanship. And a sensible warning from the shadow chancellor that current economic policy puts sterling at risk has been condemned for breaching an irrelevant semi-convention dating from the time of fixed exchange rates.

Alex Brummer

City editor, Daily Mail

There is a golden rule of international financial meetings. The larger the "G" number, in other words the more countries involved, the less likely it is that any worthwhile or binding decisions will be taken. So while it was wholly encouraging that the G20 summit brought a number of emerging market leaders to the top table of finance, including China, Brazil and Russia, there was never any real prospect of the event becoming the new Bretton Woods.

Furthermore, the summit took place in the final days of the lame duck administration of George Bush. Once it became clear Barack Obama was going nowhere near the confab, the event became even more of an irrelevance.

European leaders may like to blame Wall Street and Anglo-Saxon capitalism for the credit crunch and the recession now spreading through the Group of Seven like wildfire, but there is no hope of concerted international action without the new White House and Federal Reserve on board.

Almost all that was agreed could have been decided before the leaders left home. The commitment to reviving the Doha trade round is pure motherhood and apple pie. The prairie populists on Capitol Hill are unlikely to be enthusiastic.

At the core of the proposals was the commitment to use fiscal measures, tax cuts and public spending to kick-start global economies. But despite Gordon Brown's enthusiastic embrace of a new Keynesian big-spending approach - as advocated by Nobel prize-winner Paul Krugman - he neatly forgot to mention that such big-spending ways were only for those countries with a "policy framework conducive to fiscal sustainability". The UK with its ballooning budget deficit, which could hit £100bn or more next year, is clearly in no such position.

It is hard to fathom in what way the G20 was "historic", as the Prime Minister claimed in the Commons. There is little original in a bunch of old ideas designed to remove risk from the financial system and control executive pay. That is what regulators should have done before the banks ploughed into the iceberg.

James Buchan

Author and financial commentator

What is the Financial Stability Forum? What is "mitigating against pro-cyclicality in regulatory policy"? What, if anything, has the G20 summit in Washington on the weekend of the 15 November achieved?

Nothing very much, is the answer to all three questions. In the twilight of a discredited US administration, and with President-elect Barack Obama absent, the meeting was never likely to achieve a great deal or generate excitement in the US. Yet the final declaration, drafted with suspicious ease by the delegations on Saturday night, has something for everybody but not enough of anything to scare the financial horses.

Nicolas Sarkozy, the French president whose idea the whole thing was, gained some support for more institutional government of trade and finance, but no super-gendarme international of the type that has been directing financial traffic in the French imagination since the 17th century. As Jean-Pierre Robin wrote in the Figaro: "Those with fantasies of supranational supervision will need to change therapist." The US, jealous of its commercial sovereignty even when it is going about without its shirt, put paid to those Gallic dreams and also gained some platitudes about free trade.

The new commercial powers, not only Brazil, Russia, India and mainland China but also rich oil producers such as Saudi Arabia, received diplomatic recognition of their deep pockets. "The world's geopolitical structure has a new dimension," the Brazilian president, Luiz Inácio Lula da Silva, said. "There is no logic to making any political and economic decisions without the G20 members - developing countries must be part of the solution to the global financial crisis."

I suspect the winner is Gordon Brown. The next meeting will be held under his presidency in London in April. The Washington ragbag of proposals to reform or tinker with the current system, such as reminding us about the Financial Stability Form and mitigating against that regrettable pro-cyclicality in regulatory policy, appeals to his technical vanity and plays to his technical strengths.

Paul Mason

Economics editor, Newsnight

There was a sense in Washington, despite the throbbing engines and bulletproof glass, of powerlessness. The communiqué was stronger on the causes of the crisis than on co-ordinated solutions. Policymakers are right to stay focused on the near-term dangers: these are country-level debt default, the rising cost of borrowing for non-financial companies, rapid job losses and - via feedback - further destabilisation of the banking system. We are moving into the phase of fiscal stimulus but there are powerful technical arguments that say without "quantitative easing" - that is, printing money to stimulate demand - it doesn't work. The same people who told me it would come to recapitalisation, that the TARP (troubled assets relief programme) would not work, are now saying: nationalise the banks and print money.

Despite the urgency of the focus on near-term dangers, what was obvious at G20 was the lack of vision as to the future growth model of capitalism. The problem was seen as a failure of regulation; the solution a pretty weak brew of re-regulation that will get diluted even more as the lobbyists begin to have influence. But the problem is more fundamental: the growth model based on high debt instead of high wages has failed and will be hard to revive.

Peter Mandelson

Secretary of State for Business

We have been caught in a global whirlwind of extraordinary force.

It has brought with it a fear that has gripped the world economy and taken hold here at home. We are seeing it every day, with fear among consumers that is depressing demand; fear among banks that is inhibiting them from lending; fear among small- and medium-sized businesses that banks are just about to cut off their credit lines. The choice facing us and governments around the world is this: do we act decisively to counter and overcome this fear, or do we become paralysed by it and fail to act?

The government has already shown its willingness to take the bolder course as the first mover in setting about stabilising the banks. What is needed now is action to stimulate the demand essential for recovery. The UK economy, like economies in the rest of the world, needs a shot of adrenalin.

The Bank of England has already made a significant cut to interest rates. This monetary stimulus now needs to be matched by a fiscal stimulus. And because this is a global crisis this is best done if the benefit of the measures taken nationally is maximised by the same measures being taken around the world. That was the message from the international conference in Washington, as governments recognised the need to take the action necessary to stimulate their economies.

People will say, "But you are resorting to borrowing in order to deliver the stimulus that's needed." My answer to that is, what is the alternative? We certainly haven't heard one from the Conservatives.

David Cameron and George Osborne, trapped by their desire to oppose everything the government does, refuse to accept the scale of the challenge the world's economies now face and the prescribed international action. Their stance appears to be, if the rest of the world disagrees with us, it is because the rest of the world is wrong. The result is incoherence and an Opposition at sixes and sevens. One minute this is "do all it takes" and the next it is - as we heard this week - leave the recession to "take its course".

Sitting on our hands watching houses repossessed and businesses go to the wall is certainly not the approach being urged on me by people I have been speaking to up and down the country. They want their government to act to stimulate demand in the economy here and now. With all due prudence, that is what we are going to do.

Diane Coyle

Author and economist

The G20 meeting confirmed a robust and rapid response (by past standards) to recession, even in the US operating under a rump free-market administration. Policymakers around the world have been shaken to see the financial system at the brink of collapse - on their watch.

Yet it is difficult to predict how severe the recession will be. Bank lending to businesses and individuals is virtually frozen. In many (but not all) areas of the economy, activity has come to a halt. The last financial boom and bust, ending in 2001, had surprisingly little impact on jobs and growth, as the financial bubble had become increasingly untethered from anything real. Today's vicious circle of evaporating liquidity is much more serious, but lower interest rates and bigger government deficits will help. The underlying trends are easier to outline. Some challenges are clearly unaltered, such as climate change and our ageing society.

The technological opportunities are still there, too, in communications, the internet and biotechnology. Globalisation will be less driven by finance in future, but it will not be unwound. It would take a generation to turn back the clock on economic linkages, and the cultural impacts are permanent. In fact, the crisis has underlined our interdependence across national borders.

What has changed is the political economy of globalisation. In the triad of efficiency, fairness and freedom which dominates political choice in democracies, fairness will take priority in the years ahead, and the drive for ever greater productivity gains will retreat. The semi-nationalisation of the banks has started to shift the boundary between public and private domains; we will have to think more carefully about how to govern private choices that have big social spillovers. The G20 did not touch on this profound question of governance.

Iain Macwhirter

Political commentator

The G20 was largely a throat-clearing session and was never going to put in place the foundations of a new international financial system. Progress on the stalled Doha trade talks is encouraging but provides no guarantee that protectionism will not raise its head in the coming economic slump.

It is inevitable that countries faced with financial collapse will try to defend their economies by any means possible. Britain is already far down the road of "beggar my neighbour" economics by the "managed" devaluation of the pound, a crude attempt to boost UK industry by lowering the prices of British exports and creating a de facto tariff wall around imports from abroad. It won't work because Britain does not make much of anything any more except debt, and the world has plenty of that already.

But the collapse of the pound will seriously damage what is left of UK financial services. No one in their right minds would put money into the UK economy now, with the property market collapsing, UK banks insolvent and government borrowing likely to reach £100bn in the next 18 months.

Gordon Brown seems to believe that sterling is like the dollar, and that people will buy our dud pounds whatever the likely losses. However, as we are discovering, sterling is not a reserve currency and unlike the US we cannot force other countries to pay our debts. The future for our battered island is likely to be hyperinflation punctuated by appeals to the International Monetary Fund for emergency aid. Forget about spending our way out of recession - the UK government simply lacks the resources to fund the huge borrowing that would be required. Something will have to give. Brown will have cause to regret being so beastly to the Icelanders.

Richard Reeves

Director of Demos

James Carville, the hardened political aide to Bill Clinton, said that if he was reincarnated he'd want to come back as the bond market: "You can intimidate anybody." Right now it seems odd to think of any financial markets threatening anybody. But it is one of the ironies of the current economic situation that the capital markets still have some serious muscle.

Western governments, faced with recession, need to throw a lot of money at their ailing financial institutions - money that can be raised only by selling Treasury debt, mostly to the capital-rich investors of the Far East. For Gordon Brown, this is likely to become a more difficult sell, as Prudence is given the push and the pound takes a nosedive. Even national exchequers invite sceptical scrutiny in this new, nervous world.

The financial crisis is at heart a loss of faith. The word credit derives from the Latin credo - "I believe". When the Titanic of the financial world - in the shape of Lehman Brothers - was allowed to sink, the bonds of trust stretching around the world were snapped. In an instant, everyone stopped believing in each other.

A number of sensible measures should be on the agenda when the G20 reconvenes next year, including legislation to ensure bonuses in financial services are paid on the basis of five-year performance; new "pro-cyclical" provisioning rules requiring finance houses to increase their store of capital in economic upturns; and tougher, independent regulation of the rating agencies whose doe-eyed assessments of banks built on a mountain of paper helped get us in this mess.

There is, however, no quick technical fix for such a dramatic loss of confidence. Trust can be lost in the blink of a market-trader's eye - but it will take years to rebuild.

TEN THINGS THEY ACHIEVED

  • 1 Created a road map aimed at stabilising the world economy and overhauling the banking system with targets for the end of March 2009
  • 2 Advocated Keynesian big-spending
    “fiscal stimulus”
  • 3 Expanded from a small club making world decisions to recognise the importance of the economies of Brazil, Russia, India and China
  • 4 Agreed to reform international finance institutions, including better transparency and supervision of credit ratings agencies
  • 5 Agreed that the Financial Stability Forum should include emerging economies
  • 6 Banks and hedge funds to hold increased levels of capital and cash
  • 7 Recommended “supervisory colleges” for all major cross-border financial institutions
  • 8 Return to the Doha round – trade ministers to meet in Geneva next month
  • 9 Instructed G20 finance ministers to draw up plans and timeline
  • 10 Agreed to meet again, in London next April

. . . AND FIVE THEY DIDN’T

  • 1 Agree a future growth model for capitalism. Instead they reconfirmed their “shared belief in market principles”
  • 2 Agree detailed plans for regulatory reforms of banking
  • 3 Establish a plan of action for achieving the already endangered Millennium Development Goals
  • 4 Set up an international supervisory body with sufficient power to control global markets
  • 5 Halt the run on sterling, which fell sharply against the euro and dollar

Alyssa McDonald

This article first appeared in the 24 November 2008 issue of the New Statesman, How to get us out of this mess

Matthias Seifarth for New Statesman
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What happened when Kiss went to Moscow: bullet-proof tents, rivalries and mating rituals

Gene Simmons: "If Putin is here, he will not make himself known to me."

When Gene Simmons decided he wanted to be a rock star, he made a deal with his mother: be in a band but show me how you’re going to pay the rent. He had a variety of marketable skills at his disposal. At Newtown High School in Queens, Chaim Witz, only son of Flóra, who’d brought him to New York from Israel, took stenography and typing classes. By 13 he could out-type his teacher. By 18 he was a “tele-girl” (a temp) and found himself in demand with powerful female executives in Manhattan. With his feet, he worked a Dictaphone machine to take their letters – one pedal for go, one for stop and one for rewind. The then managing editor of Vogue, Kate Rand Lloyd, heard about the only male temp on the floor at Glamour. He became her Man Friday and fixed her hectograph, rexograph and mimeograph machines.

On 29 April 1974, he made his first television appearance on The Mike Douglas Show as Gene Simmons, “The Demon”, of the rock band Kiss. He picked his way across the studio floor on 30lb silver platforms, his abnormally long, seven-inch tongue thrashing about in his mouth like a skinned snake. In a whisper he declared himself “evil incarnate”. On the sofa next to him was the comedian Totie Fields. “Is your mother watching?” she asked. “Wouldn’t it be funny if under all the make-up he’s just a nice Jewish boy?” Eighteen months later, Simmons got a cheque from his record company for $1.5m. He showed it to his mother and she said, “Now what are you going to do?”

Up on the roof garden of the Park Hyatt hotel in Moscow sits Simmons today, his wiry hair, like black loft insulation, pulled into a ponytail. I’ve been taken to see him briefly, before an interview scheduled for two days later. Despite looking, in his own words, “at best like a baby dog at birth”, Simmons claims to have slept with 4,600 women, taking a record of each with a Polaroid camera. At 67, his latest conquest is Siri, whom he has programmed to call him “My Lord and Redeemer” on a cellphone with a special Kiss case.

Simmons stands when a woman arrives; he analyses the size of your bag, wondering how you fit your make-up in it. He thumbs through photos of Kiss products on his phone: Kiss guitars, Kiss car wraps – and a Kiss Kasket, a limited-edition coffin, part of his funeral range. The murdered Pantera guitarist Dimebag Darrell was buried in one: affection runs deep for the cartoonish glam-metal compound, now in its 44th year of music and merchandising. Among the expressions Simmons claims to have trademarked are “rich and famous” and the Chinese word xi, meaning “the West”.

Rehearsals for Russia’s May Day celebrations float up from Red Square, operatic folk songs and the chug-chug of army boots being put through their paces. Over in the Kremlin, Vladimir Putin prepares a phone call to Donald Trump to talk about Syria. US-Russian relations have hit a new low. In recent months, Simmons has generated a steady flow of headlines from views that wouldn’t seem out of place in a hardline administration. Drug addicts should be sent to gulags, he said; paedophiles put to death. Islam is a “vile culture”, and don’t even get him started on immigration. On the night of the national festivities, Kiss will play the Moscow Olympic Stadium to 15,000 people who’d rather hear “Crazy Crazy Nights” than “The Song of the Volga Boatmen”.

Will Putin be at the gig?

“If he is, he will not make himself known to me,” he says, drifting off to his room.

Gene Simmons’s hoist, which enables him to float 30 foot above the stage, puts a great strain on his body because his costume gives him an extra 50lb in weight. He recently fell over on to his back and couldn’t get up again, like a turtle. At the show, he will be spitting fake blood. But today’s soundcheck is a sedate affair: a three-hour dissection of stage manoeuvres, the testing of winches and timing of feet. In plain clothes, the band’s frontmen, Simmons and Paul Stanley, step on hydraulic arms and sweep out over the empty arena like two tree surgeons. Simmons noodles on his bass – snatches of Peter and the Wolf and “The Pink Panther Theme” – but seems less interested in playing the well-oiled anthems of Kiss.

It’s like watching a group of men congregate around a car they’re refitting, or a hole they’re digging in the ground. They seem completely absorbed – but every so often, with a sting, a guitar pick hits my face, 30 feet away at the side of the stage. Throwing their personalised, painted guitar picks at people is part of Kiss’s mating ritual. Stanley greeted me remotely earlier by despatching a fistful of them via the tour manager, the way a man might order a drink for a lady across a hotel bar. Another pick hits my forehead. “Hey, Statesman.” And another. “Can someone lift her on to the stage?”

There are no women in the Kiss entourage, apart from one who carries the costumes and another who manoeuvres the large wheelie bins containing the make-up and cosmetic products the men administer themselves. Both employees are on the younger side. It was a different story in Moscow thirty years ago, as Jon Bon Jovi told the NS, when, at the first Western rock gigs in Russia, babushkas swept the stadiums with brooms made of twigs.

At the centre of the Kiss team is a man who will confirm this: Doc McGhee, the music mogul sacked by Jon Bon Jovi after McGhee was convicted for drug smuggling. In 1989, partly to get around his jail sentence in the US, McGhee collaborated with the Russian musician Stas Namin to bring Western bands to the country. Namin’s grandfather was a Bolshevik statesman who served under Lenin, Stalin and ­Khrushchev. The Moscow Music Peace Festival happened on Gorbachev’s watch. McGhee spent three days with the president at the Kremlin offering him $10m for the rights to a book and film of his life. You can’t blame him for trying.

It was different putting on gigs in those days. You had to allow 12 hours for an eight-hour drive to account for the number of times you’d have to stop and bribe border guards with records, or wake Alice Cooper up from the tour bus and get him to do an autograph in order to be allowed on your way. McGhee brought his own ice from Scandinavia. You couldn’t buy records in Russia but there was a feverish black-market trade on street corners in albums pressed on to old X-rays. A young interpreter joins the band one night and talks about her parents’ time with bright eyes. “It’s different now that you have access to everything,” she says.
“It doesn’t matter so much any more.”

Outside the hotel, the teenage boys keeping a three-day vigil for Simmons and Stanley might disagree. Kirill and Daniel have flown four hours from Tomsk, Siberia, for the concert. They are 14 and first saw the band’s white faces in a magazine. Dmitri, in his thirties, knew of Kiss only from some famous graffiti in Red Square: their double “lightning S”, banned in some countries for its proximity to Nazi insignia, appealed to his teenage brain. I bring Stanley’s guitar picks out of my pocket. Twenty boys scrum violently like pigeons on a loaf of bread.

Back at the soundcheck, Kiss leave the stage in strict formation, 20 feet apart, each flanked by a member of staff as though surrounded by great crowds. It’s a small hint of the invisible rules, the secret rivalries, covenants and compromises that allow opposing characters to exist side by side for decades in the classic rock bands. Simmons is the face of Kiss but Stanley’s limousine always arrives first, “because he’s the boss”, someone mutters. Stanley applies his make-up – a soft-faced, effeminate character known as The Starchild – in a private room, while Simmons packs into one dressing room with the rest of the band, playing the Kinks at loud volume.

Gene takes over two hours to complete the process “because he is talking all the time”, Stanley says. “It’s very hard to do it when your mouth is moving. Me, I can do it in half an hour.”

Stanley drifts down the corridor and, taking my chances, I slip into his dressing room behind him. It’s a triumph of interior decorating, the Soviet-style lime-green walls and strip lighting obscured by satin drapes like a black-and-white version of the purple “foo foo room” that Prince used to set up backstage. There is a black satin bed should he need a lie-down for any reason. There are weights of various sizes and a medicine ball – and in the corner, lit with old-fashioned make-up lights, his own cosmetics area.

“Here is my clown white,” he says softly, picking up a pot of the thick, sweat-resistant foundation they discovered in the Seventies. “And here are my puffs.” Why do they do their own make-up?

“Because it’s a ritual,” he says. “It’s a rite of passage. I can’t imagine sitting in a chair like a dummy and having somebody painting my face. It is putting on my uniform. It’s my colours. And it’s better for me in here than the chaos in the other room.”

Stanley takes a seat on a leather sofa, one leg crossed over the other, eyes on the floor. On his mirror, there is a photo of him playing the burned and disfigured lead in Phantom of the Opera, a Toronto production, in 1999. Above it is written “Star of the Show”.

He was born Stanley Eisen, “a little fat kid”, deaf in one ear as a result of microtia, a deformity of the ear canal. He was raised on opera and Broadway. As a young man he drove a taxi. He speaks in careful but lyrical sentences, and gets straight down to business.

“I always found it interesting that a lot of the critics were venomous in their dislike of us,” he says. “It’s something that perhaps they should work out on the psychiatrist’s couch. Because the dislike for the band was so out of whack, so out of proportion, you almost have to look at someone and go: who beat you as a child!”

In 1978 the NME ran an interview with Simmons under a headline it had also used for Freddie Mercury: “Is this man a prat?”

“The fact is that what we do has endured,” Stanley says. “What we are doing has no expiration date. Some of the critics who embraced us when we were struggling spurned us when we became successful. Once you gain acceptance you have ‘sold out’. Well, sold out means the place is full. I never felt the need to counter the vitriol because I was too busy succeeding.”

Stanley Eisen is the son of Austrian and Polish Jews who escaped to New York via Amsterdam. Simmons’s mother was born in Hungary and spent many months in a Nazi concentration camp in Austria, where she saw most of her family put to death. She fled to the new state of Israel, where her only son was born, and moved to New York in 1957 after her husband deserted the family. Stanley and Simmons have survived many line-up changes in their band: they once had a member called Vince Cusano, whom Simmons renamed Vinnie Vincent, because the old name sounded “like a fruit vendor”. Their tour manager, Steev Toth, has Hungarian and Jewish ancestry. The guitarist Tommy Thayer is the son of Brigadier General James Thayer, who liberated 15,000 Hungarian Jews from a concentration camp in Austria which, Simmons thinks, may have been his mother’s.

Paul Stanley: "I have said to Gene, I would shoot myself if I had your life."

“We are children of immigrants,” Stanley says. “We are children of the post-Holocaust; we have a certain mentality, and a mindset, and a work ethic. I was taught you don’t take anything that isn’t yours, don’t take anything that you don’t deserve and don’t take anything you didn’t work for.

“We are, more than ever, brothers. That doesn’t mean we want to spend all our time together. I have said to Gene before, ‘I’d shoot myself if I had your life.’”

Why?

“Because what is appealing to Gene in life is not my desire. And my life is boring to him.” He stretches along the whole length of the sofa, beginning to relax.

It is 4pm, and from behind a Superman curtain down the corridor, the muffled sound of Sixties British music signals the start of the transformation. “All right?” barks a cod London accent. I can make out Simmons’s silver platforms propped up on the top of a crate but I cannot see his face.

“He is the strangest guy,” their manager Doc McGhee told me the previous night in the hotel bar. “I mean, the strangest legitimate guy I know – I know bipolar guys, guys with mental problems. He has NO friends.”

Simmons’s family life played out in 2011 on a popular reality-TV show called Gene Simmons Family Jewels. For decades he had been “happily unmarried” to the erotic actress Shannon Tweed, the star of films including Meatballs III and Indecent Behaviour. The couple have two children, but they did not live together.

“The show made him behave differently towards his family,” McGhee told me. “It showed him from different angles and he didn’t like what he saw.” The idea inspired McGhee to conceive another programme called Extreme Combover: “You do this thing to your hair, and you think it looks good, but everyone else sees it from a different angle. My first two contestants would be Gene Simmons and Donald Trump.” Simmons appeared with Trump on The Apprentice (Trump fired him) but Combover has yet to be made.

The Superman curtain is ajar and I can see Simmons in profile, emerging from behind a wall. The next time I look up, he has pulled himself across the room on his wheelie chair and sits facing me with legs thrown apart, groin open, presenting a silver codpiece.

“All right?”

Nothing can prepare you for the Kiss make-up transformation in the flesh, and the psychological shift it occasions in both onlooker and band. One by one, a series of giant, seven-foot space clowns, taller than anything else in the building and whiter than the moon, emerges, each with a look of surprise on its face. High up the door frame of Stanley’s dressing room peers a face like a sad mime, one eye a black star, red lips pulled into a feminine pout. He takes to the corridor with the careful elegance of a giraffe – and there is something new in his manner; glorying in eye contact now, waving his platform boots in my face. Suddenly the biggest mystery of all – how Kiss can claim to have got so much sex – is a mystery no more. The white faces are frozen as men of 25. And the costumes, if you can call them that, directly facilitate inappropriate physical interplay: all rules of personal space are broken as, without thinking, you find yourself touching and poking them. A tail emerges from Paul Stanley’s satin backside and my hand closes around it.

“Is it real rabbit?”

“Will you call me a fraud if it’s not?”

He bears the sense of an older, more medieval conquest; of pillage and of poor women taken by force.

Simmons, hair pulled into a five-inch topknot and with giant leather bat wings under his arms, is a different beast. His entire body is plated in armour – part orc, part titanium warthog – and where Stanley is charming, he bears the sense of an older, more medieval conquest; of pillage and of poor women taken by force.

He talks little, but what he wants, he gets with his body. He pulls the make-up girl in for a hug – by the hair. I am told under no circumstances to get in his line of vision after the show, because if I do so he will “slime” me with fake blood and sweat. He pretends he hasn’t seen me – then backs me into the wall with a little too much force, his spikes digging into the back of my hands.

***

The next morning, up in the second-floor restaurant, Simmons has breakfast with Shannon Tweed. They finally married in 2011. Tweed, 60, is dressed in pink and flicking through Time magazine. Simmons’s thumbnails are short and wrecked, black with last night’s make-up. Silver hair curls on his chest: in his mirrored sunglasses and military-style shirt with gold adornments, he looks like Gaddafi at leisure. He moves my Dictaphone closer.

On the way home from school, he would go to the library and read the encyclopaedias. That’s where he learned that Edward VI used to torture animals. “When you’re king, who’s going to tell you not to skin a frog alive?” he reasons. I ask him about his childhood heroes. “I didn’t have heroes,” he says. “Not real people. My heroes were fantasy. My heroes didn’t have flaws – Superman and Einstein and ethereal, semi-godlike figures. Because whenever you have a real-life hero it’s f***ing pathetic how they wind up – like Elvis, naked and bloated on the bathroom floor.”

He picks up his phone and summons Siri to bring up a picture of the British dish of faggots in gravy. “Explain this to me – what the hell is that?” he asks. “The English were always a smaller people because of the food. After the war you had beans on toast and what the f*** else did you eat? In the States we had butter and pancakes – it was always a big supply. If Jagger got into my outfit on seven-inch heels spitting fire and flying through the air, he would be exhausted. Put Bono in my outfit? Good luck.”

It seems a good time to ask him how he feels on stage.

“I can glibly speak about it,” he says. “But in real terms I am aware that there is a transformation that takes place here –” he points at his ribs. “I am aware that my chest cavity expands, and my heart is pumping, and the only thing I can compare it to is when a boxer can be backstage toying with his little girl, then go into the ring and be oblivious to the audience, and have this kill thing.”

Tweed has looked up the root of the word “faggots” and reads from her phone in her slightly anaesthetised, Beverly Hills voice: “A bundle of pieces of iron or steel to be welded, rolled or hammered together at high temperature.”

“It’s a question of semantics,” Simmons replies. “Though I’m not anti-semantic . . .”

I ask him about the reality show that changed his life. “I didn’t like watching myself,” he says. “I mean, I love the way I look, other than these affectations [he gestures to his sunglasses]. They even filmed my facelift – I had my face thrown over my shoulder like a scarf. But in the course of the show I realised what an asshole I was.

“When I was a little kid, my mother would smack the shit out of me as soon as I went out of line. When I went off on my own, I was my own police in certain areas: I’ve never knowingly got high or drunk or smoked a cigarette, because I didn’t want to break my mother’s heart. But other than that, I was self-entitled. I’m an only child so I look to myself for everything. Part of that process is you get deluded with the sound of your own voice. And although I am fairly educated, that doesn’t mean I have wisdom.”

In the early 2000s Simmons launched a magazine called Tongue, which ran for five issues, with an emphasis on the celebration of the female form. There will be a new magazine called Mogul – “high-end pop culture, entrepreneurial” – and he shows me a mock-up of the cover with him on the front. He has published several books, including Ladies of the Night: a Historical and Personal Perspective on the Oldest Profession in the World and the business title Me, Inc: Build an Army of One, Unleash Your Inner Rock God, Win in Life and Business.

“I’m a curiosity to people in high finance,” he tells me, “because I haven’t been there and done that, but I have made a decent living. They can’t put a finger on how and why it has worked for me.” He adds, of music, “What other job would give you money in advance and you never have to pay it back?”

He has read Trump’s books. “All business books are lies,” he says. “Ten secrets of success? People want a short cut to life. You have a duty to educate yourself, and from there on it is f***ing hard, back-breaking work. Forget ‘inherent’ and ‘intrinsic’ and other big words like ‘gymnasium’. Nothing happens without hard work.”

In 2011 Simmons endorsed Mitt Romney, saying that America needed to be in the hands of a businessman. “Government is business,” he says today. “People don’t understand that. A lot of people hate Trump, I get it. I know the man –”

“Which is not to say you like him,” Tweed mutters.

“He doesn’t give a f*** what anyone thinks. You’re talking about a guy who does not care and will go to war against all media. I want a businessman in there. Not someone to dole out favours, raise your minimum wage, meantime countries get deeper and deeper into debt. I want someone who says: ‘You’re fat and bloated and you’re going on a strict diet.’ The dietician is not your friend.”

Excuse me,” his wife chips in.

“I’m sorry?”

“You’re burping while talking.”

“I was? At least I didn’t fart. To make a long story short,” Simmons says, “I don’t know why anyone gives a squat what somebody with a guitar round his neck thinks about politics. ’Cos I sure as f*** don’t care what your wonderful new Prime Minister thinks about Kiss.”

“Rock stars are morons,” Simmons says. “Pragmatism is much more my milieu.” And then: “Let me show you a short video.”

He raises his handkerchief, mops his brow, surveys a black patch and muses: “Hair dye.” He’s not the first reactionary American rock star I’ve met who gets flustered talking about Donald Trump despite sharing many of his views. They’re all businessmen, headline-chasers. Trump got to be president after forty years hanging around at the same galas as them.

“Rock stars are morons,” Simmons says. “Pragmatism is much more my milieu.” And then: “Let me show you a short video.” He takes his phone and fires up an interview with the American journalist Dan Rather, in which Simmons declares that immigrants in the US should learn goddam English.

“Yesterday their cousin would have wound up in a can of dog food,” he tells me. “But today you can literally sue the president for sexual harassment and win. You want to try that here in Russia? ”

“And you know what celebrities shouldn’t do?” Tweed cuts in. “Talk politics. Don’t do it. Eat your food.”

As Simmons scoops the last of his porridge I ask about his relationship with Paul Stanley. “It’s too easy to say that we’re both Jewish and the other guys weren’t, so they didn’t survive but we did,” he says. “With Paul and me, it’s like the marriage of different alloys making titanium. Likewise with dogs. Purebreds are retarded. It’s the mixture of bloods that makes them healthy.”

Surely another advert for immigration.

“Legal immigration, do you mean?” he whispers. “Because there is a profound difference. I want to know everybody’s fingerprint. I want to know everybody’s social security number. Instead of just ghosts. Twenty million in America! More than most other countries have men, women and children. Know wot I mean?”

In the days after my return from Russia, I get 16 emails from Simmons’s personal account (he has no assistant), each containing a separate business venture he wishes me to know about. There’s a cardboard cut-out of him advertising Dr Pepper, a reproduction of his MoneyBag clothing logo, a new Kiss sandwich toaster – and a photo of him ringing the bell at the New York Stock Exchange.

“You know why we were the number-one banned band in Russia?” he told me. “‘I wanna rock’n’roll all night’, ‘I Was Made for Lovin’ You’ – the most powerful word in the English language is ‘I’. There is no scarier word for an authoritarian regime.”

***

Simmons was once asked to describe the experience of performing and he put it like this.

“The only comparison I can make is with the films of Leni Riefenstahl. One word from Hitler and the masses would move in unison. It was an amazing feeling of power . . . I was King Kong, pounding his chest after chewing up some damsel in distress. Godzilla stomping through Tokyo’s streets. To say I felt like God up there is not an overstatement.”

On either side of the stage at the Olympic stadium are small bulletproof tents. Paul Stanley takes a zip wire over 15,000 Russian fans and lands with force, on unforgiving platforms, on his second hip replacement. He bursts into a perfect Christ-like arc, and keeps up an energetic but slightly banal stage patter: “Here is a song from 1988!”

Over to the left, in a pool of green light, stands a crazy lump – blank of face, rolling of eye, head jerking in time to the music with globules of viscous blood bubbling up from a black mouth. For a moment, there is something tragic about Simmons, like a mad, chained bear, a freakshow. Then he’s breathing fire. Ticker tape explodes on to the crowd from two big cannons; flames leap, and then it’s over.

In the hotel car park, the door of Simmons’s taxi falls open to reveal him etched in light, head back, encrusted with fake blood. His minders walk him through the back of the building, but, knowing his ­tendency to “slime” people, no one wants to share the lift with him. 

Kiss’s UK tour begins on 27 May. Gene Simmons addresses the Oxford Union on 29 May. Details: www.oxford-union.org

Kate Mossman is the New Statesman's arts editor and pop critic.

This article first appeared in the 18 May 2017 issue of the New Statesman, Age of Lies

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