12
wars continue?
capitalist economy.
The so-called Public-Private Investment Plan, crafted
and presented by Secretary of the Treasury Timothy sAN dIeGO
Geithner, intends to make a trillion dollars available
to the biggest banks, hedge funds, private equity funds
and other investors, supposedly to get the banks to lend By Cheryl LaBash
money to businesses and consumers again. Protests across the country on March 19 and 21 marked the
The essence of the plan has two sides to it. First, bribe sixth anniversary of the U.S. invasion and occupation of Iraq and
hedge funds, private equity funds and others in the shad- Afghanistan in varied ways. Clearly the charge that “Occupation is a
ow banking system who have been sitting on the sidelines crime—from Iraq to Palestine” will not stop until the U.S. troops are
with trillions of dollars—by offering them government withdrawn, regardless of the economic crisis or any change in the
money and loan guarantees to purchase bad bank assets. political administration of the U.S. government.
Second, bribe the banks to sell investors these bad loans In San Francisco on Mar. 21, riot-geared police targeted young
by offering to pay far more than they are worth. Palestinians, attacking, beating and arresting 10 people and report- ww Photo: Gloria Verdieu
So the rich get a deal from the Treasury both ways. Cindy Sheehan and Kofi check out a Workers
edly injuring others among the several thousand protesting there. World article, ‘Which way forward for the anti-
The banks are holding onto $2 trillion in bad loans Continued on page 8 war movement.’ Below, Atlanta.
resulting from their speculation on the great housing
and real estate bubble. They don’t want to sell these
bad loans at anywhere near their vastly reduced worth ATlANTA
because they would have to declare them as big losses.
Up to now they have been refusing to sell and have been
Continued on page 7
AIG
Fear and loathing 6
ww Photo: Monica Moorehead
NO TO NATO 10 years after war on Yugoslavia 9 AFRICA and the economic crisis 11
Page 2 April 2, 2009 www.workers.org
Tribute to Blues
musician Willie King
Award-winning blues musician Willie King died March H In the U.S.
8 at his home in the Old Memphis community of Pickens Trillions for Wall St., poverty for workers. . . . . . . . . . . . . 1
County, Ala, near the Mississippi line. Mr. King and his band, Anti-war protests across U.S.. . . . . . . . . . . . . . . . . . . . . 1
the Liberators, made six albums and a DVD since they started
Tribute to Blues musician Willie King . . . . . . . . . . . . . . . 2
playing professionally. One won the Living Blues magazine
“album of the year” in 2000. Capitalism and patriarchy exposed in Elgin, Ill. . . . . . . . . 2
King described his style of music as “struggle blues” Black activists demand Obama address racism . . . . . . . . 3
because much of it was about the struggles against racism in Never forget Anthony Rosario and Hilton Vega . . . . . . . . 3
the South. He played in a major concert the night before he L.A. activists mobilize to stop foreclosures . . . . . . . . . . . 4
died of a heart attack.
Chicago fight for health care. . . . . . . . . . . . . . . . . . . . . 4
He played mainly in his hometown in Aliceville, Ala., and
would travel professionally to the largest blues festivals in Cleveland activist remembered . . . . . . . . . . . . . . . . . . . 4
North America and Europe, but he was always willing to play The Ford Hunger March of 1932 . . . . . . . . . . . . . . . . . . 5
at progressive events. I first saw him play in Birmingham, Ala., Fear and loathing at AIG. . . . . . . . . . . . . . . . . . . . . . . . 6
at a rally to support the women’s health clinic there after it
Youth commentary on D.C. protest. . . . . . . . . . . . . . . . 8
was bombed.
Willie King will be sorely missed. Mumia: ’Against the war! Against empire!’ . . . . . . . . . . . 8
–Jimmy Raynor, Atlanta Rally denounces IDF shooting of Tristan Anderson. . . . . 10
Workers, communities
getting away with ignoring federal guide- Rojas, questioning Aurora to the cameras.
lines, we need at least a two-year morato- Some of the stations also publicized the
rium on all foreclosures, especially here national April 3-4 actions in New York
PEOPLE PEOPLE
severance pay by Aradco’s parent compa- sult was an offer on March 16 by Chrysler “in principle” that is forcing Chrysler to in Rhode Island, which ended with ar-
ny, Catalina Precision Products. Catalina of $205,000 to be split among all the pay $400,000 (Canadian) to be divided rests; the ongoing plant occupation at the
halted production the week of March 8, workers in the Aradco plant. The workers among the workers. Waterford Crystal plant in Ireland; and
when Chrysler severed its contracts with voted to reject the offer by Chrysler and But as part of the CAW-Chrysler agree- general strikes in France, Guadaloupe
the corporation, which stamps parts for proceeded to defy a court injunction to ment, the plant will be closed, and Chrysler and Martinique, among others.
77th anniversary
PEOPLE PEOPLE
pensation did not exist. With two-thirds Dearborn police were reinforced by the
of his employees laid off, Henry Ford, Dearborn Fire Department, Detroit police,
then the richest man in the world, said the and Ford’s own “Service Department.” The
unemployed created their own misery by firefighters turned their hoses on the un-
not working hard enough. armed marchers, while police fired a hail
in Gaza
The administration has become entrap ers because the workers won those con- in the world, representing two-fifths of
ped by the narrow interests of Goldman cessions by mass struggle. Obama has no the world’s population, are showing a de-
Sachs, Citigroup, AIG, Merrill Lynch and such situation right now and is hewing to cline in industrial output.
their ilk to the point of throwing trillions a generally conservative line of approach. It is clear that, despite the momentary
The steadfast and heroic Palestinian re- of dollars at them to keep these specific This could change. euphoria of the profiteers on Wall Street,
sistance to Zionist occupation now spans banks afloat, at the expense of using these In addition, the issue of the AIG bonus- this crisis is not about to be solved. Even
six decades. The resistance has resulted in funds to bolster the system as a whole. es has sharpened the political situation. if the banks were to start lending again,
one crisis after another in a Zionist move- This could have dire political conse- Fearing the masses and because their the population is in ruins. No one is cred-
ment that always had numerous contend- quences in the long run for President own connections to the big banks are it worthy because they are in debt, losing
ing and contentious factions (social dem- Barack Obama himself. coming out, the Democratic Party poli- their jobs, paying medical bills, paying
ocratic, fascist and religious, to name a Not that any amount of funding could ticians in the House of Representatives student loans, paying their credit card
few). Today the Zionist movement is more significantly turn this capitalist crisis became hysterical in their denunciations loans and/or are behind in their mort-
fractured than ever before. Weeks after a around in the long run. It is fundamen- of the bonuses to AIG executives, as did a gages.
national election it still cannot form a co- tally caused by a global crisis of capital- significant number of Republicans. They The idea that it is necessary to give
alition government to administer the so- ist overproduction, which has been ag- all engaged in a public attack on corpo- these banks trillions in order to solve the
called State of Israel. gravated and intensified by the financial rate bosses and, by implication, on their crisis is either a grand illusion or out-
Its armed wing, the IDF, is also feeling crisis. own paymasters. right fraud. The bailout is calculated first
the stress and strain from a resistance to The present crisis is profound. It repre- The situation may be quieted some- and foremost to save the banks while the
occupation it cannot defeat. This is result- sents the end of a 70-year era of upward what now that some of the executives are masses sink deeper into the real crisis—
ing in growing numbers of youth refusing development of the productive forces by returning the bonuses. But this politi- the crisis of unemployment, homeless-
conscription and reservists refusing call- U.S. and world capitalism that was pro- cal outburst showed that the right-wing ness and poverty.
ups and deployments. In addition, there is pelled by military spending, imperialist forces are straining at the bit to become The only solution is a mass mobilization
a growing divide in the IDF between out- globalization, destruction of the standard champions of the “little people” and sup- to fight back against the capitalist system
right racist religious fundamentalists and of living of the workers of the world, tech- posed adversaries of the “greedy bankers” that is robbing people of their incomes,
those with a more secular outlook. nological attacks on jobs, devastation of as a way of getting at the Obama admin- their homes and their very lives. The sanc-
Michael Kramer served in the IDF the environment, plus massive credit and istration. They hope crisis will create an tity of capitalist profits is what is at the bot-
from 1972-1975. He is a member of indebtedness. These forces have run their opening for a right-wing, racist revival. tom of bailouts, layoffs and foreclosures.
Veterans For Peace, Chapter 021. course and no bailout or stimulus pack- The working class must be on the alert for It is time to say no to capitalism. n
Page 8 April 2, 2009 www.workers.org
Global meltdown:
China, India on separate paths
By David Hoskins ran African countries. Indicators such as organization are fundamentally different. India, by contrast, is plagued by an
these begin to paint a picture of growth in The New York Times hints at this, even as inefficient and corrupt bureaucracy that
The International Monetary Fund India that is strikingly different than that it peppers its examination of China with in recent history has been led by either
has revised its 2009 forecast to project of neighboring China. the usual allegations and innuendo that the bourgeois Indian National Congress
the first global economic contraction in More than 42 percent of Indian chil- the U.S. media reserves for left-wing and or the ultra-nationalist Bharatiya Janata
60 years. The revised IMF figures esti- dren under five suffer from malnutrition, anti-imperialist governments of any type. Party. Both parties represent the bosses
mate the world economy will shrink by as measured by their weight. India is a China has been more successful in re- and landlords who oppress India’s work-
as much as a full percentage point this low-income country where 80 percent of ducing child poverty and hunger because ers and peasants. Both are strategic allies
year. Advanced economies alone are set its population struggles to survive on less of the efficiency of its centralized state of U.S. and British imperialism.
to decline by more than 3 percent. The than $2 a day. Thirty-nine percent of and the firm leadership of the Communist India emerged from almost a century
deep recession in developed countries is the population cannot read or write and Party of China. The leadership of the CPC of direct British Crown rule in 1947 when
expected to continue throughout the year India’s infant mortality rate rests at 32 has allowed China to utilize the socialist Britain handed the reins of power to the
despite the enormous sums that have deaths per 1,000 live births. features of the Chinese state to lift chil- Indian bourgeoisie. This transition came
been spent on fiscal stimulus efforts. In China just 7 percent of its children dren up, even after three decades of risky after a long period of struggle led in large
The IMF was predicting just this younger than five are underweight. The experimentation with market reforms. part by the Indian National Congress.
January that the global economy would proportion of its population surviving The power of the CPC is rooted in the The INC had become India’s main ve-
grow by 0.5 percent. The sharp revision on less than $2 a day has been cut to 35 People’s War of Liberation led by the hicle for social reform and agitation for
reflects the speed with which the melt- percent. The country has almost achieved party and its Red Army. The CPC took independence. It was a bourgeois party
down has caught capitalist economists by universal literacy. Its infant mortality rate power after first driving out the Japanese whose leader, Mahatma Gandhi, was
surprise. The IMF is a champion of im- is 21 deaths per 1,000 live births. occupation forces and then decisively de- against arming the people in the struggle
perialist globalization. It is quite possible What accounts for this difference in feating the U.S.-allied armies of Chiang to free the country from Britain’s grip.
that the estimates of a 1 percent decline popular welfare in two of Asia’s emerging Kai-shek. Gandhi propagated a cult of non-violence
continue to understate the severity of the powerhouse economies? CPC Chairman Mao Tse-tung declared that limited the independence struggle
crisis. at the founding of the People’s Republic and prevented India’s workers and peas-
While developing economies are pro- Conditions reflect history of China in 1949 that “the Chinese people, ants from conquering state power. India’s
jected to experience continued growth for China and India share a lot in common. comprising one quarter of humanity, have communist movement was unable at the
2009, their growth rates have been im- The two countries have a long history, are now stood up.” China put the humiliation time to lead the independence struggle to
pacted by the global recession. The World separated by a common border, and have of colonialism behind it as it embarked on its logical conclusion of socialist revolu-
Bank recently cut its 2009 projections for populations that exceed one billion. an independent path of workers’ power. tion. The consequence can still be seen
China’s economic growth from 7.5 percent The countries have different political China’s revolutionary history is evident as the vast Indian masses suffer while a
to 6.5 percent. Most economists have also histories, however, and their current po- today as it strides against the poverty and few profit from the country’s economic
significantly cut expected growth rates for litical leadership and method of economic suffering of its past. boom. n
India.
Low-Wage Capitalism
The Economist Intelligence Unit has
estimated that China and India are two of
At the present moment the
just four Asian countries expected to ex- A timely new book by Fred Goldstein describes in sweeping detail the drastic effect on the
pand in 2009. Japan’s economy, by con- working class of new technology and the restructuring of global capitalism in the post-Soviet
capitalist financial authorities are
trast, is expected to decline by as much as era. It uses Karl Marx’s law of wages and other findings to show that these developments are trying desperately to control an
5.8 percent. not only continuing to drive down wages but are creating the material basis for future social
uncontrollable system—
upheaval.
Different paths in good times and bad The analysis rests on three basic developments in the last three decades: capitalism…
An article by Somini Sengupta, titled • The world’s workforce available to exploitation by transnational capitalist corporations doubled The unquenchable thirst for profit
“As Indian Growth Soars, Child Hunger in the wake of the collapse of the USSR and Eastern Europe.
• The technological revolutions of the digital age, in both production and communications, drives the system. It always has
Persists,” recently examined the divergent
results economic growth has had in India have allowed transnational corporations to destroy high-wage jobs and simultaneously and it always will as long as
and China. (New York Times, March 13) expand the global workforce to generate a worldwide wage competition.
• The decline in the economic condition of the workers, driven by the laws of capitalism and the
capitalism exists.”
Even after a decade of spectacular eco-
capitalist class, is leading to the end of working-class compromise and retreat and must end up
nomic growth, Indian child malnutrition
in a profound revival of the struggle against capital.
–From Low-Wage Capitalism p. 276
rates are worse than in many sub-Saha- Order at www.Leftbooks.com
Page 10 April 2, 2009 www.workers.org
NeWs
aimed at bailing out the same banks and for many countries. During fected by the financial crisis fective and coordinated economic stimu-
corporations that are responsible for the the 1980s, the World Bank at the Western banks, and lus packages to bring about growth.
Analysis
meltdown. and IMF set up Structural the resulting collapse of “You’ve got to look at where you can
Trillions of taxpayer dollars have been Adjustment Programs that the real estate sector there, drive stimulus that will target employment
handed over to Wall Street in a futile at- imposed conditions on how because they were not in growth, most efficiently, most speedily,
tempt to stave off the impending failure these post-colonial states the direct line of influence and with a capacity to influence not just
of the financial sector. The government could conduct their domestic and foreign of ‘the economies’ of the industrialized national economies, but indeed the global
has allowed millions of working families affairs. These conditions effectively ar- countries.” economy,” she said.
to be evicted from their homes and apart- rested any genuine development efforts However, Molefhe points out, “Nothing
ments while CEOs at AIG and other firms among the majority of peoples through- could have been farther from the truth. Workers, oppressed must
are allowed to collect billions in bonuses out the world. Clearly, Barclays Bank in the African advance own program
for their managerial incompetence and A surprisingly harsh assessment of the countries could not be disconnected from On the African continent political un-
criminal activities. state of the world capitalist system was is- the mother company in Britain. Cater- rest has been fueled by the economic cri-
With the situation reaching critical pro- sued early this March in the form of a re- pillar, in Africa, is entirely indebted to its sis. In Mauritania last August, the military
portions in the U.S. and other industrial- port entitled “Swimming against the Tide: principals abroad for its operations, as is staged a coup against the existing govern-
ized states, the impact of the economic How Developing Countries Are Coping Kodak, Motorola, Sony and every other ment. In West Africa these same devel-
crisis is becoming more apparent in the with the Global Crisis.” The World Bank transnational on the continent.” opments occurred in Guinea-Conakry
so-called developing countries, particu- report sounds an alarm that the current Drawing a direct link between opera- in December and Guinea-Bissau in early
larly the African continent. Even though decline in the capitalist economic system tions in Africa and the centers of capi- March. Most recently, there was a coup
some Western analysts consider the has the potential for creating a crisis not talist decision-making, Molefhe states: in Madagascar, off the southeast coast of
African continent to be a marginal region, seen since the 1930s. “The continental operations of the mul- Africa in the Indian Ocean.
this area has been thoroughly integrated According to the World Bank report, tinationals give the appearance of good There have also been strikes and rebel-
into the world capitalist system since the “The economic crisis is projected to in- governance and effective administration lions in Somalia, Kenya and South Africa
19th century. crease poverty by around 46 million because they run smaller operations with over the last year. These actions are car-
The raw materials and labor power people in 2009. The principal transmis- more effective oversight than their moth- ried out in response to the rising cost of
of Africa have proven indispensable to sion channels will be via employment and er organizations in the north. food and fuel and the decline in commod-
the growth of the industrial regions of wage effects as well as declining remit- “More fundamentally, the prescrip- ity prices and real wages.
Western Europe and North America. tance flows.” tions for the extent of the drive for profit All these states are heavily dependent
Today, with the decline of commodity The World Bank report also revealed: are determined at the center, which con- on export earnings from raw materi-
prices and wages for workers and farmers “Global industrial production declined by trols them by remote control, so that way- als sold to capitalist states in the West.
in Africa, the potential exists for a total 20 percent in the fourth quarter of 2008, wardness in management is guarded by However, the replacement of civilian gov-
economic collapse and the intensification as high-income and developing country the strictest rules.” ernments with military ones will not solve
of the class struggle. activity plunged by 23 and 15 percent, re- the economic crises on the African conti-
spectively. Gross Domestic Product will Capitalist reforms are not solutions nent. The advent of the military seizure
World Bank predicts global downturn decline this year for the first time since There is much anticipation surrounding of power in Africa during the immediate
One of the U.S.-based capitalist insti- World War II, with growth at least 5 per- the upcoming G-20 Summit in London post-colonial period between the 1960s
tutions that has been blamed for the fail- centage points below potential. scheduled for April 2. The leading capital- through the 1980s only worsened the cri-
ure of Africa to achieve genuine develop- “World trade is on track to register ist countries and others from the nations ses of underdevelopment and imperialist
ment in the post-colonial period since the its largest decline in 80 years, with the of Asia, Latin America and South Africa domination.
1960s is the World Bank. Formally known sharpest losses in East Asia, reflecting a will come together to discuss approaches At the same time, in the Western capital-
as the International Reconstruction and combination of falling volumes, price de- to tackling the deepening economic crisis. ist states, anger is brewing over the fallout
Development Bank, this agency was clines and currency depreciation.” On its Web site, the organization states, from the economic crisis. In France, work-
founded towards the conclusion of World In late 2008, some analysts had pre- “The G-20 is made up of the finance min- ers have engaged in one-day work stop-
War II in 1944 along with the International dicted that the so-called subprime mort- isters and central bank governors of 19 pages and rebellions. In the U.S., workers
Monetary Fund. These two financial insti- gage mess would not have a dramatic im- countries: Argentina, Australia, Brazil, and the oppressed formed a broad-based
Canada, China, France, Germany, India, electoral alliance that brought the current
Indonesia, Italy, Japan, Mexico, Russia, Obama administration to power.
MUNdO OBReRO. Saudi Arabia, South Africa, South Korea, Yet the policies advocated by Obama in
Turkey, the United Kingdom and the the U.S. and Sarkozy in France only rein-