Archive for the Economic crisis & decline Category

CNN joins spy plane ride as US prepares new military provocations in South China Sea [World Socialist Website]

Posted in Anti-China media bias, Anti-China propaganda exposure, Anti-communism, Australia, Black propaganda, Capitalist media double standard, China, China-bashing, Corporate Media Critique, Economic crisis & decline, Encirclement of China, False flag, Media smear campaign, Obama, Pentagon, Philippines, Psychological warfare, South China Sea, State Department, US imperialism, USA, USA 21st Century Cold War, Vietnam on May 24, 2015 by Zuo Shou / 左手

By Peter Symonds
23 May 2015

Just days after a CNN news crew joined a P8-A Poseidon surveillance aircraft over a Chinese-administered islet in the South China Sea, it is clear the flight was a calculated provocation aimed at ramping up pressure on China. American officials immediately exploited the reportage to underline Washington’s determination to challenge Chinese territorial claims in these key strategic waters, regardless of the consequences…

Article’s original title: “US prepares new military provocations in South China Sea”

Article link: http://www.wsws.org/en/articles/2015/05/23/scse-m23.html

RELATED ARTICLES:

“Beijing strongly protests against US spy plane encounter” [China Daily] – http://www.chinadaily.com.cn/world/2015-05/22/content_20794899.htm

“US prepares to challenge China in the South China Sea” [World Socialist Website] – http://www.wsws.org/en/articles/2015/05/21/scse-m21.html

“Is the US planning a “Gulf of Tonkin” incident in the South China Sea?” [World Socialist Website] – http://www.wsws.org/en/articles/2015/05/18/pers-m18.html

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“US faces another debacle on Pacific economic treaty” – TPP, fake free trade pact, in trouble [World Socialist Website]

Posted in Anti-China propaganda exposure, Australia, Canada, Capitalism crisis early 21st century, Chile, China, China-bashing, Economic crisis & decline, Economy, Encirclement of China, EU, European Union, Germany, Japan, Malaysia, Media cover-up, Mexico, New Zealand, Obama, Peru, Protectionist Trade War with China, Singapore, south Korea, U.K., US imperialism, USA, USA 21st Century Cold War, Vietnam on April 5, 2015 by Zuo Shou / 左手

By Mike Head
4 April 2015

Having suffered a decisive defeat in its efforts to block other countries from joining the new China-led Asian Infrastructure Investment Bank (AIIB), the US government faces mounting difficulties with regard to its most far-reaching move to dominate the Asia-Pacific region: the so-called Trans-Pacific Partnership (TPP).

In Hawaii last month, the latest round of five-year-long TPP talks between the 12 governments involved broke up without any further agreement. For the third year in a row, the White House’s deadline for a final deal looks set to be breached in 2015.

Significantly, the main stumbling block this time was reportedly not ongoing differences between the US and Japan over auto and agricultural markets, but doubts over President Barack Obama’s capacity to get congressional approval for the pact.

Falsely presented as a “free trade” deal, the TPP is the opposite. It is aimed at creating a vast US-controlled economic bloc. In return for favoured access to the US market, which is still the largest in the world, the TPP requires its members to scrap all legal, regulatory and government impediments to American investment and corporate operations.

The TPP is an essential component of Washington’s military and strategic “pivot” to Asia, aimed at establishing unchallenged hegemony over the region, including China, which has thus far been excluded from the treaty. The “partnership” seeks to restructure every aspect of economic and social life across the Asia-Pacific in the interests of Wall Street finance capital and the largest US corporations, particularly the IT, pharmaceutical and media conglomerates.

A similar drive is underway to incorporate the European Union into a Transatlantic Trade and I nvestment Partnership (TTIP) bloc. Like the TPP, the European treaty is being negotiated behind the backs of the international working class amid tight secrecy, with hundreds of the world’s largest corporations taking part.

Obama has resorted to blatant anti-Chinese rhetoric in a bid to overcome opposition to aspects of the TPP from sections of the Democratic and Republican congressional leaderships. In one recent interview, the US president declared: “If we don’t write the rules out there, China’s going to write the rules and the geopolitical implications of China writing the rules for trade almost inevitably means that we will be cut out or we will be deeply disadvantaged. Our businesses will be disadvantaged, our workers will be disadvantaged.”

Washington is concerned that other imperialist powers, such as Germany, Britain and Japan, could strengthen their positions in China at the expense of the US unless America “writes the rules” for world trade in the 21st century.

Global financial commentators are drawing attention to what is at stake. Under the headline, “Round two in America’s battle for Asian influence,” David Pilling wrote in the London-based Financial Times on April 1: “Washington’s attempt to lead a boycott of the China-led Asian Infrastructure Investment Bank ended in farce after Britain broke ranks and other nations from Germany to South Korea fell over themselves to join. If round one was a defeat for America, round two hangs in the balance.”

Pilling noted that the TPP’s exclusion of China, on the grounds that its economy was state-owned and centrally planned, was obviously concocted. “In a peculiar display of diplomatic contortion,” he wrote, “Vietnam — a country whose economy is as centrally planned and as rigged [sic] as the best of them — is somehow considered fit for entry.”

The Financial Times Asia editor pointedly added that the TPP was “just as likely to annoy America’s allies in the region as reassure them” because of its intrusive demands, which include the dismantling of state-owned enterprises, tendering restrictions, financial regulations, data protection rules and intellectual property laws.

Washington’s aggressive drive to establish the TPP and TTIP economic blocs marks a reversal of its post-World War II role, when the ascendancy of American industry permitted it to champion the reconstruction of its Japanese and European rivals, albeit always for its own benefit, including via the expansion of markets for its exports.

Today, amid the ongoing decline of US industry, its ruling elite depends increasingly on the parasitic activities of Wall Street, the exploitation of patents by Silicon Valley, Hollywood and the drug companies, and contracts for the supply of military hardware. These rapacious interests will most directly benefit from the TPP.

Many details remain secret, but pro-TPP lobbying efforts highlight the anticipated profit bonanzas. Mireya Solis of the Brookings Institution think tank stressed advantages such as “internationalisation of financial services, protection of intellectual property and governance of the Internet economy.”

US technology firms would benefit from a ban on requiring companies to house customers’ data within a specific country. “If we’re going to serve the customer of Malaysia from, say, a data center in Singapore, the data has to be able to move back and forth between those two countries,” Brad Smith, Microsoft general counsel, told the Wall Street Journal.

Central to the treaty are punitive Investor-State Dispute Settlements (ISDS) clauses, which permit transnationals to sue governments for losses allegedly caused by official policy decisions. WikiLeaks last month published a chapter of the TPP treaty showing that firms could bypass a country’s courts to obtain damages for changes in “environmental, health or other regulatory objectives.”

Apart from the US and Japan — the two biggest partners by far — the other TPP participants are Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The willingness of many of these countries to make the required concessions to the US has been undermined by Obama’s failure to secure support for a Trade Promotion Authority (TPA) bill so that he can sign the TPP and then have it ratified by Congress with a single “yes” or “no” vote. Without TPA, Congress could force amendments to the negotiated pact, effectively rendering the agreement void.

According to a Japan Times report: “Several negotiating partners, including Canada and Japan, have publicly stated they will not put their final negotiating positions on the table until Congress grants TPA for the Obama administration. With a presidential election looming in the United States, further delay creates a real risk of TPP being delayed until 2017.”

Much of the US congressional resistance is bound up with protectionist lobbies, based on national-based industries and their trade unions. In response, the Obama administration is ramping up a campaign that explicitly spells out the expected benefits to corporate America.

On March 30, the White House published letters from former senior economic officials, including 10 ex-commerce secretaries representing every administration, Democratic and Republican, since 1973, urging congressional leaders to give Obama TPA authority.

The commerce secretaries stated: “Once completed, the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) will give the United States free trade arrangements with 65 percent of global GDP and give our businesses preferential access to a large base of new potential customers.”

This demand for “preferential access” by US imperialism threatens to break up the world economy into the kind of rival blocs that preceded World War I and World War II.

Edited by Zuo Shou

Article link: http://www.wsws.org/en/articles/2015/04/04/tppo-a04.html

“A decisive turning point in the crisis of American imperialism” – AIIP is here [World Socialist Website]

Posted in Assassination, Australia, Beijing, Capitalism crisis early 21st century, China, Denmark, Early 21st Century global capitalist financial crisis' US origins, Economic crisis & decline, Engels, France, Germany, IMF - International Monetary Fund, India, Japan, Netherlands, Norway, Obama, Pentagon, Police State, south Korea, Taiwan, Torture, Trotsky, US imperialism, USA, USA 21st Century Cold War on April 2, 2015 by Zuo Shou / 左手

1 April 2015

Yesterday was the deadline for countries to sign up as founding members of the China-backed Asia Infrastructure Investment Bank (AIIB). It will go down in history as marking a significant defeat for the global foreign policy and strategic objectives of United States imperialism.

Against strenuous opposition from Washington, more than 40 countries have now indicated they want to be part of the AIIB. Major European powers including Britain, France and Germany, as well as Norway, Denmark and the Netherlands, are on board. Almost all countries in the South East Asian region, which count China as their major trading partner, have also signed up. India is also a signatory, together with Taiwan.

The most significant blow against the US was struck by Britain, its chief European ally, which announced its decision to join on March 12. It opened the floodgates for others to follow, including two key US allies in the Asia-Pacific -— Australia and South Korea. Japan is also reported to be considering joining, possibly as early as June.

The full significance of the US defeat and its far-reaching implications emerge most clearly when viewed from a historical perspective.

One of the chief objections of the Obama administration to the new bank was that it would undermine the International Monetary Fund and World Bank. Together with the Bretton Woods Agreement of 1944, they constituted central pillars of the global economic order established after World War II by the United States, which played the central role in rebuilding world capitalism following the devastation of the 1920s and 1930s and the wars and revolutionary struggles it produced.

Of course, both of these institutions, together with the Marshall Plan for the restabilisation of war-torn Europe, operated to the economic and strategic benefit of American imperialism.

But while America drew enormous gains from the post-war order, it was not narrowly conceived. There was a recognition in ruling political and economic circles that if American capitalism was to survive, it would have to use the enormous resources at its disposal to ensure the growth and expansion of other capitalist powers, above all, those against which it had fought a bitter and bloody conflict.

Post-war reconstruction enabled the expansion of Germany and turned it once again into the industrial powerhouse of Europe. At the same time, concessions to Japan on the value of its currency -— it was pegged at 360 yen to the dollar -— opened up export markets for its industry. The decision to build trucks and other military equipment in Japan during the Korean War laid the foundations for the development of Japan’s auto industry, as it incorporated, and then developed, the advanced production techniques that had been established in the US.

The industrial and economic capacity of the United States, even when it took reactionary forms as in the case of the Korean War, was utilised to facilitate a new phase of global capitalist expansion—the post-war boom.

What a contrast to the present situation! American capitalism is no longer the industrial powerhouse of the world, ensuring the expansion of the capitalist economy as a whole. Rather, it functions as the global parasite-in-chief, as its rapacious banks, investment houses and hedge funds scour the world for profitable opportunities, engaged not in the production of new wealth, but in the appropriation of wealth produced elsewhere, often via criminal or semi-criminal operations.

In the immediate post-war period, the US was the champion of free trade, recognising that the restrictions and beggar-thy-neighbour policies of the 1930s had produced a disaster. Today, through measures such as the Trans Pacific Partnership and similar arrangements being prepared with regard to Europe, Washington seeks to forge exclusivist agreements aimed at protecting the monopoly position of US corporations. America, Obama has stated, must write the global rules for trade and investment in the 21st century.

American influence in the post-war period was not confined to the immediate economic sphere. Notwithstanding all its contradictory features, American society appeared to have something to offer the world as a whole, which had suffered decades of war, fascism and military forms of rule, along with economic devastation.

Again, the contrast with the present situation could not be starker. American democracy, once held up as a beacon for the rest of the world, is a withered caricature of its former self, no longer capable of concealing the dictatorship of the financial and corporate elites.

Social conditions are characterised by deprivation and state violence, reflected not least in the daily police killings. America has the highest rate of incarceration in the world, and in Detroit, once the centre of the American industrial economy, paying the highest wages, water shutoffs are being imposed. The US government carries out torture, abductions, assassinations and mass spying on its own people and others around the world. The country is ruled by criminals who cannot be held accountable for their crimes.

In the wake of the dissolution of the Soviet Union in 1991 and the removal from the scene of its global rival, the American ruling class was gripped by the idea that while its economic position had been severely weakened -— the stock market crash of 1987 was a harbinger of things to come -— American hegemony could nevertheless be maintained by military means.

But as Frederick Engels had earlier explained in refuting another exponent of “force theory,” the notion that economic developments—the advance of industry, credit and trade—and the contradictions to which they gave rise could be “blown out of existence” with “Krupp guns and Mauser rifles” was a delusion.

The past 25 years of American foreign policy, based on the use of cruise missiles and drones, combined with invasions and regime-change operations grounded on lies, have produced one debacle after another.

Now the chickens are coming home to roost, as other capitalist powers, great and small, begin to conclude that hitching themselves to the American juggernaut is the surest road to disaster. That is the historic significance of their decision to join the AIIB.

How will American imperialism respond? By increasing its military provocations, threatening to plunge the world once again into war.

Charting the rise of American imperialism in the late 1920s, Leon Trotsky noted that in the period of crisis, its hegemony would operate “more openly and more ruthlessly than in the period of boom,” and that it would attempt to extricate itself from its difficulties and maladies at the expense of its rivals, if necessary by means of war.

However there is another, and, in the final analysis, decisive, aspect to the economic decline of American imperialism, marked so powerfully by the events of yesterday.

For decades, the American working class was disoriented by the idea of a continually rising power -— that America’s “best days” were always ahead. Reality is now coming home with ever-increasing force.

Events are shattering the delusions of the past and will propel the American working class on to the road of revolutionary struggle, creating the conditions for the unification of the international working class in the fight for world socialist revolution.

Nick Beams

Article link: http://www.wsws.org/en/articles/2015/04/01/pers-a01.html

AIIB, a paradigm power shift [Xinhua]

Posted in Beijing, Brazil, BRICS - Brazil, Russia, India, China, South Africa, China, Early 21st Century global capitalist financial crisis' US origins, Economic crisis & decline, Economy, France, Germany, India, Italy, Malaysia, Pakistan, Russia, Singapore, South Africa, Taiwan, US imperialism, USA, Wall Street on April 2, 2015 by Zuo Shou / 左手

BEIJING, March 31 (Xinhua) — …As of 6 p.m. Tuesday, 46 countries had applied to be founders of the bank, but the United States and Japan have remained on the sidelines. The financial authority of China’s Taiwan said on Tuesday afternoon that the island has submitted a letter of intent on joining the mainland-proposed AIIB. Founders will be finalized on April 15.

TIMELINE

The bank was proposed by Chinese President Xi Jinping in October 2013.

A year later, and 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore had signed an agreement to establish the bank, headquartered in Beijing.

On March 12, 2015, Britain applied to join the AIIB as a prospective founding member, the first major western country to do so. France, Italy and Germany quickly followed suit.

Other nations will still be able to join the bank after the deadline, but only as ordinary members.

Negotiations on the AIIB charter are expected to conclude in the middle of the year and the bank should be formally established by the end of this year.

BUILDING FOR SUCCESS

As its name suggests, the AIIB will finance infrastructure–airports, mobile phone towers, railways, roads–in Asia.

There is a yawning infrastructure funding gap in Asia. The Asian Development Bank (ADB) pegged the hole at about eight trillion U.S. dollars between 2010 and 2020.

The World Bank and Asian Development Bank are more focused on poverty reduction and their funds alone are insufficient to bridge the gap, according to Hans-Paul Burkner, chair of the Boston Consulting Group.

While both the ADB and World Bank focus on a broad range of development programs including agriculture, education and gender equality, the AIIB will concentrate on infrastructure alone. The IMF, World Bank and ADB have all welcomed the AIIB initiative and see room for collaboration

The bank will have an authorized capital [of] 100 billion U.S. dollars and the initial subscribed capital is expected to be around 50 billion dollars. Although hardly enough to meet demand, it will still be a helpful boost.

GOOD FOR ASIA; GOOD FOR ALL

As the first China-proposed multilateral financial institution that has included developed nations as members, the AIIB offers an opportunity to test China’s ability to play its role as a responsible country, analysts said.

The initiative followed years of frustrated attempts to reform the existing international financial institutions, which have failed to reflect the changing landscape of global economy.

The existing economic system, shaped by the Bretton Woods agreement seven decades ago, is dominated by western countries and increasingly unrepresentative of the world’s economic architecture. Since the global financial crisis, emerging markets are becoming the main development drivers. Asian countries now make up one third of the global economy.

As global economic power shifts to emerging markets, it is only fair that they should play a bigger role in global institutions. Burkner said, “if it is not happening, then it is important to create additional institutions which, to some extent, cooperate and compete with existing institutions.

“There will be cooperation and also some healthy competition with the ADB and the World Bank.”

Good for Asia; good for the world as a whole.

Jin Liqun, secretary general of the interim secretariat of the AIIB, regards the bank as a complement to, rather than a substitute for, the World Bank and the ADB. It will improve the existing international financial system, not overturn it, Jin said.

The AIIB is just the start. Jim O’Neil, coiner of the BRICs acronym and former chairman of Goldman Sachs Asset Management, believes there are plenty more areas where China needs to be drawn in.

With its Belt and Road initiatives, the AIIB and other entities (a joint development bank with BRICs partners Brazil, Russia, India and South Africa, for example) China is trying to make its own development beneficial to the whole continent.

After over three decades of fast expansion, benefiting from globalization and opening-up, China can now share the fruits of its development and build a “community of common destiny” through international and regional cooperation.

INTO THE UNKNOWN

Even after membership is finalized, many questions will remain. How will the AIIB be governed? What will be the decision-making process be? Wha t lending criteria will it adopt? Will its policies be transparent and address issues like the environment?

The answers to those questions will determine whether the bank stands or falls.

While details are pending, China has repeatedly stated that the AIIB will uphold high standards and learn from the best practices at existing multilateral financial institutions.

During an interview with Xinhua, Lou Jiwei said the bank will have a three-tier structure — a council, a board of directors and management, as well as a supervising mechanism to ensure sufficient, open and transparent policy-making.

The prime challenge for the AIIB is how to channel funds to the most productive projects while maintaining security of repayment.

Zhang Yuyan, chief of the institute of world economics and politics at the Chinese Academy of Social Sciences, a government think tank, believes that, since infrastructure projects usually have long funding cycles and great potential for waste, sustainable profitability will be the real test of the AIIB.

Rigorous consultation and skillful management to coordinate and balance various demands and interests among members will be of the essence, Zhang said. This will be challenging at the very least, with so many histories, cultures and development stages on show.

Edited by Zuo Shou

Article link: http://news.xinhuanet.com/english/2015-03/31/c_134114065.htm

French, European imperialists escalate Islamophobia [Workers World]

Posted in Afghanistan, Anti-Arab / Antisemitism, Anti-Islam hysteria, Belgium, CIA, Economic crisis & decline, Fascism, France, Genocide, Germany, Guantanamo Bay concentration camp, Iraq, Obama, Pakistan, Qatar, Saudi Arabia, Somalia, Spain, Syria, Torture, Turkey, U.K., Ukraine, US "War on Terror", US foreign occupation, US imperialism, USA, Yemen on January 26, 2015 by Zuo Shou / 左手

By Fred Goldstein January 19, 2015

French, U.S. and British imperialism and their partners, each in their own way and for their own aims, are determined to escalate wars abroad and repression at home.

The French ruling class has imposed an undeclared state of siege on its own Muslim population and has used troops in North and West Africa to repress rebellions protesting the publication of Islamophobic cartoons in the magazine Charlie Hebdo.

French President Francois Hollande, of the misnamed “Socialist Party,” has declared that France is “at war,” echoing a previous statement by Prime Minister Manuel Valls. France has deployed 122,000 heavily armed troops and police throughout the country and has declared a “high alert.” Soldiers and police with heavy weapons patrol the streets, train stations and other public places. Raids have been carried out and dozens of people arrested.

In neighboring Belgium, the authorities deployed 300 troops to Antwerp and Brussels, carried out sweeps and shot two people dead in a raid in the town of Verviers. In Germany, Interior Ministry spokesperson Tobias Plate spoke of an “abstract high danger” as the authorities deployed 250 police in pre-dawn raids. The racist frenzy in France led to the stabbing death in a village outside Avignon of a Moroccan man, Mohamed El Makouli, by an Islamophobic neighbor.

Imperialists step up international aggression

The European imperialists are doubling down on their attacks abroad as well. The French government is flying Mirage jets over Iraq in a joint operation with the U.S. Instead of addressing the crushing poverty and racism suffered by the millions of French youth and workers of African or Middle Eastern ancestry, the answer of the regime is to deploy troops and step up surveillance in the oppressed communities and at airports.

Instead of pulling back from war on Muslim people in Iraq, Syria and North and West Africa, the Hollande regime is pressing ahead with the policies that led to the attacks against the unspeakable racism and chauvinism expressed by the cartoons of Charlie Hebdo.

Hollande and his fellow imperialists organized a mass march in Paris on Jan. 11 allegedly for “free speech,” which defended and celebrated the magazine that insulted the religion of nearly 2 billion oppressed people worldwide. In fact, you do not have to be religious at all to be revolted by the arrogant, insensitive depiction of the Prophet Muhammad in sexual poses and other objectionable images.

Hollande is partly motivated by the fact that his popularity in France was at a dismally low point before the crisis. And he is struggling to fend off challenges from the fascist National Front Party, led by Marine le Pen, who got a quarter of the vote in the 2014 election for the European Parliament. It is characteristic of social democrats such as Hollande that the way they fight the right is to move to the right themselves and occupy the political territory of the National Front.

President Obama and his administration have been trying to bob and weave through the crisis. The Obama administration stayed away from the Paris demonstration. Attorney General Eric Holder, who was in Paris just blocks away at a conference, stayed away from the march.

Washington is universally hated by Muslims

This is for purely imperialist purposes. Washington is the most universally hated power by Muslims — from the Middle East to Pakistan, to Afghanistan to Yemen and Somalia, and other parts of the world — for its wars of aggression, its drone strikes, its torture policies, its massacres of civilians, its prisons from Abu Ghraib to Guantanamo, and more.

The recent exposure of the CIA torturers in the Senate Intelligence Committee report is filled with graphic descriptions of U.S. torture. These have been read around the world. Washington is trying to placate Muslim public opinion and has even banned references to “Islamic extremism.” In addition to the fact that the neocons and militarists in Washington despise French imperialism and do not want to increase its prestige, they certainly did not want to be identified with defense of the insult to the Prophet Muhammad at a time when they are escalating their attacks on Muslims in Iraq and Syria and at home.

Washington and the Pentagon have no intention of pulling back on their aggression. Obama held a joint press conference on Jan. 16 with his junior partner, British Prime Minister David Cameron, to announce common measures to “fight terrorism.” Cameron announced new cooperation in the war in Iraq and in Ukraine, among other gestures of imperialist subordination.

But Washington intends to keep leadership of the imperialist assault against the oppressed. While in Paris during the march, Eric Holder announced that the administration will host a summit in Washington on Feb. 18 on preventing violent extremism.

Washington recently announced a new deployment of 1,000 U.S. troops to Saudi Arabia, Qatar and Turkey. They will be used to train carefully vetted, Pentagon-approved Syrian counterrevolutionaries in order to build up a 5,000-person force to continue the war against Syria and the Islamic State.

Washington is also behind the counterrevolutionary government of Petro Poroshenko in Ukraine, which is planning a new offensive to try to recapture the east from anti-fascist forces of resistance to a U.S.-Europe takeover.

Rise of Islamophobia

The background on the rise of Islamophobia is the growing economic crisis that is engulfing Europe. Islamophobia has become the battle cry of the ultra-right and fascist forces in Europe, just as racism, sexism and homophobia make up the battle cry of right-wing extremists and fascists in the U.S.

Fascist, Islamophobic and anti-Semitic parties exist in France, Germany, Britain, Belgium, Sweden, Greece and other countries in Europe. Prior to the most recent publication of cartoons defaming the Prophet Muhammad, there were demonstrations throughout Europe demanding crackdowns on immigration and immigrants.

In recent days specific Islamophobic demonstrations have taken place in Germany and France. It is an illusion that Islamophobia can be stopped by a government ban of right-wing demonstrations.

The social soil for political reaction exists in France, for example, where the official unemployment rate is 10 percent and youth unemployment is 20 percent. At the same time, unemployment rates have reached 40 percent in the oppressed neighborhoods.

French capitalism, and European capitalism in general, has been unable to lift itself out of the global capitalist crisis which began in 2007. There has been no recovery for the European working class. Unemployment in the eurozone, as in France, is above 10 percent, and youth unemployment is double that. In some countries such as Greece and Spain unemployment is between 15 and 20 percent.

This is part of a general crisis of overproduction that has plagued the global profit system and which is intensifying every month. Right now the right wing has seized the advantage and is feeding on the discontent of the masses to garner support for divisive, racist ideology. This is aggravated by the inability of the capitalist governments to turn the economic situation around.

Persistent and growing unemployment should be a signal for a revival of the working-class movement. It is high time for the communists and progressive, anti-racist, anti-imperialist and pro-working class forces to unite to defend the Muslim population and push back the fascists.

Copyright © 2015 Workers.org

Article link: http://www.workers.org/articles/2015/01/19/french-european-imperialists-escalate-islamophobia/

Richard Wolff on the State of the Economy [FAIR / Counterspin]

Posted in Corporate Media Critique, Economic crisis & decline, US Government Cover-up, USA, Wall Street on November 6, 2014 by Zuo Shou / 左手

Superb interview, you might want to jump directly to Wolff’s segment. I like his idea that deceptive capitalist ruling class media such as what’s being exposed not only falsifies reality but contains an element of psychological cruelty directed towards the oppressed majority whose experiential realities are suppressed in the official narrative. – Zuo Shou

Oct. 17, 2014

This week on CounterSpin: In the past few years, as some economic indicators have suggested a recovery is under way, US media have generally responded with celebratory reporting. But according to polls, Americans aren’t so sure. According to a recent NBC poll, just 18 percent say the economy is excellent or good. How can we best understand an economy that seems to be serving some but slighting others?

Today we’ll feature a special extended interview with economic professor Richard Wolff on how to reconcile mixed messages about the health of the economy.

Link: http://fair.org/counterspin-radio/richard-wolff-on-the-state-of-the-economy/

Writing Unions Out of the Story on Fighting Poverty [FAIR]

Posted in Capitalism crisis early 21st century, Corporate Media Critique, Economic crisis & decline, Media cover-up, New York Times lie, Psychological warfare, USA on June 14, 2014 by Zuo Shou / 左手

June 6, 2014

by Peter Hart

The New York Times (6/4/14) took a look at one of the economic puzzles of the last few decades: If growth has been strong, why aren’t we seeing a greater reduction in poverty? Interestingly, the research the Times is relying on offers some explanations–ones the paper doesn’t see fit to mention.

The story by Neil Irwin – “Growth Has Been Good for Decades. So Why Hasn’t Poverty Declined?” – notes that it’s considered conventional wisdom that the “surest way to fight poverty is to achieve stronger economic growth.” But since the mid-’70s, the US economy has grown, but the benefits of that growth have not been shared. He writes: “The mystery of why–and how to change that – is one of the most fundamental challenges in the nation’s fight against poverty.”

The piece is based on research from the left-leaning Economic Policy Institute. As Irwin sums it up:

If the old relationship between growth and poverty had held up, the EPI researchers find, the poverty rate in the United States would have fallen to zero by 1986 and stayed there ever since.

So what has happened to explain this? Irwin gives only a hint, writing that “liberal-leaning group’s policy prescriptions are open to debate.” Click on the EPI link in the Times piece, though, and you’ll see the researchers offer some pretty clear ideas about why they think this has happened:

Direct evidence highlights the key roles of the two most-visible and well-documented changes in labor market policy and practice over the past generation in driving wage trends: the erosion of the inflation-adjusted value of the federal minimum wage and the sharp decline in the share of the American workforce represented by a union.

Most specifically, EPI notes:

Between the 1970s and the late 2000s, the eroded minimum wage explains roughly two-thirds of the growing wage gap between low- and middle-wage workers, and weakened unions explain a fifth to a third of the entire rise of wage inequality.

The point of the piece is to think about what happened from the late 1970s onward. And Irwin does a good job of explaining how Paul Ryan-esque rhetoric about the need to get poor people to work misses the point, since “the reality is that low-income workers are putting in more hours on the job than they did a generation ago – and the financial rewards for doing so just haven’t increased.”

So why didn’t Irwin talk about the minimum wage or unions–the factors EPI singles out as being especially important to understanding this story?…

In this case, there does seem to be an explanation for the story it’s trying to tell. And for some reason, the Times doesn’t want to talk about it.

Article link: http://www.fair.org/blog/2014/06/06/writing-unions-out-of-the-story-on-fighting-poverty/