the rule of many over rule of the few.

Archive for June, 2012

Where now for Capitalism.?


America and Europe are in the deepest crisis of capitalism since the 1920s,even a blind man can see this.They have made statements many times claiming to have resolved this crisis,only for it to be a false dawn. In Europe, this shows a capitalist class in total confusion and deeply split on how to deal with a crisis of its own making.While in the U.S.at least since the collapse of Lehman Brothers in 2008/9 exposed and deepened a crisis which has probably lain dormant since the end of the cold war. Its economy is fragile to say the least and survives through printing dollars through the might of it’s army worldwide. The cold war allowed the U.S. to maintain the leadership of the “free world”taking exception to any challenge.This is not the case now winning the cold war has proven to be a double sided blade and has exposed its soft underbelly. During Lehman’s the U.S. recovered its footing only through printing massive amounts of U.S. dollars,putting itself even more in the red,not through the productivity of its industry. It has very little left, home of the automotive industry Detroit, large swaths of which, is now a ghost town  factories stand idle wrecked by the ravages of the market. Then by natural elements wind and rain,while their workers have long since joined the poverty lines and an early grave. In the U.S. capitalists don’t invest in products  which can be made this means  hiring workers,all  that can be done cheaper in places like China. They prefer the finance sector (Gambling)  money on  money,or into companies like Facebook and and such like. These companies  produce nothing, except money for the very few. They give work to the few relatively as opposed to the factories of say the fifties/sixties. Britain is very much in the same boat the city of London is one of the biggest gambling dens in the world without it Britain is trouble. Its industry is pretty much zero outside of a few private coal mines,with little or no merchant shipping and this on an island. Their predecessors knew something about running a capitalist economy from an island, ships come in handy. In the U. S. whole states have gone bankrupt sending millions into desperate struggles surviving in tent cities.This is the future for working class people and sections of the middle class,while the U.S.capitalists hang onto their money until they can make money on money not on anything productive. While the leadership of the U.S.fidgets  its house  collapses. Look at the alternatives on offer to Obama, Rommey a Mormon who can only get elected at the behest of the christian fundamentalists in the Republican party.  The U.S.  is more divided today and is seen as weak on the world stage.  This leadership is  a reflection of the weakness of capitalism not just in the U.S. but in Europe also. Look at the dithering over the Euro Germany believes it can be resolved through massive austerity,but this is not Dickens times, at least then they had countries to plunder.. While it will devastate communities it will not solve the systemic failure of capitalism.Greece is an example of pure austerity hunger and poverty prevail while Fascists stalk the street. Yet Germany digs its own grave for if Greece helps bring about the end of the euro Germany’s economy will suffer who will buy those BMW’s you need consumers who earn money.They are tied to one another like an anchor to a ship.While this whole crisis started with Lehman’s and spread to the banks it is  not a banking problem,it’s the system. So all the new banking rules they talk of implementing mean nothing. They have been done before. The weakness of the present capitalist leadership shows no clear path for its future.  Imperialism used in previous crisis is of not much use now, where to rape and pillage,Africa already done their is no more cake to cut. A war not these so called wars in Iraq/Afghanistan,a big war does not look likely at least at present, quite possibly in the future.

So where now Capitalism

It is unlikely to fall apart although some countries could become failed states but this would have massive repercussions on the remainder. Capitalism by its very nature must accumulate and at present many capitalists are just hoarding their money and prepared to make a loss by doing so. This is inimical to capitalism. It is in serious decline with no way forward putting plaster after plaster on a gaping wound.For the foreseeable future it will struggle along with dire consequences for working people. Only the working class can put it down.

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