Posts Tagged ‘bourgeois democratic revolution’

Political and Economic Crises (Pt 5)

March 24, 2019

Trump’s Islamophobic demagoguery and the New Zealand massacre

On March 15, the world was shocked when a far-right gunman killed 50 Muslim worshipers and injured many others at two Mosques in Christchurch, New Zealand. The gunman hailed U.S. President Donald Trump as “a symbol of renewed white identity and common purpose,” but complained that he is not a good “policymaker and leader.”

This fascist terrorist mass murderer put his finger on the relationship between “Trumpism” and the growing fascist “white nationalist” movement, which if it should win state power in a major imperialist country would put in the shade the crimes of its 20th-century predecessor.

Trump lacks a mass movement organized not only as a political party but as a mass armed militia based on middle-class youth driven to desperation by a crisis of monopoly capitalism. Such a movement, once it reaches a certain degree of development, is capable of launching a civil war against the organized workers’ movement and its allies as well as “racial” and religious minorities of all classes. Once a fascist movement becomes powerful enough to wage a civil war, it always does so in the interest of its finance-capital masters. From the viewpoint of today’s fascists, since Trumpism is only preparing the way for the real thing, Trump falls short as a “policymaker and leader.”

But Trump is preparing the way for 21st-century fascism through his role as a “symbol of renewed white identity and common purpose,” not only in the U.S. but in all the imperialist countries. Our hearts must go out to the victims of this unspeakable crime, casualties of Trump’s racism and the capitalist system that breeds it.

We must fight Trumpism and all it stands for with all our strength. But to do this effectively, we must also fight the Party of (the current imperialist world) Order, which is doing all it can to cripple the fight against Trumpism by usurping the leadership of the “resistance” to Trump from within.

Read more …

Advertisements

Political and Economic Crises (Pt 4)

February 24, 2019

Trump and ‘Party of Order’ unite to declare war on Bolivarian Venezuela

On Jan. 23, after conferring with U.S. Vice President Mike Pence, Venezuelan right-wing politician Juan Guaidó declared himself “interim president” of Venezuela. The United States promptly recognized Guaidó as the “interim president.” Trump refused to rule out a military attack against Venezuela if the government of President Nicolas Maduro and the Venezuelan people resist the U.S. government’s appointment.

In a series of moves that included breaking diplomatic relations with the legitimate government, appointing a puppet government in its place, seizing state assets and handing them over to the puppet government, demanding that Venezuela’s military support the puppet, and threatening direct military action if the Venezuelan military refuses, “commander-in-chief” Donald Trump’s order amounts to a declaration of war against the government and people of oil-rich Venezuela.

As part of the war drive, Trump imposed a full-scale economic blockade against Venezuela. The assets of the state oil company held abroad, including its U.S branch Citgo, has been seized and handed over to the puppet Guaidó “government.” Venezuelan bank accounts have been frozen, including $1.2 billion in gold bullion held in the Bank of England.

Venezuela is one of a bloc of three large oil-producing countries, the other two being Iran and Russia, that is not under the control of the Empire. If Trump succeeds in his war against Venezuela, the pressure on Iran and Russia will increase. For the moment, the war against Venezuela is being fought with economic methods, but this could change at any moment.

Even if the war remains economic, this doesn’t change the fact that it is a war of aggression and, as such, a crime against humanity. By Feb. 6, the European countries of Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Iceland, Latvia, Lithuania, Luxembourg, Macedonia, Netherlands, Poland, Portugal, Spain, Sweden, and the UK had recognized the U.S.-appointed “interim president.”

Latin American countries that resist the Empire continue to recognize the legal government of Venezuela. These include socialist Cuba – no surprise there – Bolivia Uruguay, Nicaragua, and the new nationalist government of Mexico, which came to power in January after many years of right-wing rule. On the other hand, Latin American countries ruled by right-wing governments belonging to the so-called Lima group announced that they recognize the Trump-appointed Guaidó as Venezuela’s “interim president.” Among the Latin American governments recognizing Guaidó is the new far-right government of President Jair Bolsonaro in Brazil.

Beyond Latin America, Israel also announced its support for the coup government. In contrast, Syria continues to recognize the Maduro government. Russia, China and Iran also continue to recognize Maduro as the sole legitimate president of Venezuela.

There is a general pattern here. Governments that are integrated into the U.S. empire quickly recognized the coup government and joined the U.S. declaration of war against Venezuela. All other governments recognize Maduro as head of the only legitimate government of Venezuela.

Read more …

The Marxist Theory of Ground Rent (Pt 1)

November 16, 2014

Mike Treen, a good friend and an editor of this blog who lives in New Zealand, suggested during a visit to the U.S. last May that I examine the question of real estate and house rents. I promised him that I would try to get to it. I couldn’t do it immediately because the 100th anniversary of World War I was fast approaching and demanded the blog’s immediate attention. But with no anniversary of similar importance approaching over the next few months, I now have some time to examine the question of real estate, rents and landed property in general.

I will begin with an examination of Marx’s theory of ground rent that he develops in Volume III of “Capital.” I will then examine how Marx’s theory relates to the related but different question of house rents, prices and mortgages, which Marx gave relatively little attention to.

After that, I hope to examine the latest developments in the world economy, which I have neglected recently because of the needs arising from the World War I anniversary. While much has been written over the years on the theme of the “decline of the dollar,” we now have the opposite phenomenon of the “strong dollar.”

The strong dollar refers to the U.S. dollar’s current rise against gold, the money commodity, and other currencies. These developments raise important theoretical questions on the nature and function of money, as well as a series of practical questions. For example, what does the current strong dollar imply for the evolution of the world economic situation, the new war in the Middle East, and the war danger in general?

Finally, another important anniversary is approaching early next year. Next March will mark the 30th anniversary of the election of Mikhail Gorbachev to the post of general secretary of the Central Committee of the Communist Party of the Soviet Union. Long before the Gorbachev election, a debate had been raging within the socialist countries around these questions: If and too what extent are the products of socialist industry commodities? How relevant, if at all, is the law of value and commodity-money relationships to the construction of socialism? What are the historical limits to the law of value?

With the election of Gorbachev, the economists who strongly defended the view that commodity-money relations and the law of value either do or rather should prevail during the construction of socialism won the day. The consequences of their victory are all too obvious today.

The famed Argentinian-Cuban revolutionary Che Guevara, who was killed by the CIA in 1967, many years before the election of Gorbachev, defended what even then was the minority opinion among economists in the socialist countries on this matter.

Read more …

World War I—Its Causes and Consequences (pt 2)

August 24, 2014

Wars rarely turn out the way their initiators expect. In our own time, we can point to many examples. George W. Bush and Tony Blair, when they ordered the invasion of Iraq on March 19, 2003, believed that the U.S.-British forces would defeat Iraq’s armed forces—weakened by years of sanctions, continued military attacks, and forced unilateral disarmament—within weeks with hardly any casualties on the side of the invaders. It would then be “mission accomplished.”

But now in August 2014—100 years to the month since the outbreak of the “Great War”—the U.S. has resumed bombing Iraq as the government it created crumbles. The reason this government is failing is that virtually no Iraqi wants to fight and die for it. Why should an Iraqi fight for a foreign-imposed government?

Nor should we forget the war against Afghanistan launched by the Washington war-makers in October 2001 against the Taliban government, which had no modern armed forces, only a militia. Within weeks, U.S. media were writing about that most unequal war in the past tense. But now, 13 years later, the U.S. is still struggling to find a way to exit that war without the return of the Taliban to power. That war didn’t turn out as the Washington war-makers expected either.

Nor has the air war fought by U.S-NATO against Libya in 2011 turned out the way the Obama administration, which launched that war, expected. And the same will probably be true of the most recent war—if it can even be called a war—launched by Israel, with at least the tacit support of the U.S., against the people of tiny Gaza, which has no army, air force or navy.

This August marks not only the 100th anniversary of the beginning of World War I but also the 50th anniversary of the infamous Gulf of Tonkin Incident. If we were to believe the U.S. propaganda of the time, (North) Vietnam’s tiny navy attacked without any provocation the mightiest navy the world had ever seen! This “incident” occurred—or rather didn’t occur—on August 2, 1964, just two days short of the 50th anniversary of the start of the “Great War.”

The U.S. Congress used this faked incident to grant the Johnson administration cart blanche to wage war against Vietnam, which the administration took full advantage of by launching a series of bombing raids on the Democratic Republic of Vietnam that August. This gave way to a steady air bombardment of (North) Vietnam—the South had been subject to steady U.S. bombardment for the preceding five years—the following year after Johnson won re-election as the “peace candidate.”

While the Washington war-makers succeeded in killing millions of Vietnamese people and doing incalculable damage to the environment with Agent Orange and other forms of environmental warfare, in the end the war against Vietnam did not turn out the way the war-makers in the White House, the Pentagon and Congress expected. For example, the renaming of Saigon Ho Chi Minh City was probably not part of Washington’s war plans.

Nor did the war against Korea, which is usually seen as beginning in June 1950 but really began when Washington occupied the southern part of Korea in 1945, turn out exactly as the Washington war-makers intended, though they succeeded in killing millions of Korean people and left no multistory building standing in the northern part of the country.

The rule that wars seldom turn out the way those who start them expect was certainly true of the general European war that began exactly a century ago. To the generation that actually fought, it was known as the “Great War” or “the World War,” ”the war to make the world safe for democracy,” or, most ironic of all, “the war to end all wars.” But as a result of unintended consequences of the war, it had to undergo a name change. It was renamed World War I, a mere prelude to the even greater bloodbath of World War II.

‘Before the leaves fall’

When the general European war commenced on August 4, 1914, each warring imperialist power was convinced that it would be a short war and that it would emerge victorious. Or as was said, the war would be over “before the leaves fall.”

Read more …

World War I—Its Causes and Consequences (pt 1)

July 27, 2014

Owing to the author’s and editors’ participation in this weekend’s Gaza protest, the following has been posted a little later on the scheduled publication day than usual.

Almost exactly 100 years ago, on June 28, 1914, shots rang out in the city of Sarajevo, then part of the Austro-Hungarian Empire. Assassinated on that day were the heir to the throne of Austria-Hungary, Archduke Franz Ferdinand, and Sophie, his wife and Duchess of Hohenberg. Serbians and other “south Slav” nationalists struggling to create a federation of the small south-Slav nations—Yugoslavia, in their language—were held responsible. Within little more than a month, the entire world order as it had existed prior to June 28 completely unraveled. First Europe and eventually the world plunged into what was to become known as World War I.

Among the pillars of the world order that collapsed in 1914 was the international gold standard. Under this system, central banks issued banknotes that were actually promissory notes payable in gold coin of a definite fineness and weight to the bearer on demand. As late as mid-1914, in the imperialist countries, gold coins still circulated side by side with banknotes, which along with bank checks were used for large transactions. Everyday purchases and wages were paid in coins made out of silver or base metals.

The fact that currencies of the imperialist nations were defined as a certain weight of gold of a given fineness meant that there was, within the narrow limits of the “gold points,” fixed rates of exchange among the imperialist countries. In effect, a single currency—gold—existed among the imperialist countries, with pound-sterling, dollars, marks, francs, and rubles merely local names for the universal currency, gold.

The international gold standard encouraged a massive growth of world trade and international investment rivaling today’s “globalization.” Individual countries on the gold standard had to remain on it or their access to the London-based capital markets would be undermined.

Things had not always been this way. In the mid-19th century, currencies of most European countries—with the exception of Britain—were defined in terms of weights of silver, not gold. The Russian ruble was a paper currency and was not convertible into either gold or silver at the state bank. In contrast, the United States defined both a silver and gold dollar, along with a fixed legal rate of exchange between the two. This system was known as bimetallism.

But since the value of gold and silver—the quantity of abstract human labor needed to produce a given weight of gold and silver bullion—constantly changes, it was the “cheaper” dollar that actually circulated. Originally, this had been the silver dollar, but by the middle of the 19th century after the gold dollar was made slightly lighter—in effect devalued—the U.S. was, like Britain, for all practical purposes on the gold standard.

By mid-1914, all these currencies, including the Russian ruble, were on the gold standard. Only the currencies of semi-colonial or colonized countries such as China and Mexico were still defined in terms of weights of silver or were paper currencies. And in 1914, after years of populist resistance to central banking, the U.S. Federal Reserve System began operations establishing the centralized management that the U.S. gold standard had previously lacked.

Before 1914, the U.S. gold standard was managed by a combination of private for-profit bankers, such as J.P. Morgan, and the U.S. Treasury. The flaw in this system was that there was no mechanism to meet a sudden increased demand for currency as a means of payment such as tends to develop during crises. Under the old U.S. national banking system, when a crisis hit, panic-stricken depositors would attempt all at once to convert their deposits into cash. As a result, the crisis would rage unchecked until money capital, in the form of gold bullion eager to take advantage of the sky-high U.S. interest rates caused by the panic, arrived from overseas.

The cyclical crisis of overproduction that hit with full force in the fall of 1907, as had happened periodically during the 19th century, triggered a panicky run on U.S. commercial banks as depositors rushed to convert their deposits into cash. But the changing conditions of the early 20th century made bank runs much more dangerous than they had been earlier.

By 1907, the U.S. had emerged as the world’s leading industrial power. Far fewer of the unemployed could return to their family farms to ride out the crisis like many still could during the 19th century. But there was another factor at work. Because the U.S. had now emerged as the world’s leading industrial as well as agricultural power, a run on the U.S. commercial banking system threatened to crash the entire global capitalist economy. Therefore, a U.S. central banking system had to be created to allow a rapid expansion of the quantity of means of payment in a crisis.

The danger was that if this were not done, during a crisis so much money capital in the form of gold bullion in search of the highest rate of interest would be shipped to the U.S. from Europe and elsewhere that the European central banks would be forced off the gold standard. To protect the international gold standard, it was therefore necessary for the U.S. to create a system of central banking just as the European countries already had done that would make it easy to issue extra dollars in a crisis. The very knowledge by bank deposit owners that extra dollars could be created during a crisis would make bank runs far less likely. When the Federal Reserve System began operations at the beginning of 1914, the international gold standard was now secure. Or so it seemed.

Read more …

Capitalism and ‘High Tech’

October 27, 2013

A reader has asked why many of the examples I have given are from the “high-tech” industry. Actually, there are good reasons to use examples from high tech to illustrate the laws that govern the capitalist economy.

Capitalist production develops unevenly, not only from country to country but from industry to industry. Marx makes clear in “Capital” that not all industries made the transition from handcraft to manufacture and from manufacture proper to “machinofacture” at the same time.

In the 19th century, what Marx and Engels called “modern industry” meant the industries that had adopted steam as their main source of motive power. By this definition, the textile industry, both spinning and weaving, was during the first three-quarters of the 19th century the most modern of modern industries. Consequently, in the early and middle 19th century—the time of Marx—the textile industry was the industry where the laws of motion of capitalism showed themselves most clearly. Understanding the development of the textile industry was (and is) crucial to understanding the politics of the 19th century.

The main center of textile production was in Britain, centered on the industrial city of of Manchester. Frederick Engels, Marx’s co-worker, worked there for many years managing his family’s textile factory. The main raw material for the 19th-century textile industry—cotton—was produced in the United States, not by wage labor but by the labor of African slaves.

During the 19th century, the U.S. was developing its own textile industry, based in the New England states, then the center of U.S. industry. Like the British textile industry, the U.S. textile industry was dependent on cotton produced by slave labor in the southern states of the U.S.

At the time of the American war of independence of 1775-1783, which represents the first phase of the U.S. bourgeois-democratic revolution, slavery, which existed in both southern and northern states, appeared to be dying out. But the invention of the cotton gin, combined with the dramatic rise of the steam-powered textile industry in both Britain and New England, gave a new lease on life to slavery in the southern states of the U.S.

The issue of whether the U.S. would be dominated by the free labor—wage labor—system or chattel slavery moved to the center of U.S. and even world politics, where it was to remain until it was finally resolved by force in the U.S. Civil War of 1861-1865 and then the post-Civil War Reconstruction that ended in 1876.

Read more …