Three factors shape the current global economic conjuncture.
The first is the sluggish but long rise in the capitalist global industrial cycle following the world economic crisis of 2007-09. This rise continued until February 2020.
The second factor is the worldwide COVID-19 pandemic that shut down large parts of the global economy and world trade in 2020. This sent unemployment rates into double digits. The West’s capitalist governments increasingly treat COVID-19 as endemic rather than a pandemic. Shutdowns are over and even mask-wearing is becoming a thing of the past. But the virus continues. On-and-off shutdowns continue in the world’s leading manufacturing nation: China.
The third factor is the global economic and financial war launched by the U.S. world empire against Russia. This war was formally launched in response to the Russo-Ukrainian war, ongoing since the U.S.-supported right-wing Euromaidan coup in 2014. It entered a new stage with Moscow’s launching of a special military operation on Feb. 24, 2022. The war had already taken about 15,000 people’s lives before the military operation began. Fighting was limited in recent years, but in the weeks leading up to Feb. 24 Kiev stepped up shelling the Donbass. All indications are Washington encouraged its puppet Euromaidan government to launch an offensive to crush the ethnically Russian People’s Republics of Lugansk and Donetsk.
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As I write these lines the Russo-Ukrainian war is entering its second month. The main fighting is in the Donbass region. The Russian military is attempting to encircle and destroy a Ukrainian army spearheaded by the fascist Azov brigade, variously estimated as between 50,000- to 100,000-strong. Russia also sent ground forces toward Kiev, the Ukrainian capital, with no attempt to storm and seize the city. Kiev is revered by Russians, Belarusians and Ukrainians alike as the city of origin of their respective nations.
Putin indicated Russia does not want to occupy or rule Ukraine. Russia has been fighting a limited war. Its demands are that Ukraine acknowledges the independence of the Lugansk and Donestk People’s Republics as well as Russia’s claim to Crimea. Before 1954, Crimea was never Ukrainian. Since the 19th century, it’s had a Russian majority. Russia further demands Ukraine stay out of NATO, be demilitarized, not acquire nuclear weapons or allow NATO to put nuclear weapons or other weapons of mass destruction on its territory, disband the fascist militias operating there and recognize the rights of Russian-language speakers.
Russia hopes to negotiate a peace treaty with Ukrainian president Volodymyr Zelensky’s government meeting Russia’s basic demands. At the start of the war, Russia opened peace negotiations. It would not have done so if it intended to occupy and rule the entire country. Additionally, on March 29 Russia announced as a measure of good faith that it was scaling back, but not ending, its military operation near Kiev and other areas in northern Ukraine.. Regarding the western region, Russia launched cruise missile attacks aimed at military targets but has not moved ground forces into the area.
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In this post, I had hoped to concentrate on the COVID aftermath boom, inflation, the Federal Reserve System monetary policy, and the growing threat of a deep recession.
But events in Ukraine do not permit this. Even if the Russo-Ukrainian conflict doesn’t spiral into a world war, the U.S. world empire has launched an economic war that is already having a major impact on the development of the global economy.
The most extensive propaganda campaign against any nation occurring within recent memory is blaring out of every media outlet — printed, digital, radio, and TV. Some examples of the propaganda tricks employed include glaring headlines declaring as fact what a close reading of the article reveals as claims of the government or Pentagon.
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In January of this year, the U.S. government and its media claimed an invasion of Ukraine by Russia was imminent. One version of the media reports raised fears that Ukraine is only the initial target — first crush Ukraine, then march all the way to the Atlantic. In rhetoric akin to that of the Cold War, when it was said the Soviet army was threatening to invade Western Europe, now Russian President Vladimir Putin is cast as the aggressor.
We know this isn’t true. The Russian economy, devastated by 30 years of capitalist counterrevolution and only partially recovered from capitalism’s restoration in the 1990s, is in no position to support aggressive military campaigns. Russia may have moved about 100,000 troops closer to the Ukrainian border. This would be a defensive move to prevent increased warfare from spilling over into Russia proper. If not for an invasion, what explains the Russian troop movements?
The real story: U.S. imperialism is moving to consolidate domination of Ukraine. Ukraine is rich in agricultural lands and fossil fuels. Adolf Hitler had his eyes on the country as a key to his vision for an Eastern European empire. Ukraine is an important acquisition for a U.S. world empire as well.
The United States established its current domination by orchestrating the 2014 EuroMadian coup, spearheaded by Ukrainian fascists. This overthrew the corrupt capitalist, but elected, government of Ukrainian President Viktor Yanukovych (1950- ). But two areas in eastern Ukraine refused to accept the coup. They are now under control of the Donetsk People’s Republic and the Luhansk People’s Republic. Another region that escaped is Crimea. Ignoring this region’s real history, the U.S. media paints a completely false picture of what really happened there.
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The COVID-19 global pandemic has been with us now for more than two years. In recent weeks, with winter in the Northern Hemisphere, the pandemic has once again gained momentum. The new variant called omicron is hyper-contagious. Hospitals and their ICU units are again filling up. The vaccines still provide good protection against serious illness and death. It remains very important to receive all the doses, two shots plus a booster for most vaccines — if possible. This time however the capitalists are determined to avoid business closures.
It appears the new omicron variant causes less serious illness and death. This may reflect that in imperialist countries a large part of the population has been at least partially vaccinated. In the Global South far fewer have been vaccinated, and many have already been infected by COVID and survived, gaining natural immunity. The same is true for those in imperialist countries who refused the vaccine. Or it might be the genetic code of omicron makes it inherently less pathogenic than earlier less contagious variants.
In response to the milder nature of omicron, the CDC has slashed isolation guidelines from 10 to five days. “If a 5-day quarantine is not feasible, it is imperative that an exposed person wear a well-fitting mask at all times when around others for 10 days after exposure.” In other words, if the bosses consider it not profitable for the workers to isolate for even five days, they can go to work sick.
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My comrade, co-worker and dear friend died unexpectedly October 5. Without Jon Britton this blog would not have been possible. It’s as simple as that. Jon was much more than editor. To explain, I must tell how I came to know him and how he became my best friend, comrade, and co-worker for 46 years.
I met Jon when we were both members of the U.S. Socialist Workers Party during the 1970s. In those days the SWP was a quite different political organization. It considered itself to be a Trotskyist party, indeed the most Trotskyist party in the world. The road leading me to that 46-year-long friendship began with a problem posed by Leon Trotsky. So the story of how I met Jon begins with how I became an admirer and for many years an ardent follower of Leon Trotsky.
I was in high school when I read Issac Deutscher’s three-volume biography of Trotsky in the Albany, New York, public library. I had no idea who Isaac Deutscher was but I was very interested in current events and the ongoing Cold War from a purely anti-Communist perspective. I was a child of Cold-War America. The worst of McCarthyism had passed, but the witch-hunt atmosphere lingered. I didn’t know that Deutscher considered himself a Marxist. I did not know that Deutscher had once been a member of the Polish Communist Party and then a founder of the Polish Trotskyist Party. In 1938, he broke with Trotsky when he opposed Trotsky’s decision to launch the Fourth International. That organization was, in the mind of Trotsky and his supporters, the revolutionary successor to the Third (Communist) International.
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Regular postings are set to resume on January 17, 2022.
Due to the passing of editor Jon Britton, our upcoming blog post will be delayed.
On Aug. 30, the last U.S. and other NATO troops after a 20-year shooting war against the Afghani people withdrew from Afghanistan in defeat. On Aug. 15, even before the last U.S.-NATO troops had left, the Taliban entered Kabul as the “president” of Afghanistan, U.S. puppet Ashraf Ghani, fled the country.
It wasn’t only Ghani who fled. What was on paper the extremely formidable apparatus of the Afghan state including a heavily armed standing army of 300,000 soldiers and a massive police force melted over 11 days into thin air. As Taliban fighters drove into Kabul, there were no police on the streets. The only security was the armed Taliban. As these astonishing events unfolded, the U.S. military seized and maintained control of the Kabul airport as panic-stricken supporters of the U.S. occupation, and other Afghans who have no desire to live under the rule of the Taliban fled to the airport. In one incident, Afghans fleeing the Taliban desperately held on to a U.S. plane. Showing the real attitude of U.S. imperialism to those who do its bidding, the plane took off anyway with the Afghans dropping to their deaths.
Many more Afghans celebrated both the end of decades of disastrous war and the fact that another empire — the most powerful of them all — had been defeated by the people of Afghanistan. At least momentarily, Afghanistan is more united than at any time in its history. President Biden claimed a few weeks earlier — pointing to the 300,000-strong Afghan army compared to the 75,000-strong Taliban — that the U.S. withdrawal would not end like the U.S. war against Vietnam had on April 30, 1975.
In fact, the speed of the collapse of the U.S. puppet government dwarfed anything that had happened in Vietnam. In Vietnam, the puppet government had held on for about two years after the last U.S. troops withdrew. In Afghanistan, the puppet government vanished several weeks before the last U.S. troops could be flown out — to the astonishment of the U.S. government, the world, and even it seems the Taliban itself.
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“Sanctions” used by U.S. imperialism against governments it seeks to overthrow, and part of its policy of enforcing and extending its world domination, are acts of economic warfare. The demonstrations in Cuba that erupted on July 11 against the Cuban government around the slogan “Patria Y Vida” — country and life — illustrate this fact.
Background to the counterrevolutionary demonstrations
Since 1960, Cuba has been blockaded by the United States. According to Wikipedia, in April 1960, Deputy Assistant Secretary of State for Inter-American Affairs Lester D. Mallory wrote to his superior Roy Rubottom that the “only foreseeable means of alienating internal support is through disenchantment and disaffection based on economic dissatisfaction and hardship.” The aim would be to deny “money and supplies to Cuba, to decrease monetary and real wages, to bring about hunger, desperation and overthrow of government.” This not only describes perfectly the policy adopted by the Eisenhower administration in 1960 but also Biden’s policy toward Cuba today.
Until the end of the 1980s, Cuba’s membership in the socialist bloc led by the USSR greatly mitigated the effects of the economic blockade. However, the counter-revolution that matured under Mikhail Gorbachev in the USSR not only destroyed the USSR as a socialist federation of Soviet Socialist Republics, it also destroyed what had been the socialist economy under construction as well. The wave of counterrevolution unleashed by Gorbachev’s policies engulfed all of Eastern Europe as well as the USSR. This capitalist counterrevolution had dire effects on the struggle of the working class, the peasantry, and oppressed people not only in the former socialist bloc but throughout the world.
The Soviet Union had been more than simply another trading partner for Cuba. The relationship between Cuba, the Soviet Union, the German Democratic Republic, and the other socialist countries in Eastern Europe contained elements of the planned international socialist economy of the future. All this had been lost by the time Mikhail Gorbachev “resigned” as president of the Soviet Union in December 1991.
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