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Thursday, 13 June 2013

A split ruling class

From how I see it the ruling class nationally and internationally is split. More or less down the middle anyway on how to react to the crisis of their own capitalist system. Do they go for growth or austerity? It is something which features heavily within the European Union as also with intervention from the IMF The IMF echo’s America’s calls for growth but on what basis it doesn’t make clear. Clearly we live in a time of global economic melt down with no sign of a way out of the present crisis that anyone can see. Even China has seen its growth rates cut by the World Bank today too. There have been concerns whether China can sustain its high growth rate amid a global slowdown The World Bank has cut its growth forecast for China amid warnings of slower but more stable global growth over the coming months. The bank now expects the China to grow 7.7% in 2013, down from its earlier projection of 8.4%. It also cut the forecast for global economic growth to 2.2% from 2.4%. The bank said growth in China, the world's second-largest economy, had slowed as policymakers look to rebalance its growth model. Over the past few decades China has relied heavily on exports and government-led investment to boost its economy. However, a slowdown in key markets such as the US and Europe has seen a decline in demand for Chinese exports, prompting concerns whether China can sustain its high growth rate. This is not just a case of world governments being split and undecided to what to do but whole sections of the bourgeoisie who are finding themselves torn further and further apart on solutions for the crisis. Also take the example of Europe with some parts of the bourgeoisie wanting to make a hasty exit from the EU in order to boost our own competitiveness in terms of pushing down wage labour even further than possible at present whilst others warn against leaving and attack the others for even daring to suggest a exit. The euro zone does not work. No measures have been introduced in order to make it work. In any economic union of the kind that was being envisaged, it is obvious that there will be some areas that are richer and some that are poorer. There will be some areas that import more from the richer areas and vice versa. You will consequently find an economic balance that will reflect itself in a series of economic data. Unless the richer areas are prepared to accept that, as in the US, the centre must in some way or other assist parts of its union - with the richer areas in effect subsidising the poorer areas - then it simply cannot work. This is all rather obvious and many people have been making this point for some time. The overall result of these differing viewpoints amongst the bourgeoisie is a muddle. Whereas it is actually possible to get out of the present downturn, that will not happen, because ultimately this would be tantamount to suicide on the part of the capitalist class. Its difficult to know which way the bourgeoisie will turn next there’re signs of a heightened turn towards protectionism in protecting your own markets with the recent flare-up of solar panels with the EU and China. I am thinking we may see more incidents like this when nations and economies start to get desperate to restart growth further and further desperate measures may be attempted. In Japan right now they are trying a plan which is noted by many economists as radical and risky so waiting to see how that one turns out will be interesting too. What is clear though is that we are in a log jam across the world. No country, government or organisation has the magic formula for getting out of this crisis and many expect things to get a lot worse before they get better. Something will have to give eventually as jams in the system cannot last forever. Watch this space for heightened tensions between global super powers in order to deflect the blame for a lack of growth in their own country on others. A split ruling class as Lenin once said is just one part of a successful revolution. The other parts were a middle class also awake and not sure which way to turn in support of the capitalist or the working class. Lastly a mass revolutionary party which we are far from in any country in the world. Things are just hotting up. Our time may come soon. We must prepare for all eventualities.

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