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Capitalism breeds war, depression
Written by Iron Fist   
Saturday, 25 October 2008

Source: Workers World Party (USA) 

Following is an excerpt from the introduction to the forthcoming book “Low-Wage Capitalism” by Fred Goldstein to be published by World View Forum.

The Crisis within the Crisis

As the crisis mounts there will be finger pointing by politicians and pundits alike, meant to assuage the anger of the masses. Official opinion is blaming the situation on greed and on a failure of regulation. To be sure, the bankers on Wall Street are voracious and greedy. And it is obvious that the destruction of regulatory restraint on finance capital opened the door wide to an escalation of gambling and speculation—to the “casino” economy.

This deregulation began with the Reagan administration, passed a milestone in the Clinton administration with the repeal of the Depression-era Glass-Steagall Act, and continued in the current Bush administration. Alan Greenspan, former head of the Federal Reserve System, presided over much of this deregulation during his reign of 19 years, from 1987 to 2006.

But to say that deregulation is the cause of capitalist excesses is to put the cart before the horse. It is the irrepressible capitalist lust for profit itself that leads to excesses. These excesses, such as the wild speculation in stocks and land deals that led up to the market crash of 1929, led to New Deal-era regulations restricting the financiers—but only after the speculative horse was out of the barn and millions had been ruined.

The gradually accumulating need of capital to engage in speculation inevitably results in the destruction of regulatory restraint. The system itself creates excess money capital and drives it more and more toward financial speculation and investment in paper wealth that has no relationship to underlying value.

The fact is that the bankers and the rich in general have vastly increased their fortunes in the last three decades. Income inequality in the U.S. has become notorious around the world. For example, in 1976 the top 1 percent of households received 8.9 percent of total income. In 2005 the top 1 percent received 21.8 percent—the highest percentage of total household income since 1928, the year before the stock market crashed. (Inequality.org)

From 2000 to 2007 the wealthiest 400 individuals in the U.S. got a $670-billion increase in their wealth and owned $1.5 trillion. While the top 1 percent of households earn more than the bottom 50 percent, they own more than 90 percent of the wealth. (Figures from Sen. Bernie Sanders’ speech against the bailout.) These are truly staggering numbers and have profound implications for the profit system.

Last Updated ( Saturday, 25 October 2008 )
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‘The end of neoliberalism’
Written by Iron Fist   
Sunday, 19 October 2008
The interview below was carried out by Argentinean newspaper Pagina 12 with Monthly Review editor and Marxist economist John Bellamy Foster. It was posted on http://www.mrzine.monthylreview.org on October 10, from which the version below is abridged. The full version is included as part of a wide-ranging collection of articles and videos on the financial crisis posted at socialist e-journal Links,http://links.org.au. 

What is your opinion about the decision of the US Treasury Department to consider taking ownership stakes in many US banks? Will it lead to the recovery of the system? 

The Treasury Department proposal to purchase majority shares in major US banks is, in a US context, an act of sheer desperation, following a whole series of increasingly desperate actions. 

It signals that the crisis is out of control. 

The standard operating procedure whenever there is a major credit crisis is to activate the “lender of last resort” function and for the central bank to flood the economy with liquidity, while bailing out large financial and economic institutions that threaten to bring down the whole ship. 

But in the face of this massive financial crisis, now 14 months old, and rapidly morphing into what looks like a full-scale debt deflation on the order of the Japanese meltdown/stagnation in the early 1990s — even threatening to turn into a new Great Depression on the scale of the 1930s — the US government is bailing like mad with bigger and bigger buckets, and trying absolutely everything it can think of. 

It has poured hundred of billions of dollars, and is prepared to pour trillions of dollars more, into bailing out the financial sector. 

The lender of last resort has changed into the buyer of last resort on a huge scale. An array of tools has been unleashed to combat the crisis of a kind and of a magnitude scarcely even imagined before. 
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A Tribute to a Revolutionary Leader: Fidel Castro
Written by Iron Fist   
Tuesday, 21 October 2008

By Freedom Road Socialist Organization

On July 26, 1953, Fidel Castro stepped onto the stage of history, as he and other revolutionaries launched an attack on the Moncada Barracks of Cuban dictator Batista. After being captured, Castro made an eloquent defense of his action, saying, “history will absolve me.” Less than six years later, Castro led the Cuban revolution to victory by overthrowing the corrupt and cruel U.S.-backed Batista dictatorship. This act alone - leading a revolutionary movement to victory on a small island just 90 miles off the coast of the U.S. - would be enough to make Fidel Castro an unforgettable hero in the struggle of oppressed people for liberation. But this was just the beginning of Fidel Castro’s 49 years of contributions to the Cuban people’s liberation and to oppressed people the world over.

Fidel Castro announced that he would not seek or accept the position of president or commander in chief in Cuba’s February elections. He said he would still devote his time to being a soldier in the “battle of ideas.”

Freedom Road Socialist Organization would like to take this opportunity to recognize and honor Fidel Castro’s lifetime of tireless dedication to fighting for liberation and building socialism. Fidel Castro led the Cuban revolution to victory in 1959 and has done the even more challenging and complex work of building socialism in Cuba through exceptional challenges.

Cuba’s socialist revolution inspires people worldwide. In Latin America the example of Cuba has proven that it’s possible to defy the U.S. in its own backyard and win. Cuba’s internationalist solidarity with liberation struggles in Africa has earned it high respect there. And Cuba’s missions of sending doctors and providing free health care to the poorest countries and people around the world has been a shining example of internationalism in practice.

Cuba’s internationalism is built on the foundation of Cuban socialism. Cuba is a small, poor country. But Cuba is a sovereign country, so the Cuban people live with dignity. All Cubans have free health care and education. Cubans don’t starve to death like poor people do every day all over the Third World. The infant mortality rate in Cuba is lower than in the United States. Cuba survives natural disasters such as hurricanes without widespread loss of life. All of this is due to socialism and collective organization of the Cuban people, under the leadership of the Communist Party. Fidel Castro’s leadership and ability to inspire and mobilize the masses has played a great role in giving employment, health care and decent living conditions to the people of Cuba.

From the beginning, the Cuban revolution and Fidel personally came under attack by U.S. imperialism. All such attacks have been defeated. Fidel was the principal leader in defeating U.S. imperialism’s attempted invasion of Cuba at the Bay of Pigs; he led Cuba through U.S. imperialism’s nuclear blackmail during the ‘Cuban missile crisis;’ he has survived hundreds of CIA assassination attempts. He has led Cuba through decades of the cruel U.S. embargo. And he led Cuba through the ‘special period’ in the 1990s after the collapse of the Soviet Union led to the sudden loss of 85% of Cuba’s foreign trade.

In that context of extreme hardship in the 1990s, Fidel Castro and the Communist Party of Cuba had little to gain and everything to lose from staying committed to socialism. But stay committed they did. They prepared and mobilized the masses of Cubans to hold on to their dignity despite extreme difficulties. Cubans survived the 1990s with their dignity and with socialism intact, emerging in the current decade with an increasingly strong and growing economy, while other Latin American countries that are dominated by U.S. imperialism are suffering. During its most difficult hour, Cuba was so committed to socialist values of putting people first that not a single school or hospital was closed.

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