WORKERS OF ALL COUNTRIES, UNITE!
FOR BOLSHEVISM
INSIDE THE COMMUNIST AND WORKERS’ MOVEMENT
ALL-UNION COMMUNIST PARTY OF BOLSHEVIKS (AUCPB)
FOR BOLSHEVISM-AUCPB website: http://aucpbenglishwebsite.blogspot.com or google in: aucpb
No 9 (102) SEPTEMBER 2011
AUGUST 1991 PUTSCH
The AUCPB was the only political organization, which since the early days, the first hours supported the State of Emergency Committee, as well as their unique political document, considering the actions of the GKChPists as an attempt to normalize the situation in the country and abandon the vicious "perestroika" policy. But three days later on 21 August, we realized that the actions of the GKChPists were aimed only at adjustment of Gorbachev's perestroika without changing its capitalist nature.
This period of our history, the period of the Emergency Committee, is nothing but an open, brazen and determined offensive counter-revolution in the face of the "democrats" against the socialist gains, a counter-revolutionary coup, carried out under the cover of the Emergency Committee. In these days of counter-revolution, the "democrats" dropped the term "perestroika" (reconstruction), which became for them an unnecessary screen and went for a change of leaders of the counter-revolution, replacing Gorbachev to Yeltsin as a battering ram on the counter-revolution. His so-called Sakharov, who hated Yeltsin recruited him through his aides in the highest echelons of power to carry out counter-revolutionary mission - the destruction of socialism. The ram, or, in Russian, a log, which is dull and persistently carried out the will of the foreign sponsors of counter-revolution and our fifth column.
The State of Emergency Committee –was a spectacle, whose script was written by U.S. intelligence services abroad, and the director was Gorbachev, not realizing that he himself signed his own slaughter of the last act of this monstrous piece called the State of Emergency Committee.
As the chief prosecution against the GKChPistam, the "Democrats" put forth that the GKChPists allegedly "seized power". Nonsense! Each member of the Emergency Committee, was a member of the State Security Committee formed by them, and already had unlimited power, for all of the Emergency Committee as a whole - this was the whole Security Council of the USSR, the deputy prime minister, who served then acting president, the Prime Minister, Chairman of the Supreme Soviet of the USSR, the ministers of principal departments. Each of them already had unlimited powers. This is firstly. Secondly, the events of August 19 can not be classified as a coup, since all the opponents of Soviet rule had not been arrested, freely spoke at meetings (Yeltsin, Sobchak, etc.), etc. Third, the troops brought by the GKChPists into Moscow – were without ammo or shells, and were given no clear orders to act. Fourth, the GKChPists turned out as hostages of the situation. Afraid to take the decision on their own, without Gorbachev and not getting any instructions from him, the GKChPists lost. (Gorbachev was on vacation all the time in Foros, bathed in the sea with his family and had only one-way communication with the Emergency Committee – and talked to them when he wanted to). Among them, the GKChPistov, there was no one who would take responsibility for decisive action.
Fifthly, the proponents of counter-revolution, according to Gaidar, were very small in number. The main counter-revolutionaries were concentrated in St. Petersburg and at only one of their mass protests on Dvortsovy Ploshad, i.e. from the 5-million population of Leningrad – no more than 100 thousands "Democrats" (just 2-4% of the population!). In Moscow, there were even fewer. In other words, Yeltsin had NO popular support among the population!
Sixth, it should be noted that the counter-revolution was well supported by business, which understood that if it loses, it will never win. Therefore, in Moscow, wrote in those days, "Komsomolskaya Pravda", money was carried in suitcases to the barricades - 13 suitcases of money alone. Taken to the barricades in car were all the "deficits" - sausage, smoked hard, expensive imported cigarettes, etc., etc. Anyone who was around the barricades was given money. A member of our party saw this herself, who out of curiosity went to the barricades. She was also offered money. The question is: where did so much money come from? In the events of the State Emergency Committee, the "democrats" were involved in money and the so-called state loans of the USSR - the money from the West that Gorbachev had received for "perestroika" in the form of an IMF loan. Now, the "democrats" fraudulently garbles texture, making the money out as the debt of the USSR. In other words, now paying off the debt to the West, we are paying off what was spent directly on our own destruction.
Trucks, dump trucks, various construction equipment, which were used to erect the barricades of which was bought with the business money, or those who had already managed to amass by robbery of his own people, is now afraid of losing it all in case of defeat of the counterrevolution.
I want to repeat the statement of George Bush senior: "We spent $ 4 trillion to win the Cold War and in comparison with the amount that that the U.S. intends to spend right now - 24 billion - is of course, nothing. The democrats in the Kremlin are able to guarantee our security more much reliably than nukes did "(166 times cheaper - our clarification).
In summary: The counter-revolution in August 1991 won because of the cowardice and the inability of the then party leadership to take responsibility, because of their cowardice to go directly to the people for help.
The counterrevolution in the Soviet Union won, because we brought up ourselves a fifth column, starting with the Khrushchev era.
The counter-revolution triumphed because of strong financial and other assistance to this fifth column by the West, primarily – by the United States.
These are the main factors that ensured the victory of the counterrevolution. There are more and more. They have already been discussed and analyzed previously in our party documents and speeches.
(According to the article "An interview with the newspaper "Moskovsky Komsomolets" on the eve of the 10th anniversary of the State of Emergency Committee." See the book, NA Andreeva, "For Bolshevism inside the communist movement" pp.161-167. Acad. CC AUCPB, Leningrad, 2001 . Online www.vkpb.ru)
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THE STORMING OF MONCADA BARRACKS
On July 26, 1953, the Moncada barracks - a military garrison in Santiago de Cuba was attacked by revolutionaries led by Fidel and Raul Castro. The Moncada Barracks assault is one of the glorious pages of the world revolutionary movement.
A year before that event, in Cuba there was a military coup. The army in Latin America was cut off from the people, the officers belonged to a special caste, with right-wing and extreme right-wing views. Cuba was no exception.
During the coup in March 1952, General Fulgencio Batista, a US-centric came to power.
The establishment of a military dictatorship in Cuba led to the rise of popular democratic forces who did not want to live under the military regime.
Among the young opposition politicians of that time were the two Castro brothers - 26-year-old lawyer, Fidel and 22-year-old student Raul. Fidel was in the Party of the Cuban people (otherwise known as - the orthodox party), and Raul - in the Socialist Youth for the PSP.
"If we had not learned from books with the political theory of Marx and not learned inspiration from Marty, Marx, Lenin, we could not have even formulated the idea of revolution in Cuba, because with only a handful of people, none of whom studied at a Military Academy, it is impossible to wage war with a well-organized, well armed and trained army and achieve victory, starting almost from scratch. Revolution needs these ideas, like air." Fidel Castro.
"The current period is a revolutionary period, rather than a political time parliamentary - ed.) of struggle ... A revolution opens the door not to fake, but to real merits, to people who have ideals and courage, people who are willing to die by the bullet and are ready to raise high the banner of struggle". Fidel Castro.
Fidel Castro, along with his comrades, decided to start rise up while the Batista regime had still not firmly established itself. It was decided to storm the Moncada barracks in Santiago de Cuba, where an army regiment was stationed.
The revolutionaries were convinced that taking a military fortress would lead to an immediate revolutionary explosion across the country. "If Moncada had fallen, then three thousands weapons would have fallen into our hands." "The people would have risen up, make no mistake, because anyone who opposed Batista immediately would have popular support." "Then we were going to take the provincial radio station. All the material has already been prepared: the decrees, which subsequently appeared in the publication "History will absolve me," the call on the people and call for a general strike, because the situation was appropriate." Fidel Castro.
If, after the capture of the Moncada the forces of the rebels and punitive powers were unequal, Castro, along with his colleagues, were planning to go guerrilla in the mountains of Sierra Maestra.
In the spring of 1953, Fidel began preparing for the uprising. For the organization of the rebel base on the outskirts of Santiago, a farm was purchased and used under the guise of a poultry farm. Sheds were built for storing a large number of vehicles, and the version released that this was a pavilion for the bird cells. A deep dry well, standing next to the house was adapted into a storehouse of weapons.
"In country after Batista's coup, there was a lull, and the organizers of the coup felt confident enough that the shops sold guns freely. I started organizing the gradual acquisition of almost all the necessary weapons and procuring the means to do so. We had to make ourselves out to be rich people who were fond of sports." Fidel Castro.
To participate in the uprising, they succeeded in attracting, according to various estimates, from 134 to 160 people. By the evening of July 25, all participants in the operation gathered at the farm. Late in the evening, Fidel arrived. Participants were handed out weapons, explained the plan of operation, all sang the national anthem, and quietly began to prepare for battle.
Fidel specifically warned supporters that the task of the rebels was to seize the barracks and capture the sleeping soldiers. No need to kill anyone unless it was absolutely necessary, said Fidel. While in Cuba, Batista's army and was a punitive structure, however, the revolutionaries sought to avoid unnecessary casualties, and showed humanity to ordinary soldiers.
The clock was approaching five o'clock in the morning when the convoy of 26 vehicles headed for the goal. The assault was to begin in 5.15 am.
Everything seemed to be going according to plan. However, at the entrance to the barracks itself, they met an obstacle that decisively influenced the outcome of the operation. When the car moved forward to with a group to take the main gate, there was a foot patrol of Batista's soldiers who had finished their perimetre patrol of the barracks.
"One of the men, who was traveling with me, jumped out from front seat on the right, fired a shot – the first heard in this kind of battle; many other shots were fired. The shooting started. The alarm siren started wailing in barracks, interspersed with shots and a continuous hellish noise. All those who had driven behind me, jumped out, as had been foreplanned, and broke into the long, quite large building of that type of architecture, as other buildings on the territory of barracks. They housed a military hospital, and they rushed there, taking it as the object that they had to take." "The battle that was to start inside the barracks, had started outside. And, having lost their sense of direction, our people took quite a different building - the hospital. " Fidel Castro.
The incident led to the squad starting to firing too early. The situation was extremely disadvantageous to the attackers. Firstly, the battle broke out outside the barracks and, secondly, it was positional in nature. The barracks were not captured, Batista's soldiers took up defensive positions, and their numerical advantage doomed the rebels to failure.
Dawn broke when Fidel gave the signal to retreat. After an unsuccessful attack, the rebels broke up into small groups, went into the mountains, and into the region of the uprising began to arrive numerous government forces. Army units staged a hunt for people in surrounding areas, seizing rebels. Many participants in the uprising were taken prisoner and were killed after brutal torture.
The military unit was made up of a group of 12 men led by Fidel was destroyed. But Fidel remained alive - the lieutenant, holding him, brought him to a civil prison. On July 29, Raul Castro was also arrested. Detainment and court proceedings began.
“The storming of the Moncada barracks, defined a new force, a new revolutionary force that could lead the nation in the struggle for the liberation of the country and build a new society", said Jose Dionisio Peras Chapo, a Cuban diplomat and historian.
"In the period preceding the assault on Moncada, Fidel Castro said, you must start a small engine motor, which will start the great engine of the masses. Such a small engine was to be the impact of Moncada, and from the outset was seen as the spark that would wake up the people, and break out the flames of war against the oppressors." THE STRATEGY OF MONCADA LED US TO VICTORY." Raul Castro.
Submitted by: "Revolutsiya”, № 7-8, 2011, (abbridged)
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WE ARE BEING DESTROYED, BUT REMAIN SILENT?!
On July 10 we learned all about the terrible accident on the Volga River when during a storm, the river boat "Bulgaria" sank. According to various sources, on board were from 192 to 209 people. At the time of writing, 79 of them were rescued. As of July 19, 114 people had died (updated to 122 confirmed deaths, bodies recovered and identified), the fate of nine people was still unknown, (as well as 14 - injured) ..
"Bulgaria" (the river boat carried the name "Ukraina" up until February 2010) was built back in 1955 in Czechoslovakia according to a design which did not include the installation of interior partitions. I.e., water, as a result of the accident, quickly filled the entire vessel. And it did. The vessel sank in just 3 to 5 minutes. Immediately after the disaster, information appeared about numerous breakdowns occuring on "Bulgaria." Before leaving port, the vessel had a defective left engine, the boat was overloaded, and listed to starboard. It was found that breakdowns had occurred during previous cruises – the engine cut out more than once, water poured through the portholes, the boat was late for many hours, and the toilets were blocked. It turned out that even before the engine room was exposed to water, the electric generators had cut out, and so the vessel could not sent out an SOS signal. This bleak picture was enhanced by the vessel’s radio operator who survived, Rinat Gabitdinov, who spoke about the power outage. According to him, when the captain ordered everyone to move over to the left side of the vessel when the boat keeled over to the right, it was impossible to annouce this across the loudspeaker system. Gabitdinov also said that during the previous sailing, the engine room had caught fire.
According to newspaper "Izvestia", rivermen used to call "Bulgaria" the "floating coffin." A source from newspaper "Moskovsky Komsomolets", who went on board in 2007, said that "Bulgaria" was already flooding with water through the portholes, because their rubber sealing was completely "cracked" (!).
Another bleak fact talking about an utter collapse of moral: two ships sailed past the sinking vessel without stopping, the captains of which did not even feel the need to stop and render aid to those in distress. "Bulgaria" was owned by Kamskoye Rechnoye Parakhodstvo which leased the vessel to OOO “Briz” which in turn subleased it to OOO "Argorechtur" which operated it.
As told to newspaper "Izvestia" by a source close to the investigation, "the company, apparently, wanted to shift all costs of repair to the vessel over to the leaserholder, and they, in turn preferred to make money from the "Bulgaria", investing almost nothing into it." The newspaper later found out that in the repair of the vessel, spare parts "obtained on the side" were used, and therefore the propulsion system broke down. The leaseholders did not spend any money on new spares, and made engineers and mechanics repair worn out parts. The ship was repaired in the shortest possible time, in time for navigation.
Moreover, according to Deputy of “Rostourism” Eugene Pisarevsky, whose words were carried by "Interfax", the firm "Argorechtur" is not included in the list of tour operators of Russia, and therefore had no right to offer cruise tours on the vessel. This is without mentioning the fact that the vessel itself, as investigators found, did not have a license for passenger transport. In addition, according to "Kommersant", the Chairman of the Board of Directors of the "shipping company "Kamskoye Rechnoye Parakhodstvo"," who owned the "Bulgaria", Mikhail Antonov, is under investigation for ammunition trafficking. At one time, he was suspected of fraud, illegal entrepreneurship and substance abuse. (According to the website "Lenta.Ru").
The main aim set by the entrepreneurs (private traders, bourgeois) using the boat was to maximize profits. None of them one cared about the boat having long passed all its conceivable technical service life, or the safety of passengers.
In the words of Karl Marx, give the bourgeois 300% profit and there is no crime he will not commit for the sake of getting it.
Therefore, the fact that Svetlana Inyakina, director of "Argorechtur", Jacob Ivashov, senior expert at the Kama Branch of the Russian River Register, and the two captains of the ships that passed by the sinking "Bulgaria" that did not help the drowning passengers are facing prosecution does not change anything in essence.
The cause of death of the people who wanted to relax at the weekend, is capitalism, the immeasurable greed and the quest for profit, for the money. Under capitalism, of paramount importance is not people, but MONEY, PROFIT, their majesty CAPITAL. People are nothing more than a means to maximize profits and the boundless, limitless enrichment of the bourgeoisie.
Symbolicly, the original real name of the river boat was "Ukraina."
We are both drowning together – both Russia and Ukraine, which became, like all the other republics, victims of the capitalist counter-revolution, the defeat of socialism and the destruction of the Soviet Union.
And on that same day, a few hours earlier on the night of July 9 to 10, by now in Ukraine, a nursing home had burned to the ground in Beloe Dubrovitsky district of Rivne region. 16 elderly people were burned alive. Only 9 people managed to escape alive. Among the burned, as reported by the media, was Natalie Savich, who for more than 30 years had worked on a collective farm as a milkmaid and raised eight children. And in Ukraine there are 784 such nursing homes, now loudly called territorial centres of social services.
The nursing home that burned down was a ramshackle wooden structure, and so the fire that had begun destroyed the building immediately. Of course, the powers that be poured crocodile tears over the tragedy. Ukraine's President ordered the Cabinet to allocate 7 million UAH to restore the home, and from the regional budget will be allocated financial assistance to the bereaved families amounting to 1.5 thousand UAN for each person. The Regional Council, together with the regional administration took over the organization of burial and funeral receptions.
The veterans do not need the current Ukrainian bourgeois authorities. The veterans, who for decades worked at enterprises and collective farms, taught and treated our children; veterans who once were still very young, defended our country from fascism, in the shortest period of 4 years, then restored, with the help of all the fraternal Soviet republics, the ruined economy, and by the mid 80s, before the start of Gorbachev's perestroika and the counter-revolution, brought Ukraine up to the ten top most developed countries.
The arrival to power of the bourgeois government as a result of counter-revolution, has stolen everything created by people, and amassed themselves with millions and billions of dollars in wealth. They have no need for veterans. They live in their stone mansions (we all saw Yanukovich’s estate "Mezhyhiria" on June 28, when he answered questions from journalists at his residence). Naurally, such a fire could not begin there. In brick houses, maybe a few less (according to rank and value) of the bourgeoisie are living and their leaders of regional and district levels. But to the veterans it’s - "take it for yourself, God, what I do not need” – an old wooden shack. If you live until a ripe old age, then you're in luck. Burn in a fire - so how long can you live now? That's the cynical attitude of the power of capital towards veterans, veteran soldiers, veteran workers, holders of Soviet ideology and Soviet ideology.
And this was not the first nursing home that has burned to the ground in Ukraine and Russia ...
On June 20, near Petrozavodsk in Karelia, a Tu-134 plane crashed. During landing in bad weather the plane crashed on a highway, 700 m before the runway. The plane slid and carved about 150 m of forest edge and stopped just 20 meters from houses in a dacha village. The fuselage disintegrated and caught fire on board. 44 people were killed on the spot and 3 more died in hospitals.
According to flight attendant Julia Skvortsova, who was the only member of the crew who survived the crash, the cause of the crash was bad weather and pilot error. Moreover, the girl spoke about the second reason. It was he, the pilot, who was behind the wheel of the liner at the time of the crash. Risking the lives of dozens of people, Sergey Karyakin did not want fly the plane around once more to make a second attempt at landing, because he wanted to save fuel. The stewardess explained that small companies are often fine their pilots, if they burn fuel more than necessary, and sometimes they fill the fuel tanks with just enough fuel calculated "kilometer per kilometer." With this, unlike experts investigating the crash, Skvortsova said that the lights on the runway were unlit just before the aircraft broke the overhead power lines.
Israeli newspaper Haaretz saw a conspiracy in the incident. The author suggested that someone was to benefit from the removal of prominent Russian nuclear specialists. According to the publication with reference to Russian military sources, five experts who were killed in the crash, had helped Iran build a nuclear reactor at Bushehr and to ensure its seismic resistance. According to colleagues, their loss was a heavy blow to Russia's nuclear industry. They were being flown to an important meeting in Petrozavodsk, where they were to discuss issues related to the development of nuclear reactors. The author of the article Eli Shvidler recalls that "some Iranian scientists have already been victims of mysterious accidents, including plane crashes." In addition, he seemed suspicious of the fact that the airline swapped planes at the last minute before taking off and did not notify the passengers. Thus, this was a gross violation of procedure, and yet the flight went ahead as a result, using an old Tu-134 instead of the original Canadian Bombardier CRJ-200. Previously, the crew of this aircraft had landed at "Besovets" airport. But not one of the pilots on this flight had ever landed at the airport at Petrozavodsk (news site "Utro.ru, 29.06.2011) ...
On January 25 in Moscow at Domodedovo airport, an terrorist attack took place. In the centre of the hall a suicide bomber blew himself up. The explosion killed 36 people. Hundreds more were injured in the blast. As noted by observers, in Moscow over the past 15 years, this is the 26th attack, during which more than 600 people have been killed. ...
According to media reports, on the highways every two minutes, an accident occurs. All in all, car accidents in the 20 years of "independence" of Ukraine, have killed 137 thousand people.
If we take the integral index score of the 20 year old bourgeois reforms, the reduction of population of Ukraine amounts to more than 13 million people and is clearly seen, (including those who travel abroad, where most migrants do not intent to return to Ukraine): from 52.25 million to 39 million people.
WE ARE BEING DESTROYED. We are being destroyed intentionally and purposefully. And if we do not resist, do not fight for the right to a dignified human life, the right to life itself at all, then we - the working people of Russia, Ukraine and other republics will simply be destroyed, bringing the population of Russia: from 150 million people to 50 million (according to the plans of Margaret Thatcher, in Russia in general there should only be 15-20 million people for the servicing of oil and gas pipelines and providing normal living conditions for the European population, for the European working people, who unlike us, are striking and fighting for their right to a dignified life, but we remain silent and buzz like flies ...), Ukraine from 52 - to 20 million, Belarus, from 10 to 3 million people. These plans were developed several decades ago by the so-called Club of Rome, a division of the world government of Zionist and American imperialism. And, as we see with our complicate silence, these misanthropic plans are successfully being implemented.
***
On July 8, the Verkhovna Rada (upper house) of Ukraine adopted a Law "On measures on legislative guarantee of reform of the pension system." The Ukrainian authorities have met the demands of the IMF to increase the retirement age. In particular, for women it has increased from 55 to 60 years (this increase should occur over the next 10 years). NI contributions to qualify for the minimum pension has increased by 10 years, including: women - from 20 to 30 years and for men - from 25 to 35 years.
A pension saving scheme has been introduced, under which all working people shall allocate to the Pension Fund from 2 to 7% of monthly earnings (to a personal account). It is true that the state cannot guarantee that a person who has worked all his or her life and paid their salaries into a Savings Pension Fund, will then be able to receive their pension in the form of savings, because there is no guarantee that it will not be burned up by a private pension fund in which the money had been saved.
Even the trade unions fully servicing the government were compelled to note that after the entry into force of this Act, the size of the newly appointed pensions will be reduced by 15-20% compared to current levels, as well as the significant increase in the number of pensioners who will receive a pension below the minimum.
Young people who are currently not thinking about pensions will be especially hard hit under the pension reform. Many young people are working without official registration for work and will not be able to collect the necessary labour experience (NI contributions, as stated in the law) for at least the minimum pension. A large number of people working for private owners receive a salary in an envelope, respectively, and the level of their pensions will be very minimal.
In the West, workers are struggling against the onslaught of the government to limit their rights, in particular, against raising the retirement age. In Britain, for example, a million people took to the streets to protest against such attacks.
It's now time, now time for us, the working people of the ex-USSR, to rise up to fight for our rights.
A. MAYEVSKY
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WORLD ECONOMY AGAIN ON THE BRINK OF DISASTER
24.08.2011
The world capitalist economy, slightly recovering from a deep depression in 2008, is again on the brink.
Balancing the U.S. on the brink of default, a deep debt crisis in Greece and Portugal, followed by Italy and Spain, the collapse of quotes on the stock exchanges in the U.S., EU and Japan, the deceleration of economic growth in the worlds leading economies - all of these recent developments indicate a deepening world crisis of imperialism.
The United States, the leader of the global capitalist economy is mired in a deep pit of debt and on the verge of default. U.S. national debt is currently estimated at 14.3 trillion dollars, reaching a total GDP. Analysts noted that the increase in the U.S. debt ceiling on August 2 of 2.1 trillion dollars has only delayed the inevitable in 2-3 years time of default of the United States, which will have catastrophic consequences for the global economy.
"The decision is just a shift into the future of the inevitable end. U.S. national debt this year will be over 100% of GDP ... Investors will run away from U.S. bonds, when they realize that the U.S. has exhausted the possibility of normal maintenance of its sovereign debt, "- said the chief economist at IK " ITinvest "Sergey Egishyants.
Printing dollars and issuing bonds can not go on. The U.S. debt limit ran into the limit purchasing power for rest of the world.
On the other hand, the U.S. administration can not cut the budget deficit, because the country's economy is being kept alive only at the expense of budget expenditures: a large proportion of disposable income of Americans and investment expenses are generated by the state budget.
"If you close this hole, then aggregate demand will collapse immediately. And all this is inevitable. Whether or not it will happen this year, in 2012 or 2013, it will inevitably happen. This means that the global economy will fall into a new Great Depression. There are fewer U.S. bond buyers. Hence, there is not much time before the default ", - concludes Egishyants.
The International Agency "Standard & Poors' downgradedthe U.S. economy on August 5 from the highest credit rating by one notch from AAA to AA + and the credit outlook is set as a negative. U.S. Treasuries are still considered the most reliable investment tools, now have a rating lower than the government bonds of countries such as Britain, Germany, France and Canada.
Eurozone countries and Japan have also plunged into debt. In Greece, the amount of debt exceeds 140% of GDP. Japan debt exceeds 200% of GDP, the debt of Italy - 120% of GDP. Other developed and developing capitalist countries have comparable size debt. Citigroup analysts point out that by 2014 the ratio of debt to GDP in Greece will increase to 180%, Ireland - up to 145%, and Portugal - to 135%, and not one country in the euro area will lower the deficit.
"I'll tell you the truth: the euro and the EU are on the edge of an abyss," - said the former head of the European Commission and co-creator of the eurozone Jacques Delors.
"The risk of social unrest looms in front of the world" – is how IMF chief Christine Lagarde describes the emerging capitalist world in the socio-economic situation. Indeed, since the economic depression of 2008, the powerful actions of workers have not stopped shaking Europe, continuing to this day with incredible power (after all, in Italy alone, during the crisis in 2010, about 8.3 million people were below the poverty – 13.8% of the population).
The U.S. dollar and Treasuries (note - no paper securites), ever more cause distrust on the part of the business world. Major U.S. companies rush to acquire the assets of which do not lose in value if the price of the US dollar and Treasuries fall. The central banks of the capitalist world are transferring their currency reserves into gold - the world's money. "The U.S. currency has devalued since the beginning of the year by 5%, approaching trading to the lowest level against the basket of major world currencies - the newspaper" Financial Times ". - Holders of large foreign exchange reserves, especially China, will diversify theirs in an effort to move away from the dollar."
Against this background, the gold price reached a record high on August 22 - $ 1,900 per ounce, jumping only at the beginning of the month by 15%.
The U.S. dollar will lose its status as a world reserve currency in the next 25 years. This is the conclusion of the Swiss UBS bank analysts. They conducted a study with the participation of leading specialists of world central banks, which control a total of more than 8 trillion dollars of assets.
China - the second largest capitalist economy in the world, worried about the fate of the $ 1 trillion dollars of U.S. bonds it has, has said "there should be international control implemented over the U.S. dollar, one of the options to prevent the catastrophe caused by any country may become the new, stable and secure, world's reserve currency." See further reading on China in pamplet by A.A. Mayevsky, entitled "Modern China"
The world moving away from the dollar and this process has become irreversible - such a forecast by leading rating agency of China, "Dagong."
So the collapse of the dollar and a defaulted U.S., and together with that - a catastrophe of the world capitalist system - it's only a matter of time.
The crisis in the capitalist economy is already being felt with great force. Beginning in early August of this year, quotes of securities (a sensitive barometer of the capitalist economy), of all major stock markets in the U.S., Europe and Japan have fallen, and the stock exchanges in panic, as in 2008 before the economic downturn. The world economy is clearly immersed in the new state of deep financial and economic crisis, unable to even get out of it.
Every day since early August there have been about reports about impending collapse of quotes on the major stock exchanges around the world. Only from 1 to August 5, the main index of the largest in the EU the London Stock Exchange, the "Futsi-100" fell 9.13%. This is the most significant of its week-long decline in the last three years. At the end of two weeks (until August 9) losses in the key for the U.S. stock market, the Dow, were critical - 15%. In the days that followed the fall continued at the same rate.
On August 8, leaders of Wall Street enacted Rule 48, which allows the suspension of trading - an extremely rare event that could only happen in a major crisis.
August 11: "The stock exchanges in the world are reeling. The London Stock Exchange lost 3.05% on the main index, Frankfurt - 5.13%, Paris - 5.45%, Milan - 6.65%, Madrid - 5.49%. The wave of instability in Europe spread to the stock exchanges in Japan and the United States. The American stock market collapsed. U.S. observers point out that the atmosphere on the trading floors was close to the panic that occurred at the end of 2008 "(ITAR-TASS).
On 18 and 19 August (last day of the trading session of the week), the collapse of quotes continued on the leading stock exchanges in the U.S., EU and Japan. Also troubled were the stock exchanges in Russia, with falling RTS and MICEX.
Depreciation of shares takes place in all sectors of the stock market, but the greatest loss is the banking sector and carmakers. Investors cast off risky assets, expecting a new phase of global economic slowdown.
At the heart of the crisis, along with the heated exchange and financial speculation, is the already stagnating social production. Some global economic recovery that took place early last year, has stalled and came to naught in the first half of 2011.
According to the report by the U.S. Department of Commerce, GDP growth in the last quarter of 2010 was lower than previously reported, and was only 2.3% on an annualized basis. In the first and second quarters of this year, 2011, economic growth was also below expectations and was at an annual rate of 0.4% and 1.3% respectively. Thus, analysts say, the U.S. economy in the first half of this year, has almost ground to a halt. The U.S. economy "continues to weaken because of low growth, lack of new jobs created, stagnant consumer demand and the manufacturing sector", - believes well-known economist and professor at New York University, Nouriel Roubini.
"The risk of the global economy entering into a recession exceeds 50 percent," - says Roubini. "Karl Marx was right at some point, capitalism is able to destroy himself" (and we'll add - and all mankind together with it).
Key economies of the euro area have also shown deep stagnation. German GDP in the second quarter of this year is marking time – with growth of only 0.1% of GDP as in Spain - 0.2%. French GDP growth is down to zero.
Everything indicates that the U.S. economy and the European Union faces in the coming months entering a deep phase of stagnation and even decline.
Governments of the leading imperialist countries are making unsuccessful attempts to re-save the capitalist economy from collapse. Finance ministers of "Seven" and "twenty", convened an emergency meeting, the heads of state conducted telephone conversations, statements were made, urgently, drafting a reform of financial management. However, all this had already been passed in 2008 ... Indeed, is this not the same as the heads of state declared in 2008: "At the moment, the crisis concerns only Europe but its scale and impact could spread to the whole world. So today we need to take global decisions on the basis of coordinated action within the financial "Seven" and "twenty", "- said on August 5 already this year, the European Commissioner for economic and monetary policies, Olli Rehn.
Russia, being in depression the entire twenty years of capitalist reforms, is most vulnerable to global economic collapse. After all, Russia ranks third in the world, the size of its international reserves, which consist of almost 95% of the dollar and euro (about half of Russia's international reserves consist of dollars). Its main budget revenue (40-45%) allows the export of oil (but oil prices on world markets are falling) - again with bogus bucks. Russia holds about 45% of its foreign reserves in U.S. securities.
Those who predicted the global financial cataclysm, and the economic crisis in a U.S. default (which will inevitably occur over time, the 2 August - it's just a delay), we easily predict which way events will unfold in Russia.
"Against this background, 2008 will look like a walk in the park" - said a senior Western banker in Moscow, referring to the global recession caused by the subprime crisis in the U.S.. "Global GDP will rush down, that would mean that global demand for raw materials world will cease to exist", - said the banker, "No one will buy oil, gas, steel ... Naturally, the Russian economy will be destroyed."
Jochen Wermuth, founder and chief investment officer of WAM, in his statements is no less apocalyptic. "I do not believe that someone knows what will happen - most likely the world will lie in ruins for decades," - he said.
The position declared by Russia’s Deputy Finance Minister S. Storchak is shocking: Russia has no plans to revise the amount of investment of reserve funds in dollars. In his view, the U.S. debt market continues to remain "the most fluid and one of the most reliable" (!).Nothing surprising in that, because our "leadership" is maintained by the U.S. Federal Reserve, i.e., the dollar: "The U.S. may pay on any debt (primarily - on the wealth of the Russian" elite "- we will explain), so as always, this may include the printing press. That is, the probability of default by the USA is zero ", - said the former Fed chairman Alan Greenspan.
The next slide by the global capitalist world system into the abyss once again shows the historical doom of capitalism. The capitalist economy, long outliving itself has become an impediment to human progress. World imperialism dooms mankind to self-destruction – and this is acknowledged even by the bourgeois apologists. And none of the measures taken by governments to stabilize the capitalist system, will be able to avert it from collapse, its inevitable collapse by the impending socialist revolution.
A. Denisyuk
=============================
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Thursday, 1 September 2011
Wednesday, 3 August 2011
AUCPB-CLASS STRUGGLE 03 AUGUST 2011
LABOUR MOVEMENT IN RUSSIA – REPUBLICS OF EX-USSR – INTERNATIONAL
PRIMORSKY SHIPBUILDERS STRIKE AGAINST POOR WORKING CONDITIONS
At the "Vostok" plant in Bolshoi Kamen a strike took place by workers who are painting the nuclear submarine "Nerpa". The painters, seconded to work with the Amur Shipbuilding Plant and the "Korabell-Vostochny" plant in Nakhodka, are protesting against delays in payment of salaries and poor working conditions.
In the compartments and holds, heat, humidity, and heavy paint vapour hangs in the air due to poor conditions of ventilation systems that are badly discharging the fumes. According to "Komsomolskaya Pravda", the workers employed in the painting of the submarine, have not received salaries since May, and some of the workers had written an application for resignation.
===================
WORKERS IN KAZAKHSTAN SHOW UNPRECEDENTED UNITY AND SOLIDARITY
According to labour activists at JSC "Karazhanbasmunai", on Saturday began a meeting of workers at the oil field "Kalamkas", and on Sunday, July 24 at a rally after the change, which was attended by about five thousand men, it was decided to support the demands of the strikers, fellow strikers. The workers at Kalamkas insist on the immediate release from prison of the trade union lawyer Natalia Sokolova and worker activist Akzhanata Aminov, end all criminal and administrative cases and reinstatement to work of all laid-off members of the actions. Meanwhile the oil workers are going to hold meetings after the shift, but in case of mass layoffs, which the first deputy general director of "KMG" Askar Balzhanov, has promised to implement, the workers will simply not come to drill and will organize a new enclave of strike action.
In the workplace at "Ozenmunaygaza", there has also been a turning point in the mood of the workers. Workers from different departments who refused to strike a few weeks ago, again go on the side of the strikers, adding to the ranks of the rally on Yntymak square in the centre of Zhanaozen. It seems that the attempts of the authorities and employers have failed, and the threat of layoffs and repression to stifle the strike have failed. Moreover, the strike wave can cover all the surrounding oil fields and connected. The workers have shown unprecedented unity and solidarity, and their actions are coordinated by trade union activists.
With shame ended the visit by deputies from the Majilis (Parliament), who left after a visit to Aktau after a visit from European parliamentarians from the Socialist Party of Ireland, Paul Murphy. Instead of going to the place of assembly and meetings of strikers, they offered the workers to come cap in hand to school number 24 in the 15th district of Aktau, where he chaired the "working group" akimat, "Nur Otan," made up of representatives of the EP and the Chinese company CITIC. Three MPs from the ruling party of Mangistau region thought to exercise individual reception for sacked workers in order to allegedly help them with employment. On the demand of the oil workers, to go to the "people's elected representatives" to the working people, as the socialist from Europe did, they refused. As a result, the "dialogue" did not take place ...
On July 25 ends the moratorium on layoffs, and the striking oil workers with anticipation expect action by the employers. In the case of growth of repression, inevitably the strike will spread to neighboring enterprises, and all the relatives and sympathizing residents of settlements affected by thestrike action will come to the rallies. On the same day at 3pm, began the trial of Natalia Sokolova, who was accused at the request of the acting president of "Karazhanbasmunai" Yuan Mu, of fomenting "social discord." Incidentally, the funniest proposal from "Karazhanbasmunai" to hold a meeting of the personnel for the election of new representatives for talks, the workers of JSC "Karazhanbasmunai," affirmed the authority of their own comrades, sitting in jail.
July 26.
According to labour activists from a number of strikers, from Aktau alarming news is coming out. Four buses with riot police were not removed from Zhanaozen, but are in a camp in the desert, waiting for further orders. The oil town itself is awash with traffic police, which also raises suspicion among the strikers and the local population. Due to the fact that on 25 July from 5 to 7 am a warning strike of solidarity of workers at the deposit "Kalamkas" took place which was attended by five thousand oil workers, the number of participants in the rally in Yntymak square also increased. Despite the widening of the strike, labour leaders do not exclude the implementation of counter-insurgency operations in the next few days.
At the same time, more layoffs after July 25 were not followed through, although notices and warnings have been issued in large numbers in many enterprises and departments of "Ozenmunaygaz." At the same time, the mood among the workers is more than decisive. As mentioned earlier, the work collectives of all the neighboring oil fields and enterprises, and residents of Zhanaozen, Akat, Shetpe settlement and other settlements are ready to go en masse to support the oil workers in the case of force being used by and riot police units. The situation remains very tense in the region. The judicial process over Natalia Sokolova, having not started, has been moved to an unspecified time.
http://rkrp-rpk.ru/content/view/5617/1/
=================
PILOTS STRIKE PARALYZE INTERNATIONAL CONNECTIONS TO UKRAINE
At the "Borispol" international airport August 01 2011, more than five flights of the airline "Aerosvit" were delayed in connection with the protest by pilots of Boeing-737-s, reports "RBC-Ukraine", the press service of the airlines, on the website spb.rbc.ru.
According to the report at the time, flights were delayed to Moscow, Hamburg, Odessa, Athens and other cities. Also reported was a canceled flight to Prague. In total may be about 5% of flights that are served by Boeing-737 aircraft may be delayed. Return flights to "Borispol" were subjected to delay, but their flights will take place.
Media reported long queues in the lobby of Terminal "A". The company promised to provide passengers with a hotel room or a refund in the case of flight cancellations.
Earlier it was reported that due to the strike by Ukrainian pilots, in Moscow’s "Sheremetyevo" airport 90 passengers have remained stranded.
Pilots are protesting reduction in benefits, including wages. Negotiations are underway between the union and the administration of the pilots of the airline.
"Aerosvit" is one of the largest Ukrainian airline, and serves 80 international routes, its fleet consists of 16 medium-haul Boeing 737s and seven Boeing 767 long-haulers. In 2010, "Aerosvit" increased transport up to 1.717 million passengers (a 24.4% increase in 2009).
August 1 2011
PRIMORSKY SHIPBUILDERS STRIKE AGAINST POOR WORKING CONDITIONS
At the "Vostok" plant in Bolshoi Kamen a strike took place by workers who are painting the nuclear submarine "Nerpa". The painters, seconded to work with the Amur Shipbuilding Plant and the "Korabell-Vostochny" plant in Nakhodka, are protesting against delays in payment of salaries and poor working conditions.
In the compartments and holds, heat, humidity, and heavy paint vapour hangs in the air due to poor conditions of ventilation systems that are badly discharging the fumes. According to "Komsomolskaya Pravda", the workers employed in the painting of the submarine, have not received salaries since May, and some of the workers had written an application for resignation.
===================
WORKERS IN KAZAKHSTAN SHOW UNPRECEDENTED UNITY AND SOLIDARITY
According to labour activists at JSC "Karazhanbasmunai", on Saturday began a meeting of workers at the oil field "Kalamkas", and on Sunday, July 24 at a rally after the change, which was attended by about five thousand men, it was decided to support the demands of the strikers, fellow strikers. The workers at Kalamkas insist on the immediate release from prison of the trade union lawyer Natalia Sokolova and worker activist Akzhanata Aminov, end all criminal and administrative cases and reinstatement to work of all laid-off members of the actions. Meanwhile the oil workers are going to hold meetings after the shift, but in case of mass layoffs, which the first deputy general director of "KMG" Askar Balzhanov, has promised to implement, the workers will simply not come to drill and will organize a new enclave of strike action.
In the workplace at "Ozenmunaygaza", there has also been a turning point in the mood of the workers. Workers from different departments who refused to strike a few weeks ago, again go on the side of the strikers, adding to the ranks of the rally on Yntymak square in the centre of Zhanaozen. It seems that the attempts of the authorities and employers have failed, and the threat of layoffs and repression to stifle the strike have failed. Moreover, the strike wave can cover all the surrounding oil fields and connected. The workers have shown unprecedented unity and solidarity, and their actions are coordinated by trade union activists.
With shame ended the visit by deputies from the Majilis (Parliament), who left after a visit to Aktau after a visit from European parliamentarians from the Socialist Party of Ireland, Paul Murphy. Instead of going to the place of assembly and meetings of strikers, they offered the workers to come cap in hand to school number 24 in the 15th district of Aktau, where he chaired the "working group" akimat, "Nur Otan," made up of representatives of the EP and the Chinese company CITIC. Three MPs from the ruling party of Mangistau region thought to exercise individual reception for sacked workers in order to allegedly help them with employment. On the demand of the oil workers, to go to the "people's elected representatives" to the working people, as the socialist from Europe did, they refused. As a result, the "dialogue" did not take place ...
On July 25 ends the moratorium on layoffs, and the striking oil workers with anticipation expect action by the employers. In the case of growth of repression, inevitably the strike will spread to neighboring enterprises, and all the relatives and sympathizing residents of settlements affected by thestrike action will come to the rallies. On the same day at 3pm, began the trial of Natalia Sokolova, who was accused at the request of the acting president of "Karazhanbasmunai" Yuan Mu, of fomenting "social discord." Incidentally, the funniest proposal from "Karazhanbasmunai" to hold a meeting of the personnel for the election of new representatives for talks, the workers of JSC "Karazhanbasmunai," affirmed the authority of their own comrades, sitting in jail.
July 26.
According to labour activists from a number of strikers, from Aktau alarming news is coming out. Four buses with riot police were not removed from Zhanaozen, but are in a camp in the desert, waiting for further orders. The oil town itself is awash with traffic police, which also raises suspicion among the strikers and the local population. Due to the fact that on 25 July from 5 to 7 am a warning strike of solidarity of workers at the deposit "Kalamkas" took place which was attended by five thousand oil workers, the number of participants in the rally in Yntymak square also increased. Despite the widening of the strike, labour leaders do not exclude the implementation of counter-insurgency operations in the next few days.
At the same time, more layoffs after July 25 were not followed through, although notices and warnings have been issued in large numbers in many enterprises and departments of "Ozenmunaygaz." At the same time, the mood among the workers is more than decisive. As mentioned earlier, the work collectives of all the neighboring oil fields and enterprises, and residents of Zhanaozen, Akat, Shetpe settlement and other settlements are ready to go en masse to support the oil workers in the case of force being used by and riot police units. The situation remains very tense in the region. The judicial process over Natalia Sokolova, having not started, has been moved to an unspecified time.
http://rkrp-rpk.ru/content/view/5617/1/
=================
PILOTS STRIKE PARALYZE INTERNATIONAL CONNECTIONS TO UKRAINE
At the "Borispol" international airport August 01 2011, more than five flights of the airline "Aerosvit" were delayed in connection with the protest by pilots of Boeing-737-s, reports "RBC-Ukraine", the press service of the airlines, on the website spb.rbc.ru.
According to the report at the time, flights were delayed to Moscow, Hamburg, Odessa, Athens and other cities. Also reported was a canceled flight to Prague. In total may be about 5% of flights that are served by Boeing-737 aircraft may be delayed. Return flights to "Borispol" were subjected to delay, but their flights will take place.
Media reported long queues in the lobby of Terminal "A". The company promised to provide passengers with a hotel room or a refund in the case of flight cancellations.
Earlier it was reported that due to the strike by Ukrainian pilots, in Moscow’s "Sheremetyevo" airport 90 passengers have remained stranded.
Pilots are protesting reduction in benefits, including wages. Negotiations are underway between the union and the administration of the pilots of the airline.
"Aerosvit" is one of the largest Ukrainian airline, and serves 80 international routes, its fleet consists of 16 medium-haul Boeing 737s and seven Boeing 767 long-haulers. In 2010, "Aerosvit" increased transport up to 1.717 million passengers (a 24.4% increase in 2009).
August 1 2011
Tuesday, 2 August 2011
FOR BOLSHEVISM-AUCPB – NEWSREEL AUGUST 02 2011
ON JULY 27 THE DPRK CELEBRATES VICTORY IN THE FATHERLAND LIBERATION WAR AGAINST THE ARMED AGGRESSION OF THE USA (JUNE 25, 1950 - JULY 27, 1953)
On June 25, 1950, the U.S. committed armed aggression against the newly-born DPRK (1948), hoping to destroy this country and turn the entire Korean peninsula into a bridgehead for the conquest of East Asia. But quite unexpectedly the U.S. was met by a so dignified and stubborn resistance by the DPRK that their, "blitzkrieg" intended to last a week became for the U.S., three years of heavy loss of life and equipment that ended in the signing of "truce" on July 27, 1953. For the first time in its history of military adventures, the U.S. received a powerful slap in the face. The great leader Comrade Kim Il Sung led the resistance of the people to U.S. aggression. He was always in Pyongyang, at the headquarters where he directed military operations and civilian work in the factories that produced weapons. There, in the headquarters, his son, little KIM JONG IL was oftern there watching the work of his father the Great Leader, and carefully studied the maps of military action.
Then, in the Fatherland Liberation War against the American occupiers, the entire people of Korea liberated from Japanese colonial slavery, rose up to defend their homeland. When the plant’s electricity was cut off (from the constant bombing and electrical cable breaks), people turned heavy flywheels which drove the machines by hand. Over Pyongyang, American bombers dropped such an enormous number of bombs, that they turned the city into the ashes and complete ruins. The heroism of the people on the front and rear was universal. Men and women fought to the death against the armed to the teeth American aggressors. And they achieved victory in the unequal fight! The great spirit of freedom, independence and courage of the Koreanshad won, defending the future of the Korean nation, the right to an independent, elected by the people, path of building a new, free society from exploitation. And in this victory lies the great merit of the great military leader Comrade Kim Il Sung.
Today is a very difficult time for the DPRK due to constant provocations by the U.S. who dream to destroy the freedom-loving people, and by the treachery of the Korean nation's ruling elite in South Korea, fully sold to America. The puppet government of the Republic of Korea (South Korea) is actively engaged in "intimidating" the DPRK (North Korea) by their military maneuvers near the borders of the DPRK, by falling for bribery and powerful ideological propaganda, trying to tarnish the DPRK and its leaders. But the people of the DPRK peacefully and with irony refer to such provocations, strongly believes in its leadership and is ready to carry out any order of their beloved leader - the Great Kim Jong Il.
The most painful issue for the U.S. now is the possession by the DPRK of it own nuclear weapon created by the genius of Korean scientists and engineers. The DPRK is now reliably protected from a possible pre-emptive strike by the United States, which earlier constantly threatened the DPRK. Therefore, discussions about the resumption of six-party talks, which were devoted to at meetings in July in Bali (Indonesia), is, it seems to us, an old song by the United States to force the DPRK and its leadership under any pretext and various false promises from the U.S. into rejecting nuclear weapons.
In recent history, there have been many examples that prove that a lack of a nuclear shield by a number of sovereign states ended in the destruction of their own independence and demise, accompanied by the physical extermination of the civilian population in these countries by the United States aggressor. The real U.S. attitude towards the DPRK has been well known the across the world over the past 60 years. "Goodwill" by the U.S. is similar to the "goodwill" of the wolf in Krylov's fable "The Wolf in the dog kennel," namely, when the predator, mistaking the fold, comes to the kennel and being pushed into a corner, vows not to kill, but to protect the sheep, for which he was answered: -
You're gray, but I, my friend, am grey,
And your wolfy nature, I know long ago;
So my custom:
With the wolves is not to make peace,
As taking the skin off them.
And then he released the pack of hounds on the Wolf. This Krylov fable was written in 1812 (during Russia’s war with Napoleon). The fable was immediately sent to the army of Kutuzov ... The Russian general treated the French as the hound did in the fable of Krylov ...
We sincerely wish the heroic people of the DPRK success in building a prosperous socialist state and solving in the near future complex problems associated with unifying the Korean nation into a united Democratic Confederal Republic of Koryo on the scenario developed by the DPRK with the partcipation of the Great Leader Comrade Kim Il Sung and later updated by Great Kim Jong Il .
We wish the DPRK complete victory over modern fascism - US Nazism-Zionism.
Such people as the people of the DPRK, can never be beaten!
CC AUCPB
==========================
STALIN PICKET IN ACADEMGORODOK, NOVOSIBIRSK
On July 27, Novosibirsk, in Akademgorodok on, 18 / 1 Heroes of Labour street, took place, the fourth Stalin picket organized by the Komsomol and AUCPB which make up the movement "FOR STALIN!" In the demonstration also took an active part activists from "The judge of time" organisation.
The fifth Stalinist rally will be held on July 30 (Saturday), at 16.00-19.00, at the Karl Marx Square, 7, on-site at the entrance to Sun City. It is also planned to hold the sixth Stalin picket on August 3 in Berdsk (time and venue to be confirmed).
AUCPB-Novosibirsk
Photo
On June 25, 1950, the U.S. committed armed aggression against the newly-born DPRK (1948), hoping to destroy this country and turn the entire Korean peninsula into a bridgehead for the conquest of East Asia. But quite unexpectedly the U.S. was met by a so dignified and stubborn resistance by the DPRK that their, "blitzkrieg" intended to last a week became for the U.S., three years of heavy loss of life and equipment that ended in the signing of "truce" on July 27, 1953. For the first time in its history of military adventures, the U.S. received a powerful slap in the face. The great leader Comrade Kim Il Sung led the resistance of the people to U.S. aggression. He was always in Pyongyang, at the headquarters where he directed military operations and civilian work in the factories that produced weapons. There, in the headquarters, his son, little KIM JONG IL was oftern there watching the work of his father the Great Leader, and carefully studied the maps of military action.
Then, in the Fatherland Liberation War against the American occupiers, the entire people of Korea liberated from Japanese colonial slavery, rose up to defend their homeland. When the plant’s electricity was cut off (from the constant bombing and electrical cable breaks), people turned heavy flywheels which drove the machines by hand. Over Pyongyang, American bombers dropped such an enormous number of bombs, that they turned the city into the ashes and complete ruins. The heroism of the people on the front and rear was universal. Men and women fought to the death against the armed to the teeth American aggressors. And they achieved victory in the unequal fight! The great spirit of freedom, independence and courage of the Koreanshad won, defending the future of the Korean nation, the right to an independent, elected by the people, path of building a new, free society from exploitation. And in this victory lies the great merit of the great military leader Comrade Kim Il Sung.
Today is a very difficult time for the DPRK due to constant provocations by the U.S. who dream to destroy the freedom-loving people, and by the treachery of the Korean nation's ruling elite in South Korea, fully sold to America. The puppet government of the Republic of Korea (South Korea) is actively engaged in "intimidating" the DPRK (North Korea) by their military maneuvers near the borders of the DPRK, by falling for bribery and powerful ideological propaganda, trying to tarnish the DPRK and its leaders. But the people of the DPRK peacefully and with irony refer to such provocations, strongly believes in its leadership and is ready to carry out any order of their beloved leader - the Great Kim Jong Il.
The most painful issue for the U.S. now is the possession by the DPRK of it own nuclear weapon created by the genius of Korean scientists and engineers. The DPRK is now reliably protected from a possible pre-emptive strike by the United States, which earlier constantly threatened the DPRK. Therefore, discussions about the resumption of six-party talks, which were devoted to at meetings in July in Bali (Indonesia), is, it seems to us, an old song by the United States to force the DPRK and its leadership under any pretext and various false promises from the U.S. into rejecting nuclear weapons.
In recent history, there have been many examples that prove that a lack of a nuclear shield by a number of sovereign states ended in the destruction of their own independence and demise, accompanied by the physical extermination of the civilian population in these countries by the United States aggressor. The real U.S. attitude towards the DPRK has been well known the across the world over the past 60 years. "Goodwill" by the U.S. is similar to the "goodwill" of the wolf in Krylov's fable "The Wolf in the dog kennel," namely, when the predator, mistaking the fold, comes to the kennel and being pushed into a corner, vows not to kill, but to protect the sheep, for which he was answered: -
You're gray, but I, my friend, am grey,
And your wolfy nature, I know long ago;
So my custom:
With the wolves is not to make peace,
As taking the skin off them.
And then he released the pack of hounds on the Wolf. This Krylov fable was written in 1812 (during Russia’s war with Napoleon). The fable was immediately sent to the army of Kutuzov ... The Russian general treated the French as the hound did in the fable of Krylov ...
We sincerely wish the heroic people of the DPRK success in building a prosperous socialist state and solving in the near future complex problems associated with unifying the Korean nation into a united Democratic Confederal Republic of Koryo on the scenario developed by the DPRK with the partcipation of the Great Leader Comrade Kim Il Sung and later updated by Great Kim Jong Il .
We wish the DPRK complete victory over modern fascism - US Nazism-Zionism.
Such people as the people of the DPRK, can never be beaten!
CC AUCPB
==========================
STALIN PICKET IN ACADEMGORODOK, NOVOSIBIRSK
On July 27, Novosibirsk, in Akademgorodok on, 18 / 1 Heroes of Labour street, took place, the fourth Stalin picket organized by the Komsomol and AUCPB which make up the movement "FOR STALIN!" In the demonstration also took an active part activists from "The judge of time" organisation.
The fifth Stalinist rally will be held on July 30 (Saturday), at 16.00-19.00, at the Karl Marx Square, 7, on-site at the entrance to Sun City. It is also planned to hold the sixth Stalin picket on August 3 in Berdsk (time and venue to be confirmed).
AUCPB-Novosibirsk
Photo
Monday, 1 August 2011
FOR BOLSHEVISM No 8 (101) AUGUST 2011
WORKERS OF ALL COUNTRIES, UNITE!
FOR BOLSHEVISM
INSIDE THE COMMUNIST AND WORKERS’ MOVEMENT
ALL-UNION COMMUNIST PARTY OF BOLSHEVIKS (AUCPB)
FOR BOLSHEVISM-AUCPB website: http://aucpbenglishwebsite.blogspot.com or google in: aucpb
No 8 (101) AUGUST 2011
58 YEARS WITHOUT STALIN
The growing false arguments across the former Soviet Union against Stalin's personality, force one to turn to the statistics of the time and take look into the purse of a citizen of the USSR in 1953. In this comparison will lie the historical truth.
What did Stalin, as head of a huge state, do and wanted to do for its citizens?
Let's start with wages. In 1953, workers' wages ranged from 800 to 3 thousand rubles per month. Steelmakers and miners got 8-10 thousand rubles. The salary of an engineer, lawyer, doctor, teacher after graduation was £ 900-1000. Specialists with experience, received 1200-1300 rubles per month. Salaries of secretaries of district committees was 1500 rubles, Ministers of the USSR - 5 thousand rubles, Professors and academics - 5-10 thousand rubles. As you can see, the miner in the Soviet Union could earn as much as academic or 6,5 times more than the Secretary of the district committee of the Communist Party.
From 1928 to 1955, growth of products of mass consumption in the USSR per capita increased by 595%, ie, almost 6 times (and this despite the devastating war and restoring the national economy, which took about 10 years).
Real incomes of workers in comparison with 1913, taking into account the elimination of unemployment and shorter working hours, increased by 5 times.
The lowest level of life in the Soviet Union after the Civil War years were 1921-22 and 1946-47, after the Great Patriotic War. However, the Soviet government, headed by Stalin on December 16, 1947, informed citizens about the abolition of rationing supply of food and manufactured goods and the abolition of the high prices of commercial trade. The prices for bread, flour, cereals, pasta and beer were reduced on average by 10-12% of the operating ration prices. On cloth, shoes, clothing, jerseys, prices were set at 3,2 times less than commercial. Meat, fish, fats, sugar, confectionery, salt, potatoes, vegetables, tobacco and matches were maintained at ration prices which were much lower than commercial prices.
On milk, eggs, tea, fruit, the prices were also significantly reduced compared with the commercial prices, and set at a level in relation to ration prices of basic foodstuffs.
This Decree of the USSR Council of Ministers was a surprise to economists and politicians of the West. For example, in England the rationing of food was abolished only in 1952.
From 1947, Stalin annually reduced prices, and in 1953 they looked like this (per kg):
white bread - 3 rubles. (Ukraine, February 2011: 6,5 UAH.);
black bread -1 rub. (4,3 UAH.);
meat, beef - 12,5 rubles. (60 grn.)
fish - 7.1 rubles. (15-150 grn.)
Butter - 27.8 rubles. (40-120 UAH spray, with the vegetable oil additives);
sugar - 9,4 rubles (9-10 hrn.)
buckwheat - 5,6 rubles (14-25 grn.)
Eggs, 10 pcs. - 8.35 rubles. (10-12 grn.)
milk, 1 liter - 2.24 rubles. (10 grn.)
vegetable oil, 1 liter. - 17 rub. (12-15 grn. and higher);
vodka 0,5 l - 22,8 rubles. (25-30 grn. and higher);
beer, 0,5 l - 2,96 rubles (4-8 grn.)
Jar of crabs - 4.3 rubles (40 grn.)
shoes, a pair of (on average) - 188.5 rubles. (250-800 UAH).
A miner for a monthly salary could buy a "Moskvich" car, which cost 9 thousand rubles, and a "Pobeda" car was worth 16 thousand rubles.
At the same time in the leading capitalist countries from 1947 to 1953, the price of bread, meat, butter, sugar rose: at 4-28% in the U.S., 35-133% - in England, 88-270% - in France.
In this case, we should not forget that under Stalin for the first time in the world there was an 8-hour working day, provided guaranteed free education and health care, almost free housing, the cheapest in the world public transport (for example, travel on the tram cost in Soviet times in the 1980-s, 3 kopecks, trolleybus - 4 kop., bus and subway - 5 kop.), railway, air and sea transport; guaranteed pensions, paid holidays, etc.
Success of Stalin's socialism mortally frightened leaders of the capitalist countries. U.S. presidential candidate Stevenson said that if the pace continued, in 1970 the volume of production in the USSR would be of 3-4 times higher than the U.S.. King of the American press, Hearst, after visiting the USSR demanded that the U.S. Senate form a permanent council for planning - a prototype of the Soviet State Planning Commission.
At the same time, Stalin's ruble was the hardest currency in the world. On March 1, 1950, the Soviet government agreed to: stop from the March 1, 1950 the definition of the ruble against foreign currencies based on the dollar and transfer over to a more stable gold basis, to establish the gold content of the ruble at 0.222168 grams of pure gold, and the purchase price of the State Bank of 1 g of gold = 4.45 rubles.
The gold ruble equivalent of Stalin's sample in 1950 outweighed the current UAH by 78 times (1 g bank gold is now in Ukraine 347.88 UAH. In Russia - 1283 rubles.) and the modern Russian ruble – by 288 times.
The achievements of the economy, created under the leadership of Stalin, is being used by the modern bourgeois "jackals" who are still plundering the country.
In his outstanding work, “Economic Problems of Socialism in the USSR”, Stalin formulates the main economic law of capitalism: "Maximizing the capitalist profit through the exploitation, ruin and impoverishment of the majority of the population of a given country, through the enslavement and systematic robbery of the peoples of other countries, especially underdeveloped countries, finally through wars and militarization of the economy used to provide the highest profits.
Simultaneously, Stalin formulated the essential features and requirements of the main economic law of socialism, which is to "maximize the satisfaction of the constantly growing material and cultural needs of society through the continuous expansion and improvement of socialist production on the basis of higher technology”.
Compliance with this law by Stalin gave a powerful push in the economy and the steady improvement in the lives of workers. And he thought at the end of his life not about yachts, cottages, private accounts in foreign banks and a glamorous life, but made a concrete plan for implementation to further improve the material and cultural living standards of the Soviet people and the conditions during the transition to communism: "To do this, first of all, we need to shorten the working day, to at least 6 hours and then 5. This is to ensure that members of society have enough free time necessary to obtain a comprehensive education. To do this, then, we need to introduce universal compulsory polytechnic education, necessary to ensure that members of society are able to freely choose a profession and not be tied for life to any one profession. To do this, further, we need to radically improve living conditions and raise the real wages of workers and employees by at least twice if not more, both by directly increasing the monetary wages and, especially, by further systematic reduction of prices on consumer goods."
That's how Bolshevik Stalin ruled the country.
For 20 years of the bourgeois-liberal reforms in Ukraine, production and economic potential of the country has been completely destroyed, most of the people robbed and plunged into poverty. Also our presidents and rulers - Zionist lackeys of capital, continue to propose we tighten belts. The question arises, what to do?
I will answer with the words of the US Declaration of Independence in 1776, the country that Ukrainian politicians and the tabloids constantly put up as an example: "... We hold these truths to be sef-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among thses are life, liberty and the pursuit of happiness. That to secure these rights, governmenta are instituted among men, deriving their just powers from the consent of the governed. That whenever any Form of government becomes destructive of these rights, it is the right of the people to alter or abolish it, and to institute new Government, laying its foundations on such principles and organizing its powers in such form, as to them shall seem most likely to affect their Safety and Happiness... But when long train of abuses and usurpations, pursuing invariably the same Object envinces a design to reduce them under absolute Despotism, it is their right, it is their duty to throw off such Government, and to provide new guards for their future security.
I'd add - so the government can be only Bolshevik government, as under Stalin.
A.N. BILANIK, from Vinnitsa, Ukraine
===============================
THE COLLAPSE OF IMPERIALISM IS INEVITABLE
Author: A. Mayevsky
"... The conditions of bourgeois society are too narrow to comprise the wealth created by them. And how does the bourgeoisie get over these crises? On the one hand by enforced destruction of a mass of productive forces, on the other hand, by the conquest of new markets and by the more thorough exploitation of the old ones. That is to say, by paving the way for more extensive and more destructive crises, and by diminishing the means whereby crises are prevented. "
Karl Marx, Friedrich Engels, "Communist Manifesto”
U.S. financial problems, the slow growth of the Chinese economy, the debt crisis in Europe and the recession in Japan, with high probability can turn into the "perfect storm", the full force of which the world economy will be felt in two years, - says economist Nouriel Roubini, who predicted the global financial crisis of 2008.
A new wave of crisis
As you know, on May 31, the U.S. Congress voted against raising the limit of government borrowing, without a significant reduction in government spending. As Bloomberg reports, 318 MPs - nearly all of the Republican faction (236 representatives out of 240) and 82 Democrats - voted against the bill, while only 97 supported it people. To pass the bill to the next stage it was necessary to muster two-thirds, or 277 votes present at the vote of Congress.
The American administration since the vote has 11 weeks left (at the time of writing this) to avoid default (default - failure to pay for some or other financial liabilities, the financial failure of a bank, corporation or government in general) that may occur after August 2, if Congress does not vote for raising the ceiling level of government debt.
It should be noted that the ceiling of 14.294 trillion dollar (which almost corresponds to the value of U.S. GDP), public debt was reached by the country in mid-May, after Treasury Secretary Timothy Geithner in an address to parliamentarians forced the situation. He called on Congress as early as possible to raise the limits for state loans in order to "protect the recognition and confidence in the U.S. and avoid catastrophic economic consequences for the citizens."
The same was said by Barack Obama two weeks before the vote in Congress: "If investors around the world consider that the U.S. debt obligations are not guaranteed and that we can stop payments on our bonds, it could bring down the entire financial system. We may face a worse recession than the one already, with a worse financial crisis than it was. "
The debt ceiling is an American "invention." The first limit for government borrowing USA was established in 1917, when it stood at $ 11.5 billion. In March 1962 the U.S. debt ceiling increased 74 times. 20 years ago, the ceiling was 3.665 trillion. $ 10 years ago - about 6 trillion. In 2008 - 10.7 trillion. Despite this, the government always managed to reach an agreement with lawmakers.
In anticipation of the forthcoming in autumn 2012 US presidential election, Republicans want to place Barack Obama fully responsible for the crisis in the economy, for which they are willing to even go to the default (or blackmailed by Barack Obama's default), thus on this background, beat the Democrats to the White House.
"Even now, - said Nouriel Roubini, - there are signs of weakness. All continue to follow the path of increasing public and private debt. The load is getting heavier, and all these difficulties will be felt at the latest by 2013." In his view, global economic growth could slow in the second half of the year because of "continuing to get rid of debt," wrapping up incentive programs and the weakening of consumer confidence in the economy.
Alex Vyazemsky, an analyst at FG, "Calita-Finance", proposes to consider the seemingly improbable, until recently, the scenario of default in the United States. In this case, the belief in the stability of U.S. Treasury bonds, ie, government securities, will be immediately lost and they will fall sharply in price. The Federal Reserve will rush to save the situation, and print dollars to buy government debt securities from panicked investors. However, dollars injected into the economy would not be enough to delay the massive Margin Calls around the world. (Margin Call - demands to banks and brokers to quickly, within a few hours bring guarantees). Covering Margin Calls in this case will be nothing – there will be too few dollars in the global economy to support the momentum suddenly arisen in the mutual demands between major banks and corporations (whose volumes are close to 25 trillion which is about half of world GDP) . The interbank lending market will cease to exist - exactly the same scenario as in the time of the collapse of Lehman Brothers in 2008, paralysis of the financial system, including the foreign exchange market and derivatives market (ie, derivatives, derivative securities).
The crisis in financial markets would spread to markets and trade. In an attempt to find an urgent liquidity (ie, cash, dollars) to cover liabilities, hedge funds (hedge fund - Engl. hedge Fund - a private, not limited by regulation, or affected by a weaker regulation investment fund that is not available a wide range of people and driven by professional investment management) and banks will begin to throw off massive futures (futures - contracts signed for future supply of certain types of goods, raw materials, food, etc., according to previously defined and strictly specified price and other conditions) for oil, gold, industrial metals and other assets, even increasing the domino effect and provoking new mutual defaults.
That is, we are talking about a new wave of the global financial crisis, 2012-2015.
Moreover, as Sergey Egishyants chief economist asserts at SG "ITinvest", N. Roubini is too optimistic. Two years is too long for his proposed scenario. Already the question is now: who will buy the U.S.government bonds, because there is still a fair amount of demand (and, accordingly, the U.S. budget deficit) covered by the program. "To get investors to buy bonds, they – the investors - need a good scare. What is beneficial for markets to fall, along with defaults or the threat of defaults (Greece and other eurozone countries), disasters and wars? Investors are given to understand: all around is volatility, and the only stable assets are US government bonds. It always has been. But things are changing. Even leading U.S. banks are getting rid of government bonds and go into cash ", - says Sergey Egishyants.
And if the United States lower the ratings, then their government bonds will certainly no longer be accepted. Moreover, this process has already started.
In April, the international rating agency Standard & Poor's changed the rating forecast of the U.S. from "stable" to "negative", though still at the highest rating AAA. At the same time the ratings of the Federal Reserve System (FRS), as well as the Federal Reserve Bank (FRB) of New York were both downgraded. The main reason for the rating change was to do with problems with the U.S. budget, public debt and the inability of U.S. legislators to find a compromise solution to these problems. In fact, there was a turning point in world economic history, the "idol" staggered, because the priests themselves of that idol (international credit rating agencies) questioned the idol’s omnipotence. The cornerstone on which rests the current world global economy faltered, and the question of when there would be a "domino effect" and collapse of the entire present world economic system, was then only a matter of time, - said Vasily Kryukov, in his article "The world economy on the eve of the crisis” (“Comments” № 763, 04.26.2011).
The agency Standard & Poor's has revised downward the rating outlook of the U.S. economy for the first time in many years. The current rating (AAA) was awarded the U.S. on January 1, 1941 and throughout this period it has not changed. International rating agencies, the bourgeois analysts and economists assured the world that anything can happen, any company can go bankrupt, but there is no doubt in the U.S. ability to pay, that the U.S. government is omnipotent and in its T-Bills, will always pay on time. And this belief was based on the fact that the Fed can always make an extra dollar emission and pay off the debts. The decision by Standard & Poor's to downgrade the U.S. means one thing - for some reason the Fed will not be able to quickly "release a few dollars" to pay its debts.
Economists and analysts have long known that the budget and debt problems of the United States are increasing, "like a snowball." The budget deficit is regularly funded by additional debt issuance. In the period 2003-2008, this deficit was within 2-5% of GDP. In 2009, it was 11%, and experts predict that by the end of 2011 it will reach 1.5 trillion dollars. It became obvious that America is living beyond its means. As a result, on April 13, U.S. President Barack Obama introduced the medium-term fiscal consolidation plan designed to reduce the budget deficit and reduce the amount of debt in 10 years by 3 trillion, and in 12 years – by $ 4 trillion. It is proposed to do this by eliminating exemptions for income tax on the rich (families whose income exceeds 250 thousand dollars), introduced by George W. Bush, as well as by reducing defence spending, health and agriculture. Obama also proposed an automatic budget sequestration, if the ratio of public debt in 2014 to GDP remained stable. But in Congress, the Democratic President plan met opposition, particularly among Republicans, as we have mentioned above.
Among the largest creditors of the U.S. economy are: China, the world's largest holder of foreign reserves (the second largest holder of gold reserves is Japan, the third - Russia) - U.S. Treasuries to China, is 1.16 trillion $, which exceeds 40% of all gold reserves of China. Further, among the largest holders of U.S. Treasury bonds (government bonds), after China's 2010 results are: Japan - $ 882.3 billion, United Kingdom - 272.1 billion U.S. dollars, a group of 15 oil-exporting countries, including Venezuela, Iran, Iraq, Kuwait, Saudi Arabia, Libya and Nigeria - 211.9 billion U.S. dollars, Brazil - 186.1 billion U.S. dollars, a group of Caribbean countries - $ 168.6 billion, Taiwan - 155.1 billion U.S. dollars, Russia - $ 151 billion ($ 508 billion of gold reserves of Russia), Hong Kong - $ 134.2 billion, Switzerland - $ 107 billion.
In fact, these countries are the holders of U.S. Treasury bonds, keeping the U.S. economy afloat, and allow the U.S. due to the growing budget deficit, which is covered by these state bonds, to perform certain social programs and retain workers from just indignation, because primarily the crisis lies on the shoulders of working people.
If all these debt obligations as a result of the U.S. failing on its payments, devalued, then all of the above countries will simply lose all their "earnings" over the years (for example, the gold reserves of Russia in the first place, supplemented by the sale of natural raw materials, oil and gas). If the “pyramids” of the markets U.S. government debt “collapse", then it would be a disaster - said Vladimir Kryukov. All the wealth and savings of "advanced economies" in the twinkling of an eye turn into nothing, real estate, manufacturing facilities, land and other assets and thousands of banks and insurance companies based in these countries would depreciate, unable to meet their obligations and in global finance, chaos will begin. Kryukov predicts economic chaos, immediately provoking political chaos, and on a global scale. The legitimacy of existing government institutions will be questioned, etc.
Given the increasing unreliability of the government bonds in the U.S., China has virtually stopped buying them. Financial analysts note that since November last year, almost the entire increase in U.S. government debt is bought only by the Fed, that is, in fact, "empty" (i.e. no guarantee) dollar emissions. Hence, by the way, derives a sharp jump in global inflation.
According to Egishyants, the more likely scenario is a relatively rapid onset of a new phase of the crisis, compared with the prediction of N. Roubini: the markets would drop for another month or two. Then in the second half of the summer - after raising the national debt the U.S. - investors, sensing another "stage of dropping money from helicopters" will start to buy risky assets (stocks, commodity futures), which would fuel inflation. This, in turn, would reduce household incomes and corporate profits would decline (rise in inflation, in practice, means an increase in prices, i.e., with the same cash amount of money, consumers can buy fewer goods and services, then causes the actual decline in profits of corporations) that give rise to a sharp collapse in the market for next autumn-winter. Following this, the world economy will go fast into minus, and the governments will print money quickly, but that will not help. "That's something of the sort, I think, is more likely happen than the too stretched over time scenario by Roubini" - explains Egishyants. According to him, the collapse of the global economy is inevitable: the real aggregate demand is much smaller than the world production capacity. Until 2008, demand was artificially inflated by credit, but this resource is now exhausted. Now demand is supported by state injections - in the U.S. they provide 10-12% of household disposable income. But it greatly increases the burden of public debt, which has a limit under the threat of default, which is what Roubini talks about. "Thus the end of fiscal stimulus and as a consequence, a collapse of aggregate demand and the global economy - it's just a matter of time. How long – this can be debated, as Roubini does. But in one thing he is right: this year, it will begin to fall, in 2012 or stretching up to 2013 - the process would already have begun, and the crash inevitable"- concludes Egishyants.
The fact that a new global financial crisis is "not far off", is believed by head of Templeton Asset Management, Mark Mobius. According to him, the reason for the new shocks will be the increase in the volume of trading with derivative financial instruments (derivatives) in the absence of proper regulation. "Certainly, in the near future we are expecting another financial crisis, because the reasons which provoked the previous shocks, have not been removed", - said M. Mobius to Bloomberg agency.
According to experts, the total value of derivatives exceeds global GDP by 10 times. (The volume of world GDP, according to various estimates, is between 50 to 64 trillion dollars. That is, on the financial markets of the world circulates around 600 trillion dollars of unsecured funding markets. Herein lies the objective source of huge inflation, soaring prices of natural raw materials, goods, food, services, etc. It should be noted that there is also another estimate of the derivatives. Paul Wilmott, a mathematician at Oxford University, believes that the volume of derivatives is 20 times greater than the volume of world GDP and amounts to 1.2 quadrillion, i.e. 1,200 trillion dollars). That is what creates the preconditions for a new crisis.
The fact that "large areas of the world economy over the next three years, may suffer a substantial decline," was stated in a speech at the St. Petersburg International Economic Forum (17.06), by Deputy Prime Minister and Finance Minister Alexei Kudrin of Russia.
And one more point I would like to pay attention to.
Manufacture of money out of thin air, money not backed by commodities is one of the main reasons for the current financial and economic crisis of capitalism. In order to finance the budget deficit (the so-called fiscal stimulation), the U.S. government now has to stimulate the economy at more than $ 2 trillion dollars a year. (Since the crisis, in September 2008, the U.S. monetary base has increased almost 3-fold - from $ 875 billion to $ 2.5 trillion. However, pumping the economy with such money is not easy: it was necessary to increase sharply government borrowing and budget deficit, Artem Sokolov said in the article "Global currency depreciation," "Comments” № 763, 04.26.2011). If we take into account that the U.S. gross domestic product should grow this year by about $ 500 billion, it turns out that $ 1.5 trillion will simply "evaporate".
But this is not entirely true. Analysis of the first phase of the crisis has shown that it is the bankers and financial speculators who are the main culprits of the current crisis, and in the crisis years continued to get incredibly rich at the expense of precisely those "volatile" hundreds of billions and trillions of dollars (of which we have repeatedly written in the pages of "RKP", analyzing the first phase of the crisis, 2008-2010). At the same time, the financial moguls and big business pass the brunt of the crisis generally onto working people. This trend is observed worldwide, including in Ukraine (we have already said that Ukrainian oligarchs in 2010 - when the Azarov government called for and continues to encourage workers of Ukraine to economise on everything and even go with a spade into the garden, to save themselves from starvation – have more than twice increased their capital. Not forgetting about the members of the government, faithfully who serve this capital and increase their own wealth).
In the U.S. last year another negative record was made: more than a million homes were seized by mortgage banks (the main culprits of the crisis) from the population at large to pay off mortgage arrears. This is a record figure since the start of the process in 2006, exceeding the 2006 indicator by 4 times. Experts predict that this year, this practice will continue, and with further growth. Outstanding mortgage is the reason that many Americans are losing their apartments and houses. Outstanding mortgage is due to the high unemployment in the U.S. constituting 10% of all able-bodied power that does not allow people to pay the credits taken in collateral acquired by housing (mortgage).
We Bolsheviks can say only one thing - the approaching second phase of the global economic crisis, which promises to be much more severe than the first one, means the collapse of the world system of imperialism is coming closer, as a completely bankcrupt system and an obstacle to the further development of civilization, therefore we can only welcome that collapse.
The crisis of the European economy
The state of affairs in Europe is not much better than in the U.S.
The country with the world's lowest long-term credit rating according to Standard & Poor's is Greece. The international agency calls its debt restructuring and the first sovereign default in history, the eurozone "increasingly likely". The ratings of Greece, experiencing a deep economic crisis, have been reduced by three stages, and the forecast for it remains "negative". S & P forecasts that by 2013, the country will have endured at least one default.
"Greece is waiting for default - now the question is only when this will happen" - managing director of the New York Granite Springs Asset Management LLP Vincent Trulia said to Bloomberg.
In early June, Moody's Investors Service agency lowered Greece's sovereign rating. The rating outlook is "negative". According to Moody's, there is an increased the risk that Greece will not be able to stabilize its financial position, without debt restructuring.
In late May, the international rating agency Fitch downgraded the long-term Issuer Default Ratings (IDRs) of Greece's foreign and local currency.
"Rating agencies are now playing catch-up with the market - says JP Morgan analyst Gianluca Salford. - Market estimates the very high probability that in Greece are expected some credit events. Thus the agencies simply reflect the negative ratings already laid down in the price in the market, not vice versa."
Authorities are trying to tighten up on the economy and reduce government spending: such conditions have been put forward to Greece by the EU and IMF, in providing credit to the country of 110 billion euros to support the Greek economy.
In response to the desire of the authorities in Greece to save the economy from default due to the attack on the living standards of working people, working people in Greece on June 15 held a 24-hour general strike, the third one this year.
Not in a much better position are some other countries in the Eurozone. In particular, the PIIGS group of countries (Portugal-Ireland-Italy-Greece-Spain). Of these five, three countries are in a critical condition, and 2 - in a complex situation.
In general, the European "problem" countries are characterized by such symptoms:
- Falling competitiveness
- Low economic growth,
- Rising unemployment,
- Problems in the banking sector,
- Political crisis
- The growing budget deficit,
- Social tensions.
According to Eurostat, in this top five in the 2010, the budget deficit to GDP of Ireland was 32.4%, Greece - 10.5%, Spain - 9.2% Portugal - 9.1%, Italy - 4.6 %, the level of public debt to GDP, Greece was 142% (forecast for 2011 - 150.2%), Italy - 119% (120.2% - respectively), Portugal - 93% (101.7%), Ireland - 65% (107%), Spain - 53% (69.7%).
In addition to this, the five countries with the most difficult situation are also Hungary, the UK (the two countries are not included in the euro zone. In the euro zone comprises 17 of the 27 EU countries), and Belgium. In late May, Denmark was added.
***
Due to the escalating crisis in the capitalist world economy, there is increased competition for survival, especially among the major world currencies, which are the dollar and the euro (as well as gaining strength yuan, of course).
Therefore, all the crises in the EU economy, the contradiction between individual EU countries and the eurozone, including the artificially provoked "cucumber war," only benefit the U.S. because they weaken the euro and, on this background, help for some time hold the dollar as the world's dominant currency.
Dominique Strauss-Kahn - the first high-ranking victim of the global crisis of imperialism
on April 3, speaking at the annual meeting of IMF and World Bank, Managing Director Dominique Strauss-Kahn made an hour and a half speech in which he criticized the principles of the "Washington consensus" and called for "fairer globalization, globalization with a human face."
It should be noted that the "Washington Consensus" as a set of policy recommendations on economic and financial policy for developing countries, was formulated by British economist John Williamson in 1989. The "Consensus" urged these countries to adopt principles for economic policies followed by the "developed" countries. It was about principles, which, according to Williamson, reflect the common position of the United States, the IMF and World Bank, as well as leading U.S. think tanks. Since their headquarters are located in the capital of the United States, hence the term "Washington Consensus". "Washington Consensus" includes the following recommendations: to maintain fiscal discipline (a minimum budget deficit), reducing marginal tax rates, liberalization of financial markets, free exchange rate of national currency, liberalization of foreign trade (mainly due to lower rates of import duties); reduction of constraints on foreign direct investment, privatization of maximum deregulation of the economy, i.e., maximum withdrawal of the state from the economy, all-round protection of property rights.
Thus, the term "Washington Consensus" is a set of measures aimed at strengthening the economy of market mechanisms while simultaneously reducing the role of the state.
It was the "Washington Consensus" as a basic tool of modern financial and economic policy of the U.S. and dominance of the dollar in the global economy, and was subjected to criticism by the head of the IMF.
Dominique Strauss-Kahn called for forming a global economy, with fewer risks and less uncertainty, where the financial sector will be regulated by the government, and revenues and benefits shared equally: "Financial globalization has increased inequality, and it became one of the secret springs of the crisis - says Dominique Strauss Kahn. - Therefore, in the longer term, sustainable growth is associated with a more equitable distribution of income. We need a new kind of globalization, more equitable globalization, globalization with a human face. The benefits of economic growth must be widely distributed, and not simply attributable to a handful of privileged people "..." The crisis was the product of mindless risk culture, which is still alive. In constructing a new macroeconomic framework for the new world, the pendulum will swing - at least a little - from market to state and from the relatively simple things to things more complex ..."" The "Washington Consensus" with its simplistic economic ideas and recipes collapsed during the global economic crisis and was left behind."
That conclusion by Strauss-Kahn about the collapse of the "Washington consensus", his appeal to the rich (the world's financial elite) to share with the poor, i.e., with working people was the main reason for his resignation as head of the IMF. And it was done against the background of another sex scandal. The powerful, financial and banking tycoons, dismissed in disgrace from his post as manager, a hired top-level only for the fact that he allowed himself to publicly question the usefulness and reliability of the current financial system, its inability to cope with the challenges of the time, its collapse.
And yet the former head of the IMF in return has not offered anything new in principle, but wishes the strong to share with the weak, to reduce the social costs of the crisis.
But the involuntary confession by Strauss-Kahn only revealed the depth of the current stage of general crisis of imperialism, and showed all its inhuman nature.
The struggle of U.S. imperialism, Zionist capital for world domination is entering a decisive phase.
Already, even bourgeois economists and analysts have come to the conclusion that other means besides setting up all sorts of disasters, wars, acts of provocation, the American financial system and imperialism in general has nothing more to stay afloat with, and is trying to prolong its existence.
The so-called Arab "Internet Revolutions", the obsession to destroy the recalcitrant regime of Muammar Gaddafi in Libya - only for the fact that the Libyan leader had dared (!) to place the country's natural resources, oil, primarily at the service of the people - until the transition to land military operations, incitement and provoking popular discontent in Yemen, Syria and other countries - all this is in line with the US-Zionist policy of complete mastery of all oil, gas and other natural resources of the planet, in line with the enslavement of nations and peoples, complete and final destruction of the sovereignty and independence of all rebellious nations and plantations needed for imperialism's puppet regimes in the imposition on other countries in the world and foreign policy that is pleasing to U.S. imperialism.
For this purpose, international financial and economic, military, political and legal institutions such as IMF, World Bank, NATO, International Court of Justice in The Hague, etc., are used. Recommendations are drawn up for "developing" countries, recommendations such as the "Washington consensus", although the U.S. absolutely do not adhere to them (take for instance the demand to limit the budget deficit primarily by cutting social programs; the share of borrowing only within the U.S. budget is currently 43%, which completely contradicts the principles of "consensus").
Yet the focus of expansion of the Zionists remains to be Russia with its incalculable wealth, natural resources and raw materials, rich in oil and gas reserves.
U.S. imperialism has done and will do anything to disrupt or complicate plans for post-Soviet integration into the Customs Union and Common Economic Space.
And Ukraine has managed to reliably tear away from the integration processes taking place. To do this, in 2004 and early 2005 by the Orange "revolution", the nationalist anti-Russian regime of Yushchenko was brought to power, who had for five years of his reign, placed Ukraine in opposition to Russia, nullified the intended unification processes and trends. The regime of Yanukovych-Azarov that came to power last year on a wave of pro-Russian rhetoric and promises to restore and strengthen ties with Russia, continues to carry out in practice the same policy in the European orientation, in an effort to create a Free Trade Area with the EU (which is no benefit Ukraine, but making it an economic appendage of the European Union) and by all means avoiding the Customs Union and Common Economic Space, which is completely contrary to the interests of Ukraine (according to estimates of economists, it would have brought to Ukraine annually ten billion U.S. dollars, and help revive the advanced science-intensive industries, etc. etc.). But instead, the regime answers to the demands of world capital to prevent the re-establishment of interstate associations of fraternal countries and peoples, even on a capitalist basis.
The Customs Union was created and worked in the 3 countries: Russia, Belarus and Kazakhstan. But even in a smaller union, without Ukraine, this union has the potential to become a competitor to the U.S. and the EU.
And attempts have already been started to try to tear away Belarus from Russia, and set the two republics against each other. The West has long dreamed of removing bourgeois patriot Lukashenko from power. But all attempts have failed in the course of election campaigns to achieve the desired result, as in Ukraine, for example, and still have not brought success to the West. Then the West used direct provocation against the Belarusian people.
The explosion on April 11 in a Minsk subway, killing 14 people and wounding about 200, showed that the era of peaceful life in Belarus is now over. The aim of this inhuman action is to wreak havoc in Belarus and set its people against the leader Alexander Lukashenko. This was another attempt by hook or by crook to remove Lukashenko from the political arena.
And then after that, inflation provoked from outside immediately started a sharp devaluation of the Belarusian currency. Moreover, this triggered panic among the Belarusian population, who rushed to buy foreign currency and buy up everything in the shops, using, primarily, social networks and foreign, mainly Russian media, which read about and observe Belarus.
As noted by commentators (see, for example, P. Verhovinets "How to Organize a crisis in one country”, “Comments” № 769, 06.06.2011), this moment was used next to provoke panic. The economy of Belarus, as well as the economy of any country, differs in specific seasonality, i.e., at certain periods of time, the flow of currency into the country is less than the outflow. Such a moment occurs in Belarus in late winter and early spring due to the need to import energy, (and this year they rose, particularly oil,) and exports during the period, primarily agricultural products, farm machinery and fertilizers, is reduced. This imbalance in foreign trade of Belarus is observed from year to year, thus to provoke panic among the petite bourgeoisie, petty-minded entrepreneurs and intellectuals (i.e., among the petty and middle bourgeoisie) was not difficult. The use of social networks clearly shows the same handwriting of the overseas provocateur who (social networking), at the request of Hillary Clinton at the height of the outbreak of the conflict in Libya and the beginning of NATO aggression against that country should be under the full control of the appropriate U.S. agencies and services. In whipping up panic in Belarus, the Russian liberal (i.e., controlled by Zionist capital) media were drawn in, carriers and spokesmen for the interests of Russian oligarchs, who are dreaming, as they take over and privatize still state owned and successfully operating major Belarusian enterprises.
Yielding to skillfully provoked panic, Belarusian philistines began actively buying foreign currency in exchange offices, then started rush buying of items like jewellery, household appliances, food products, up to sugar, salt, vinegar, matches, which could not be brought into the trade network on time.
By the end of May, the Government and National Bank of Belarus managed to stabilize the situation - the attempt to provoke a crisis and massive anti-government protests, this time also failed. True, the National Bank was forced to devalue the Belarusian ruble by 55%, which hit in the first place the Belarusian working people, reducing by 1.5 times their standard of living.
Alexander Lukashenko was able to negotiate with Russia to obtain credit for Belarus amounting to $ 3 billion for stabilization and maintenance of the Belarusian ruble. True, of course, is that the Russian oligarchs (and the Putin-Medvedev regime is a regime at the service of Russia's big business) put forward the condition of individual privatization of Belarusian companies. Indeed the working people of Ukraine are well aware of what privatization really is. This is, first of all, throwing out of factory gates, dozens and hundreds of thousands of workers, and the start of mass unemployment.
In this respect, Alexander Lukashenko has said that he has nothing against private property (this is the answer to those comrades who believe Lukashenko is a Communist): "We are for private property, which man creates himself", he says. But at the same time, the president of Belarus said he would not tolerate predatory privatization. That the provision of credit (with Russia and the Eurasian Economic Community) is not only financial but also political in nature, is clear from the remarks of the liberal Kudrin, after declaring the inadmissibility of Belarusian state obstruction of the Russian media, the very media that fuelled the anti-Belarusian anti-Lukashenko hype.
And one more point I would like to mention. Those who came out with anti-Lukashenko statements and protests against his policies, especially during the artificially kindled crisis, were mainly small and medium entrepreneurs, those who are banned from the uncontrolled export of Belarusian goods and gasoline abroad (on which they build their business.)
The petty-bourgeois environment is a social base of fascism which is skillfully used by big business (and this is particularly noticeable among us in the Ukraine). In this case, these layers have their ideological and psychological impact by big business in Russia (through the media under its control). But this impact, this effort will talk directly, "to gobble up Belarus” ultimately directed against Russia, against Russian workers and fits perfectly into the concept of Zionist and American imperialism to oppose Belarus against Russia, to weaken the Customs Union and Common Economic Space formed, so then U.S. imperialism and the West seize Russia itself, completely stripped of its allies.
There is no doubt that the Zionists will sooner or later be engaged with Kazakhstan too. The "Eternal" ruler of this largest Central Asian republic, Nursultan Nazarbayev, amassed his multibillion-dollar state due to the ruthless exploitation and plunder of Kazakh workers (as we wrote in the pages of "RKP", publishing material of out Kazakh colleagues), and is hated by the Kazakh people. Any protests by the workers is ruthlessly suppressed by Nazarbayev's regime.
Consequently, the Zionist provocateurs, again by using social networks, i.e., influencing that same petty-bourgeois strata of the population and young people, doped up by anti-communist propaganda and the glorification of Western "civilization," it would be easy to ignite another "colour revolution" in order to fully replace Nazarbayev with a controlled by them puppet Saakashvili-Yushchenko type and try to set Kazakhstan against Russia.
And after that, again I repeat, then comes Russia’s turn.
And, finally, the General Staff of the Russian Federation "woke up" stating that Russia’s START-3 is unprofitable. That is what we Bolsheviks said last year, calling a spade a spade: the START-3 is a betrayal of national interests of Russia. Americans continue to rapidly build a missile defence system directed solely against Russia with the aim of lowering its strategic nuclear and missile capabilities. In the case of the fulfilment of START-3, by 2015-2017, Russia will be deprived of any possibility of retaliation, which will allow the U.S. imperialists to dictate and impose its bonded-predatory terms, and we finally be turned into a raw material appendage of colonial Western imperialism.
By capturing and putting under their control of the oil and gas resources of Russia, the imperialists are hoping to delay their own imminent historically predetermined death.
* * *
Experts predict that China by 2020, and the latest by 2030, will surpass the U.S. in economic potential of up to two times the excess of U.S. GDP. But all these predictions are based on non-conflict scenarios and do not account for acute ruthless competition of various groups of imperialists and the various imperialist countries with each other (and the fact that China under the guise of the Communist Party, became in the course of reform, one of the major imperialist countries, that we have previously mentioned).
The U.S. imperialists will never give way to global leadership without a fight. They will try to push China to a conflict with India, or China with Russia, so as not to allow the yuan to replace the dollar and become the world's dominant currency.
But still, the essence of the matter is in the economic development of China along the imperialist path (the same way in which capitalist economies of the USA and EU complete their historic path), the paths of strengthening, and then the unchallenged dominance in the economic life of financial and speculative capital, generating larger and more destructive crises, which in the end, will bury capitalism.
The task of the international working class is a united struggle to confront all these threats and to help imperialism go into the dustbin of history.
A. MAEVSKY, secretary of the CC AUCPB
Further interesting reading on China today can be found in
a book by A. Maevsky entitled - "Modern Day China"
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FOR BOLSHEVISM
INSIDE THE COMMUNIST AND WORKERS’ MOVEMENT
ALL-UNION COMMUNIST PARTY OF BOLSHEVIKS (AUCPB)
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No 8 (101) AUGUST 2011
58 YEARS WITHOUT STALIN
The growing false arguments across the former Soviet Union against Stalin's personality, force one to turn to the statistics of the time and take look into the purse of a citizen of the USSR in 1953. In this comparison will lie the historical truth.
What did Stalin, as head of a huge state, do and wanted to do for its citizens?
Let's start with wages. In 1953, workers' wages ranged from 800 to 3 thousand rubles per month. Steelmakers and miners got 8-10 thousand rubles. The salary of an engineer, lawyer, doctor, teacher after graduation was £ 900-1000. Specialists with experience, received 1200-1300 rubles per month. Salaries of secretaries of district committees was 1500 rubles, Ministers of the USSR - 5 thousand rubles, Professors and academics - 5-10 thousand rubles. As you can see, the miner in the Soviet Union could earn as much as academic or 6,5 times more than the Secretary of the district committee of the Communist Party.
From 1928 to 1955, growth of products of mass consumption in the USSR per capita increased by 595%, ie, almost 6 times (and this despite the devastating war and restoring the national economy, which took about 10 years).
Real incomes of workers in comparison with 1913, taking into account the elimination of unemployment and shorter working hours, increased by 5 times.
The lowest level of life in the Soviet Union after the Civil War years were 1921-22 and 1946-47, after the Great Patriotic War. However, the Soviet government, headed by Stalin on December 16, 1947, informed citizens about the abolition of rationing supply of food and manufactured goods and the abolition of the high prices of commercial trade. The prices for bread, flour, cereals, pasta and beer were reduced on average by 10-12% of the operating ration prices. On cloth, shoes, clothing, jerseys, prices were set at 3,2 times less than commercial. Meat, fish, fats, sugar, confectionery, salt, potatoes, vegetables, tobacco and matches were maintained at ration prices which were much lower than commercial prices.
On milk, eggs, tea, fruit, the prices were also significantly reduced compared with the commercial prices, and set at a level in relation to ration prices of basic foodstuffs.
This Decree of the USSR Council of Ministers was a surprise to economists and politicians of the West. For example, in England the rationing of food was abolished only in 1952.
From 1947, Stalin annually reduced prices, and in 1953 they looked like this (per kg):
white bread - 3 rubles. (Ukraine, February 2011: 6,5 UAH.);
black bread -1 rub. (4,3 UAH.);
meat, beef - 12,5 rubles. (60 grn.)
fish - 7.1 rubles. (15-150 grn.)
Butter - 27.8 rubles. (40-120 UAH spray, with the vegetable oil additives);
sugar - 9,4 rubles (9-10 hrn.)
buckwheat - 5,6 rubles (14-25 grn.)
Eggs, 10 pcs. - 8.35 rubles. (10-12 grn.)
milk, 1 liter - 2.24 rubles. (10 grn.)
vegetable oil, 1 liter. - 17 rub. (12-15 grn. and higher);
vodka 0,5 l - 22,8 rubles. (25-30 grn. and higher);
beer, 0,5 l - 2,96 rubles (4-8 grn.)
Jar of crabs - 4.3 rubles (40 grn.)
shoes, a pair of (on average) - 188.5 rubles. (250-800 UAH).
A miner for a monthly salary could buy a "Moskvich" car, which cost 9 thousand rubles, and a "Pobeda" car was worth 16 thousand rubles.
At the same time in the leading capitalist countries from 1947 to 1953, the price of bread, meat, butter, sugar rose: at 4-28% in the U.S., 35-133% - in England, 88-270% - in France.
In this case, we should not forget that under Stalin for the first time in the world there was an 8-hour working day, provided guaranteed free education and health care, almost free housing, the cheapest in the world public transport (for example, travel on the tram cost in Soviet times in the 1980-s, 3 kopecks, trolleybus - 4 kop., bus and subway - 5 kop.), railway, air and sea transport; guaranteed pensions, paid holidays, etc.
Success of Stalin's socialism mortally frightened leaders of the capitalist countries. U.S. presidential candidate Stevenson said that if the pace continued, in 1970 the volume of production in the USSR would be of 3-4 times higher than the U.S.. King of the American press, Hearst, after visiting the USSR demanded that the U.S. Senate form a permanent council for planning - a prototype of the Soviet State Planning Commission.
At the same time, Stalin's ruble was the hardest currency in the world. On March 1, 1950, the Soviet government agreed to: stop from the March 1, 1950 the definition of the ruble against foreign currencies based on the dollar and transfer over to a more stable gold basis, to establish the gold content of the ruble at 0.222168 grams of pure gold, and the purchase price of the State Bank of 1 g of gold = 4.45 rubles.
The gold ruble equivalent of Stalin's sample in 1950 outweighed the current UAH by 78 times (1 g bank gold is now in Ukraine 347.88 UAH. In Russia - 1283 rubles.) and the modern Russian ruble – by 288 times.
The achievements of the economy, created under the leadership of Stalin, is being used by the modern bourgeois "jackals" who are still plundering the country.
In his outstanding work, “Economic Problems of Socialism in the USSR”, Stalin formulates the main economic law of capitalism: "Maximizing the capitalist profit through the exploitation, ruin and impoverishment of the majority of the population of a given country, through the enslavement and systematic robbery of the peoples of other countries, especially underdeveloped countries, finally through wars and militarization of the economy used to provide the highest profits.
Simultaneously, Stalin formulated the essential features and requirements of the main economic law of socialism, which is to "maximize the satisfaction of the constantly growing material and cultural needs of society through the continuous expansion and improvement of socialist production on the basis of higher technology”.
Compliance with this law by Stalin gave a powerful push in the economy and the steady improvement in the lives of workers. And he thought at the end of his life not about yachts, cottages, private accounts in foreign banks and a glamorous life, but made a concrete plan for implementation to further improve the material and cultural living standards of the Soviet people and the conditions during the transition to communism: "To do this, first of all, we need to shorten the working day, to at least 6 hours and then 5. This is to ensure that members of society have enough free time necessary to obtain a comprehensive education. To do this, then, we need to introduce universal compulsory polytechnic education, necessary to ensure that members of society are able to freely choose a profession and not be tied for life to any one profession. To do this, further, we need to radically improve living conditions and raise the real wages of workers and employees by at least twice if not more, both by directly increasing the monetary wages and, especially, by further systematic reduction of prices on consumer goods."
That's how Bolshevik Stalin ruled the country.
For 20 years of the bourgeois-liberal reforms in Ukraine, production and economic potential of the country has been completely destroyed, most of the people robbed and plunged into poverty. Also our presidents and rulers - Zionist lackeys of capital, continue to propose we tighten belts. The question arises, what to do?
I will answer with the words of the US Declaration of Independence in 1776, the country that Ukrainian politicians and the tabloids constantly put up as an example: "... We hold these truths to be sef-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among thses are life, liberty and the pursuit of happiness. That to secure these rights, governmenta are instituted among men, deriving their just powers from the consent of the governed. That whenever any Form of government becomes destructive of these rights, it is the right of the people to alter or abolish it, and to institute new Government, laying its foundations on such principles and organizing its powers in such form, as to them shall seem most likely to affect their Safety and Happiness... But when long train of abuses and usurpations, pursuing invariably the same Object envinces a design to reduce them under absolute Despotism, it is their right, it is their duty to throw off such Government, and to provide new guards for their future security.
I'd add - so the government can be only Bolshevik government, as under Stalin.
A.N. BILANIK, from Vinnitsa, Ukraine
===============================
THE COLLAPSE OF IMPERIALISM IS INEVITABLE
Author: A. Mayevsky
"... The conditions of bourgeois society are too narrow to comprise the wealth created by them. And how does the bourgeoisie get over these crises? On the one hand by enforced destruction of a mass of productive forces, on the other hand, by the conquest of new markets and by the more thorough exploitation of the old ones. That is to say, by paving the way for more extensive and more destructive crises, and by diminishing the means whereby crises are prevented. "
Karl Marx, Friedrich Engels, "Communist Manifesto”
U.S. financial problems, the slow growth of the Chinese economy, the debt crisis in Europe and the recession in Japan, with high probability can turn into the "perfect storm", the full force of which the world economy will be felt in two years, - says economist Nouriel Roubini, who predicted the global financial crisis of 2008.
A new wave of crisis
As you know, on May 31, the U.S. Congress voted against raising the limit of government borrowing, without a significant reduction in government spending. As Bloomberg reports, 318 MPs - nearly all of the Republican faction (236 representatives out of 240) and 82 Democrats - voted against the bill, while only 97 supported it people. To pass the bill to the next stage it was necessary to muster two-thirds, or 277 votes present at the vote of Congress.
The American administration since the vote has 11 weeks left (at the time of writing this) to avoid default (default - failure to pay for some or other financial liabilities, the financial failure of a bank, corporation or government in general) that may occur after August 2, if Congress does not vote for raising the ceiling level of government debt.
It should be noted that the ceiling of 14.294 trillion dollar (which almost corresponds to the value of U.S. GDP), public debt was reached by the country in mid-May, after Treasury Secretary Timothy Geithner in an address to parliamentarians forced the situation. He called on Congress as early as possible to raise the limits for state loans in order to "protect the recognition and confidence in the U.S. and avoid catastrophic economic consequences for the citizens."
The same was said by Barack Obama two weeks before the vote in Congress: "If investors around the world consider that the U.S. debt obligations are not guaranteed and that we can stop payments on our bonds, it could bring down the entire financial system. We may face a worse recession than the one already, with a worse financial crisis than it was. "
The debt ceiling is an American "invention." The first limit for government borrowing USA was established in 1917, when it stood at $ 11.5 billion. In March 1962 the U.S. debt ceiling increased 74 times. 20 years ago, the ceiling was 3.665 trillion. $ 10 years ago - about 6 trillion. In 2008 - 10.7 trillion. Despite this, the government always managed to reach an agreement with lawmakers.
In anticipation of the forthcoming in autumn 2012 US presidential election, Republicans want to place Barack Obama fully responsible for the crisis in the economy, for which they are willing to even go to the default (or blackmailed by Barack Obama's default), thus on this background, beat the Democrats to the White House.
"Even now, - said Nouriel Roubini, - there are signs of weakness. All continue to follow the path of increasing public and private debt. The load is getting heavier, and all these difficulties will be felt at the latest by 2013." In his view, global economic growth could slow in the second half of the year because of "continuing to get rid of debt," wrapping up incentive programs and the weakening of consumer confidence in the economy.
Alex Vyazemsky, an analyst at FG, "Calita-Finance", proposes to consider the seemingly improbable, until recently, the scenario of default in the United States. In this case, the belief in the stability of U.S. Treasury bonds, ie, government securities, will be immediately lost and they will fall sharply in price. The Federal Reserve will rush to save the situation, and print dollars to buy government debt securities from panicked investors. However, dollars injected into the economy would not be enough to delay the massive Margin Calls around the world. (Margin Call - demands to banks and brokers to quickly, within a few hours bring guarantees). Covering Margin Calls in this case will be nothing – there will be too few dollars in the global economy to support the momentum suddenly arisen in the mutual demands between major banks and corporations (whose volumes are close to 25 trillion which is about half of world GDP) . The interbank lending market will cease to exist - exactly the same scenario as in the time of the collapse of Lehman Brothers in 2008, paralysis of the financial system, including the foreign exchange market and derivatives market (ie, derivatives, derivative securities).
The crisis in financial markets would spread to markets and trade. In an attempt to find an urgent liquidity (ie, cash, dollars) to cover liabilities, hedge funds (hedge fund - Engl. hedge Fund - a private, not limited by regulation, or affected by a weaker regulation investment fund that is not available a wide range of people and driven by professional investment management) and banks will begin to throw off massive futures (futures - contracts signed for future supply of certain types of goods, raw materials, food, etc., according to previously defined and strictly specified price and other conditions) for oil, gold, industrial metals and other assets, even increasing the domino effect and provoking new mutual defaults.
That is, we are talking about a new wave of the global financial crisis, 2012-2015.
Moreover, as Sergey Egishyants chief economist asserts at SG "ITinvest", N. Roubini is too optimistic. Two years is too long for his proposed scenario. Already the question is now: who will buy the U.S.government bonds, because there is still a fair amount of demand (and, accordingly, the U.S. budget deficit) covered by the program. "To get investors to buy bonds, they – the investors - need a good scare. What is beneficial for markets to fall, along with defaults or the threat of defaults (Greece and other eurozone countries), disasters and wars? Investors are given to understand: all around is volatility, and the only stable assets are US government bonds. It always has been. But things are changing. Even leading U.S. banks are getting rid of government bonds and go into cash ", - says Sergey Egishyants.
And if the United States lower the ratings, then their government bonds will certainly no longer be accepted. Moreover, this process has already started.
In April, the international rating agency Standard & Poor's changed the rating forecast of the U.S. from "stable" to "negative", though still at the highest rating AAA. At the same time the ratings of the Federal Reserve System (FRS), as well as the Federal Reserve Bank (FRB) of New York were both downgraded. The main reason for the rating change was to do with problems with the U.S. budget, public debt and the inability of U.S. legislators to find a compromise solution to these problems. In fact, there was a turning point in world economic history, the "idol" staggered, because the priests themselves of that idol (international credit rating agencies) questioned the idol’s omnipotence. The cornerstone on which rests the current world global economy faltered, and the question of when there would be a "domino effect" and collapse of the entire present world economic system, was then only a matter of time, - said Vasily Kryukov, in his article "The world economy on the eve of the crisis” (“Comments” № 763, 04.26.2011).
The agency Standard & Poor's has revised downward the rating outlook of the U.S. economy for the first time in many years. The current rating (AAA) was awarded the U.S. on January 1, 1941 and throughout this period it has not changed. International rating agencies, the bourgeois analysts and economists assured the world that anything can happen, any company can go bankrupt, but there is no doubt in the U.S. ability to pay, that the U.S. government is omnipotent and in its T-Bills, will always pay on time. And this belief was based on the fact that the Fed can always make an extra dollar emission and pay off the debts. The decision by Standard & Poor's to downgrade the U.S. means one thing - for some reason the Fed will not be able to quickly "release a few dollars" to pay its debts.
Economists and analysts have long known that the budget and debt problems of the United States are increasing, "like a snowball." The budget deficit is regularly funded by additional debt issuance. In the period 2003-2008, this deficit was within 2-5% of GDP. In 2009, it was 11%, and experts predict that by the end of 2011 it will reach 1.5 trillion dollars. It became obvious that America is living beyond its means. As a result, on April 13, U.S. President Barack Obama introduced the medium-term fiscal consolidation plan designed to reduce the budget deficit and reduce the amount of debt in 10 years by 3 trillion, and in 12 years – by $ 4 trillion. It is proposed to do this by eliminating exemptions for income tax on the rich (families whose income exceeds 250 thousand dollars), introduced by George W. Bush, as well as by reducing defence spending, health and agriculture. Obama also proposed an automatic budget sequestration, if the ratio of public debt in 2014 to GDP remained stable. But in Congress, the Democratic President plan met opposition, particularly among Republicans, as we have mentioned above.
Among the largest creditors of the U.S. economy are: China, the world's largest holder of foreign reserves (the second largest holder of gold reserves is Japan, the third - Russia) - U.S. Treasuries to China, is 1.16 trillion $, which exceeds 40% of all gold reserves of China. Further, among the largest holders of U.S. Treasury bonds (government bonds), after China's 2010 results are: Japan - $ 882.3 billion, United Kingdom - 272.1 billion U.S. dollars, a group of 15 oil-exporting countries, including Venezuela, Iran, Iraq, Kuwait, Saudi Arabia, Libya and Nigeria - 211.9 billion U.S. dollars, Brazil - 186.1 billion U.S. dollars, a group of Caribbean countries - $ 168.6 billion, Taiwan - 155.1 billion U.S. dollars, Russia - $ 151 billion ($ 508 billion of gold reserves of Russia), Hong Kong - $ 134.2 billion, Switzerland - $ 107 billion.
In fact, these countries are the holders of U.S. Treasury bonds, keeping the U.S. economy afloat, and allow the U.S. due to the growing budget deficit, which is covered by these state bonds, to perform certain social programs and retain workers from just indignation, because primarily the crisis lies on the shoulders of working people.
If all these debt obligations as a result of the U.S. failing on its payments, devalued, then all of the above countries will simply lose all their "earnings" over the years (for example, the gold reserves of Russia in the first place, supplemented by the sale of natural raw materials, oil and gas). If the “pyramids” of the markets U.S. government debt “collapse", then it would be a disaster - said Vladimir Kryukov. All the wealth and savings of "advanced economies" in the twinkling of an eye turn into nothing, real estate, manufacturing facilities, land and other assets and thousands of banks and insurance companies based in these countries would depreciate, unable to meet their obligations and in global finance, chaos will begin. Kryukov predicts economic chaos, immediately provoking political chaos, and on a global scale. The legitimacy of existing government institutions will be questioned, etc.
Given the increasing unreliability of the government bonds in the U.S., China has virtually stopped buying them. Financial analysts note that since November last year, almost the entire increase in U.S. government debt is bought only by the Fed, that is, in fact, "empty" (i.e. no guarantee) dollar emissions. Hence, by the way, derives a sharp jump in global inflation.
According to Egishyants, the more likely scenario is a relatively rapid onset of a new phase of the crisis, compared with the prediction of N. Roubini: the markets would drop for another month or two. Then in the second half of the summer - after raising the national debt the U.S. - investors, sensing another "stage of dropping money from helicopters" will start to buy risky assets (stocks, commodity futures), which would fuel inflation. This, in turn, would reduce household incomes and corporate profits would decline (rise in inflation, in practice, means an increase in prices, i.e., with the same cash amount of money, consumers can buy fewer goods and services, then causes the actual decline in profits of corporations) that give rise to a sharp collapse in the market for next autumn-winter. Following this, the world economy will go fast into minus, and the governments will print money quickly, but that will not help. "That's something of the sort, I think, is more likely happen than the too stretched over time scenario by Roubini" - explains Egishyants. According to him, the collapse of the global economy is inevitable: the real aggregate demand is much smaller than the world production capacity. Until 2008, demand was artificially inflated by credit, but this resource is now exhausted. Now demand is supported by state injections - in the U.S. they provide 10-12% of household disposable income. But it greatly increases the burden of public debt, which has a limit under the threat of default, which is what Roubini talks about. "Thus the end of fiscal stimulus and as a consequence, a collapse of aggregate demand and the global economy - it's just a matter of time. How long – this can be debated, as Roubini does. But in one thing he is right: this year, it will begin to fall, in 2012 or stretching up to 2013 - the process would already have begun, and the crash inevitable"- concludes Egishyants.
The fact that a new global financial crisis is "not far off", is believed by head of Templeton Asset Management, Mark Mobius. According to him, the reason for the new shocks will be the increase in the volume of trading with derivative financial instruments (derivatives) in the absence of proper regulation. "Certainly, in the near future we are expecting another financial crisis, because the reasons which provoked the previous shocks, have not been removed", - said M. Mobius to Bloomberg agency.
According to experts, the total value of derivatives exceeds global GDP by 10 times. (The volume of world GDP, according to various estimates, is between 50 to 64 trillion dollars. That is, on the financial markets of the world circulates around 600 trillion dollars of unsecured funding markets. Herein lies the objective source of huge inflation, soaring prices of natural raw materials, goods, food, services, etc. It should be noted that there is also another estimate of the derivatives. Paul Wilmott, a mathematician at Oxford University, believes that the volume of derivatives is 20 times greater than the volume of world GDP and amounts to 1.2 quadrillion, i.e. 1,200 trillion dollars). That is what creates the preconditions for a new crisis.
The fact that "large areas of the world economy over the next three years, may suffer a substantial decline," was stated in a speech at the St. Petersburg International Economic Forum (17.06), by Deputy Prime Minister and Finance Minister Alexei Kudrin of Russia.
And one more point I would like to pay attention to.
Manufacture of money out of thin air, money not backed by commodities is one of the main reasons for the current financial and economic crisis of capitalism. In order to finance the budget deficit (the so-called fiscal stimulation), the U.S. government now has to stimulate the economy at more than $ 2 trillion dollars a year. (Since the crisis, in September 2008, the U.S. monetary base has increased almost 3-fold - from $ 875 billion to $ 2.5 trillion. However, pumping the economy with such money is not easy: it was necessary to increase sharply government borrowing and budget deficit, Artem Sokolov said in the article "Global currency depreciation," "Comments” № 763, 04.26.2011). If we take into account that the U.S. gross domestic product should grow this year by about $ 500 billion, it turns out that $ 1.5 trillion will simply "evaporate".
But this is not entirely true. Analysis of the first phase of the crisis has shown that it is the bankers and financial speculators who are the main culprits of the current crisis, and in the crisis years continued to get incredibly rich at the expense of precisely those "volatile" hundreds of billions and trillions of dollars (of which we have repeatedly written in the pages of "RKP", analyzing the first phase of the crisis, 2008-2010). At the same time, the financial moguls and big business pass the brunt of the crisis generally onto working people. This trend is observed worldwide, including in Ukraine (we have already said that Ukrainian oligarchs in 2010 - when the Azarov government called for and continues to encourage workers of Ukraine to economise on everything and even go with a spade into the garden, to save themselves from starvation – have more than twice increased their capital. Not forgetting about the members of the government, faithfully who serve this capital and increase their own wealth).
In the U.S. last year another negative record was made: more than a million homes were seized by mortgage banks (the main culprits of the crisis) from the population at large to pay off mortgage arrears. This is a record figure since the start of the process in 2006, exceeding the 2006 indicator by 4 times. Experts predict that this year, this practice will continue, and with further growth. Outstanding mortgage is the reason that many Americans are losing their apartments and houses. Outstanding mortgage is due to the high unemployment in the U.S. constituting 10% of all able-bodied power that does not allow people to pay the credits taken in collateral acquired by housing (mortgage).
We Bolsheviks can say only one thing - the approaching second phase of the global economic crisis, which promises to be much more severe than the first one, means the collapse of the world system of imperialism is coming closer, as a completely bankcrupt system and an obstacle to the further development of civilization, therefore we can only welcome that collapse.
The crisis of the European economy
The state of affairs in Europe is not much better than in the U.S.
The country with the world's lowest long-term credit rating according to Standard & Poor's is Greece. The international agency calls its debt restructuring and the first sovereign default in history, the eurozone "increasingly likely". The ratings of Greece, experiencing a deep economic crisis, have been reduced by three stages, and the forecast for it remains "negative". S & P forecasts that by 2013, the country will have endured at least one default.
"Greece is waiting for default - now the question is only when this will happen" - managing director of the New York Granite Springs Asset Management LLP Vincent Trulia said to Bloomberg.
In early June, Moody's Investors Service agency lowered Greece's sovereign rating. The rating outlook is "negative". According to Moody's, there is an increased the risk that Greece will not be able to stabilize its financial position, without debt restructuring.
In late May, the international rating agency Fitch downgraded the long-term Issuer Default Ratings (IDRs) of Greece's foreign and local currency.
"Rating agencies are now playing catch-up with the market - says JP Morgan analyst Gianluca Salford. - Market estimates the very high probability that in Greece are expected some credit events. Thus the agencies simply reflect the negative ratings already laid down in the price in the market, not vice versa."
Authorities are trying to tighten up on the economy and reduce government spending: such conditions have been put forward to Greece by the EU and IMF, in providing credit to the country of 110 billion euros to support the Greek economy.
In response to the desire of the authorities in Greece to save the economy from default due to the attack on the living standards of working people, working people in Greece on June 15 held a 24-hour general strike, the third one this year.
Not in a much better position are some other countries in the Eurozone. In particular, the PIIGS group of countries (Portugal-Ireland-Italy-Greece-Spain). Of these five, three countries are in a critical condition, and 2 - in a complex situation.
In general, the European "problem" countries are characterized by such symptoms:
- Falling competitiveness
- Low economic growth,
- Rising unemployment,
- Problems in the banking sector,
- Political crisis
- The growing budget deficit,
- Social tensions.
According to Eurostat, in this top five in the 2010, the budget deficit to GDP of Ireland was 32.4%, Greece - 10.5%, Spain - 9.2% Portugal - 9.1%, Italy - 4.6 %, the level of public debt to GDP, Greece was 142% (forecast for 2011 - 150.2%), Italy - 119% (120.2% - respectively), Portugal - 93% (101.7%), Ireland - 65% (107%), Spain - 53% (69.7%).
In addition to this, the five countries with the most difficult situation are also Hungary, the UK (the two countries are not included in the euro zone. In the euro zone comprises 17 of the 27 EU countries), and Belgium. In late May, Denmark was added.
***
Due to the escalating crisis in the capitalist world economy, there is increased competition for survival, especially among the major world currencies, which are the dollar and the euro (as well as gaining strength yuan, of course).
Therefore, all the crises in the EU economy, the contradiction between individual EU countries and the eurozone, including the artificially provoked "cucumber war," only benefit the U.S. because they weaken the euro and, on this background, help for some time hold the dollar as the world's dominant currency.
Dominique Strauss-Kahn - the first high-ranking victim of the global crisis of imperialism
on April 3, speaking at the annual meeting of IMF and World Bank, Managing Director Dominique Strauss-Kahn made an hour and a half speech in which he criticized the principles of the "Washington consensus" and called for "fairer globalization, globalization with a human face."
It should be noted that the "Washington Consensus" as a set of policy recommendations on economic and financial policy for developing countries, was formulated by British economist John Williamson in 1989. The "Consensus" urged these countries to adopt principles for economic policies followed by the "developed" countries. It was about principles, which, according to Williamson, reflect the common position of the United States, the IMF and World Bank, as well as leading U.S. think tanks. Since their headquarters are located in the capital of the United States, hence the term "Washington Consensus". "Washington Consensus" includes the following recommendations: to maintain fiscal discipline (a minimum budget deficit), reducing marginal tax rates, liberalization of financial markets, free exchange rate of national currency, liberalization of foreign trade (mainly due to lower rates of import duties); reduction of constraints on foreign direct investment, privatization of maximum deregulation of the economy, i.e., maximum withdrawal of the state from the economy, all-round protection of property rights.
Thus, the term "Washington Consensus" is a set of measures aimed at strengthening the economy of market mechanisms while simultaneously reducing the role of the state.
It was the "Washington Consensus" as a basic tool of modern financial and economic policy of the U.S. and dominance of the dollar in the global economy, and was subjected to criticism by the head of the IMF.
Dominique Strauss-Kahn called for forming a global economy, with fewer risks and less uncertainty, where the financial sector will be regulated by the government, and revenues and benefits shared equally: "Financial globalization has increased inequality, and it became one of the secret springs of the crisis - says Dominique Strauss Kahn. - Therefore, in the longer term, sustainable growth is associated with a more equitable distribution of income. We need a new kind of globalization, more equitable globalization, globalization with a human face. The benefits of economic growth must be widely distributed, and not simply attributable to a handful of privileged people "..." The crisis was the product of mindless risk culture, which is still alive. In constructing a new macroeconomic framework for the new world, the pendulum will swing - at least a little - from market to state and from the relatively simple things to things more complex ..."" The "Washington Consensus" with its simplistic economic ideas and recipes collapsed during the global economic crisis and was left behind."
That conclusion by Strauss-Kahn about the collapse of the "Washington consensus", his appeal to the rich (the world's financial elite) to share with the poor, i.e., with working people was the main reason for his resignation as head of the IMF. And it was done against the background of another sex scandal. The powerful, financial and banking tycoons, dismissed in disgrace from his post as manager, a hired top-level only for the fact that he allowed himself to publicly question the usefulness and reliability of the current financial system, its inability to cope with the challenges of the time, its collapse.
And yet the former head of the IMF in return has not offered anything new in principle, but wishes the strong to share with the weak, to reduce the social costs of the crisis.
But the involuntary confession by Strauss-Kahn only revealed the depth of the current stage of general crisis of imperialism, and showed all its inhuman nature.
The struggle of U.S. imperialism, Zionist capital for world domination is entering a decisive phase.
Already, even bourgeois economists and analysts have come to the conclusion that other means besides setting up all sorts of disasters, wars, acts of provocation, the American financial system and imperialism in general has nothing more to stay afloat with, and is trying to prolong its existence.
The so-called Arab "Internet Revolutions", the obsession to destroy the recalcitrant regime of Muammar Gaddafi in Libya - only for the fact that the Libyan leader had dared (!) to place the country's natural resources, oil, primarily at the service of the people - until the transition to land military operations, incitement and provoking popular discontent in Yemen, Syria and other countries - all this is in line with the US-Zionist policy of complete mastery of all oil, gas and other natural resources of the planet, in line with the enslavement of nations and peoples, complete and final destruction of the sovereignty and independence of all rebellious nations and plantations needed for imperialism's puppet regimes in the imposition on other countries in the world and foreign policy that is pleasing to U.S. imperialism.
For this purpose, international financial and economic, military, political and legal institutions such as IMF, World Bank, NATO, International Court of Justice in The Hague, etc., are used. Recommendations are drawn up for "developing" countries, recommendations such as the "Washington consensus", although the U.S. absolutely do not adhere to them (take for instance the demand to limit the budget deficit primarily by cutting social programs; the share of borrowing only within the U.S. budget is currently 43%, which completely contradicts the principles of "consensus").
Yet the focus of expansion of the Zionists remains to be Russia with its incalculable wealth, natural resources and raw materials, rich in oil and gas reserves.
U.S. imperialism has done and will do anything to disrupt or complicate plans for post-Soviet integration into the Customs Union and Common Economic Space.
And Ukraine has managed to reliably tear away from the integration processes taking place. To do this, in 2004 and early 2005 by the Orange "revolution", the nationalist anti-Russian regime of Yushchenko was brought to power, who had for five years of his reign, placed Ukraine in opposition to Russia, nullified the intended unification processes and trends. The regime of Yanukovych-Azarov that came to power last year on a wave of pro-Russian rhetoric and promises to restore and strengthen ties with Russia, continues to carry out in practice the same policy in the European orientation, in an effort to create a Free Trade Area with the EU (which is no benefit Ukraine, but making it an economic appendage of the European Union) and by all means avoiding the Customs Union and Common Economic Space, which is completely contrary to the interests of Ukraine (according to estimates of economists, it would have brought to Ukraine annually ten billion U.S. dollars, and help revive the advanced science-intensive industries, etc. etc.). But instead, the regime answers to the demands of world capital to prevent the re-establishment of interstate associations of fraternal countries and peoples, even on a capitalist basis.
The Customs Union was created and worked in the 3 countries: Russia, Belarus and Kazakhstan. But even in a smaller union, without Ukraine, this union has the potential to become a competitor to the U.S. and the EU.
And attempts have already been started to try to tear away Belarus from Russia, and set the two republics against each other. The West has long dreamed of removing bourgeois patriot Lukashenko from power. But all attempts have failed in the course of election campaigns to achieve the desired result, as in Ukraine, for example, and still have not brought success to the West. Then the West used direct provocation against the Belarusian people.
The explosion on April 11 in a Minsk subway, killing 14 people and wounding about 200, showed that the era of peaceful life in Belarus is now over. The aim of this inhuman action is to wreak havoc in Belarus and set its people against the leader Alexander Lukashenko. This was another attempt by hook or by crook to remove Lukashenko from the political arena.
And then after that, inflation provoked from outside immediately started a sharp devaluation of the Belarusian currency. Moreover, this triggered panic among the Belarusian population, who rushed to buy foreign currency and buy up everything in the shops, using, primarily, social networks and foreign, mainly Russian media, which read about and observe Belarus.
As noted by commentators (see, for example, P. Verhovinets "How to Organize a crisis in one country”, “Comments” № 769, 06.06.2011), this moment was used next to provoke panic. The economy of Belarus, as well as the economy of any country, differs in specific seasonality, i.e., at certain periods of time, the flow of currency into the country is less than the outflow. Such a moment occurs in Belarus in late winter and early spring due to the need to import energy, (and this year they rose, particularly oil,) and exports during the period, primarily agricultural products, farm machinery and fertilizers, is reduced. This imbalance in foreign trade of Belarus is observed from year to year, thus to provoke panic among the petite bourgeoisie, petty-minded entrepreneurs and intellectuals (i.e., among the petty and middle bourgeoisie) was not difficult. The use of social networks clearly shows the same handwriting of the overseas provocateur who (social networking), at the request of Hillary Clinton at the height of the outbreak of the conflict in Libya and the beginning of NATO aggression against that country should be under the full control of the appropriate U.S. agencies and services. In whipping up panic in Belarus, the Russian liberal (i.e., controlled by Zionist capital) media were drawn in, carriers and spokesmen for the interests of Russian oligarchs, who are dreaming, as they take over and privatize still state owned and successfully operating major Belarusian enterprises.
Yielding to skillfully provoked panic, Belarusian philistines began actively buying foreign currency in exchange offices, then started rush buying of items like jewellery, household appliances, food products, up to sugar, salt, vinegar, matches, which could not be brought into the trade network on time.
By the end of May, the Government and National Bank of Belarus managed to stabilize the situation - the attempt to provoke a crisis and massive anti-government protests, this time also failed. True, the National Bank was forced to devalue the Belarusian ruble by 55%, which hit in the first place the Belarusian working people, reducing by 1.5 times their standard of living.
Alexander Lukashenko was able to negotiate with Russia to obtain credit for Belarus amounting to $ 3 billion for stabilization and maintenance of the Belarusian ruble. True, of course, is that the Russian oligarchs (and the Putin-Medvedev regime is a regime at the service of Russia's big business) put forward the condition of individual privatization of Belarusian companies. Indeed the working people of Ukraine are well aware of what privatization really is. This is, first of all, throwing out of factory gates, dozens and hundreds of thousands of workers, and the start of mass unemployment.
In this respect, Alexander Lukashenko has said that he has nothing against private property (this is the answer to those comrades who believe Lukashenko is a Communist): "We are for private property, which man creates himself", he says. But at the same time, the president of Belarus said he would not tolerate predatory privatization. That the provision of credit (with Russia and the Eurasian Economic Community) is not only financial but also political in nature, is clear from the remarks of the liberal Kudrin, after declaring the inadmissibility of Belarusian state obstruction of the Russian media, the very media that fuelled the anti-Belarusian anti-Lukashenko hype.
And one more point I would like to mention. Those who came out with anti-Lukashenko statements and protests against his policies, especially during the artificially kindled crisis, were mainly small and medium entrepreneurs, those who are banned from the uncontrolled export of Belarusian goods and gasoline abroad (on which they build their business.)
The petty-bourgeois environment is a social base of fascism which is skillfully used by big business (and this is particularly noticeable among us in the Ukraine). In this case, these layers have their ideological and psychological impact by big business in Russia (through the media under its control). But this impact, this effort will talk directly, "to gobble up Belarus” ultimately directed against Russia, against Russian workers and fits perfectly into the concept of Zionist and American imperialism to oppose Belarus against Russia, to weaken the Customs Union and Common Economic Space formed, so then U.S. imperialism and the West seize Russia itself, completely stripped of its allies.
There is no doubt that the Zionists will sooner or later be engaged with Kazakhstan too. The "Eternal" ruler of this largest Central Asian republic, Nursultan Nazarbayev, amassed his multibillion-dollar state due to the ruthless exploitation and plunder of Kazakh workers (as we wrote in the pages of "RKP", publishing material of out Kazakh colleagues), and is hated by the Kazakh people. Any protests by the workers is ruthlessly suppressed by Nazarbayev's regime.
Consequently, the Zionist provocateurs, again by using social networks, i.e., influencing that same petty-bourgeois strata of the population and young people, doped up by anti-communist propaganda and the glorification of Western "civilization," it would be easy to ignite another "colour revolution" in order to fully replace Nazarbayev with a controlled by them puppet Saakashvili-Yushchenko type and try to set Kazakhstan against Russia.
And after that, again I repeat, then comes Russia’s turn.
And, finally, the General Staff of the Russian Federation "woke up" stating that Russia’s START-3 is unprofitable. That is what we Bolsheviks said last year, calling a spade a spade: the START-3 is a betrayal of national interests of Russia. Americans continue to rapidly build a missile defence system directed solely against Russia with the aim of lowering its strategic nuclear and missile capabilities. In the case of the fulfilment of START-3, by 2015-2017, Russia will be deprived of any possibility of retaliation, which will allow the U.S. imperialists to dictate and impose its bonded-predatory terms, and we finally be turned into a raw material appendage of colonial Western imperialism.
By capturing and putting under their control of the oil and gas resources of Russia, the imperialists are hoping to delay their own imminent historically predetermined death.
* * *
Experts predict that China by 2020, and the latest by 2030, will surpass the U.S. in economic potential of up to two times the excess of U.S. GDP. But all these predictions are based on non-conflict scenarios and do not account for acute ruthless competition of various groups of imperialists and the various imperialist countries with each other (and the fact that China under the guise of the Communist Party, became in the course of reform, one of the major imperialist countries, that we have previously mentioned).
The U.S. imperialists will never give way to global leadership without a fight. They will try to push China to a conflict with India, or China with Russia, so as not to allow the yuan to replace the dollar and become the world's dominant currency.
But still, the essence of the matter is in the economic development of China along the imperialist path (the same way in which capitalist economies of the USA and EU complete their historic path), the paths of strengthening, and then the unchallenged dominance in the economic life of financial and speculative capital, generating larger and more destructive crises, which in the end, will bury capitalism.
The task of the international working class is a united struggle to confront all these threats and to help imperialism go into the dustbin of history.
A. MAEVSKY, secretary of the CC AUCPB
Further interesting reading on China today can be found in
a book by A. Maevsky entitled - "Modern Day China"
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