Τρίτη, Αύγουστος 31, 2010

Ναι! Δεν είμαι στα καλά μου...

0 ΣΧΟΛΙΑ

"Δεν είμαστε στα καλά μας. Και πως θα μπορούσαμε να είμαστε στα καλά μας όταν ξοδεύουμε καθημερινά, για δεκαετίες ολόκληρες, δεκάξι ώρες της ζωής μας σε αυτή τη δουλειά; Και μάλιστα με αυτές τις αμοιβές που παίρνουμε; Ψώνια είμαστε! Ολοι μας! Η πραγματική μας αμοιβή είναι οτι αυτή τη δουλειά την κάνουμε κέφι!"

Γιώργος Παπαδόπουλος-Τετράδης (σήμερα προς όλους μας)

Ναι! Δεν είμαστε στα καλά μας!

Και το οτι το άκουσα με έκανε, -επιτέλους!- να νιώσω ΠΟΛΥ καλά...
Μετά από πολλούς μήνες και χρόνια.

Το χρειαζόμουν, ρε γμτ!

Χούφτωσ'τη! Χούφτωσ'τη

3 ΣΧΟΛΙΑ

Ως άλλος Διονύσης Παπαγιαννόπουλος προς Λάμπρο Κωνσταντάρα, ο Κώστας Τσόκλης επιχείρησε να αρθρώσει ένα είδος άξεστου πόθου και τα έκανε σαλάτα...

Μόνο έτσι μπορούν να εξηγηθούν -και όχι να δικαιολογηθούν, βεβαίως- οι μεταχρονολογημένες δηλώσεις του (η εκπομπή ήταν του 2000 και παίχτηκε σε επανάληψη ανήμερα τον δεκαπενταύγουστο!).

Γεροντοκουβέντες ήταν αυτές που έκανε ο Παπαγιαννόπουλος με τον Κωνσταντάρα.
Γεροντοκουβέντες και του Τσόκλη.

Με τη διαφορά πως με τις πρώτες ακόμη γελάμε και με τις δεύτερες έγινε ο κακός χαμός. Βλέπετε ο Παπαγιαννόπουλος ήταν ένας έξοχος κωμικός αλλά δεν ήταν πνευματικός ταγός...

Είναι αυτή η λεπτή, ως τρίχα, διαφορά της κωμωδίας από την τραγωδία...
Μια κλωστούλα!

Την περνάς και πέφτεις στα βάραθρα!

Το θεωρούν υποχρέωσή τους οι πνευματικοί ταγοί να πετούν και καμιά αναρχο-αιρετική νοστιμιά από καιρό σε καιρό, έτσι για να μην κατηγορηθούν οτι λένε είτε μόνο δύσπεπτες σοφίες είτε αφόρητες κοινοτοπίες...

Και έτσι πέφτουν στην παγίδα της αρλούμπας!

Και μαζί τους και εμείς!

Τέτοιες, άπειρες έχει πει και ο Θεοδωράκης και ο Σαββόπουλος και πλήθος άλλων... Και κάθε φορά ξεσηκώνεται το πλήθος με "αααααα" και "ουουουουου"...

Και καλώς!

Μόνο που τέτοια και τόσα "αααααα" και "ουουουουου" δεν έχει ακούσει στη ζωή του κανείς τηλεκανίβαλος των μεσημεριανάδικων. Αυτοί χαίρουν ασυλίας! Εχουν το ελεύθερο να λένε ο,τι τους καπνίσει. Γιατί δηλαδή να μην έχει και ο Τσόκλης;

Μα είναι απλό: οι πρώτοι καλλιεργούν και υποθάλπουν τον προτεσταντισμό μας, τα συντηρητικά μας ένστικτα ενώ ο δεύτερος ξύνει πληγές. Λέει πράγματα που τα ακούμε καθημερινά χασκογελώντας αλλά δεν θέλουμε να τα ακούμε επισήμως και δυνατά...

Ο Τσόκλης δεν δικαιώνει τους βιαστές. Εκφράζει το 80, να μην πω το 90% των Ελλήνων ανδρών.

Το τραγικό είναι ότι έχει δίκιο από μια άλλη πλευρά: αυτή της εγκληματολογίας και κυρίως του κεφαλαίου περί των μηχανισμών θυματοποίησης (αυτό που τόσο μπρουτάλ λέγεται "τα θέλει ο κώλος μας")... Μηχανισμοί που έχουν να κάνουν με την ταξικότητα της κοινωνίας, τη μόδα, τα πρότυπα, την παράδοση, την ανατροφή, την αισθητική και, πάνω από όλα, με την παιδεία...

Το χάνει όμως!

Διότι ούτε εγκληματολόγος είναι!
Κι όποιος δεν κατέχει ένα αντικείμενο συνήθως το διαστρεβλώνει. Το γυρίζει τούμπα.

Και στο φινάλε, με αυτά και μ' εκείνα, σε λίγο δεν θα τολμάμε να κοιτάξουμε ο ένας την άλλη στα μάτια μην νομίσει ότι το επόμενο βήμα θα είναι να την βιάσουμε...

Τραγικά πράγματα!






Δευτέρα, Αύγουστος 30, 2010

Η Δύση γλιστράει στον φασισμό

2 ΣΧΟΛΙΑ
>>>ΗΠΑ - 300.000 ακροδεξιοί σήκωσαν το «λάβαρο» της πολιτικής «κάθαρσης»

Οταν το ΚΚΕ σπεύδει να διευκρινίσει...

2 ΣΧΟΛΙΑ
Με το ΚΚΕ και όχι με τη ΝΔ ο αγώνας κατά του Μνημονίου, λέει η Αλ.Παπαρήγα

...τότε υπάρχει ΜΕΓΑΛΟ πρόβλημα στην εκτίμηση της πραγματικότητας!

...τα λέγαμε και χθες!

Εδώ φτάσαμε...

0 ΣΧΟΛΙΑ
Να μας λέει "όχι"...

...αντί να μην το έχουμε καν συζητήσει πως θα μπορούσε να είναι υποψήφιος!

Ξυπνήστε! Γιατί κοιμάστε ύπνο βαθύτατο!

Κυριακή, Αύγουστος 29, 2010

Οταν η Αριστερά απαντήσει στο ερώτημα...

1 ΣΧΟΛΙΑ
...γιατί άραγε ο Μίχαλος (του ΕΒΕΑ) αποφάσισε να καταφερθεί κατά του Μνημονίου...

...θα έχει επιλύσει ένα μέρος του προβλήματος που τη δέρνει! (Πριν δηλαδή βρεθεί κανένα στέλεχός της να να αναφωνήσει: "Πες τα χρυσόστομε!" και βρεθούμε όλοι μαζί στο Δαφνί...)



Η χρεωκοπία της οικονομίας επιβάλλει αναδιαπραγμάτευση χρέους

3 ΣΧΟΛΙΑ

ΤΟΥ ΚΩΣΤΑ ΚΑΛΛΩΝΙΑΤΗ στην ΑΥΓΗ

Σήμερα το ζήτημα, δεν είναι να πετύχει η εγχείρηση και να πεθάνει ο ασθενής

Όταν ο υπουργός Οικονομίας κ. Παπακωνσταντίνου δηλώνει πως δεν τίθεται ζήτημα αναδιάρθρωσης χρέους λέγει στην πραγματικότητα τη μισή αλήθεια. Ζήτημα αναδιάρθρωσης χρέους δεν θέτει βεβαίως σήμερα η κυβέρνηση. Τίθεται, όμως, εκ των πραγμάτων. Από τον ίδιο τον χαρακτήρα της κρίσης και της αδυναμίας εναλλακτικής αντιμετώπισής της. Αρκετοί αριστεροί αναλυτές θεωρούν αντιμετωπίσιμη την ελληνική δημοσιονομική κρίση καταλογίζοντάς την στους κακούς κυβερνητικούς χειρισμούς και την ενδοτικότητα στις επιλογές της τρόικας. Χωρίς να το αντιλαμβάνονται έτσι συγκλίνουν μεθοδολογικά με την επίσημη ερμηνεία πως το κλειδί για την επίλυση της κρίσης βρίσκεται στο να πεισθούν οι αγορές πως η Ελλάδα επιτέλους προσαρμόζεται και όλα τελούν υπό έλεγχο. Δυστυχώς, όμως, ο κοινός στις δύο αυτές προσεγγίσεις, υποκειμενικός χαρακτήρας της κρίσης επισκιάζεται από το πραγματικό αντικειμενικό βάρος της. Η ελληνική κρίση είναι τριπλή και γι’ αυτό εξαιρετικά σύνθετη. Είναι προϊόν της διεθνούς υπερχρέωσης που έχει οδηγήσει στις σημερινές συνθήκες αυξανόμενης πιστωτικής ασφυξίας και ένδειας ρευστότητας των αγορών. Είναι αποτέλεσμα ενός εγχώριου δημοσιονομικού εκτροχιασμού δεκαετιών. Και είναι, επίσης, κατάληξη της χρόνιας έλλειψης ανταγωνιστικότητας ενός αναχρονιστικού μοντέλου ανάπτυξης της οικονομίας.

ΑΥΤΟΣ ΕΙΝΑΙ ο λόγος που η ελληνική κρίση εξαρτάται πρωτίστως από τις εξελίξεις στην παγκόσμια οικονομία και δεν μπορεί να γίνει κατανοητή με εθνικά ματογυάλια, ενώ δεν αντιμετωπίζεται με συμβατικά δημοσιονομικά μέσα μόνον. Με τη σημερινή της μορφή, η ελληνική οικονομία είναι ήδη χρεωκοπημένη καθώς αδυνατεί να επιπλεύσει στη φουρτουνιασμένη -από τη δική της κρίση- ευρωπαϊκή και παγκόσμια οικονομία. Αν αυτό δεν έχει επισήμως αναγνωρισθεί, είναι γιατί βρίσκεται διασωληνωμένη στην εντατική του ευρωπαϊκού μηχανισμού "στήριξης", της τρόικας και του Μνημονίου, ακολουθώντας τη γνωστή συνταγή της μονόπλευρης λιτότητας σε βάρος των εργαζομένων με αποκλειστικό υποτίθεται στόχο τη μείωση του δημοσίου ελλείμματος και την τόνωση της ανταγωνιστικότητας. Λέμε "υποτίθεται", γιατί έχει επιστημονικά αποδειχθεί ότι το μεν έλλειμμα ανταγωνιστικότητας δεν οφείλεται στους υψηλούς μισθούς και δη συντάξεις, αλλά στις παρασιτικές στρεβλώσεις της οικονομίας των μεσαζόντων, στα μονοπωλιακά κυκλώματα που διαμορφώνουν ανεξέλεγκτα και κερδοσκοπικά τις τιμές, και στη μεγάλη διαφθορά και σπατάλη του κομματικού και πελατειακού κράτους που έχει σφυρηλατήσει μία κρατικοδίαιτη και μη βιώσιμη επιχειρηματική τάξη "της αρπαχτής".

ΣΥΓΧΡΟΝΩΣ, η κατά τα άλλα απαραίτητη μείωση του δημοσίου ελλείμματος και χρέους αναλογικά ως προς το ΑΕΠ, δεν μπορεί να γίνει με τα συμβατικά μέσα μιας δραστικής μείωσης των κρατικών δαπανών και αύξησης των φόρων (ακόμη και εάν αυτοί έχουν προοδευτικό χαρακτήρα που σήμερα δεν έχουν) όπως επιχειρεί να κάνει η τρόικα, για δύο απλούς λόγους: πρώτον, γιατί σε συνθήκες παγκόσμιας οικονομικής κρίσης και παρατεταμένης στασιμότητας ή και ύφεσης, η μείωση ορισμένων δαπανών και κυρίως η υπερφορολόγηση επιβαρύνουν το έλλειμμα ανταγωνιστικότητας και βυθίζουν σε ύφεση την ελληνική οικονομία συντηρώντας έτσι το δημόσιο έλλειμμα αντί να το μειώσουν (βλ τεράστια τρύπα στα φετινά φορολογικά έσοδα και επιδείνωση της ύφεσης το β' τρίμηνο) και, δεύτερον, γιατί στα υψηλά επίπεδα του δημοσίου χρέους που πλέον βρισκόμαστε και σε συνθήκες αύξησης των διεθνών επιτοκίων δανεισμού το διογκωμένο κονδύλι της πληρωμής τόκων αποκτά καθοριστικό ρόλο καθιστώντας αυτοτροφοδοτούμενη την αύξηση του ελλείμματος και του χρέους.

ΒΕΒΑΙΩΣ, ο τριετής σχεδιασμός της τρόικας για την Ελλάδα, ο οποίος βασίζεται στην ενδιάμεση εξασφάλιση εξωτερικής χρηματοδότησης 110 δισ. μέσω του μηχανισμού στήριξης, προβλέπει την αύξηση του δημοσίου χρέους έως το 150% του ΑΕΠ μέχρι το 2012 και μετά τη σταδιακή υποχώρησή του, καθώς στο μεταξύ η δημοσιονομική λιτότητα θα έχει υποτίθεται αποδώσει πρωτογενές πλεόνασμα (προβλέπεται 1% του ΑΕΠ το 2012) και η ανάπτυξη θα έχει επιστρέψει στην οικονομία. Πρόκειται, όμως, για απλό ευχολόγιο αφού εμφανώς αγνοεί τον δομικό χαρακτήρα της διεθνούς οικονομικής κρίσης και τη σοβαρότατη πιθανότητα επιστροφής σε νέα ύφεση φέτος ή το 2011, ενώ παραλείπει την τάση αύξησης των επιτοκίων διεθνώς λόγω της εξελισσόμενης κρίσης χρεών (δημόσιων και ιδιωτικών) ανά την υφήλιο που καθιστά απρόθυμους τους επενδυτές στην ανάληψη ρίσκου χωρίς υψηλότερες αποδόσεις. Κυρίως, όμως, υποτιμά τις οικονομικές επιπλοκές από τις έντονες κοινωνικές αντιδράσεις στο σκληρότατο και προκλητικά ταξικό μείγμα δημοσιονομικής και διαρθρωτικής πολιτικής που έχει επιλέξει και επιβάλλει στη χώρα.

ΣΤΟ ΔΙΑΦΑΙΝΟΜΕΝΟ αδιέξοδο της δημοσιονομικής πολιτικής η λύση βρίσκεται εκτός αυτής, στην ανάπτυξη. Η οποία για να λάβει χώρα προϋποθέτει (α) τη δραστική μείωση του τεράστιου βάρους του χρέους μέσω της πολιτικής αναδιαπραγμάτευσής του μέσα στην Ευρωζώνη και (β) την αλλαγή του πακέτου των αναγκαίων για την ανάπτυξη μεταρρυθμίσεων που αποσκοπούν στη βελτίωση της ανταγωνιστικότητας μέσω της μείωσης του κόστους διαβίωσης (βλ έλεγχο ολιγοποπωλιακών κυκλωμάτων και συμπίεση υπερβολικών περιθωρίων κέρδους, μείωση κόστους διατροφής μέσα από την απευθείας σύνδεση του συνεταιριστικού κινήματος των αγροτών-παραγωγών με αυτό των λιανεμπόρων ώστε να συμπιεσθούν τα τεράστια περιθώρια κέρδους των χοντρεμπόρων, μείωση του κόστους υγείας και ειδικότερα των φαρμάκων τα οποία επιβαρύνουν σοβαρά τον οικογενειακό προϋπολογισμό, ελαχιστοποίηση της κερδοσκοπίας στην αγορά καυσίμων με την αύξηση των ελέγχων και την επιβολή κυρώσεων στους λαθρέμπορους, πάγωμα ενοικίων κ.λπ.) παράλληλα με το δημοσιονομικό νοικοκύρεμα της χώρας.

ΕΙΤΕ ΜΙΛΑΜΕ για αναδιάρθρωση είτε για αναδιαπραγμάτευση του χρέους, ουσιαστικά αναγνωρίζουμε την αδυναμία πληρωμών της χώρας και την τυπική ή άτυπη χρεωκοπία της. Όμως, μία απλή αναδιάρθρωση χρέους σημαίνει συνήθως επιμήκυνση του χρόνου αποπληρωμής του ή/και μείωση των επιτοκίων με τα οποία επιβαρύνεται. Πρόκειται, δηλαδή, για μία διευκόλυνση που παρέχουν οι πιστωτές στους όρους εξυπηρέτησης των χορηγηθέντων δανείων χωρίς την αμφισβήτηση και ακύρωση μέρους αυτών. Αντίθετα, μία αναδιαπραγμάτευση του κρατικού χρέους οδηγεί κατά κανόνα στη μερική διαγραφή αυτού με την έκδοση νέων ομολογιακών τίτλων χαμηλότερης ονομαστικής αξίας των αρχικών και ενδεχομένως μεγαλύτερης διάρκειας και μικρότερης απόδοσης. Στη δεύτερη περίπτωση η ελάφρυνση από το βάρος του χρέους είναι ουσιαστική και εξαρτάται πλέον από το ποσοστό της διαγραφής του το οποίο "ζημιώνονται" οι πιστωτές.

Η ΕΛΛΗΝΙΚΗ ΟΙΚΟΝΟΜΙΑ για να εξυγιανθεί δημοσιονομικά με βιώσιμο τρόπο και να ανακάμψει παραγωγικά χρειάζεται μία δραστική αναδιαπραγμάτευση και μαζική διαγραφή χρέους κατά 60-70%. Αυτό δεν αποτελεί μία αυθαίρετη εκτίμηση αλλά κατάληξη πολλών ξεχωριστών επιστημονικών εκτιμήσεων έγκυρων αναλυτών και οργανισμών με βάση και την ιστορική εμπειρία. Η ελληνική κυβέρνηση δεν θέτει καν σήμερα ζήτημα αναδιάρθρωσης χρέους όπως λέγει, τόσο γιατί ευελπιστεί να αποδώσει το "σχέδιο" της τρόικας όσο κυρίως γιατί θέλει να δώσει χρόνο στις ευρωπαϊκές και ελληνικές τράπεζες και τις άλλες ευάλωτες δημοσιονομικά χώρες-μέλη (Πορτογαλία, Ισπανία κ.λπ.) να ανασυνταχθούν κεφαλαιακά και δημοσιονομικά αντίστοιχα ώστε να αποφύγουν τη "μόλυνση" και τον συστημικό κίνδυνο από την επέκταση της ελληνικής κρίσης. Είναι ο ίδιος λόγος για τον οποίο συγκροτήθηκε αρχικά ο ευρωπαϊκός μηχανισμός διάσωσης και συνεχίζεται η εξωτερική δανειοδότηση της Ελλάδας.

ΟΜΩΣ, το ζήτημα δεν είναι να πετύχει η εγχείρηση και να πεθάνει ο ασθενής. Το πρόβλημα της ελληνικής οικονομίας δεν είναι να μην χρεωκοπήσει σήμερα και να χρεωκοπήσει αύριο υπό δυσμενέστερους όρους, αλλά να ξεφύγει οριστικά από την παγίδα του χρέους και να ανακάμψει μία ώρα αρχύτερα ακόμη και εάν αυτό σημαίνει την παραδοχή της χρεωκοπίας. Κάθε μήνας που περνά με το χρέος να αυξάνει λόγω της εξασφαλισμένης "βοήθειας" και την οικονομία να αποδυναμώνεται λόγω των σκληρών αλλά αναποτελεσματικών μέτρων λιτότητας, σημαίνει χειρότερους όρους χρεωκοπίας μεθαύριο και ανάγκη μεγαλύτερης έκτασης διαγραφής χρέους για να ανακάμψει η οικονομία.

ΜΕ ΤΗ ΣΤΑΣΗ ΤΗΣ να αρνείται την αναδιάρθρωση του χρέους, η ελληνική κυβέρνηση βάζει πλάτες ώστε να κερδίσει χρόνο και να διασωθεί η Ευρώπη από μία ανεξέλεγκτη δημοσιονομική και χρηματοπιστωτική κρίση. Θα ήταν κατανοητή αυτή η στάση εάν η Ευρώπη όντως έτσι διασωζόταν και δεχόταν κατόπιν την ουσιαστική περιστολή του ελληνικού κρατικού χρέους. Τίποτα δεν είναι περισσότερο αβέβαιο από τις δύο αυτές υποθέσεις. Πολύ περισσότερο που η ελληνική κυβέρνηση προδιαθέτει για απλή αναδιάρθρωση μελλοντικά του χρέους και όχι για μία δυναμική αναδιαπραγμάτευση και μαζική διαγραφή του 65% αυτού. Για να ορθοποδήσει η Ελλάδα χρειάζεται μία άλλη οικονομική πολιτική. Και η παρούσα κυβέρνηση απέχει παρασάγγας από αυτήν...

Ο καρχαρίας και το καρχαριάκι

0 ΣΧΟΛΙΑ
Εκπαιδεύει ο μπαμπάς καρχαρίας το νεαρό καρχαρία:

- Βλέπουμε τον άνθρωπο, απομακρυνόμαστε, σηκώνουμε πτερύγιο, πάμε αργά προς τα πάνω του, κάνουμε 2 περιστροφές αριστερόστροφες, απομακρυνόμαστε, επιστρέφουμε για άλλες 2 δεξιόστροφες, απομακρυνόμαστε και κάνουμε επίθεση, κατάλαβες; πες τα και εσύ.

- Εεε, ναι, τον βλέπουμε, σηκώνουμε πτερύγιο, 1 στροφή αριστερά. 1 δεξιά και τρώμε!

- Οχι, όχι.. πρόσεχε τα βήματα είναι σημαντικό! Βλέπουμε τον άνθρωπο, απομακρυνόμαστε, σηκώνουμε πτερύγιο, πάμε αργά προς τα πάνω του, κάνουμε 2 περιστροφές αριστερόστροφες, απομακρυνόμαστε, επιστρέφουμε για άλλες 2 δεξιόστροφες, απομακρυνόμαστε και κάνουμε επίθεση, κατάλαβες τώρα; πές τα και εσύ.

- Μμμ, ναι, τον βλέπω, σηκώνω πτερύγιο, 2 στροφές γύρω του και τρώμε!

- ΟΧΙ, ΟΧΙ! προσπάθησε ξανά...

- Τον βλέπω.., πλησιάζω αργά.., κάνουμε.. 2 στροφές προς τα δεξιά… δεν τα θυμάμαι ρε μπαμπά είναι πολλά…

- E, τι να σου πώ… Φάτον με τα σκατά!

Παρασκευή, Αύγουστος 27, 2010

A new stage in the crisis of capitalism - Part Five

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The loss of belief in the existing society, its institutions, laws and morality, is a prior condition for revolution. But such a change does not happen all at once. Gradually, to the degree that the given socio-economic system begins to fail, the feeling grows that “something is not right” with society, that some kind of change is necessary. [Part one]

The “New Normality”

Workers in France protesting in January 2009. Photo by Grégoire Lannoy.Workers in France protesting in January 2009. Photo by Grégoire Lannoy.In Britain, the capitalist country where the idea of bourgeois parliamentary democracy has sunk the deepest roots in the popular psyche, the scandal over M.P.’s expenses has led to a widespread questioning of organized politics and its institutions. In the USA there is a burning anger against the bankers and Wall Street, accompanied by a deep-seated desire for change.

In Greece, where a semi-insurrectionary situation is developing, the mood of popular discontent has taken to the streets. However, the present situation is rooted in the whole of the previous period. In most countries of Western Europe the working class has experienced almost five decades of relative improvement in living standards. The idea that all problems can be settled by reforms is deep-seated in the population because it corresponds with past experience.

It is true that the mass of workers of Europe and the United States have not yet grasped the real seriousness of the situation. They hope that the crisis will only be temporary, and that after a time things will return to normal. Naturally, the reformist leaders (both political and trade union) strive with all their might to reinforce this idea. But it is a profoundly mistaken idea.

One far-sighted bourgeois commentator, Martin Gilles, WestLB's Head Equity Strategist, has said that we can expect to return to normality – but it will be a "new normality". This interesting expression contains a profound truth concerning the nature of the new period we are now entering into. According to WestLB's Head Economist, Holger Fahrinkrug, global economic growth is expected to be only 3% this year, and average economic growth in the industrialized nations will be no more than 1.6%.

“However, WestLB does not expect to see a self-sustaining upswing with strong capital expenditure and significant increases in employment. On the contrary, employment will initially fall yet further.” (WestLB Report, November 26, 2009)

These forecasts were made before the start of the Greek crisis. In reality the outlook is even worse. But the most important thing to note is that the serious strategists of Capital have concluded that there is no possibility of returning to the “good old days” for the foreseeable future. The report continues:

“For the next few years, the US economy will display much weaker growth than is usual in the aftermath of a recession. It will be essential to overcome the country's extreme dependency on consumption and develop a new, viable growth model. The repercussions of the financial crisis on the real economy are likely to be with us for some time to come and bear down upon public finances, private consumption and investment activity.”

This is the reality of the crisis of capitalism. It is a long period of low growth, high unemployment, and constant attacks on consumption. Therefore, what is needed is a root-and-branch change in society, and therefore a root-and-branch change in the political and trade union organizations of the working class.

What now?

There have been periods of capitalist upswing when the capitalists were able to make concessions to sections of the working class and concede reforms. Such a period was the period before the First World War, and the period from 1945 to 1973. But the period we have now entered into has an entirely different character. It will see a long-term decline in living standards for entire populations. This fact has not yet been understood by the majority of the working class. But on the basis of events it will be burned into the consciousness of millions. It will have a profound effect on the class struggle everywhere.

The bourgeois of every country in Europe is following the same path, a path dictated not by the caprice of individual governments or politicians but by the gravity of the economic crisis. As a general rule, similar conditions will tend to produce similar results. The period we are now entering will be far more similar to the 1970s and 1930s than to the last thirty years.

The present situation is complex and contradictory, but this is only a way of expressing the transitional nature of the period, which contains elements from the past, which are struggling with elements of the new period. The old ideas and prejudices will not easily be eliminated. They are tenacious and deeply rooted in the psychology of the masses. Great events will be needed to shake up the masses to the point where they are ready to break with the old ideas and embrace new ones.

One might argue that the consciousness of the masses and the mass organizations is lagging far behind the objective situation, and this is correct, as far as it goes. But it does not go far enough. The consciousness of all classes is conditioned by the previous period. Marx explained:

“Men make their own history, but they do not make it as they please; they do not make it under self-selected circumstances, but under circumstances existing already, given and transmitted from the past. The tradition of all dead generations weighs like an Alp on the brains of the living.” (The Eighteenth Brumaire of Louis Napoleon)

It will take time for the workers of Europe to shake off the old habits and psychology shaped by the last period. For over half a century the workers of Europe have been accustomed to economic growth, full employment and steadily improving living standards. The idea gradually crystallized in their minds: today we are better off than yesterday and tomorrow we will be better off than today. Gradually, on the basis of a long period of economic growth, living standards improved and the class struggle was muted. The bad old days of the 1930s seemed like a bad dream. This was the material base upon which reformism was strengthened.

Now all this has reached its limits. Capitalism is faced with the most serious crisis in the last 70 years – possibly the most serious in its whole history. But after a long period in which the class struggle has been somewhat muted in many countries, the working class, like an athlete after a long period of inactivity, requires a period of “limbering up”, before it undertakes more strenuous and serious activities.

“National unity”

There is no political slogan so false, hollow, deceitful and reactionary as the slogan of national unity. But that is the slogan of the day in every crisis of capitalism. “We must all pull together in the National Interest!” This is the fighting slogan of all the bourgeois and reactionary parties. They wish to use the idea of national unity in order to convince the workers that they must accept sacrifice and austerity to “save the nation”, while the rich continue to fill their pockets.

In Britain, Conservatives and Liberals unite in a coalition government in the name of the National Interest. The trade union leaders everywhere attempt to hold the workers back on the same basis. To this we answer: the unity you are talking about is the unity of the horse and its rider. The latter sits on his back, digs in his spurs and shouts: forward! But when the rider is too heavy and the spurs dig in too deeply, a spirited horse will rear up and throw the rider to the ground.

Some people on the Left have argued that it is necessary to support the “solidarity plan” as a lesser evil. This argument is both false and dangerous. The worst aspect of the present situation is that the harsh measures adopted will prove useless in practice. All the cuts introduced by Papandreou, Zapatero and others will not solve the crisis. On the contrary, by slashing public spending, the cuts will reduce demand and deepen the crisis. Europe will enter a downward spiral that has no ending.

In Greece, as in Spain, the right wing New Democracy has opposed the austerity measures taken by the Pasok government for the sake of electoral popularity. But in reality they have nothing else to offer. The only road open to the bourgeoisie is to attack the living standards of the workers and the middle class. It is not a matter of personal caprice of this or that politician or government. It is a matter of life and death for capitalism. That is why all the governments in Europe, whether “Centre-Left” or “Centre-Right”, are pursuing more or less the same policies.

The bourgeoisie tells the Greek workers that they must accept wage cuts and work harder to compete with the German workers. They tell the German workers that they must accept wage cuts and work harder to compete with the French and British, and so on. In the end, if the workers receive less, the bankers and capitalist will get more profits. That is the kind of “solidarity” we are talking about here. It is the “solidarity” between the exploiter and the exploited.

The trade unions

The crisis of capitalism threatens the jobs, conditions and livelihoods of millions of workers in every country and continent. In the past, it may have been possible to win concessions without a fight. At a time when order books were full and the bosses were making fat profits, they might have been willing to arrive at concessions for the sake of peace. Under such conditions the leaders of the unions had an easy life. The idea was put about of so-called New Realism: that is, of class collaboration and the alleged identity of interest of Wage Labour and Capital.

Now all that has been consigned to the dustbin of history. Under conditions of capitalist crisis there is no alternative but to fight, not just to obtain concessions, but even to preserve the gains of the past.

All the attempts of the union leaders to arrive at a deal with the bourgeoisie in these circumstances are doomed to fail, for the simple reason that the capitalists have nothing to offer them. There is no way out on a capitalist basis. Under the dictatorship of the big banks and monopolies, there is no way forward for the workers of Europe except a future of constantly decreasing living standards and increased exploitation.

The period that now opens up before the European working class will bear a far closer resemblance to the 1930s than to the 1990s. It will be a period of storm and stress without parallel in history. There will be violent swings of public opinion to the left and the right. Under the hammer blows of events the consciousness of the masses will be transformed. The mass organizations, starting with the unions, will be shaken from top to bottom.

The seriousness of the crisis is forcing the bourgeois to take up an intransigent attitude in relation to the trade unions. The bosses have a strategy of taking on some key militant sections and defeating them in order to send out a message to the rest of the class. They are also taking advantage of the recession to go onto the offensive. The old, cozy relationship with the union leaders is no longer possible.

The refuse collectors’ strike in Denmark was very militant, although it took place in the midst of a general collapse of strike activity in the country. The intention was to take them on, use any means possible to smash them and then move on. This is similar to the struggle of the Mexican electricians. The struggle attracted the attention of the whole labour movement. The postal workers’ strikes in Britain had a similar aspect. The management seemed prepared to take on the workers, taking advantage of the more general mood and make an example of them. On that occasion, the union leaders found an excuse and backed off, but the problem remains.

It is natural that under conditions of crisis there will be a ferment in the unions and divisions will open up between different layers of the union bureaucracy. One can say that this is only a struggle between rival bureaucrats, and in a sense that is true. But it is a superficial view that does not take into account the fact that such struggles in the bureaucracy are a reflection of powerful pressures that are building up under the surface.

Crisis of reformism

All history shows that when the mass of the class moves into action, they always express themselves in the first case through the existing mass organizations, no matter how right wing, bureaucratic and reactionary the leaders may be. We have seen this many times in the history of the last 100 years.

The crisis of capitalism is also the crisis of reformism. In the long years of capitalist upswing that followed the Second World War, the reformists were able to grant reforms. But in the last period the Social Democratic governments have been carrying out a policy of counter reforms, undermining and destroying the reforms of the past. Now, with the developing crisis of world capitalism, the policies of reformism are revealed as bankrupt in the most literal sense of the word.

The reformist leaders (including the ex-Stalinists) usually confine themselves to parliamentary or electoral activity. In the hothouse atmosphere of parliament they become divorced from the lives and conditions of the masses and lose whatever revolutionary ideas they may have once had. They learn to be “respectable” and “statesmanlike”. That is, they learn to take upon their shoulders the responsibility for carrying out the dirty work of the bankers and capitalists. This is particularly the case in a crisis. They fall over one another to defend the system.

In reality, the bourgeois and the reformist politicians are trapped. They have exhausted the old tricks of the past. The policies of monetarism and unrestricted market economics have landed them in a mess. The policies of laissez-faire capitalism (“neo-liberalism”) have collapsed. The attempt to return to the old discredited policies of Keynesianism will only make things worse. A combination of the two will get the worst of all worlds. All the old recipes have failed.

The European bourgeois tried to get balanced budgets through the Maastricht Treaty but now this idea has been thrown out of the window. The public debt has soared. This is a measure of desperation. The unprecedented levels of public borrowing will not succeed in getting Spain or any other country out of the crisis, but it will mean a long period of austerity and attacks on living standards.

The aim is to solve the crisis of capitalism by driving down the living standards of the working class and place it at the mercy of Capital. But this will not work. The bourgeois will face an explosion of the class struggle. The period we are in will see movements involving millions. In the course of these struggles, the mass organizations will be under intense pressure from the bourgeoisie and the working class. This will inevitably result in a whole series of internal crises and splits. The formation of Die Linke in Germany was already an anticipation of a process that will take place in one European country after another.

Sectarianism – a dead end

All the attempts of the sects to build phantom “revolutionary parties” outside the existing mass organizations are doomed to ignominious failure. This was revealed graphically in the recent British elections, which indicate a complete collapse of the votes for the sectarian groups, although the conditions for their success were apparently ideal.

In Greece, which is rapidly moving in the direction of a pre-revolutionary situation, the masses are being mobilized through the trade unions. The largest confederations have ties with the ruling Socialist party, Pasok, while a minority leans towards the Communist Party of Greece (KKE).

On the fringes of the movement frustrated youths throw rocks and petrol bombs and attack property. As always, anarchist elements take advantage of this to spread confusion. The frustration of the youth is understandable, but such acts of petty violence lead nowhere. There are dangers in this situation. If the workers’ organizations do not give a lead, it can lead to terrorism, which in turn can easily be manipulated by the state security forces and infiltrated by provocateurs.

Impatience and frustration are always bad councilors. We cannot run too far ahead of the working class, but must patiently go through the experience with them. Our task is to penetrate the mass organizations, which will be shaken to the foundations by the crisis. At a certain stage the emergence of mass left wing and centrist currents is inevitable. We must establish friendly relations with these currents and assist them to overcome their limitations, confusions and vacillations, and win them to the policies and programme of Marxism.

The slogan of the general strike

In more than one country the idea of a general strike is beginning to occupy a central role. There has even been some talk about an all-European strike or day of action. But what is proposed is not an indefinite general strike, but a limited general strike of 24 hours, or less. An indefinite strike can pose the question of power, but a one-day general strike is a demonstration of strength. It can play an important role as a means of mobilizing the workers (even for one day) and, if it is successful, can be a step forward in giving the workers a sense of their power, increasing militancy and raising consciousness.

However, we must also understand that on many occasions the trade union leaders have used one day general strikes as a safety valve – a convenient method of blowing off steam. In Italy in the past, the union bureaucrats called many general strikes of one day, four hours, one hour, and so on, in order to channel the militancy of the rank and file and wear the workers out. In Spain, Greece and France also the union leaders have called general strikes, allowing the workers to express their anger for a few hours on the streets and then afterwards merely returned to “business as usual.”

Naturally, Marxists will agitate in favour of a general strike as a means of mobilizing the maximum numbers of workers in struggle. Particularly where there has not been a general strike for a long time, it can serve to give the workers a sense of their power and raise their fighting spirit. Marxists will make use of such actions to raise class consciousness and extend our influence and authority among the workers, beginning with the most advanced elements.

However, we do not make a fetish of the idea of general strikes, or present them as a panacea. Such tactics will only serve to miseducate and confuse the advanced workers and our own comrades, especially the youth. Where a 24 hour strike has taken place, the question is posed: what now? Do we call for another 24 hour general strike? Or a two day stoppage? Under certain conditions, the capitalists may make concessions under pressure. But even then, they will later take back with the right hand what they have given with the left. Wage increases will be cancelled out by inflation etc.

Moreover, in the present situation, the capitalists are not in a position to grant serious and lasting concessions. The entire situation compels them on pain of extinction to liquidate the concessions they have made over the last fifty years. Under such circumstances the idea that the workers can “force” the capitalists onto a different road by mass pressure is a delusion. In essence, it is only a repetition of the old arguments of the anarcho-syndicalists before 1914, who regarded the general strike with the same kind of awe that fervent Catholics regard the Immaculate Conception.

Trotsky answered this false idea in advance. In an article written in 1931, when Spain was in the grip of a widespread strike movement, he wrote the following:

“In reality, in spite of the mighty sweep of the struggle, the subjective factors of the revolution – the party, the organization of the masses, slogans – are extraordinarily behind the tasks of the movement – and it is this backwardness that constitutes the main danger today.

“The semi-spontaneous spread of strikes, which have brought victims and defeats or have ended with nothing, is an absolutely unavoidable stage of the revolution, the period of the awakening of the masses, their mobilization and their entry into struggle. For it is not the cream of the workers who take part in the movement, but the masses as a whole. Not only do factory workers strike, but also artisans, chauffeurs and bakers, construction, irrigation and finally agricultural workers. The veterans mould the limbs, the new recruits learn. Through the medium of these strikes, the class begins to feel itself as a class.

“However, the spontaneity – which at the present stage constitutes the strength of the movement – may in the future become the source of Its weakness. To assume that the movement also in the future will be left to itself without a clear programme, without its own leadership, would mean to assume a perspective of hopelessness. For the question involved is nothing less than the seizure of power. Even the most stormy strikes – all the more so the scattered ones – do not solve this problem.” (The Spanish Revolution, January, 1931).

The depth of the present crisis places on the order of the day a fundamental transformation of society. Half measures are of no use, and, in the best case, can only have a temporary effect. But as Largo Caballero once remarked, you cannot cure cancer with an aspirin. Drastic problems require drastic solutions.

A transitional programme needed

The relation between economic crisis and the class struggle is not automatic, as some ultra left sectarians believe, but dialectical and contradictory. At first the masses are in a state of shock. They cannot believe that the crisis is so serious. Surely, if we take the necessary steps, accept a temporary reduction in living standards, everything will come right in the end?

But time passes, and the crisis, far from improving, becomes ever deeper, threatening to destroy all social stability. The reforms and concessions conquered over half a century are under threat, and with them the semi-civilized conditions of life. The masses are threatened with a systematic destruction of their lives. The middle class is threatened with ruin. Society is threatened with disintegration and barbarism.

Under such conditions, the innate conservatism of human beings is shaken to the core. People are compelled to reconsider their most cherished beliefs and their most deeply-held dogmas. Even the most formerly inert and “non-political” layers begin to move into action. Things begin to turn into their opposite.

As Trotsky pointed out in the above quotation, the only real solution for the problems faced by the working class is that the proletariat must take power into its own hands. But this idea has not yet been grasped by even the most advanced workers, never mind the mass of politically untutored workers. Great events will be needed to convince them of the need for a radical change. But events are already delivering one shock after another. In the coming period, the existing consciousness will be shaken to the foundations, preparing the way for a revolutionary transformation.

In order to assist this development, it is necessary to work out a programme of demands that will enable us to move from A to B, starting out from the existing conditions and consciousness. What is needed is a serious plan of action. This must insist on the central idea of the expropriation of the big banks and monopolies, for workers’ control, for a socialist plan of production.

Already we see the early beginnings of an anti-capitalist mood developing, especially among the youth. At a time when governments are asking people to sacrifice while pouring public money into the banks, bank profits are booming and bankers’ bonuses have again reached record levels. Many people are therefore questioning the role that bankers have played in this crisis.

What is required is a socialist policy, a fighting policy to defend jobs and living standards. Not a single penny to the bankers and capitalists! Let the bosses pay for their crisis! We demand decent conditions and wages! If the bosses cannot guarantee these things, to hell with them and their system! For the expropriation of the banks and big monopolies under workers’ control and management! No to the Europe of the big banks and monopolies! For the Socialist United States of Europe!

The beginnings of the European revolution

What we see unfolding before us is not the Greek, Spanish, or Italian revolution, but the early stages of the European revolution, which is a vital link in the chain of the world revolution. The capitalist system is in crisis everywhere. It is a world crisis of capitalism. It is one single, indissoluble process, where the turbulence in one part of the globe swiftly communicates itself to every other part.

Lenin once said that politics is concentrated economics. The economic crisis must eventually find a reflection in the minds of millions of men and women, who will find their lives turned upside down. The old routines are violently upset, the old ideas and prejudices challenged at every step, the old institutions shaken to the foundations. This universal turbulence can last for years, with sudden swings to the left and right.

The words of Leon Trotsky have never been more relevant: “The world political situation as a whole is chiefly characterized by a historical crisis of the leadership of the proletariat.”

In the past a prerevolutionary situation would not last for long. It would de swiftly resolved either by the victory of the revolution or the counterrevolution. But now things are different. On the one hand, the bourgeois cannot move immediately in the direction of reaction. On the other hand, the working class is being held back by its leadership.

Trotsky wrote in 1938:

“The economy, the state, the politics of the bourgeoisie and its international relations are completely blighted by a social crisis, characteristic of a prerevolutionary state of society. The chief obstacle in the path of transforming the prerevolutionary into a revolutionary state is the opportunist character of proletarian leadership: its petty bourgeois cowardice before the big bourgeoisie and its perfidious connection with it even in its death agony.

“In all countries the proletariat is racked by a deep disquiet. The multimillion masses again and again enter the road of revolution. But each time they are blocked by their own conservative bureaucratic machines.”

These lines could have been written yesterday! But the power of the bureaucratic apparatus is not absolute. The mass organizations are subject to the pressures of society. The workers will turn repeatedly to the old traditional organizations, for the simple reason that there is no alternative. They will put them to the test time and again, peeling off one layer after another of the old leadership. This inevitable process of learning by successive approximations will be expressed in the rise and fall of leaders and currents.

The ideas we defend do not represent the present consciousness of the masses, which is rooted in a past that has already receded into history. Our ideas are a faithful reflection of the present and the future. Under the hammer blows of events, the masses will learn to distinguish between what is true and what is false. There will be a whole series of crises and splits, from which eventually, a genuine mass revolutionary tendency will emerge.

The Marxists, who aspire to the leadership of the working class, will have no shortage of possibilities in the coming period. But we must ensure that in the turbulent period that we have entered, a period of war, revolution and counter-revolution, that we build the forces of Marxism. We must find a road to the workers and youth, winning new adherents, educating cadres, and gathering the forces we need to build a genuinely mass Marxist International. There are no short cuts. There is no other way.

London, 9th June, 2010.

A new stage in the crisis of capitalism - Part Four

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Europe faces a protracted period of austerity, with major contractions in output, consumption and employment. The crisis has started with the smaller, more vulnerable economies like Greece, Portugal and Ireland. But the others will follow, starting with Britain. [Part one]

France and Germany

David Cameron and Nicolas Sarkozy, in spite of appearances, had an uneasy meeting. Photo by Andrew Parsons.David Cameron and Nicolas Sarkozy, in spite of appearances, had an uneasy meeting. Photo by Andrew Parsons.The French bourgeoisie did very well out of the EU, although it never succeeded in winning ist goal of achieving political domination. The inexorable rise of Germany has pushed it into second place. But the general advance of European capitalism gave it a level of prosperity that enabled it to grant important concessions to satisfy the powerful and militant French working class.

All that has changed. The insistence with which Paris pressurized Berlin to pay the Greeks indicated the precarious state of French capitalism. The French banks are almost as exposed as those of Germany to the Greek economy. A Greek default would bring the financial sector of France to its knees, provoking a deep crisis. That is why the French capitalists protested more loudly than anyone else at the hesitations of Merkel. Finally, the Germans paid up, but now France is faced by a serious dilemma.

Charles Maurice de Talleyrand said that speech was given to man to disguise his thoughts. This is very applicable to the French President Nicolas Sarkozy. He has pledged to cut France's deficit to 3 per cent of GDP by 2013. But so far, only small savings have been announced, such as not replacing all retiring civil servants. But the main problem facing the bourgeoisie is the unfortunate fact that people are living too long, with the average French worker spending 24 years in retirement, well above average for a developed nation. Thanks to the militant tradition of the French workers, they have achieved a welfare state far superior to Britain and many other countries in Europe.

The fact that the French have achieved something resembling a civilized mode of existence is a source of deep resentment in London and Washington, where it is held up as the worst example of the “wasteful European model”. People are entitled to reasonable free health care and pensions. What a scandal! The defenders of the “Anglo-Saxon (i.e., barbarous) model” shake their heads in disbelief. This is no way to improve efficiency and create wealth (for the capitalists)!

The French bourgeoisie is inclined to agree. They have gradually succeeded in whittling away the gains of the past, such as the 30 hour week. But there is a problem. The French workers have a very irritating habit of going on strike and taking to the streets when they are attacked. They have on several occasions forced governments to retreat and even overthrown them. The government in Paris, well aware of the militant traditions of the working class, has so far not made any major commitments on spending cuts.

Nicolas Sarkozy is keen to push through a major “reform” that would raise the retirement age, currently 60. But he is compelled to proceed slowly, for fear of arousing the powerful French working class. His tactic is to cut, but slowly, inch by inch, while all the time making comforting noises about protecting social values, consensus and so on. However, at a certain point this gradualism will break down. The breaking point will probably be over the pensions issue. And the French workers will be on the streets once again.

Germany itself will begin a spending squeeze from next year and is expected to cut at least €10bn every year until 2016. Subsidies will be targeted, and there will be tax rises and departmental spending cuts. These harsh measures are intended to set an example to the rest of Europe. The excuse is that Germany has to comply with rules on dealing with debt written into its constitution. But this argument will have no effect on the powerful German trade unions, who will not take long to follow the example of the Greek workers. In this way, “contagion” applies not only to the financial markets but also to the class struggle.

Iceland and Ireland

The inevitability of sharp and sudden changes in the situation is shown by events in Iceland, a country that had enjoyed high living standards and political stability. In January 2009 protests in the capital Reykjavik brought thousands of people on to the streets in the biggest demonstrations the country has ever seen. As Parliament reconvened on 19 January, they were initially prevented from meeting, as 2,000 demonstrators blocked the parliament building. There were violent clashes between police and young demonstrators. As a result, the coalition government between the Samfylkingin (Social Democrats) and the Conservative Independence Party has broken up. The government of Iceland was thus the first to fall as a consequence of the present economic crisis. It will not be the last.

The class struggle is growing in Ireland, where, as in Iceland and Spain, a period of rapid economic growth and feverish speculation has ended in complete collapse. This is provoking a mood of anger. In February 2009 some 200,000 workers and their families took to the streets in Dublin, to demonstrate their opposition to the government's decision to impose a pension levy on 300,000 public sector workers. There was a factory occupation of workers by Waterford Crystal.

On 6 November, 2009 tens of thousands of people have participated in demonstrations in Dublin, Cork, Waterford, Galway, Sligo, Limerick,Tullamore and Dundalk. A major union SIPTU voted massively to join the public sector strikes on November 24th, when well over 250,000 Irish workers in the public sector were on strike. This is the shape of things to come.

Britain and Europe

Of the major European powers, Britain stayed out of the European Union (the EEC as it was then called), with the delusion that it could still maintain an important independent role in world affairs. This foolish dream was soon reduced to ashes, and the British bourgeois was forced to crawl on its knees to get into the EU. Even so, London was subordinated to Washington (this is what is known humorously as “the Special Relationship”) – a fact that did not pass unnoticed in Berlin, and, above all, Paris.

The British capitalists did not join the Euro, and this now appears as an act of supreme judgment. It allowed them to devalue the pound sterling, giving British exports an advantage over the Euro countries. This actually revealed the weakness of British capitalism, not strength. Devaluation of the currency was the method traditionally used by the weaker European economies to compete. By presenting the falling value of the pound sterling as an act of supreme judgment, the British bourgeoisie is merely advertising its own bankruptcy.

The British are not popular in Europe, where they are regarded with suspicion, not without reason, because of their dependence on the USA. When the Conservative leader Cameron went to Paris for talks with Nicolas Sarkozy, he could not resist making a smug comment about the euro, which visibly irritated the French President.

The following day, the British Prime Minister told Ms Merkel that not only was Britain outside the euro, but that he would block German proposals, tabled at meeting of finance minister on Friday, to give the EU new economic powers to police the budgets of single-currency member states.

"Britain wants a strong and stable euro zone," he said. But he immediately proceeded to throw a spanner in the machinery: "Britain is not in the euro and is not going to be joining the euro. So Britain would not agree to any arrangement or treaty that drew us further into supporting the euro area. Any treaty – even one that just applied to the euro area – needs unanimous agreement of all 27 member states, including the UK, which of course has a veto."

This is what someone called the gentle art of winning friends and influencing people. If the Germans did not express their indignation openly at this arrogant stupidity, it was only because they expected nothing else from the political representatives of the British ruling class. In Europe a lot of the anger at the financial system is directed towards London and New York, where most of the world's currency traders and debt investors are based.

Britain’s European partners, irritated by the British airs of superiority and angry at the “unfair” advantage obtained by the devaluation of sterling, have sharply reminded them of their responsibility to Europe, and demanded that they participate, with money on the table, to the rescue plan. Grumbling and cursing under their breath, the British bourgeois are obliged to put their hand into their pocket.

Cameron’s smug sense of superiority in the face of the Euro’s difficulties is out of place. It reminds one of the attitudes of another Conservative prime minister, Stanley Baldwin, who, in the 1930s, described Europe as a “madhouse”. Answering Baldwin, Trotsky remarked that Britain was only the last ward in the European madhouse, and the last ward was usually reserved for particularly violent patients.

Britain will not escape the general ruin because it is not a member of the Euro zone. The crisis in Europe will be expressed in falling demand and therefore a shrinking market for Britain’s exports, most of which are sold in Europe. The crisis in the euro zone (Britain's biggest export market) will undermine Britain’s recovery, which in any case is very weak. Cameron was told in no uncertain terms that Germany sees Britain (which has the EU's highest budget deficit), as a prime candidate for contagion if market panic over Greece, Portugal and Spain spreads.

The government in London is now a shaky coalition between the Tories, in whose ranks the anti-European chauvinists are the majority, and the pro-European Liberals. The Tory right wing is seething with resentment at what they see as the excessive influence of the Liberals in the government. The question of Europe is a very sore point, which can later provide the spark that ignites a crisis in the coalition.

Fearing that the markets will begin to attack the pound, the Tories have begun to slash public spending. The coalition Government declared that the "years of plenty" for public spending were over yesterday, as it admitted that its £6.2bn package of immediate savings was "only the start" of a huge programme of cuts. But the markets are unimpressed. The first wave of cuts amounts to only 1 per cent of total government spending and a fraction of the £156bn deficit in the public finances.

The Institute for Fiscal Studies (IFS) warned of more pain to come. It warned that these measures would cut borrowing by only £5bn this year. "This is less than a tenth of the fiscal repair job that Alistair Darling's 2010 Budget forecast suggested will be needed over the next few years," it said. The bosses want to see real cuts – not a manicure, but the amputation of arms and legs. Investors are waiting to see if the UK Government possesses the will and the ability to make the deep cuts they consider necessary. And the markets decide.

For the time being the wave of panic that swept across the euro zone countries has not spread directly to Britain, despite its huge deficit. But this is only a temporary respite. At present, Britain is waiting on the sidelines, watching cautiously as the euro agonizes. But the markets could target the UK at any time. It is a measure of the seriousness of the situation is that the new government expressed relief that increased tax receipts meant that the deficit was £7bn less than expected, and therefore “only” £156bn.

Britain will be affected by the crisis in the euro zone. Without growth in Europe, there will be little demand there for Britain's exports, just at the time when the Conservative-Liberal coalition is hoping for an export-led recovery. The euro is already weakening against the pound, partially eroding the competitive achieved by the depreciation of sterling.

The next period will see a far more serious attack on living standards, which will provoke an overwhelming response from the trade unions. In the 1970s Britain was notorious as the country in Europe with the biggest strike movement. But ever since the Thatcher government defeated the miners, the unions have been on the defensive. Now all that will change. There will be strikes and demonstrations not seen since the 1970s.

The mood of militancy will shake up the unions from top to bottom, pushing out the old conservative leaders and replacing them with others who are more responsive to the wishes of the rank and file. Given the organic connection between the unions and the Labour Party, the latter will be pushed to the left, as happened in the 1970s. The whole situation in Britain and the rest of Europe will be transformed.

The USA

“Most Americans know that the U.S. economy is in bad shape, but what most Americans don't know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a "downturn" or a "recession". What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious.” (Global Research, 4 June, 2010)

When Obama rang Zaptero to urge him to carry out cuts, this was a de facto recognition of the umbilical chord that connects the crisis in Europe to the crisis in the USA itself. The above lines express the fact that the American dream is a thing of the past. The present generation of American youth will be the first since the Great Depression that cannot look forward to better living standards than their parents.

Even before the economic collapse, the rich were getting ever richer and the poor, poorer. Now an unbridgeable abyss is opening up between rich and poor, between “haves” and “haves-not” in the “land of the free”. The article quoted above listed fifty facts that underlined the seriousness of the crisis facing the USA.

In 1950, the ratio of the average executive's pay to the average worker's pay was about 30 to 1. Since the year 2000, that ratio has soared to between 300 and 500 to one. Two-thirds of income increases in the U.S. between 2002 and 2007 went to the wealthiest 1% of all Americans. The bottom 40 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

More than 24% of all homes with mortgages in the United States had defaulted as of the end of 2009. Defaults on apartment building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter of 2010. That was almost twice the level of a year earlier. Americans have seen the re-emergence of the tent cities and soup kitchens not seen since the 1930s.

According to a new report based on U.S. Census Bureau data, at the end of 2009 only 26 percent of American teenagers between the ages of 16 and 19 had jobs, which represents a record low since statistics began to be kept in 1948.

As a result, a critical mood already exists, especially among the youth in the USA. There is a questioning of the existing order and its values, which was not there before. This mood will be strengthened and generalized in the next period. Even the election of Obama reflected this mood, insofar as it expressed a deep desire for a change – a desire that has not been satisfied by Obama and the Democrats. Obama’s approval ratings have already collapsed.

We see the outline of the future transformation of the American trade unions in the election of Richard Trumka, the miners’ leader. Trumka does not want to mobilize the workers, but is under pressure. In the next period, the unions will be under tremendous pressure to put words into practice, not just in the USA but in all countries. In the USA the ground is being prepared for a break with the Democratic party and a Campaign for a Mass Party of Labour.

Already there are the first signs of a political rebellion against the Democrats. Less than two years ago North Carolina was one of the centres of the grass-roots army that propelled Barack Obama to victory in what was a conservative state. Now frustrated with the results, former Obama supporters have linked up with labour organizers to gather signatures to start a third party, North Carolina First.

The prime movers in this initiative is the SEANC and its parent group, the Service Employees International Union, possibly the nation's most politically powerful trade union. They are funding the effort, and immediately after it was announced, they hired more than 100 canvassers who are rounding up the signatures needed to qualify as a third party on the general election ballot.

"Our whole agenda is to turn that apple cart around and say, 'No more are we going to blindly support you because you're a Democrat,' " said Dana S. Cope, executive director of the 55,000-member State Employees Association of North Carolina (SEANC), which is leading the effort. "We're going to support you because you're right on the issues and if you're not right on the issues, we're going to remove you from office."

Chuck Stone, a longtime SEANC leader who is chairman of North Carolina First, asked: "Does it really matter if you put a Democratic label or a Republican label on them when they go up there and support big companies and big insurance?"

These comments are highly significant because they show the early beginnings of s shift in consciousness, the realization of the need to establish a political party that does not represent “big companies and big insurance” but the needs of ordinary working class people. This reflects the same process that the British workers experienced a hundred years ago, when they broke with the Liberals to form the Labour Party. But what the British workers took generations to achieve, the American working class can accomplish far more quickly.

Probably the movement for a third party in North Carolina will be merely an episode. But it is an episode that anticipates what will occur in the future. A Labour Party in the USA will attract to its banner all the most oppressed and revolutionary layers of society: African Americans, Latinos, the Native Americans, the women, the youth etc. The same enthusiasm that we saw in Obama’s electoral campaign will be reproduced on a higher plane and with even greater intensity. Very quickly, an American Labour Party will pass from the timid reformist policies advocated by the conservative union leaders to a very radical socialist policy.

Eastern Europe and Russia

Twenty years after the fall of Stalinism, the restoration of capitalism in Eastern Europe and the former USSR has solved nothing. For a while, on the basis of the world capitalist economic boom, the new capitalist classes of the former Stalinist states could establish something resembling stability.

The Asian crisis of 1998 caused shock waves, but on the basis of the devaluation of the ruble, the Russian economy soon recovered and grew, mainly on the strength of its huge oil and gas reserves. The economies of Eastern Europe benefitted from their connection with the EU. They exported their surplus workforce to Western Europe, which benefitted from this pool of cheap labour. In turn, the remittances sent home by the migrant workers provided an additional source of capital for Eastern Europe.

Now all that has turned into its opposite. The migrant workers have returned home to swell the ranks of the unemployed. A number of countries in Eastern Europe are faced with the specter of crisis and bankruptcy. Like Greece, Latvia has suffered a fiscal crisis that saw its debt rated as junk. In the fourth quarter of 2009 Latvia's GDP contracted by 18%, and it has fallen a further 10% in the first quarter of 2010. Wages have fallen by an average of 8.8%, and unemployment has reached more than 22%. This is a slump on the lines of the Great Depression.

Hungary is not far behind Latvia. In October 2008 Hungary was forced to seek a $25bn rescue package from the International Monetary Fund and the EU. Now Hungary faces a Greek-style financial crisis. The country's currency, the forint, dropped 6% against the dollar after comments of a representative of the new government. The cost of insuring the country's debt jumped by one percentage point. This means that it will be more expensive for the country to borrow money in the international markets.

This leaves markets and economists fearful that Hungarians will default on their home loans, sparking a banking crisis in the country. This will affect the economies of Germany and particularly Austria.

Romania's economy was severely hit by the recession, and shrank by 7.1 per cent in 2009. Unemployment jumped from 4.9% in January 2009 to 8.1% in January 2010.The government had to go to the IMF for help and got a €20bn rescue loan, on condition that it carried out a savage policy of cuts. This includes a reduction of public sector wages by 25% and pensions and unemployment benefits by 15%, with the aim of reducing the budget deficit to 6.8% of GDP. All government spending will be cut by 20% and anywhere between 80,000 and 300,000 workers out of a total of 1.4 million in the state sector will be sacked.

This has aroused the Romanian workers. On May 31 tens of thousands of public sector workers went on strike against the government’s austerity plan, which includes cuts in pay and pensions. According to a poll by the Bureau of Social Research, half of the people think that Romania is worse off today than under Ceausescu, with 56% saying that under the “communist” regime ordinary people were treated with more respect, and 60% of Romanians think that politicians are more corrupt today than before 1989. A similar position undoubtedly exists in other countries of Eastern Europe and above all in Russia itself.

In Russia, too, the economic crisis acted as a shock that is having profound political and social effects. The recent movement of the miners indicates that the Russian working class is beginning to recover from the psychological effects of the collapse of the USSR and capitalist restoration. These events show how quickly the Russian workers can move once they enter the road of struggle. On the basis of struggle, they will rediscover the old traditions and ideas of Leninism, which have lain dormant for a long time, but have never disappeared from the collective consciousness of the Russian proletariat.