How powerful is global capitalism at present?

Well a very interesting question indeed as it would appear contradictory. On one hand you have a system which seems incredibly powerful and somewhat untouchable in terms of any real threat from an outside force from an opposing system. We used to have Stalinism of course in the east with the USSR and the Chinese totalitarian regimes which for all their brutal dictatorial and clamping down on freedoms and democracy at least offered the idea that there was at least a different system possible if you wished. Yet there is no movement that looks likely that it will take power any time soon in terms of an alternative economic system. Not to do the working class down as they are extremely powerful yet I am not convinced are ready to take power anywhere on the planet. On the other hand we have a system of capitalism which is in probably the biggest crisis its faced since the 30's and possibly ever some say. So we do have a real contradiction in many ways. It is hard to understand on the surface anyway how powerful and how strong of a system capitalism is at the moment. On the one hand it seems quite fragile and yet on the other side it looks indestructible and that there is no way of changing things. Of course as we know and as we learn from the past no social and political system is indestructible and nothing stays the same forever. Dialectics tells us as much so to think that capitalism is here to stay and it can’t be changed or removed is just not true. It may seem like we are a long long way from change and in many ways we are yet change is always on the agenda and is constantly happening even when we cannot see it at the very moment. Revolutions are not just things that appear they are constantly being developed and worked on. I do believe that we can start to begin to build the new society in the shell of the old by putting into practice our ideals and values right now not after the revolution we can begin to shape things even if all be it on a small scale to start with. We must be in a way the change we want to see to oppose things we don’t agree with and we don’t want to take with us to the new society we must start today by opposing the likes of racism, fascism , sexism and all forms of discrimination. We must lead from example as revolutionaries we cant expect others to follow us and buy into our ideas if we ourselves do not live up to our own ideals. So in terms of power capitalism is still very much in the driving seat but for how long and in what form we cannot say. We must remember any victory we win off the ruling class must be forced home and if there is the opportunity to remove this rotten exploitative system then we must cease any chance we get!

The long term view of capitalist development or degeneration

There is much talk in the financial press and among economists of the risk that the major capitalist economies could be slipping back into recession. Economic data for the US and Europe are indicating a significant slowdown in economic growth and a weak recovery in employment and investment. Is this just a temporary blip or does it represent a significant downturn? I would like to answer that by returning to the long view. The long view I’d describe is Karl Marx’s law of the tendancy of the rate of profit to fall which I believe is the underlying cause of the capitalist crisis and indeed is the cause of most if not all crisis’s and is Marx’s 3rd law of capialistmotion which we must look at to understand the changes in capitalism and how we stand today. Just taking the post-war period, there was a Golden Age of profitability from 1946 to 1965 when the rate of profit (ROP) was high and even rising. During this period, economic recessions were few and relatively shallow. Then there was a period of crisis when profitability fell steadily until it reached a nadir in 1982. During this period, economic recessions were more frequent, violent and deep i.e. 1969-70, 1974-5 (the first simultaneous post-war economic recession) and 1980-2 (the deepest recession since the 1930s). After 1982 there was a recovery in profitability right up to 1997. This was the period of so-called neoliberalism that many have argued constitutes a completely new structure of capitalism based on ‘financialisation’ and neoliberal policies of privatisation and weakening of the labour movement (see my comrade Steve Dobson’s excellent post “neo liberalism a new stage of capitalism” a http://socialismiscrucial.wordpress.com/2013/07/25/neoliberalism-a-new-stage-of-capitalism/ There was only one significant economic slump in 1990-1. What next? Once the ROP starts falling, it takes a few years before an economy moves into recession. The ROP has usually been falling for three to four years before that happens. On that basis, the US economy will not drop into a new recession until about 2014 onwards. The debate continues among Marxist economists, but if the underlying cause of capitalist crisis is a falling ROP, then a new slump is unlikely to develop until 2014. But it confirms that even the Great Recession of 2008-9 was not big enough to restore a sustained rise in the ROP. That is because it has not destroyed enough value in accumulated capital or in the excessive build-up of debt (fictitious capital) before 2007. More destruction of value is necessary to do that. That there is still much fictitious capital in the system is revealed by the value of the stock market relative to a measure of the real value of the companies the stock prices represent. James Tobin, the leftist economist, developed a measure to tell if the stock market was overvalued or not and whether it would be heading down. It is called Tobin’s Q, measuring the stock market’s value against the replacement value of all the assets of the companies in a stock market index –for the US S&P-500 stock index (the top 500 companies It is difficult to fully predict how the economies of the world will develop by focusing on Marx’s works in volume 3 of capital and especially the chapters on the law of the tendency of the rate of profit to fall are crucial to understanding crisis I feel. I am studying all sorts of facts and figures trying to get to grips with crisis and Marx understands there are many views out there with lots of figures which prove something different. We must be careful to pay attention to all sides of the debate and be sure to uphold the law of Marx who was sure of the cause of capitalist crisis’s despite not finishing volume 3 all his work was there if not published it was in draft form ready for Engel’s to publish and edit and place in order the content was always there. Marx didn’t call this law the most important in political economy for no reason at all. Let’s get with the programme and take up Marx’s ideas again and apply them to 2013.

What did those behind the ‘Ring of Steel’ decide ?

www.socialistworld.net, 28/06/2013 website of the committee for a workers' international, CWI Representatives of the 1% pledge more austerity, war and environmental degradation Kevin Henry, Socialist Party (CWI Ireland) Sixty million spent on security so that people could have a peaceful protest, Obama parades around as a man of peace as bored school students listen on and the local politicians get to bask in the reflected glow of the G8’s ’great’ leaders. But when the media are discussing all that, what were those behind the huge security fence around the Lough Erne Resort actually discussing? "Fire up the world economy?" In the Belfast Telegraph we are told by Cameron that “the whole point of this meeting in Lough Erne is to fire up our economies and drive growth and prosperity around the world, to do things that make a real difference to people’s lives.” The summit began with an announcement of EU/US free trade agreement. This is despite the fact the mandate to negotiate the deal was approved by trade ministers meeting in Luxemburg the week before and discussions had been ongoing. Of course never let the facts getting the way of a good story! Cameron claims that such an agreement would create two million jobs and mean adding as much as £100bn to the EU economy. These figures are effectively plucked out of the air and change in every statement made by the key proponents of this free trade agreement. The real agenda of these negotiations is the ’liberalisation’ of our public services and a race to the bottom in terms of workers’ rights and environmental standards. This agreement will include an ‘Investor State Dispute Settlement’ mechanism that would allow foreign investors both in the EU and the US to bypass the normal legal system and directly challenge governments at international tribunals whenever they find that laws in the area of public health, environmental, labour or social protection interfere with their profits. For example, many of those protesting against the G8 visit in Fermanagh were specifically concerned by the issue of ’Fracking’ or hydraulic fracturing. This mechanism is used in other free trade agreements and currently by a US energy firm to challenge a moratorium on fracking in Quebec. This agreement is will be used as part of a ‘race to the bottom’ in terms workers’ wages and conditions and to undermine trade union rights in the name of competitiveness and free trade. Including making it easier for EU companies to access the labour market in the so-called ’Right to Work’ states i.e. states that deny basic trade union right such as to collective bargaining. (For more on this Free Trade Agreement see: EU-US Free Trade Agreement: Race to the Bottom of the Atlantic) Rewriting the rules on tax? We are also told that the summit would deal with transparency around tax issues. The leaders of the G8 clearly feel the pressure on tax evasion. Global tax evasion means multinationals get away with hiding $3 trillion a year in profits, according to research from Tax Justice Network, while as much as $32 trillion could be stashed away by individuals in tax havens. Every time these leaders close hospital or propose new austerity measures they are faced working people asking what about Vodaphone or Starbucks taxes. The capitalist leaders claim that action on tax evasion has to be dealt with at international gathering and a big song and dance was made that it would be dealt with at the G8 summit. British Prime Minister David Cameron said the summit declaration had "the potential to rewrite the rules on tax and transparency for the benefit of countries right across the world, including the poorest countries in the world." Unsurprisingly, however the ’Lough Erne declaration’ on tax commits governments and multinational to very little. It outlines a few basic principles, such as the sharing of tax information among authorities and that more steps are taken to force companies to report where they pay taxes. But, in the words of a War on Want spokesperson, “as always the devil will be in the detail, and there’s no detail here." The deal falls far short of the comprehensive public register of owners that NGO groups had being calling for. The deal does not commit countries to making information public, only to share it with other tax authorities. Of course talk is cheap! Not a penny more in taxes will be paid by Amazon, or any of the other companies that operate intricate webs of offshore companies to avoid tax. Syria: “Blood is on the hands of both parties." Away from the formal sitting of the G8, the focus of the meeting was on Syria, a conflict which has left an estimated 93,000 people dead and which is a source of massive tension between the G8 leaders. With the US, Britain and France wishing to more openly arm the rebels (in reality, they already do through Turkey and Gulf regimes) and with Russia central to arming the Assad regime, this tension is reflected in the comments of the Canadian Prime Minister Harper that the summit is “the G7 plus one.” On the eve of the summit, Russian President Putin and Cameron held a press conference. When Putin was asked whether he had “the blood of Syrian children on his hands” - a reference to Cameron’s recent comments at the UN - Putin replied that “the blood is on the hands of both parties." Obama is now public in his intention to arm rebels and Putin claims that all that his government is doing is supplying "to the legitimate government of Syria.” Even within Harper’s G7 there is divisions. While Chancellor Merkel is complicit in dropping the EU’s arms embargo, she ruled out taking part in arming the rebels and stressed the need for a ’political process.’ The resolution the G8 managed to cobble together on Syria stressed the need for a "political solution to the crisis based on a vision for a united, inclusive and democratic Syria". For all the Western powers claiming to be defending the Syrian people, the resolution makes no reference to the alleged use of chemical weapons or the future of Assad, due to resistance from Putin. It only states that a transitional government must be formed "by mutual consent" between the different sides of Syrian society. Importantly, however, it makes clear that Syria’s military and security forces will be allowed to remain intact following a transition of power - seen as a tacit encouragement to Assad’s senior officers to launch a coup. In reality, while both sides will continue arming their respective sides, the Western powers do not feel confident enough in the opposition, either politically or militarily, to openly fully back and arm them, at this point. Some of the powers fear further destabilising the region and they also realise there is little public support for imperialist intervention in Syria. A Pew Research poll indicated that 70% of Americans oppose arming the opposition. For socialists, the Syrian civil war, which is also a proxy conflict between big powers’ interests, is a testament to the failure of capitalism in the region. None of the parties – all of which have blood on their hands - offers anything for the Syrian masses. Arming factions or holding ’peace conferences’ or encouraging a military coup will just replace one butcher regime with another. It will take revolutionary struggle, as we saw in Tunisia and Egypt, armed with a socialist alternative that can end the rule of the reactionary forces trying to carve up Syria. The rule of the 1% Despite a massively publicised campaign by charities around aid and world hunger, where was that on the G8 agenda? In fact, the amount of money the world’s richest countries give to ’developing countries’ fell by $2.9 billion between 2011 and 2012. And on climate change, the issue is all but ignored accept a tag on page at the end of the summit communique. The pro-big business politics pursued in the ‘Ring of Steel’ at Lough Erne, is a vindication of what the Socialist Party and others who organised against the G8 said in the course of our campaign; the G8 represent the interest of the 1% and the policies of austerity, war and criminal environmental policies. We need to build a socialist alternative, so that the decisions that affect the future of our society are not taken by CEOs in boardrooms or unrepresentative politicians behind Steel fencing. But instead the resources of society are publically owned and democratically controlled and managed by working people.

Alex Jones and conspiracy theories

At times like these which we live through a fundamental crisis of global capitalism not just a cyclical crisis but a fundamental crisis of the system all sorts of conspiracies can come to the fore. People are understandably looking for an explanation of the current crisis and don’t want to have to look far and wide for one. They want a theory to fit into what they know already and they want someone to blame and fast. “Conspiracy theories have had something of resurgence in recent times. Even during the global Occupy movement it was common to meet people who claimed that a secret clique of bankers are running the world, that money is the source of all our problems, or that 9/11 was an inside job. In general conspiracy theories claim that important political, social or economic events are the products of plots by secret groups that are largely unknown to the general public. They can sometimes ring true because of the fact that banks and big business do exercise an inordinate amount of power over our lives. They can sometimes seem radical because they often attempt to question the way the system is run in the interests of a tiny minority. Why has interest in conspiracy theories risen? The global capitalist crisis, the most serious crisis since the 1930s, has dramatically worsened the problems working people face. Jobs are disappearing at an alarming rate and living standards are declining. For many young people a secure job is not even on the cards. In many ways people are questioning why the capitalist system is failing them. People feel like hidden forces beyond their control dominate their world. There is an increasing sense of alienation and this is leading people to search for explanations and solutions. This is where the likes of Alex Jones one of the most well known internet sensations who hosts a regular radio show with millions of listeners and a you tube channel drawing in even more. The thing is, Alex Jones, his cult-like followers, and those with similar views don't see the system for what it is, as they've been conditioned to believe that the system is supposed to work a certain way and in doing so results in all sorts of freedoms and prosperity for everyone. When the system doesn't work that way, they assume it's because of some alien - some "other" - deliberately fucking the system up. Marxism explains it much better. In the past, people could turn to a strong labour movement, which embodied many critiques of capitalism. Marxism is a highly developed labour movement critique that lays bare the class basis of capitalism. Marxism explains that society is essentially divided into classes: workers who are forced to sell their labour-power in order to live, and capitalists, who pay workers less in wages than the value that workers produce. Through a materialist understanding of these social relations, Marxism, or scientific socialism, is a theory that analyses both the economic foundations of capitalism but also the political and social processes that take place. It is based on the history and real experiences of the working class going back hundreds of years and it can explain in detail the boom/bust cycle of capitalism. In the last thirty years however, the labour movement has been under constant attack. Neo-liberalism became the dominant economic ideology and the mass working class political parties that once existed have either shifted to accept this ideology or disappeared. This process was accelerated by the collapse of Soviet Union, which at the time provided a living, but degenerated, alternative to capitalism. Capitalism, we were told, was the only way of running society. Margaret Thatcher’s phrase ‘There Is No Alternative’ summed up the attitude of this era. Consequently class consciousness has been set back and so has the standing of all alternative ideologies. The lack of popularised alternative ideas means that newly radicalised people are sometimes starting their search for explanations and solutions from scratch. They find these explanations in the many ‘new’ ideas, principles or theories that have been invented or discovered by this or that would-be universal reformer, including conspiracy theorists. Real conspiracies versus conspiracy theories Socialists do not claim there are no conspiracies or that the ruling class does not lie to the public. There is plenty of evidence that they do. One only needs to look at Murdoch’s phone hacking, the lies about Iraqi weapons of mass destruction, or the Watergate scandal. There is no doubt that members or sections of the ruling class ‘conspire’ and manipulate in order to further their own interests. However, it’s not so much the point that individuals and specific groups conspire to achieve their ends, but rather that behind those individuals are material reasons which cause them to behave in very specific ways. Simply put, these reasons are the necessity for capitalists to maximise profits and accumulate capital, as well as ensuring that the necessary social, political and economic conditions exist to do so. If one group of capitalists were replaced by another, they would behave in a similar ways, with similar outcomes. This is true for the Rothschilds, Henry Ford, and for Gina Rinehart and Clive Palmer. In this sense, the problem is a systemic problem, not one of individuals. In this sense Marxism is actually the best framework for analysing those conspiracies that do actually take place. This is because it looks at them within the objective drives and contradictions of the capitalist system, rather than seeing them as constituting the driving force of the system itself. Obscuring reality The most obvious problem with many conspiracy theories is the lack of empirical evidence and the tendency to speculate wildly. Having placed a great deal of effort in showing inconsistencies in media and government accounts of events, conspiracy theories often then simply make up their own interpretations, often relying on ‘hidden’ factual information. This is not a solid basis on which to provide a genuine critique of the complex processes occurring in world politics and the global economy. The actions and motivations of business owners and world leaders become much clearer when they are viewed within the framework of class. The reality of the contradictory interests between the working class and the capitalist class is particularly evident in this era of economic austerity. We have witnessed banks and businesses being bailed out with public money, whilst continuing to reap enormous private profit. The result of this has been the piling up of huge sovereign debt, leading to drastic cuts in social spending that has worsened the living conditions of workers in many parts of the world. This is no secret, but cannot be properly understood without a class analysis of how the system works. No singular ‘amazing’ factual revelation will expose or change the fundamental function of global capitalism. Conspiracy theories are also often inherently implausible. Usually they try to claim that control of the system is exercised by members of tiny groups that are usually countable on one’s fingers. How would it be possible for these individuals to make all the decisions necessary to run a complex modern society? Even if they could, such a system would be extremely unstable and easily overthrown. On the contrary most capitalist societies have been relatively stable since the Second World War. While socialists would agree that under capitalism a ruling class (those who own and control the means of production) exercises control over the majority of working class people (those who must work for a wage or salary), it is not true that this class is of such a tiny proportion. The definition of class is based primarily on an individual’s relationship to the economy. Business owners, for example, may compete for market share, but they also have common interests in terms of weakening labour laws, undermining unions, lowing social spending to allow for business tax breaks and so on. Their common interests on the basis of their class position mean many business owners act similarly despite not being members of a secret society. This minority maintains their control of economic relations through a complex state machine which ensures continuation of their privilege. This is achieved not through an all powerful secret society, but through the laws, courts, and dominant ideology taught in schools and university. Despite this, should their privilege be challenged in a serious way, police, armies and jails are used to quell any resistance. For example, in 2008 when numerous banks and credit funds were found to have acted disingenuously and were in danger of collapse, they were bailed out by governments with taxpayer’s money. Rather than being taken into public ownership under democratic, taxpayers control, their ‘right’ to continue business-as-usual, profiting with the use of public funds was backed up by courts, parliaments and the dominant economic ideology. On the other hand, when ordinary people started to protest and question why their money was being handed over to private business, many were attacked, pepper sprayed and jailed by police! These events happened very much out in the open, and very similarly across the world. This is not due to elaborate, underground co-ordination amongst a secret group, but because the crisis of capitalism presented itself similarly in different countries that are part of a highly connected global economy governed by the same ‘free-market’ ideology. This is the logic of capitalism at work, not the arbitrary will of secret elite. By having an understanding of how capitalism works we can see what unites the ruling class but also what divides them. While on the one hand the ruling class is united in its quest to exploit the working class, it is divided in the sense that it is competing amongst itself for profits. Understanding this helps us explain, in scientific terms, the causes of wars and inter-imperialist conflicts that have shaped the last century. Conspiracy theories, including some presented in the ‘Zeitgeist’ films, often claim that a secret group deliberately caused the global economic crisis. This of course begs the question of how it could possibly be in the interest of the system to enter into deep recession, which has wiped trillions off share values, sent production into decline and caused enormous social unrest. The truth is that rather, than being an elaborate conspiracy; economic crises are the result of the internal contradictions of capitalism. Rather than searching for a secret group with unexplained motivations to ruin the economy, we need to focus on the business owners, banks and politicians who openly oversee and defend a system in which internally created the slumps and crises that ruin people’s lives. There is a long list of things that are wrong with conspiracy theories. One of the most serious problems is that they often attempt to cut across working class unity, by creating divisions along national, ethnic or other social lines, for example anti-Semitism in banking conspiracies, or the claim that leaders of the Russian revolution were really aiming for Jewish world domination, for example in the hoaxed Protocols of the Elders of Zion. Real solutions Apart from being a confusing and inconsistent way of trying to understand the world, conspiracy theories do not outline any strategy for practical action to solve the problems we face. It seems many conspiracy theories are solely focused on trying to inform people of a hidden conspiracy, but lack any advice on what to do about it. In this sense conspiracy theories are disempowering and demobilising. History has shown many times that the best way to utilise the power of ordinary people is to unite them in action for social change. Other ‘solutions’ put forward such as those prominent in the Zeitgeist films, amount to withdrawing from the world to try and build a new society. This is impossible given the unceasing (and militarised) search by capitalism for markets and resources. This rejection of the possibility of changing the world we live in is again contradicted by the history of the workers’ movement. Not only have working people organised and won reforms from capitalism, but they have made revolutions that have fundamentally changed societies. It is no accident that historically both reforms and revolutions were often guided or influenced by a thoroughgoing Marxist analysis of capitalism. Over the past 160 years Marxism has developed and tested a strategy for achieving social change. Marx’s understanding of class struggle, Rosa Luxemburg’s conception of the general strike, Trotsky’s theory of the permanent revolution, and Lenin’s contributions on the role of the revolutionary party are just some of the component parts of a scientific theory that concretely suggests what should be done to advance the interests of working people. This is something that conspiracy theories completely lack. Conspiracy theories can sometimes seem quite radical, because they are hostile to bankers or other exploiters, and decry the status quo generally. However conspiracy theories obscure a realistic understanding of important processes and events. Because of this they offer no real solutions. They can often have the effect of serving the system by deflecting blame and attention from where it belongs. Instead of exposing imagined conspiracies, what is needed is a rigorous scientific approach, one which is capable of laying bare the class nature of the processes that shape capitalist society. This understanding can then inform how and why we struggle against the ruling class and assist in mobilising people to fundamentally change the world for the better.” With extracts from http://www.socialistpartyaustralia.org/archives/4047

Minimalist and Maximust programme

The difference between a minimalist and a maximualist program has separated Marxist parties for as long as it has existed. The difference between fighting for reforms under capitalism and offering your full programme for full power of a communist or socialist type are hugely different. Leon Trotsky outlined in his transitional programme the death agony of capitalism which I’m still studying to bring out conclusions and to reach an understanding as the current one I understand is the one lead by the vanguard party leading by the nose the workers to the final conclusion that society needs to be changed and that can only be carried out with mass independent socialite consciousness and the working class gaining power. I’ve been trying to get my head around this Trotskyist idea and I may be getting there but I still don’t quite understand how the fighting for better wages and better conditions under a trade union struggle eventually leads you to realising the need to over throw the current system. As I can see those who are the most militant in the trade unions fight very hard for their members and for themselves but ultimately does this lead to socialist or Marxist ideas? I don’t think so personally. As Lenin correctly stated trade union contiousness ness can only lead you so far. A revolutionary party a Marxist party is still needed to give workers those revolutionary ideas to change society which trade unions will never give. As Trotsky correctly writes in his chapter on The Minimum Program and the Transitional Program The world political situation as a whole is chiefly characterized by a historical crisis of the leadership of the proletariat. The economic prerequisite for the proletarian revolution has already in general achieved the highest point of fruition that can be reached under capitalism. Mankind’s productive forces stagnate. Already new inventions and improvements fail to raise the level of material wealth. Conjunctural crises under the conditions of the social crisis of the whole capitalist system inflict ever heavier deprivations and sufferings upon the masses. Growing unemployment, in its turn, deepens the financial crisis of the state and undermines the unstable monetary systems. Democratic regimes, as well as fascist, stagger on from one bankruptcy to another. The bourgeoisie itself sees no way out. In countries where it has already been forced to stake its last upon the card of fascism, it now toboggans with closed eyes toward an economic and military catastrophe. In the historically privileged countries, i.e., in those where the bourgeoisie can still for a certain period permit itself the luxury of democracy at the expense of national accumulations (Great Britain, France, United States, etc.), all of capital’s traditional parties are in a state of perplexity bordering on a paralysis of will. The “New Deal,” despite its first period of pretentious resoluteness, represents but a special form of political perplexity, possible only in a country where the bourgeoisie succeeded in accumulating incalculable wealth. The present crisis, far from having run its full course, has already succeeded in showing that “New Deal” politics, like Popular Front politics in France, opens no new exit from the economic blind alley. International relations present no better picture. Under the increasing tension of capitalist disintegration, imperialist antagonisms reach an impasse at the height of which separate clashes and bloody local disturbances (Ethiopia, Spain, the Far East, and Central Europe) must inevitably coalesce into a conflagration of world dimensions. The bourgeoisie, of course, is aware of the mortal danger to its domination represented by a new war. But that class is now immeasurably less capable of averting war than on the eve of 1914. All talk to the effect that historical conditions have not yet “ripened” for socialism is the product of ignorance or conscious deception. The objective prerequisites for the proletarian revolution have not only “ripened”; they have begun to get somewhat rotten. Without a socialist revolution, in the next historical period at that, a catastrophe threatens the whole culture of mankind. The turn is now to the proletariat, i.e., chiefly to its revolutionary vanguard. The historical crisis of mankind is reduced to the crisis of the revolutionary leadership. Of course Trotsky writes this on the verge of a world war and is right to write this but today in 2013 ? Are we on the verge of capitalist decay ? In some regards yes but in others no. In the East for example China has a opportunity to save capitalism if it wish’s it may not do and plunge the system into a huge long decline but the opportunities to save the system are there for sure. Reform or revolution the famous piece by Rosa Luxemburg is key to our understanding the ability for capitalism to survive is under estimated in my view. It cannot go on forever but it to out live its life and its ability to evolve cannot be under estimated eater. Mainly due to the lack of leadership in the working class but also the unprepared nature of the revolutionary Marxist movement. We cannot catch up history is already here. We must hastily learn from history in order not to make the same mistakes again.

Join the Worldwide Movement for Socialism!

By SocialistAlternative.org Capitalism is an international system in decay. Multinational corporations want to produce their products at the lowest possible costs. This overarching desire for short-term profit leads to low wages and crumbling benefits. On a world scale, the actions of the reckless massive energy companies and the waste of an ever-expanding global market have led to an environmental crisis of momentous proportions, resulting in the highest temperatures ever recorded, the melting of polar ice caps, and an increased intensity of storms. These global problems must be met with international solutions and a worldwide movement. Socialist Alternative stands in political solidarity with the Committee for a Workers’ International (CWI) – an organization in over 40 countries fighting for fundamental change – in arguing for a socialist transformation of society. The crisis of capitalism is reaching a dramatic phase, with more and more people looking for solutions to poverty, racism, sexism, declining benefits, environmental destruction, and mass unemployment. The root of these problems is a system that thrives on low wages, slashed social programs, and divide-and-rule tactics to attack oppressed people. The capitalist system provides no way out of this devastation. The super-rich put the pain caused by this crisis onto the backs of workers and youth by laying people off and cutting education, health care, and pay while at the same time bailing out the banks. Still, the crisis continues and deepens as the super-rich globally sit on trillions of dollars that they refuse to invest, while hundreds of millions of people lack jobs and the basic necessities of life to survive. The CWI and Socialist Alternative propose democratic socialism as a means to alleviate this madness. Socialism isn't about dictatorships, one-party states, or a loss of basic rights. Democratic socialism is about using the resources of society for the good of the vast majority rather than just for the profits of a few. Through democratic control of the resources of the top corporations, we could decide to invest in clean energy rather than environmental devastation. We could put all the unemployed to work and use new technology to reduce the working week without loss of pay rather than as a further weapon in the hands of the bosses to speed up the workforce and boost profits. We could decide to use our human potential for education, health care, and housing rather than war, discrimination, and waste. We support and demand improvements in the lives of ordinary people immediately, but we also realize that it will take mass movements to win reforms. Socialists participate in movements to inspire others that an alternative world can be built and that by mobilizing the tens of millions who have an interest in fighting for a new and better society we can build more powerful and dynamic movements. We need democratic structures in our movements and we need bold socialist demands so we can speak to all those pushed down by the capitalist system. In every movement, we need to realize that the capitalists will take away any positive gains we can win as long as we leave their power and control intact. Likewise, the rich and powerful would aim to isolate any people or country that moves in a socialist direction. The capitalists have a global market, and they don’t want anyone setting a “bad example” by using the resources of their country for the benefit of the 99% rather the rich elite. This is one reason why the CWI organizes internationally, to provide solidarity and support for movements worldwide and also to learn lessons from the struggles in Greece, South Africa, England, Brazil, and elsewhere. Internationally and in the U.S., working-class power can be built out of movements to defend our rights and fight for a better world. Democratic, fighting unions, new political movements of the 99%, and our protests in the streets can be the building blocks of a struggle for a socialist society. This means movements need to be linked up with a clear program of demands, and activists must learn from historic and international struggles. Through movements and political education, we can raise consciousness. The CEOs and big shareholders want us to think that they create the jobs and that we can’t survive without them. In truth, working people produce everything, provide all the services, and distribute everything. All the super-rich do is control the profits and work on ways to further exploit and divide us. In short, bosses need workers and we don’t need bosses. Taking the economy into the hands of working people can be the basis for providing full employment, countering environmental destruction, and starting the process of ending discrimination. Socialists have as our aim an end to the dictatorship of big business and the beginnings of a society based on real democracy and an end to oppression. Join Socialist Alternative and help build the growing movement against capitalist misery worldwide.

Austerity is working, for the 1%

We talk so often as socialists and the left that austerity has failed and is not working. But when we look at it from the capitalists point of view which we fall foul of not doing nearly enough in my view we’d understand things a lot better if we did see things from their point of view sometimes austerity is working very well indeed. Essentially we are seeing policy after policy being pushed that the right has always supported but has not been able to get away with them up till now such as large scale privatisation and eye watering cuts to welfare and social spending. But now in an economic crisis and telling us thing like we’re all in this together and this is for the national interest they have largely succeeded in dividing people to ram their austerity home. Those who think we have to take the medicine for a bi and we’ll then be ok are starting to look a bit worried this I’m afraid is the new norm for capitalism. Austerity is simply the latest phase of capitalism we are going through and it is working very well for the 1%. The welfare state is under attack, workers’ rights are being eroded and poverty and inequality are on the rise. This is not a new crisis. The austerity measures now being imposed in the UK and Europe have been replicated around the world for decades. Time and again, debt crises created by casino banks have been paid for through austerity measures which have fallen on the poorest in society. The global history of austerity shows us how it has been used to create an economy that is built for the benefit of the 1%. Wherever austerity has been tried people have responded with inspiring resistance and new ways to create a fairer, more equal and more democratic economy. So far this has not succeeded but for the 1% the ruling class austerity has seen a huge transfer of wealth from the poorest in society to the richest in society. The rich as they say have never had it so good. It really is high time for them. The rich see opportunities in every crisis every crisis is a possibility to make a killing and boy many have. What are the policies of austerity? They involve the cutting of public investment and services such as education, health care, and retirement insurance. In addition they also include the privatizing of existing government assets. Public employees suffer wage freezes or cuts and mass layoffs as part of austerity measures. Labour laws are revised to empower employers at the expense of employees’ job security, wages, benefits, and voice on the job. And austerity also involves increased taxes and fees on working class people. Austerity is sold as the only available means of reducing the debt. However, there is plenty of money to take care of these financial imbalances. It is in the pockets of the wealthy and big business elites whose think tanks and politicians are, not coincidentally, the architects of austerity. They want nations’ economies to be run more like the corporations and banks, prioritizing that their shareholders get paid first and foremost at the expense of everyone else. In Europe the level of debt is 87 percent of its collective GDP, necessitating a severe approach, according to their outlook. However, in the U.S., which is in the beginning stages of an austerity campaign, the level of debt is over 100 percent of GDP. Considering this level of debt and the size of the U.S. economy, the largest dose of austerity measures are yet to come, and it will be working people who will be expected to swallow them. The truth is that the world economy is not in crisis because of debt. It is because too many have too little to buy what has been created. Without a stronger consumer base the capitalists have no reason to invest in making more commodities and creating more jobs. How are they going to realize a profit if few can afford to buy what is produced? Before the Great Recession the big business elites of the world had gotten around this problem by indulging in an orgy of financial speculation, especially in the U.S. This extra cash, created out of nothing, enabled them to continue handing out dicey loans while repackaging and selling these toxic assets as good investments. As long as the cash spigot was flowing today, why worry about tomorrow, was the line of reasoning for the 1%. This created massive financial bubbles in, for instance, housing in the U.S. and several European nations. The ultimate effect of all this financial gambling was to inflate the fundamental problem with the economy, which was the crisis of overproduction. When it was no longer possible to get beyond this limit, the resulting crisis was so deep and wide that even today, four years later, there is no real end in sight. This has been greatly exacerbated by massive bailouts to the banks both in the U.S. and Europe as well as costly wars in Iraq and Afghanistan conducted by the U.S. and its allies Big business is hoarding trillions of dollars rather than investing these funds in job creating production and services. In the U.S. alone it is estimated that these funds are up to $2 trillion. (1) Without a thriving consumer base, the big business owners have no motivation to invest in goods and services. Without this investment, there will be no thriving consumer base. The economic elite sees no way out of this Catch 22, so they are looking for other ways to enrich themselves. One way they are doing this is by treating the world economy as an enormous casino. For instance, it has been estimated that the total amount of derivatives being played in the market comes to $1.2 quadrillion — 20 times the amount of money currently in the global economy. (2) While the results of such reckless investment produce impressive portfolios for a few today, everyone else is exposed to potentially disastrous risks in the future. The 1% does need to obtain real money from somewhere, however. Productive investment is out of the question for the reasons discussed above. Austerity is a weapon they can use to muscle their way towards grabbing the vast pools of social capital in government programs meant to benefit working people. Rather than acting as organizers of production, the corporation and bank owners are using austerity to act as parasites, draining the economy as a whole. Austerity also serves the business elite’s interests at the expense of everyone else in another way. Without a strong safety net, workers are left in an even more desperate competition with one another to find work. This enables those on top of the economy to depress wages, benefits, and rights since they have a larger reserve of workers to pick from who are willing to take anything. Finally, austerity is a weapon to weaken the Labour Movement, the first line of defence for working people against corporate greed. For instance, in the U.S., it is not a coincidence that austerity measures are aimed first and foremost at public employees and teachers. These are the nation’s two most heavily unionized sectors. If their unions can be broken into accepting austerity, sweeping aside the rest of Labour in the pursuit of greed will be an easier task for the 1%. In short, austerity is a program of class war. Austerity never was about bringing debt or deficits down if anything they have gone upwards not down. Its time to expose the real ideas behind austerity and that is a huge transfer of wealth from the poor to the rich. Knowing the facts is just one part fighting back to change this is another. Allowing people to know the truth is the first stage exposing the lies of the ruling class’s across the world knowing that taking a wage cut or redundancy isn’t helping you, other workers or the country only a minority of very rich individuals at the top this must be challenged and exposed for what it is. The rule of capitalism

Will Africa be the saviour of global capitalism ?

With the global economy bubbling frantically to solve its own crisis we new eruptions of class struggle occurring around the world further dips in the world economy have left many capitalist leaders wondering where they can turn next. For some time now many have discussed Africa as the greatest untapped mass of resources and are a capitalist heaven whoever gets their hands on it. "It is my firm belief that Africa represents the next global economic frontier, and I am not alone in that assessment." So said Johnnie Carson, assistant secretary of state for African Affairs, to the US House foreign sub-committee on African Affairs on 17 April 2012. Carson is not alone in expressing growing optimism about Africa. As he also noted, the World Bank's projection of economic growth rates for Africa during the next two years is between 5% and 6%. This exceeds the figures expected for Latin America, Central Asia or Europe. The IMF's forecast for five years, beginning in 2011, has seven African countries - Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia and Nigeria - among the world's ten fastest growing economies. An analysis by the Economist last year reveals that six sub-Saharan African countries - Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda - were among the world's ten fastest growing economies over the ten years to 2010. Indeed, Africa has begun to draw positive remarks from capitalist commentators especially since the dawn of the global economic crisis. The worst capitalist crisis since the 1930s Great Depression, triggered in the United States and Europe, has apparently forced capitalist strategists to search elsewhere for a success story, and they have invented one in Africa. Africa has always been the basket case of the world global economy with mass poverty and with many people starving and living on less than 2 dollars a day. Yet this vast continent is seen as the next place to exploit not only its land but its people too. Leading capitalist media have suspended their characteristic bad press about the continent and now trumpet what are seen as 'positives'. A striking example of this can be found in the Economist where Africa metamorphosed from being the "Hopeless Continent", as in a May 2000 edition, to the "Hopeful Continent", which was the cover story in a December 2011 edition. However, most of these countries' high growth rate figures reflected a pick-up in raw material exports and price increases tied to the growth in global demand, especially from China. For instance, the price of crude oil rose from less than $20 a barrel in 1999 to $147 in 2008. Generally these statistics do not reflect any generalized growth in the economy or in living standards. Besides, any sustained slowdown in the West and China will see a sharp decline in the demand for Africa's exports. We are already seeing a decline in China’s growth and whether or not China will have a soft landing or a heavy landing remains to be seen. This will have catastrophic results in Africa as Chinese imperialism is pumping billions of dollars into Africa improving infrastructure but all with the aim to extract the natural resources Africa holds. It’s not all plain sailing though there is still mass poverty in Africa and capitalism and its leaders have no interest in helping this situation at all. To most working people, who have only seen their living conditions getting worse year in year out, the impressive figures of economic growth being thrown around seem magical. In fact, the huge increases in food and fuel prices mean a continued assault on living standards. Africa today reveals a continent blighted with mass poverty and restricted access to the basic needs of life. For example, in Ethiopia, a country on the 'golden list', 90% of the population was classified as "multidimensional poor" by a United Nations Development Programmed (UNDP) report in 2010. The situation in Nigeria, Africa's biggest oil producer is also aptly described by the UNDP. Its representative in the country, Daouda Toured, correctly noted that "for almost a decade now, Nigeria has been recording consistently a high economic growth rate that has not produced commensurate employment opportunities and reduction in poverty among its citizens." He continued: "Available statistics suggest that the incidence of poverty in Nigeria had indeed worsened between 2004 and 2010" (The Nation, Lagos, 29 August 2012). South Africa, the continent's biggest economy, is the second most unequal country in the world. This is despite "black economic empowerment" driven by the ANC government in post-apartheid South Africa. In Angola, two-thirds of the population lives on less than €1 ($1.25) a day and only 25% of children are enrolled in primary schools (Guardian, London, 18 November 2011). This is the country which was the world's fastest growing economy, beating China into second position, in the decade to 2010. Presently, it acts as a safe haven for Portuguese capitalism, a poster boy of the eurozone crisis. In a classic case of reverse economic migration between Europe and Africa, Angola has not only attracted about 150,000 Portuguese escaping joblessness but has also heavily invested its petrol dollars in Portugal. All this is symptomatic of the situation in Africa where economic growth is reflected in the opulence of the thieving capitalist elite and not in infrastructural development or the living standards of ordinary people. But the capitalist strategists are not concerned about the fate of working people. In so far as there are natural resources to be exploited for super-profit, Africa is a bed of roses. This drive to super-exploit Africa explains why the continent, which is rich in natural resources and fertile lands for agriculture, is dominated by multinationals and run on the basis of capitalist neoliberal policies to benefit the imperialist west. The lack of, or primitive state of, necessary infrastructure has meant that Africa is still largely dependent on exports of primary commodities and only accounts for an abysmal 2% of world output. The so-called 'investors' are mainly interested in commodity and extractive industries which, although driving growth, create few jobs. This failure to develop manufacturing explains why Africa, a classic example of jobless growth, cannot emulate the role of China as an engine of global capitalism despite its huge population and growing urbanisation. On the contrary, capitalism will continue to leave the continent prostrate. With extracts taken from http://www.socialistparty.org.uk/articles/15569?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+org%2FRpdZ+%28The+Socialist%29

Desperate times call for desperate measures by capitalists

When there is panic all around you you have no idea what to do what do you do? This is the question facing leading capitalist leaders in Europe today. 5 years into one of if not the biggest economic crisis in history there is still no solution on a capitalist basis to the economic crisis engulfing Europe and many other parts of the world. Europe is affected far more badly than other areas due to the way it was set up with many less wealthy nations trying to compete on the same level economically as the powerhouses of Germany, Holland and Belgium some of the more northern European nations. But it is becoming increasingly clear to even the capitalists now that Spain will need a full scale bail out very soon and short term ideas at stemming the contagion will just not do. As capitalists think they think short term and long term profit as the Euro crisis burns on engulfing further countries in southern Europe the European Central Bank is coming under increasing pressure to start buying up bad sovereign debt of nations like Spain and to start selling off Euro bonds which are seen as safer investments at this time. These ideas of the ECB stepping in have been held off and held off until now as a fear of using these schemes will create further upheaval in Brussels where German capitalism are reluctant to continue to bail out countries as it is having a affect back home with rising anger as its seen as Germany propping up a very sick Euro. So when times get tough and they re set to this autumn with a warm summer in Spain and Greece turning into a red hot autumn with further strikes, occupations, rising unemployment and further attempts to force through austerity against the working and middle class’s in these nations. Of course I haven’t mentioned Italy and not many have in recent weeks Italy is sure to come back on the menu for needing a full scale bailout at some point. But bail out after bail out will only temper the crisis and provide respite for a time this will not ultimately deal with the real fundamental issues undermining the economies deep down. The ECB will see itself having to play a more hands on roll in the coming months and years as it looks to grapple with the economic crisis does it have the power to prevent a full scale break up of the Euro. I’m not sure it does but when things get desperate desperate measures are often used. We may well see various tactics of short term growth being tried to jump started flagging economies. But and crucially this will have little to no affect as this crisis is not just limited to Europe as I said it’s global. Where will you as a country start trading more with China and the US plummeting southwards too. There really will be no where to turn. As the working class is pummelled into the ground by austerity it is essential in the battle of ideas that Marxist ideas are popularised in the working class and middle class only socialist ideas and the over throw of capitalism can do now for workers. Its going to get to situations where workers may be able to win huge concessions out of the ruling class if the situation gets to the point where the ruling class is faced with reform or revolution capitalists will get desperate when their system is at stake the fact that many of them do not even understand their own system works against them. But as Marx says there is no final crisis of capitalism it must be over thrown you cannot reform it out of existence it will always find a way out of a crisis and that I’m afraid may mean the ruin of the working class. Let’s not see that happen the working class over the globe will have op opportunities to com to power in the coming period. We as Marxists must arm the workers with the ideas of genuine socialism to transform society to meet the needs of the many not just the few.

5 years into the crisis any signs of improvement ?

Some date the crisis to August 9 2007, the day it became clear that Europe’s banks were up to their necks in US housing debt. The ECB flooded markets with €95bn of liquidity. It seemed a lot of money then. We have since seen a lot lot more money pumped into the banking system to plug the huge gaps that will not go away. 5 years into one of the biggest capitalist crisis’s ever possibly eclipsing the great depression in the 30’s industrial output has still not picked up. There is no country in the world that this crisis has not affected in some shape or form, Be they strikes, demonstrations, cuts, austerity tax hikes everywhere is being affected to some extent. China is sufficiently alarmed by the flint hardness of its "soft-landing" to talk up trillions of fresh stimulus. The European Central Bank is preparing to print “whatever it takes” to save Spain and Italy. Markets are pricing in an 80pc chance of yet more printing by the US Federal Reserve in September or soon after. The world remains in barely contained slump. Industrial output is still below earlier peaks in Germany (-2), US (-3), Canada (-8) France (-9), Sweden (-10), Britain (-11), Belgium (-12), Japan (-15), Hungary (-15) Italy (-17), Spain (-22), Greece (-27), according to St Louis Fed data. By that gauge this is proving more intractable than the Great Depression. Investors were pulling money out of America’s $2.5 trillion money market industry in panic. This was the long-feared heart attack in the credit system, even if the economic malaise behind it did not become clear for another year. The original trigger for the Great Recession has since faded into insignificance. America’s house price bubble -- modest by European or Chinese standards -- has by now entirely deflated. Warren Buffett is betting on a rebound. Fannie and Freddie are making money again. Five years on it is clear that subprime was merely the first bubble to pop, a symptom not a cause. Europe had its own parallel follies. Britons were extracting almost 5pc of GDP each year in home equity by the end. Spain built 800,00 homes in 2007 for a market of 250,000. Iceland ran amok, so did Latvia and Hungary. The credit debacle was global. If there was an epicenter, it was Europe’s €35 trillion banking nexus. Stephen Cecchetti at the Bank for International Settlements concludes that debt turns “bad” at roughly 85pc of GDP for public debt, 85pc for household debt, and 90pc corporate debt. If all three break the limit together, the system loses its shock absorbers. “Debt is a two-edged sword. Used wisely and in moderation, it clearly improves welfare. Used imprudently and in excess, the result can be disaster,” he said. Right now it’s the working class that is being saddled with this mountain of debt and being forced to pay through what seems like endless austerity. This what we are living through now austerity is the norm now before the crisis it was a debt field credit boom which was unsustainable and many knew this but were unprepared to speak out. Marxists knew this as we understand the fundamental workings of capitalism. Karl Marx uncovered this in the 1800’s. Many modern economists turned to Marx when the financial crash happened saying ah ha Marx was right. They are no longer saying that as his analysis of capitalism was far greater than they can imagine and get their pro capitalist heads around. Their system is bankrupt and has no life left in it. It will continue but at the expense of the 99% the workers. It will drag itself with its claws to life again sucking the life out of workers for life. We must not let it bring itself back to life. As Marx correctly pointed out there is no “final crisis” in capitalism it will not collapse on its own it‘ll find a way to recover most likely at the expense of us, ordinary working people. It must be over thrown and only the working class has the power to do this. I read in the Telegraph today that even one of their writers is suggesting debt needs to be written off. We can fully support that that is one of the things we’re calling for. Make the rich pay, cancel the debt, Nationalise the banks and the commanding heights of the economy, and put controls on capital flows in and out of the nation as first steps towards changing society towards a socialist world... With extracts and references from http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9471018/Five-years-on-the-Great-Recession-is-turning-into-a-life-sentence.html

Bob diamond gone but this is about more than one bad apple

As Bob Diamonds resignation news still filters through and the cheering from liberal quarters continues I am acutely aware that this is just one man, yes one man who was powerful don’t get me wrong and a very wealthy one at that but he was by no means the sole problem from our banking crisis or the global financial crisis in capitalism. Bob Diamond was just one apple in a rotten apple cart the whole system is corrupt and systemically bankrupt.

It’s the system of capitalism today which should be under the spot light not Bob Diamond. By focusing on one individual we miss the picture.

As Marxists we don’t just look at one still photo we look at the motion picture of the coming in to being and fading away and the causes behind these changes.

The pressure from other shareholders on Bob Diamond was very telling this had a quantitative change when their share price plummeted on Monday something had to happen to stem this decline. Bob our good friend was the one to be sacrificed. But those liberal types and some very naive characters in our movement think this is it a reason to celebrate. I don’t. I think Bob is the symptom not the cause. Bankers are just one part of this crisis no doubt it was their wreck less gambling which got us into this position but it wouldn’t have been possible without deregulation of the banking sector over decades by Tory and labour governments alike.

An enquire which many bourgeois commentators are calling for even Ed Milibland is calling for one jumping on the popularise opportunist band wagon only a guy like Ed can even Ed can’t miss this open goal to score political points. But his so called enquire would not look too favourably on his labour party either they were in power for many of these deals and over saw the biggest economic crash since the late 20’s.

What we need is a large scale nationalisation of all of the banks. Bringing into full proper public ownership under workers democratic control. With measures to see about compensating those who the banks have faded and paying compensation to investors on basis of need. Which at present looks like very few. Some very rich individuals have made a quick buck out of the financial sector in this country and around the world. It’s time that wealth was in the hands of the many not just the few.

Capitalism is rotten here Bob Diamond too but do not let one man deter us from tackling the bigger beast and removing this corrupt system from our lives and freeing millions of people from the grip of the millionaires.

Euro crisis deepens but which way out for workers and youth ?

By Tony Saunois (CWI) with Andros Payiatos, Xekinima (CWI Greece)

Syriza leader Alexis Tripras: it’s “a war between peoples and capitalism”
The Greek elections called on May 6 resulted in a political earthquake. Powerful after-shocks are still hitting the global economy, the EU, and Greece itself. These are now set to be the precursor to even stronger political and social upheavals in Greece and throughout the EU.

The workers’ organisations and youth in Britain and throughout the EU need to extend their solidarity to the Greek workers. The workers’ movement throughout the EU needs to oppose the demands that the “Troika” and others are making for the Greek workers to accept more austerity. Such solidarity is a part of the struggle of workers in all countries against the attacks made on them by their own ruling class and governments.

The elections shattered the old established political allegiances but left no coalition of parties from either the left or the right able to form a parliamentary majority. The government has been left paralysed, and new elections have been called for June 17.

This paralysis in parliament is a reflection of a Greek society convulsed in turmoil. There are powerful features of both revolution and counter-revolution. As the Financial Times has warned: “Looting and rioting could occur. A coup or civil war would be conceivable” (18/5/12).

Syriza (Coalition of the Radical Left), whose share of the vote leapt from 4.6 percent to 16.78 percent, emerged as the second most successful group in the elections. This tremendously positive development, which has given hope to many workers and socialists internationally that something similar could take place in their own countries, has terrified the ruling class in Greece along with Merkel, Cameron, Rajoy and the other political leaders of capitalism. It has thrown down a potential challenge to the “Troika” and the austerity programme dictated by it.

The crucial question now is: can this left advance be pushed further and channelled into a bigger victory in the second election? Will the Greek working class and its organisations embrace a rounded out revolutionary socialist programme? Without this it will not be possible to resolve the crisis in Greece or begin to solve the devastating social consequences of the austerity packages thus far introduced.

As the elections on May 6 also demonstrated, if the left fails to meet this political challenge with the correct programme, slogans, intensity of struggle, and methods of organisation, then the extreme far right will certainly be willing to step into the void. The growth of the fascist Golden Dawn, which emerged from the election with 6.97 percent of the vote and 21 MPs, is a serious warning to the Greek and European working class. It illustrates the threat which will emerge as the crisis deepens in the next weeks and months if the left fails to offer a real alternative to capitalism.

The collapse of the established political parties, especially New Democracy (ND) and PASOK, was the clearest manifestation of the overwhelming rejection of those parties which have enacted the austerity programmes, slavishly following the demands of the “Troika”. Under both New Democracy and PASOK governments, and the outgoing coalition led by them, Greece has been under effective occupation from international bankers, the ECB, IMF, and EU. The European capitalist classes have adopted a modern version of colonial rule, appointing EU commissioners as overseers in each government Ministry.

The stooge parties of the EU have been vomited out by the Greek people. In the last three decades ND and PASOK garnished between 75 percent and 85 percent of the votes in each election. The combined vote of both these parties this time was a mere 32.02 percent - 18.85 percent for ND and 13.18 percent for PASOK.

Brutal attack on living standards
The Greek working and middle classes have suffered a brutal attack on living standards and working conditions for years. As a result of the economic crisis and austerity packages, Greece’s GDP (total output) will have fallen 20 percent from its 2008 level by the end of 2012. This is one of the largest ever falls in GDP suffered by any capitalist country since the depression of the 1930s.

These are not cold statistics. The lives of millions of working- and middle-class people have been shattered. The social consequences have been devastating. Public sector workers have seen wages slashed by 40 percent. A cup of coffee costs the same in London or Athens. Yet in Greece many workers are paid only €400 per month – a pittance. These are literally starvation wages for many. The church estimates it now feeds 250,000 people at soup kitchens every day. Healthcare patients are now expected to pay in advance for treatment, and the number of hospital beds is being slashed by 50 percent. One hospital refused to release a newborn infant until the mother paid the bill. Thousands of schools have been closed down. Many tens of thousands have fled the cities and gone back to the countryside where they can live with families and at least get access to food.

The middle class is being destroyed, with many becoming homeless, left to queue alongside the most downtrodden immigrant workers at food and homeless refuge camps. These camps appear like a southern European version of the “favela” shanty towns of Brazil. Unemployment has soared to over 21 percent – and an astonishing 51 percent amongst the youth.

The right wing and the fascist Golden Dawn have tried to whip up nationalism and racism by targeting illegal immigrants, whose numbers are estimated in hundreds of thousands. This is a major challenge for the workers and left organisations. Emergency measures to house and feed these people through the introduction of a special public works programme should be demanded by the left. A programme not at the expense of the Greek workers, but funded by the EU.

Workers fight back


The Greek working class has tenaciously fought against these attacks and each government which has enacted them. PASOK replaced New Democracy in the autumn of 2009, only to cave to the diktats of the “Troika” by applying the most vicious attacks against the Greek workers since the end of the civil war in 1949, ignoring its own promises to the contrary. PASOK’s support then collapsed as workers rejected its policies. The trade union leaders have been compelled since the beginning of 2010 to call sixteen general strikes – three of them for forty-eight hours – by the pressure of the workers. Still, the attacks have continued to rain down on the Greek population. The failure of the trade union leaders to take the struggle forward led to exhaustion among workers as one general strike followed another, appearing to lead nowhere. Now in the elections they have vented their rage against the pro-austerity parties.

Tens of thousands, out of desperation, have emigrated. Many more are on the waiting lists. Some have sought a way out by moving to Australia, Britain, and Canada. It has been estimated by the Greek press that in Australia alone there are currently 30,000 illegal Greek immigrants. Some, incredibly, have even gone to Nigeria and Kazakhstan, so desperate has life become in Greece.

Others, driven by desperation and the humiliation of the plight they find themselves in, have taken a more tragic exit. The international press featured the suicide of 77-year-old retired pharmacist, Dimitris Christoulas, who shot himself in front of Greek parliament because of debt. The trigger was effectively pulled by the “Troika” and its policies.

Having increased 22 percent, the suicide rate in Greece is now the highest in Europe. One radical journalist who recently returned from Greece witnessed a Mercedes car driven into the sea by a small businessman who killed himself. Under Greek law debts cannot be passed onto the family.

These are conditions reminiscent of those described in John Steinbeck’s epic novel about the U.S. depression – The Grapes of Wrath.

There is bitterness, hatred, and anger directed toward the Greek rich elite and their politicians who cannot safely walk the streets or enter public restaurants. The rich are transferring their money to Switzerland and other European countries while the mass of the population is left to suffer the consequences of the crisis.

In the May 6 elections, the Greek people punished all those politicians and parties which had implemented the austerity policies.

Syriza oppose coalition with PASOK and ND
The leadership of Syriza, particularly its top figure, Alexis Tsipras, correctly took a bold stand by refusing to join a coalition with either PASOK or ND given their support for the terms of the bail out and their continuing acceptance of austerity. He offered to instead form a left block with the Greek Communist Party, KKE, and tried to include the split from Syriza – Democratic Left – in order to fight for a left government.

Although limited, he proposed such a left front be based on a programme of freezing any further austerity measures; cancelling the law which abolishes collective bargaining and slashes the minimum wage to 490 euros per month; and launching a public investigation of the Greek debt, during which period there would be a moratorium on debt repayments. This programme, although inadequate to deal with the depth of the crisis in Greece, would have served as a starting point for developing the struggle against austerity and as a basis for a programme necessary to break with capitalism.

Scandalously, the leadership of the KKE refused to even meet with Tsipras, which was a continuation of its previous sectarian approach towards Syriza, the rest of the left, and the trade union movement. Syriza had correctly proposed a left front together with the KKE and ANTARSYA – the anti-capitalist left alliance in the elections. This was refused. The idea of a left front of Syriza and the KKE was something initially campaigned for by the Greek CWI section, Xekinima, in the period 2008-2010. Though viciously attacked initially, this idea gradually developed support and was eventually taken up by Tsipras and the Syriza leadership.

Had such a joint election list been formed it would have emerged as the largest force and got the 50-seat bonus in parliament which the Greek election system gives to the largest party. Even if this was not enough to form a parliamentary majority, it would have put the combined left forces in a commanding position to enter second elections and to offer the realistic prospect of a left government.

While the KKE refused to even consider joining a coalition left government, historically they were prepared to join a capitalist coalition. The KKE entered a coalition with ND in 1989. The KKE General Secretary, Aleka Papriga, has argued that they have learnt from this experience and use this to justify not joining forces with Syriza. However, a united left front, on the basis of fighting against austerity, is entirely different from joining a pro-capitalist government with ND.

A working-class left front led by workers’ parties could have served to unite in action the fragmented left forces in Greece. It could have led to the building of a powerful, organised movement outside parliament as a basis to challenge capitalism. Unfortunately, other left forces like ANTARSYA (Anti-capitalist Left Coalition) also adopted a similar attitude during the first election. However, they now face huge pressure from below, and there are sections of their ranks demanding a united front of some kind with Syriza in the June 17 elections. The issue is still being debated in their ranks, with the majority in the leadership wanting to stand against Syriza. If this line is the one adopted in the end by ANTARSYA, they will pay a heavy price with a serious fall in their support (ANTARSYA won 2 percent in the local elections of 2010 which fell to 1.2 percent in the May 6 election).

The sectarianism of the KKE leadership has provoked opposition within their own ranks as well. Some party members said in the election they would vote for the KKE but urged others to vote for Syriza. A continuation of this policy is certain to provoke further opposition in the ranks of the KKE and the possibility of a split within it.

The KKE has paid a price for this sectarian policy. Its vote only increased by 19,000 – 1 percentage point – to 8.48 percent in the May election. A recent poll for the election in June gave it 4.4 percent.

Despite the inadequacy of Syriza’s programme, its clear stand against austerity and refusal to enter coalition with any pro-austerity parties means it is strengthening its position. It is likely to emerge even stronger in the June elections. Recent opinion polls have put it on between 20 and 26 percent, which would mean it could be the largest party.

Tsipras has threatened not to pay the whole of the national debt, cut defence spending, and crack down on waste, corruption, and tax evasion by the rich. He has also supported public control of the banking system, at times implying nationalisation. He has also spoken favourably of Roosevelt’s “New Deal”. It is a radical reform programme but does not break with capitalism. However, it is a starting point for an emergency public works programme linked to the need for the nationalisation of the banks and key sectors of the economy and the introduction of a democratic socialist plan.

The rapid electoral growth of Syriza has important lessons for other left forces in other countries including TUSC in Britain. Such organisations can experience a rapid electoral growth from a low base when objective conditions are ripe for this. They need to establish a firm and clear profile to fight for workers’ interests to capitalise on the situation when other political parties have been tried and rejected. The electoral success achieved by the ULA in Ireland, especially the Socialist Party, illustrates this.

Syriza’s refusal to join a pro-cuts coalition with PASOK and ND, even on the basis of their promise to renegotiate the Memorandum with the “Troika”, is in marked contrast to other left forces and parties at this stage. In Italy, the PRC entered such coalitions at the local level and consequently destroyed its support. The IU in Spain, whose support grew in the recent election, has also now wrongly joined a coalition with PSOE in Andalucia. A continuation of this policy could erode the growth and development of the IU.

The pro-cuts parties, led by ND and PASOK, along with the “Troika”, are desperately trying to turn the second election into a referendum on membership in the euro zone and the EU rather than on their austerity policies. They, along with the EU establishment, are launching a clear campaign arguing that to oppose the austerity package will mean Greece being ejected from the euro and probably the EU.

The EU and the euro
This is a central issue in the Greek crisis and it is crucial for the left to have a clear policy and programme to face up to this question.

Unfortunately, despite taking a bold stand against austerity and against coalition with ND and PASOK, Tsipras and the Syriza leadership are not arguing for a clear alternative. In part, this reflects the pressure of a majority of Greeks – 79 percent according to one recent poll – who, while rejecting austerity, want to remain in the euro.

This reflects an understandable fear of what would follow Greece being ejected from the euro, including the potential isolation of Greece’s relatively small economy. The Greek masses are terrified of Greece being thrown back to the social conditions of the 1950s and ‘60s or the high inflation of the 1970s and 1980s. Syriza and the left need to answer these fears and explain what the alternative is.

It is also clear that Tsipras is gambling that the EU would not throw Greece out of the euro zone because of the consequences it would have for the rest of the EU. Yet this is not at all certain.

The KKE, on the other hand, opposes the euro and the EU and attacks Syriza for its attitude toward the EU and the euro. Politically, this is one of the justifications they use for not joining a left front with Syriza. While the KKE formally speaks in very radical rhetoric about a “people’s revolt” or an “uprising”, they adopt a propagandistic, abstract approach in practice which is totally unfitted to the class polarisation and willingness to struggle which currently exists in Greece. They even justified not joining a left governmental front because “what would then be the character of the opposition?” Opposition to the EU and the euro on a nationalist basis means they are trapped in a capitalist framework. What is necessary is an internationalist socialist approach that links together the struggle of the Greek workers with the working class in other EU countries.

It is true that a section of the European ruling classes are terrified of the consequences of throwing Greece out of the euro zone. The Centre for Economic and Business Research estimates that a “disorderly” collapse of the euro caused by Greece leaving could cost up to US$1 trillion. An “orderly” collapse would cost 2 percent of EU GDP –US$300 billion. Undoubtedly such a development would have massive consequences for the whole of the EU and could result in the break up of the euro zone with possibly Spain and/or other countries breaking from it.

However, the over-riding fear of the German ruling class and others is that if substantial concessions are made to Greece then Spain, Italy, Portugal, and Ireland would clamour for even more. This they cannot risk. Thus the same Centre for Economic and Business Research concludes: “The end of the euro in its current form is a certainty”.

Tsipras and Syriza mistakenly believe that it is possible to remain in the euro zone and at the same time not introduce austerity policies against the working class. Yet the euro itself is an economic corset which allows the larger capitalist powers and companies to impose their austerity programme throughout the euro zone.

Syriza is correct to say it will refuse to introduce austerity. But how would it then face up to the threat of Greece’s ejection from the euro? This is the inevitable course events are now taking. It is not credible simply to respond by saying Greece will remain in the euro and oppose austerity. If they did this, and a left government on that basis were thrown out of the euro, Syriza would not be prepared to answer being blamed by the right wing for this.

While most Greeks fear being ejected from the euro at this stage, that does not mean that the euro can or will be accepted at any price indefinitely.

Syriza needs to respond to this attack by clearly explaining that if we reject austerity they will eject us from the euro zone. Even without a government opposing austerity Greece could be ejected from the euro.

Faced with such a situation, a left government should immediately introduce capital and credit controls to prevent a flight of capital from the country, nationalise all banks, finance institutions, and major companies. It should cancel all debt repayment to the banks and financial institutions. The books should be opened to inspect all of the agreements made with international banks and markets. The assets of the rich should be seized and safe guards given to small savers and investors. It should introduce an emergency reconstruction programme drawn up democratically as part of a socialist plan which would include a plan to assist small businesses.

Need for socialist internationalism
At the same time, Syriza and a democratic government of workers and all those exploited by capitalism should appeal to the working people of Europe – especially those facing a similar situation in Spain, Ireland, Portugal, and Italy – to join them in solidarity and begin building a new alternative to the capitalist EU and euro. The massive crisis erupting in Spain and elsewhere would mean the working people would rally to such a call. This could be the first step to the formation of a voluntary democratic socialist confederation involving these countries as a step towards a socialist confederation of Europe.

Such a process should be begun now with direct links being built with the left and workers organisations in these countries.

Unfortunately, a failure to boldly answer the threat of being ejected from the euro will only serve to partly disarm the movement of struggle against austerity. It may prevent Syriza from emerging as the largest party. The Greek ruling class and the “Troika” are campaigning to make the election about membership in the euro, not about austerity. They are attempting to terrify people out of voting for Syriza and to rally fragmented right-wing voters - including from right-wing parties that failed to enter parliament - around New Democracy. However, after years of austerity measures and brutal attacks it is not certain this strategy will succeed.

Despite Syriza’s weakness on the EU and euro, at the time of writing Syriza seems certain to increase its support and has a serious possibility of becoming the largest party in close competition to ND. Recent polls have put both parties at between 20 and 23 percent of the vote.

New phase of the struggle
Should Syriza emerge in the lead or at the head of a government this would not signal the end of the crisis, but it would begin a new phase that the workers organisations need to urgently prepare for if they are to take the struggle forward.

Syriza itself needs to be strengthened by workers, youth, the poor, and all those opposed to austerity joining its ranks and getting organised. Syriza, as a coalition, is now attempting to broaden out to begin including social movements and organisations.

Tsipras has rightly called for the left to come together in a united front. This needs to be given a concrete organised expression through the convening of a national assembly of rank-and-file delegates from the left parties, trade unions, workplaces, universities, neighbourhoods, and community organisations.

Local assemblies of elected delegates from these same spheres should be urgently formed under the initiative of SYRIZA to prepare for the coming struggles and to ensure that a future left government carries out policies in the interests of working people.

The ruling class is beginning to feel threatened by the emerging challenge of Syriza and the left. There is the threat of a collapse in society if the left does not seize the moment. Government funds may even run out before the election on June 17.

Lessons from Chile
Although in a different era, there are some parallels between the situation in Greece today and the situation which developed in Chile between 1970 and 1973. There are also many parallels with developments taking place in Latin America today in countries like Venezuela, Bolivia, and Argentina.

In Chile in the period 1970-73 a massive polarisation developed in society. The right and the ruling class prepared their forces - they could not allow the impasse to continue.

The fascist organisation Patria y Liberdad marched, bombed, and attacked local activists and acted as a fascist auxiliary to the military which struck in a deadly coup on 11 September, 1973.

Golden Dawn, which praises the former Greek military dictatorship and Hitler, can act as a fascist auxiliary should the ruling class, or sections of them, conclude they have no alternative but to “restore order” from the chaos and social collapse which threatens Greek society through a military intervention. Although this is unlikely to be the first recourse of the ruling class, they could eventually move in this direction. If Golden Dawn’s support declines - as the polls indicate it will in this election - it would be positive, but it would not be the end of the threat posed by this fascist organisation.

The fascist leader of Golden Dawn, Nikolaos Michalokiakos, threatened those who have “betrayed their homeland”, saying: “[T]he time has come to fear. We are coming”. They cannot become a mass force in their own right, but like Patria y Liberdad they can become (and already are) a vicious organisation that can act as an auxiliary to attack minorities and the working class.

Golden Dawn is sending its “black shirt” thugs to attack immigrants who suffer daily beatings and threats from them. According to press reports in Gazi, Athens, they left leaflets outside gay bars warning they would be the next target and attacked gay people leaving the bars.

This poses the urgent necessity of forming local anti-fascist assemblies that should establish groups to defend all those threatened by fascist attack.

In the June 17 election, should Syriza emerge together with other left forces and win a parliamentary majority, a left government headed by Syriza and Alex Tsipas could rapidly be pushed towards the left under the pressure of the mass movement and depth of the crisis. This is also a fear of the ruling class. Such a development in Greece would also set an example in other countries, such as Spain and Portugal.

A government of this character could at some stage even include some features of the Allende government in Chile 1970-73 and also some features of the Chavez, Morales, and Kirchner governments in Venezuela, Bolivia, and Argentina. This could include taking measures that attack capitalist interests, including widespread nationalisations. While at this stage Syriza and Tsipras are not speaking of socialism as an alternative, this could change. In an interview published in the British daily paper The Guardian, he argued that it is “war between peoples and capitalism” (19/5/12). This represents a significant step forward but illustrates how he and the Syriza leadership could be pressured by the situation to go even further to the left. When first elected to power, Chávez in Venezuela did not make reference to socialism. Such a scenario in Greece is not at all certain but such developments could not be excluded at a certain stage. Particularly under the impact of the deepening crisis and class struggle, demands like nationalisation, workers’ control and management can be embraced by wide sections of the working class. This can push “left” governments to adopt such measures, at least partially. This was the experience of the first period of the PASOK government in 1981.

Should the pro-cuts parties be able to cobble together a coalition, on the basis of ND becoming the largest party and gaining the 50-seat bonus, then it would lack any credibility, authority, or stability. All such parties with such a low level of support forming such a government would effectively constitute a coup against the majority of the Greek people by minority pro-austerity parties. They would face intense anger and bitter struggles by the Greek working class. Such a government would face the huge anger of society and a ferocious struggle of the Greek workers to get rid of it, particularly as they will see the powerful possibility of a left government around Syriza, who would, under these conditions, be the main opposition force, deepening its presence and roots in society.

In this situation, Syriza should prepare a struggle against the government and the capitalist system. Xekinima, the Greek section of the CWI, would propose that under these conditions the central slogan should be for a struggle to bring these institutions down through strikes, occupations, and mass protests.

The rapid growth of Syriza is an extremely positive development. However, the depth of the social and political crisis unfolding in Greece will put it to the test along with all political forces. If it does not develop a fully rounded-out programme, set of methods, and approach of struggle that can offer a way forward to the masses, then it can decline as rapidly as it has arisen. To assist those forces in and around Syriza in drawing the necessary political conclusions as to the tasks needed to take the struggle forward, the strengthening of the Marxist collaborators of Syriza in Xekinima is also an urgent necessity.

How the financial crash of 2008 unfolded

The neo-liberal capitalist model which was embraced and glorified by the bourgeoisie and their supporters in parliaments and the capitalist media over the last twenty years in 2008 spectacularly collapsed. The very idea that governments should intervene to regulate, let alone nationalise, banks, financial institutions and industry was up to now ridiculed as being outdated, primitive and discredited.
After the collapse of the Stalinist dictatorships in Russia and Eastern Europe, one of the most outspoken exponents of neo-liberalism, Francis Fukuyama, argued that the progression of human history as a struggle between ideologies had come to an end. His conclusion, that the fall of Stalinism represented the end of history and that liberal "free" market economics was the final stage of economic evolution, was accepted by the political establishment across the world, including the tops of the former workers' parties, such as the Labour Party in Britain and Australia, and the Social Democrats in Germany. The propaganda which followed was used to attack genuine socialist ideas and used ideologically to justify to workers that neo-liberal policies of privatisation, de-regulation, and attacks on workers and public services were needed. Even the majority of trade union leaders went along with these reactionary ideas.
This opened the way for a massive offensive against workers internationally. Intensification of exploitation of workers, shifting production and industry from the advanced capitalist countries to low wage economies and removing barriers to exploit foreign markets, led to a huge shift in wealth from workers to the super-rich.

The ideological impact of the current collapse of the global financial sector and the expected world recession is only beginning to be felt. However, it is already leading to a questioning of capitalism and a revival in socialist ideas, including from some surprising quarters. Even the Archbishop of Canterbury, Dr. Rowan Williams has had to admit that Karl Marx, the founder of modern socialism was correct in his analysis of capitalism. Writing in the British right-wing journal, The Spectator, he says "Marx long ago observed the way in which unbridled capitalism became a kind of mythology, ascribing reality, power and agency to things that had no life in themselves; he was right about that, if about little else."
He was joined by the Archbishop of York, Dr. John Sentamu, who labeled those involved in "short-selling" as "bank robbers and asset strippers". It must have slipped the archbishop's mind that the Church of England itself was profiteering from their £5 billion investment portfolio though!
Even in the belly of the beast of US imperialism, socialism is once again being discussed, albeit by figures such as rightwing Republican Congressman Jeb Hensarling who voted against the original bail-out package claiming it would put the nation on "the slippery slope to socialism". It is a bitter pill to swallow for the neo-conservatives who have worshiped at the altar of the free market for so long. Announcing the $250 billion part nationalisation of the US banking sector, Bush was at pains to explain it was "not intended to take over the free market but to preserve it." US Treasury Secretary Henry Paulson added "We regret having to take these actions. Today's actions are not what we ever wanted to do – but today's actions are what we must do to restore confidence to our financial system" and "Government owning a stake in any private US company is objectionable to most Americans — me included, yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable." The howls of horror at "socialist" measures from the Hensarlings of the world are therefore unfounded. The moves to nationalise and part-nationalise the banks are not socialist, but a desperate attempt to save the system. It was necessary for the capitalist state to intervene to shore up capitalism and avoid a complete collapse of the economy, leading to a 1930s-type depression. This however does not mean they will be succeed in avoiding such a devastating slump.

Socialists do not support the bailing out of the banks. It does not represent genuine nationalisation as socialists stand for. It is a case of "socialism for the rich", where the risks and debt are socialised, but the profits and assets are privatised. These steps are also designed to be temporary. As soon as conditions permit, it is intended to hand back these financial institutions to the private sector. But the depth of the crisis means the state may be left with no choice in propping up the banks for far longer than expected. Even if they are forced to keep the banks partly or wholly in public hands for an extended period, they will continue to be run in the interests of the rich as they always have been. They will be not be used to maximise returns for the working class.
While different governments may bring their own representatives on to the executive boards of the banks, this will be to assist the transition back to private ownership and to steer the banking system towards boosting the profitability of big business. The financial wizards or "masters of the universe", who appeared to magically accumulate huge sums of money apparently from thin air will continue to live in luxury. Working class people (the actual creators of wealth) will be told they must pay the price.
A socialist government would bring all the banks and financial institutions fully into public ownership and co-ordinate a central plan to provide cheap credit and zero-interest loans to people struggling to buy a home. Any compensation would only be paid to individuals on the basis of proven need. Instead of the banks being run by completely unaccountable wealthy bankers, enriching themselves with huge bonuses and salaries, a socialist banking system would be run democratically by elected committees representing bank workers, trade unions, customers and government representatives, all living on a workers' wage and subject to recall.
This does not mean disposing of every economist and financial specialist. Their talents and expertise would be used to provide a banking service for the needs of all. The motivation to make as much profit as quickly as possible, regardless of the consequences, would be removed. Instead of paying dividends to private shareholders, revenue from a socialist banking system would be used to invest in quality public services to cater for people's needs.

As a result of the mass impoverishment and horrific conditions which neo-liberalism created in many countries, mass movements have developed against the excesses of capitalism. Across Latin America, movements of workers, youth and indigenous peoples have shaken the continent and the corrupt political elites who had opened the door for major multi-nationals to take over public services and rob countries of natural resources and wealth.
Companies such as Bechtel Corporation were allowed to take over the water service in Bolivia, leading to massive hikes in water charges. Hundreds of thousands of Bolivians were left with no water supply. A massive movement developed from below which eventually forced the Bolivian political elite to re-nationalise the water service.
However, even though there is mass support from the populations of these countries for the nationalisation of the major sectors of the economy, these regimes have refused to take such steps. They are still trapped in the belief that there is no alternative to capitalism. They wish to make compromises with their national capitalist class in the vain hope that they will accept reforms which benefit the working class and poor.
However, capitalism will do everything in its power to protect their profits and power. Any attempts to give a bigger slice of the cake to workers will be met with fierce opposition by big business, who will move to remove these regimes from power. Such measures have already been attempted in Venezuela. The right-wing has repeatedly tried to overthrow the government of Hugo Chavez in different ways, from attempted military coups to bosses' lock-outs and food shortages. In Bolivia, the right-wing with the involvement and support of US imperialism is attempting to split the country, threatening to drag it into civil war, in order to keep ownership of the country's valuable energy resources and topple Evo Morales from power.
In order to prevent such a scenario, it is urgent that the working class develop its own independent organisations which fight for the overthrow of capitalism and for the establishment of a workers' government which takes the commanding heights of the economy out of the hands of the multi-nationals and the super-rich minority and runs it democratically for the benefit of all. Such a step would receive huge support from workers and the poor across Latin America and the world. It is important for socialists to study developments in Latin America as the revolutionary processes underway on that continent are not down to people in Latin America having some exclusive socialist gene. The crisis which capitalism has caused in Latin America is now spreading worldwide and will result in a similar revolutionary process in the rest of the world.

The fact that capitalism has been forced to use the state to intervene into the finance sector and nationalise banks is a living example of the inability of private ownership and the market to develop an economy which can cater for people's needs. This is not exclusive to the finance sector. The same straitjacket of the market applies to all industry and every aspect of the capitalist economy.
The scandal of starvation and malnutrition across the world is another illustration of the inability of the profit-driven market to cater for the needs of all. According to the UN Food and Agriculture Organisation, more than 25,000 people died of starvation every day in 2003. As a result of the panic on stock markets, speculation on crops and foods saw an explosion in food prices. Between 2006 and 2008, the average global price for rice rose by 217%, wheat by 136%, maize by 125% and soybeans by 107%. For people living in the neo-colonial world, the increases were far higher. The numbers dying of starvation today are without doubt higher than 2003. Capitalist governments continue to ignore this reality. While trillions of dollars are being handed to the rich across the world in the form of "rescue packages" and bail-outs, the amount invested to prevent mass starvation is miniscule in comparison. The budget of the UN World Food Programme in 2008 was $2.9billion, a drop in the ocean! There is more than enough resources in the world to provide every single person with a decent standard of living. According to the Stockholm International Peace Research Institute, more than $1204 billion was spent on arms in 2006 alone. The problem is this wealth is concentrated in the hands of a tiny elite. The top 500 multinationals in the world account for 70% of world trade. These giant companies, which dominate the lives of billions, should be taken into public ownership and run democratically as part of an international plan to raise people out of poverty.
This would also enable all the talents of individuals to flourish and be put to use for socially productive causes, based on co-operation, not the laws of the capitalist jungle, where greed is promoted above solidarity. Planning is essential within the structure of any business. In every factory, production is fine-tuned and run according to a plan. But in the capitalist market, where there is no planning, chaos reigns. A socialist plan of production would be far more efficient in delivering goods and services, allowing people to work fewer hours and able to freely participate fully in the running of society.

It is widely acknowledged that there is no national solution to the world economic crisis. Yet each country has moved to defend the interests of its own ruling class before thinking about the "greater good" of the world economy. The decision of the Irish government to guarantee the savings of accounts in Irish banks led to panic as banks across Europe feared people would abandon their bank and open accounts in Irish banks. Soon other countries in the EU were forced to take similar measures. This episode of disunity is a warning of the coming major problems which will threaten the very institutions of the EU itself which we are now starting to see in Greecefor example. This crisis of global capitalism will also seriously test the euro. Some countries may be forced to break from the currency. The very existence of the euro altogether has been put into question as the different economic and political interests of each country run into conflict with each other.
While capitalism has internationalised trade, most companies still base themselves in a home country. In this respect, capitalism has proved incapable of moving beyond the confines of the nation state. Globally, tensions between countries, especially between US imperialism and the emerging super-powers of China and Russia, will lead to global instability and even the outbreak of regional wars, which can dwarf recent conflicts like that between Russia and Georgia.
Again, it will be working class people and the poor of all countries who will be made to pay. As more workers and youth in the US are discovering, the imperialist wars in Iraq and Afghanistan are not in their interests. They are being fought, ultimately, to defend the interests of US big business. Due to capitalist globalisation, the struggles of workers will tend to have a greater international aspect than ever before. The traditions of international solidarity, such as seen in the massive movement against the war on Iraq, will re-emerge in the struggles of workers, demonstrating the potential for a socialist world.
Writing in their joint work, The German Ideology, Marx and Engels stressed how the struggle for socialism has to be international, explaining "everyone will be freed from … particular local and national limitations, brought into a practical relationship with the products (including intellectual products) of the whole world, and enabled to gain the capacity to delight in all the fruits of world-wide human creativity."

The opportunities for building a mass socialist movement internationally will open up in the coming period. Capitalism will never collapse out of existence. After the 1929 Wall St. crash, economies collapsed but capitalism survived, resulting in the horror of the second World War. Throughout the 21st century in dozens of countries, there were many times when the working class was within a hair's breadth of taking power and transforming society along socialist lines. Tragically, despite great sacrifice and heroism, those opportunities were missed because of the betrayal of the leaders of the workers' movement. What was missing was a mass revolutionary party, soaked in a Marxist understanding and method and rooted in the working class, which could have provided essential leadership in the struggle for socialism. Today, capitalism promises only economic hardship, war and untold damage to our environment. The need to build a socialist alternative has never been greater.