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    State,Governmentandthe

    WorkingClass

    By:DonCurrie

    ChairCanadiansforPeaceandSocialism

    EditorFocusonSocialism

    August18,2008

    www.FocusOnSocialism.ca

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    TheGlobalEconomicCrisisofCapitalismHereandNow!

    Theeconomic

    crisis

    gripping

    the

    USA

    has

    now

    spread

    to

    all

    capitalist

    countries

    from

    the

    fully

    developedtotheleasteconomicallydeveloped. Aconvergenceofrecentcrisisphenomena

    superimposedon thegeneralcrisisof imperialism is resulting inglobaleconomicdisorder,

    instabilityanderuptionofmilitaryconfrontations. Noneofthisvolatilityisrespondinginthe

    samemanneraspreviousimperialisteconomicupheavaltocontrolmechanismsimposedby

    NATO, the IMF, and the WTO, the EU or decisions taken at recent G8 meetings. The

    geniusesofhighfinancecannotevenagreeonacontrolstrategyexceptone;toprotect

    theprofitsystembywhatevermeansnecessaryattheexpenseofworkingpeople.

    Thecurrentcrisis isatanearlystageof itsdevelopmentandhasneitherreachedatrough

    nor does it show any sign of recovery. The crisis phenomena are similar for all leading

    capitaliststates,differingonlyinthedegreeofseverity.Neoliberalpoliciesadoptedinpast

    decades,andnowfullymaturing,arecausinghavocintheglobaleconomy,explainingsome

    of the current instability and chaos. Othersmore recent attest to the anarchic state of

    capitalisminthemodernera.Themajorphenomenaincludebutarenotlimitedto:

    1. EscalatingcostsofUSNATOimperialistandproxywarsofaggressionandoccupationthatburdenstateswithuncontrolledandrisingarmsexpendituresontopofmassive

    arms budgets allocated to maintain weapons systems, foreign military bases and

    largestanding

    armies.

    2. Highmonopolyenergypricesresulting influctuatingandunpredictablecoststokeyeconomic sectors namely manufacturing, agriculture, transportation, and utilities,

    thelatterbothprivateandpublic.

    3. A world wide failure of the capitalist credit system resulting in bank failures andinvestorlossesarisingfromthemortgagedebtcrisisintheUSA.

    4. Emergencyinterventionsbyallleadingcapitaliststatestopropupthevalueofpaperassets

    of

    banks

    and

    near

    banks

    in

    an

    effort

    to

    recover

    losses

    of

    investors

    and

    speculatorclassesthroughtheforcedsaleofmillionsofrepossessedworkershomes

    atdepressedprices.

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    5. Government fiscal and monetary policy dictated by finance capital and parasiticinvestorclassesthatreduce taxesoncorporate,usuryandspeculative income,and

    increasestaxes

    on

    wage

    earners

    and

    small

    property

    owners.

    6. Government approval, support and legislation permitting the plunder by financecapitalofworkersprivateandpublicpensionfundsthattransferthemtocorporate

    cofferstofinancecorporatetakeoversandtopropupsaggingstockmarketsthereby

    endangeringretirementincomesofmillionsworkingfamilies.

    7. Government privatization of state capitalist functions resulting in a loss of publicoversight and control of health, education, welfare, food, infrastructure,

    transportationandvitalresearchanddevelopmentprogramsbenefitingthepeople.

    8. Government sale of state assets and property to enrich private investors andspeculators artificially inflating the value of corporate real estate and increasing

    rentalandpurchasingcosttosmallbusinessandpricerisesofresidentialpropertyfor

    workers.

    9. Profiteeringbycorporate investors,stocktradersandmarketerscapitalizingonthedemand for industrial agricultural products for energy inflating worldwide food

    prices,causinghungerandstarvationamongthepoor.

    10.Shiftingthecostsoftheeconomiccrisisfromcorporateprofitstoemployedworkersby implementing wage freezes, roll backs andwage increases below the rate of

    inflation, intensification of labour and off loading rising costs of social programs;

    health,education,childcareandpensions, from the state towageearnersandby

    increasedtaxesonincome.

    11. A drop in purchasing power in the hands of working people accompanied withgrowingunemploymentinkeysectorsoftheeconomyespeciallymanufacturingand

    permanentunderemploymentintheremainder.

    TheFaultLinesofImperialismStressedClassStruggleIntensifies

    All of these intersecting economic and political crisis factors severely impact working

    people. Theyoccur in themidstofanacceleratingcannibalisticprocessof financecapital

    monopoly mergers, consolidations, takeovers and the wholesale sell off of state assets

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    resulting inwork force rationalization, the exportof jobs to lowerwagemarkets, the

    ruinationofmediumandsmallcompaniesanddisruptionanddestructionofhomemarkets.

    The crisis exposes the advanced stage to which the merger of the state and monopoly

    capitalhasprogressedandhowitsinstrumentsandfunctionsarenowdedicatedexclusively

    totheinterestsoffinancecapital.Thisoccurswiththefullsupportandcollusionofelected

    officialswithoutregardto its impactonsocietyasawhole.Thechasmbetweentheruling

    elitesandthemassesofworkingpeoplehasneverbeensowideandunbridgeableas it is

    today.

    Thesecrisisphenomenahavestressedthefault linesofthe imperialisteconomicsystemto

    themaximum.Reliefcanonlycomeasa resultofaradical readjustmentofeconomicand

    politicalpower

    relationships

    in

    all

    countries

    affected.

    Respite

    from

    the

    deepening

    crisis

    will

    comeattheexpenseofeitherthevitalinterestsoftheworkingmassesorthatoftheruling

    capitalistclasses.Thestatusquoisnotanoption.Thatistheobjectiverealityatthemoment.

    The outcome is being decided by bitter class struggles that are breaking out on all

    continentsandinallexploitativecountries.

    Politically, financecapital isturning torightwingcorporatestylegovernance inall leading

    capitalist states as the preferred option of class rule and systematically ousting liberal

    democratic regimeswherepossible.The intercapitaliststruggles,agitateallupperclasses

    witha

    direct

    stake

    in

    the

    system,

    and

    politically

    alienate

    the

    lower

    middle

    classes.

    It

    places

    severeeconomicpressureandhardshiponworkerswhoincreasinglyarevictims,ratherthan

    beneficiariesofpoliticalchange.

    The slogan, for real changehas ahollow ring since it is advancedby allpartiesofbig

    businessandaddressedtoitsbasesupportandnotworkingpeople.

    Thisprocess has been unfolding for some time andwill continue inmore acute political

    forms political, military and economic crisis for the foreseeable future. This intensifying

    processposestheneedforacompletereappraisalbythe left,and inthefirstplacebythe

    Communists,as

    to

    where

    the

    political

    process

    is

    leading,

    what

    special

    responsibilities

    revolutionaryMarxistLeninistforceshaveatthisjunctureandthetacticsrequiredtomount

    counterattacksasthefaultlinesinimperialismareexposedandstressed.

    Letsfirstconsidersomeobviousfactors.

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    CapitalistsAreNotUnitedUSImperialismsStrugglefor

    Dominance

    Thepresentcrisis isaffectingall classes including the capitalist classes.Capitalistsare far

    fromunitedonwhichstrategytoadopttosavetheirsystemfromtheeffectsofthecurrent

    global economic andpolitical instability.Power relationshipsoccurringwithin and among

    the leading imperialiststatesandtherestofthecapitalistworldarechangingandwillnot

    returntotheordertheyoccupiedpriortothepresentcrisis.

    Doesthatmeanthattheworldwidesystemofcapitalismisabouttocollapse?Noitdoesnt.

    Neithercan itbe saiddefinitively that itwont.What can,and shouldbe said, is that this

    extreme

    instability

    will

    create

    and

    expose

    points

    of

    weakness

    in

    the

    system

    to

    be

    exploited.

    Theadvanced forcesof the leftand theorganizedworkingclassaremoreurgentlycalled

    upontostudythoseweaknessesandfaultlines,considerhowtomountoffensivestruggles

    andadvancenewtactics,alliancesandorganizationalstructuresintheirownvitalinterests.

    Thesepointsshouldformthebasisandfocusofdiscussionwithinthejournals,meetingsand

    campaignsoftheCanadianleft.

    Thecurrentcrisisisresultinginrealignmentsofimperialistpower,theoutcomeofastruggle

    nowunderwayamongthe largestglobalmonopoliesformaximumprofit. Thisprocessof

    realignmentmanifests itself inwars for controlof natural resourcebases, destructionof

    homeand

    foreign

    markets

    and

    increased

    domination

    of

    global

    stock

    markets

    over

    national

    economies. Weakened competitors are destroyed, market share is reapportioned and

    medium and smallbusinesses are eliminated.We read about it everyday in the capitalist

    press.

    The inabilityofUS imperialismwith itsvastmilitaryandeconomicpowertounilaterallyre

    order theworld in its own strategic interests, as it planned to do when President Bush

    enunciatedtheNewAmericanCentury,isunderreviewbytheAmericanestablishment.The

    Bush Doctrine is a fiasco and the November election is about replacing a failed and

    discreditedUS

    policy

    while

    retaining

    its

    principal

    strategic

    goals.

    USimperialismismarshallingallofitseconomicandmilitarypowertoretainitsdominance

    withinthesystemasitattemptstorideoutthecurrentcrisisbyemployinganyandallmeans

    necessary including fomentingnewwarsofaggression.Regardlessof theoutcomeof the

    USNovember2008Presidentialelectionstheaforementionedrealitymaybealteredbutnot

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    changed in its fundamentals.Not a singleUSPresidentialhopeful,with the exceptionof

    Kucinich,repudiatedunequivocallythemilitaryplanningnowunderwayatthehighestlevels

    ofUS

    power

    for

    a

    combined

    US

    Israeli

    attack

    on

    Iran

    and

    a

    possible

    expansion

    of

    the

    war

    into parts of Pakistan. Hillary Clinton actually called for Iran to be obliterated. That fact

    shouldbeasober reminder thatUS imperialismoperatesaccording toobjective lawsand

    notthesubjectiveutterancesofitsambitiouspoliticalaspirants.

    MillionsMaketheDifference TheTheoryoftheDecisivenessof

    MassMovementsandAlliancesinContemporaryStruggles

    Thetheoryofmassmovementsdeterminingtheoutcomeofmajorconfrontationswithbig

    capitalis

    objectively

    based

    and

    critical

    to

    an

    understanding

    of

    how

    the

    working

    class

    advances tohigher levelsofstruggle.Theexperiencegainedbymillionsengaged inmass

    struggle,often inacontradictoryandspontaneousway,usuallyasa response towarand

    economichardship is theprocesspresentlyunderway togreateror lesserdegrees in the

    USA. The struggle for peace and economic reform is being waged through mass

    participationinelectoralstrugglesnotarevolutionaryriseofworkingclassstruggle.

    Movements that drawmillions into a great and historical electoral struggle, as presently

    unfolding intheUSA,willdeterminewhichsectionof imperialpowerhassway inthenext

    immediateperiod,

    are

    significant.

    Communists

    and

    all

    left

    progressives

    enter

    into

    these

    strugglesinafulsomeanunconditionalmannerandwithoutattemptingtoopportunistically

    imposean ideologicalagendaon themovementsas thehyperleftoftendoes. Noone,

    including social reformists have a monopoly of political virtue over such developments.

    Leadershipisearnednotproclaimed.

    Theworkingclassisnotindifferentaboutwhichrepresentativesofthecapitalistclassarein

    power.Withnomassrevolutionarypartiesoflabourtoadvancetheirinterestsitcouldnot,

    at thishistorical juncture,beotherwise.The repudiationof theBushvariantof imperialist

    policy

    and

    along

    with

    it

    the

    current

    US

    Republican

    administration

    would

    not

    be

    insignificant

    foroneoverriding reason; itwouldbethe resultof thecoming togetherofmillionsofUS

    voters opposed to right wing extremism,war and economic chaos. Itwould strengthen

    similartrendsinCanadaandMexico.

    ThedefeatoftheBushRepublicanshasinternationalimplications;itwouldmarkatangible

    rise in thepoliticalconsciousnessofmillionsofUSvoters,mostlynotablyworkers. Itwill

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    representabreakfromtheinsularviewofUSexceptionalismandentitlement,aworldview

    imposedonthembycorporatemediahacks.Itwouldmarkapoliticalshift,difficultforBarak

    Obamato

    ignore.

    The victoryof suchan electoralmovementwouldbemorepolitically significant than the

    actualremovalfrompoweroftheBushadministration. Attheforefrontofthedemocratic

    alliance formingaround thecandidacyofObamaaredemands forpublicMedicare,ashift

    fromwarexpenditurestopeoplesneedsandsomeformofretreatfromthewarinIraq.The

    electionwouldbetheendofoneprocessofstruggle,anelectoralstruggle,openinganother

    thestruggleforpeaceandbasicsocialreform.

    WhatcanalterthepowerrelationshipsinCanada,theUSAandMexicoistheinvolvementof

    millionsin

    progressive

    politics.

    Mass

    movements

    led

    by

    labour,

    including

    electoral

    alliances

    of a leftcentre type, can forestallwar and affect the developmentofproductive forces.

    Compelling finance capital to reduce arms spending and institute state capitalist reforms

    throughlabourledmasspoliticalstruggleswillresultinrealgainsandaqualitativechangein

    working class thinking about its own organizations and how they should participate in

    politics.

    Organized struggles of the New Deal era in the USA, and the reforms instituted by the

    LiberalsfollowingthedefeatofIronHeelBennettinthelate1930s,resultedinpensionsand

    unemploymentinsurance.

    In

    the

    post

    war

    WW2

    era

    they

    finally

    won

    public

    health

    care.

    The

    constitutionalreforms,inparticulartheCanadianCharterofRightsandFreedoms,andsome

    oftheforeignpolicydoctrinesofpeacefulcoexistenceespousedbyLiberalPrimeMinister

    Pierre Elliot Trudeau are other examples of bourgeois democratic reforms that have

    benefitedtheworkingpeople.

    ThereAreReformsandthenThereAreReforms

    ImpermissibleamongMarxists, is theadoptionofanaboveclassornonclassviewof the

    strugglefor

    reforms.

    The

    aforementioned

    reforms

    were

    ameliorative

    reforms

    reluctantly

    concededbytherulingclassconfrontedwithadisaffectedelectorate. Theyweredesigned

    toprotectthecapitalistsystemwhilesimultaneouslyretainingcapitalismsfundamentalgrip

    onpower. It isalsoa fact, thatsomeof theworstcrimesof imperialismwerecommitted

    evenastherulingclassesoftheleadingcapitaliststateswerereluctantlyforcedtoconcede

    certainsocialanddemocraticreformstotheirownpeople.

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    Imperialistswereabletocarryoutsuchcrimesabroadbyamasterfuluseofthepsychology

    ofmassfearathome,borrowedfromtheNazis,ofexternalthreatsmenacingwestern

    values.These

    were

    all

    euphemisms

    for

    an

    exaggerated

    and

    undifferentiated

    position

    of

    privilege,allegedlyenjoyedbyallworkingpeople, in thewesternworld.Suchaviewwas

    nevertrueandisnottruetoday.

    The impoverishment of the majority of the global masses that must labour to live is

    catastrophicand severe,andcannotbeequated to the struggle tomaintain standardsof

    livingprevailing inadvancedcapitaliststates.Atthesametimesweepingdefinitionsofthe

    Southversus theNorth,of therichwestversus the impoverisheddevelopingstates,of

    environmentalprotectionversusindustrialdevelopment,ifnotcarefullydefinedfromaclass

    standpoint, can be interpreted carelessly as an alignment of the working classes and

    exploitedoftheadvancedcapitalistcountries inalliancewiththeir rulingclassagainst the

    oppressedmassesoftheworld.Suchaworldviewdoesnotaccordeitherwiththetenetsof

    Marxismnorwiththeunfoldingrealityinwesterncapitaliststates.

    Nodoubtthe imperialist ideologuesthatpreachwemustarmtotheteethtoprotectour

    wayof lifeagainst thepooroftheworldwillfindsupportersamongthe topechelonsof

    societyincludingwhatLenintermedthearistocracyoflabour.

    Internationalistsrejectanycallsfromanyquarterthatalignworkerswith theiroppressors

    andstand

    for

    the

    unity

    of

    all

    working

    people,

    citing

    the

    objectively

    true

    slogan

    of

    the

    CommunistManifesto,WorkersoftheWorldUnite.

    To return to thematterof reforms; there isadifferencebetween concessions the ruling

    classispreparedtomakewhenconfrontedbyadramaticlossofsupportamongthemasses

    andconcessionswrestedfrom therulingclassesbymovementsthatarise independentof

    thecapitalistparties.The latterareanadvanceoverotherreformsbecausetheyresult ina

    dramaticrise inpartisanpoliticalclassconsciousnessthatopenlyquestionsexistingpower

    relationships.Thedevelopmentofsuchstrugglescanberapid,arisingfromwar,economic,

    political,constitutionalordemocraticcrisis,quicklytransitioningtohigherpoliticalstruggles

    thatbegintodelineateclasslines.

    Thatwas the case in theWinnipegGeneralStrike 1919and thataroseagain in theOnTo

    OttawaTrek in 1935.Somestrikes inCanadasuchas theMiners strikes inNovaScotia,of

    1922 25, the Saskatchewan Souris Valley Coal Miners strike in summerfall 1931 and the

    CrowsNestPasscoalminersstrugglesencompassinga longperiodfromthe1930stothe

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    mid1950sareotherexamples.TheCommonFrontStrikeof thepublicsectorandprivate

    sectorunions inQuebec in theperiod 197072 that intersectedwith the impositionof the

    WarMeasures

    Act

    during

    the

    October

    Crisis

    of

    1970

    is

    another

    example.

    All

    of

    these

    strugglesarousedthealarmbellsatthehighestlevelsofcorporatepower,causedthemto

    employ the suppressive power of the state against the people, because they began to

    articulaterevolutionaryideasofworkingclasspower.

    Anadvanceinworkingclassinternationalistconsciousnessoccurredduringthemobilization

    ofvolunteers indefenceofRepublicanSpainandagainduring theperiodofWW2and its

    immediateaftermath,whentherewaswidespreadpopularsupportfortheSovietUnionand

    awarenessofthethreatofNazismtodemocracy.ThedecisiveroleoftheSovietUnioninthe

    defeat ofHitler raised socialism to unprecedented heightsofprestige andbegan towin

    wide adherence in Europe and acceptance in North America for the ideas of peaceful

    coexistenceand itspromiseofa longperiodofpostwarpeace.ChurchillsFultonMissouri

    coldwarspeechin1946wasnoaccident.Itwasadeliberate,panicresponsebyimperialism

    againstadramaticlossofcontrolovermassideology.

    A rise in class revolutionary consciousness is qualitatively different from bourgeois

    democraticreforms.Revolutionaryconsciousnessisthecomingtogetherofbotheconomic

    andpoliticalawarenessandorganizationarisingfromaparticularsetofclassrelationships

    thathavereachedapointwhereitisimpossibletocontinueintheoldway.

    ItIsImpossibletoContinueintheOldWay

    Canadian labour politics has reached the pointwhere it has become impossible to bring

    aboutan improvement intheconditionsoftheworkingclasswithoutengaging inpolitical

    struggles. Withoutpoliticalstrugglesthemainissuesstandinginthewayoftheprogressive

    advanceofthecountryasawholecannotberesolved.Inotherworldslabourmustleadthe

    wholecountryorlosethestruggleforitsownvitalinterests.

    Anactive

    and

    organized

    campaign

    for

    an

    anti

    monopoly

    economic

    program

    which

    openly

    challengesthepowerbaseoftherulingclasswillresult inaqualitativeadvance inworking

    classpolitics. Anantimonopolyeconomicprogrammust:

    Openlychallengethemilitarizationoftheeconomy,

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    Demand Canadian withdrawal from imperialist military alliances such as NATO,NORADandNORTHCOM,

    Demandthepermanentbanofnuclearweaponsandnewweaponssystemsinspace, Callfortheshuttingdownofforeignmilitarybasesandareturntothefundamental

    principlesoftheUNCharter,

    Demand thatkeysectorsof theeconomybenationalized, in the firstplaceenergyandmineralresources,transportationandcommunications,

    Demand a halt to privatization and make all social programs that benefit peoplepermanentandunassailable,

    Callforthenationalizationthebanksanddemandcontrolsbeplacedonthetyrannyoffinancecapitaloveralleconomicdevelopment.

    Such demands, supported by millions, will inevitably confront the furious and violent

    oppositionoftherulingelites,compellingallclassestoconsiderthequestionsofpowerand

    posetheneedforsocialism.

    Even the conceptof antimonopoly struggle canbe a somewhatorderly viewofpolitical

    development. If it isembraced inadoctrinairefashion itwillnotcorrespondtotheway in

    which crisis phenomena actually appear in the global system of capitalism. That is what

    Marxists,Socialists

    and

    Communists

    must

    be

    prepared

    to

    respond

    to.

    It

    would

    not

    be

    dialecticaltothinkotherwise.

    TheGlobalEconomy AnUnfoldingContradiction

    The thesis that the global economy is homogenized, undifferentiated and that individual

    countries are incapable of resisting or breaking out of the orbit of imperialism is

    unsupportable by the facts. Even US imperialism does not view the world that way.

    Imperialism isengagedinattemptingtosaveitssystemand itsprivilegedpositionwithin it

    byexploiting

    the

    weakest

    states

    to

    protect

    the

    strongest.

    US imperialism is offloading the crisis it is mainly responsible for creating, onto others,

    wherevertheopportunityarises,andusingcrassappealstoorganized labourtokeepour

    jobs while destroying theirs. The gross irresponsibility of the Harper Government is to

    spread the illusionamongCanadians that theUSrulingclasshasabenignviewofCanada

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    anditspeople.PrimeMinsterHarperspreadstheillusionthattheUStakesadifferentview

    ofCanadainrelationtoothernations.HeinsinuatesthattheUSexcludesCanadafromthe

    predatoryactions

    and

    aims

    of

    its

    investor

    classes

    and

    power

    elites.

    That

    is

    far

    from

    the

    reality of USCanadian relations which always have been, and remain, contradictory and

    conflicted.

    Industries both private and state capitalist, in states such as Canada, that are heavily

    dependentonprimary resource extraction and energy exports as theprincipalmeansof

    economicdevelopmentareparticularlyvulnerabletoforeigntakeoverandthedestruction

    of their core manufacturing and industrial industries. Canada is no exception. What is

    criminalisagovernmentthatnotonlyletsithappenbutactivelypromotesitasadesirable

    policy.

    SincetheonsetoftheeconomicdownturnUSfinancecapitalhasaccelerateditstakeoverof

    Canadianenterprisesinallsectorsoftheeconomy.ThisacceleratedannexationofCanadian

    industry is resulting in permanent job loss and acceleration. It is a rapid and brazen

    repatriation of high paying Canadian jobs to low wage areas in the USA. US finance

    capitalists, with the support of a small insider group of Canadian collaborators, have

    achieved greater dominance in the determination of overall Canadian economic

    development since theHarper Conservatives haveoccupiedpower. That iswhyHarpers

    approval rating with George Bush is high and dismal among Canadians. Canada is more

    vulnerableto

    the

    affects

    of

    the

    global

    economic

    crisis

    now

    underway

    in

    the

    USA

    since

    the

    Harperadministrationhastakenthereinsofpower.HistalkaboutCanadiansovereignty is

    themostcontemptibleformofpoliticaldeception.

    TheWorldSystemofCapitalismisEvolving AMomentof

    WeaknessforUSImperialism

    Allofthesefactorstakentogethermeanthatnothingasitwaspriortothecurrentcrisiscan

    remain

    the

    same.

    Power

    relationships

    are

    being

    altered

    and

    not

    to

    the

    advantage

    of

    US

    imperialism. Thecapitalistglobalsystemisvulnerabletodemandsbytheworkingmasses.

    The general crisis of imperialism is deepening and the imperative for socialism is more

    apparent. The current interdependence of China and US imperialism, enabling US

    imperialism to wage war and pacify its populace with cheap consumer goods, is being

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    alteredbythecurrenteconomiccrisis.Thatrelationshipisnotpermanentandbeginningto

    fray.

    USimperialismsinabilitytodecisivelyandquicklyconcludeitswarsofaggressioninIraqand

    Afghanistanandseizeallregionaloilandmineralresources,oustitscompetitorsandextend

    itsdominancefrom IraqtotheCaspian inonefellswoophasresulted inacostlystrategic

    miscalculation.ThemostrecentexampleisthedefeatofGeorgia,aformerSovietRepublic

    and now a US puppet regime, by the Russian army, after being goaded by the Bush

    administration intoacostlyadventurecostingthe lives1,400people inSouthOssetia.The

    warinstigatedatthetimeoftheOlympicsandtimedtocomplicatetheObamapresidential

    campaign,mayalsobeadangerouscoverforaUSattackonIran.

    Resistancefrom

    countries

    and

    political

    forces

    opposed

    to

    US

    war

    for

    oil

    strategy

    in

    the

    regionextending from theCaucuses toCentralAsiaand theMiddleEast is stiffeningand

    spreading.Whatwasplannedasashockandawevictoryhas turned intoadebilitating

    and costly quagmire for the US military and a millstone on the US economy. The Bush

    AdministrationwiththehelpofnewlabourTonyBlairdragooneditsNATOalliesintothe

    socalled Coalitionof theWilling and in theprocessdestabilized international capitalist

    relations, weakened the cohesion of NATO relations and aggravated global capitalist

    economicrelationships. Thishascreatingirreparablestressesamongparticipants.

    Forthe

    people

    of

    the

    Middle

    East

    and

    Central

    Asia

    the

    illegal

    aggression

    of

    the

    Bush

    Administration into their countries is a crime against peace and a violation of national

    sovereignty thathasbroughtdeathandmisery tomillions. Thepopular resistanceof the

    IraqiandAfghanpeople to the imperialist intrusion into theircountries isunderstandable

    and justified.Theresistancemaynotasyethavesucceeded inoustingtheUSmilitaryand

    theeconomicpowerof thecorporationsprofiteering from thewar,but itdoes represent

    theirretrievablelossofUSimperialismspoliticalinfluencerepresenting,indramaticterms,

    theirreversiblehistoricdeclineofitsdominanceintheentireregion.

    The fact that both Presidential candidates enunciate changes in policy but not in US

    strategicgoals,originallyproclaimedby theBushadministration,means that thereareno

    circlesamongtherulingUSelitesthathavedrawnthenecessaryhistoricalconclusionsfor

    therequisiteretreatoftheempire.ItmeansthatallfactionsofUSpowerwillcontinuetheir

    questfordominanceandthenegativeeconomicaffectsoftheUSNATOwarsofaggression

    inIraqandAfghanistanwillcontinue longaftertheNovemberelections.Thesepolicieswill

    continue toundermineanddestabilize theUSAandallwestern economies,andwith the

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    utmost certainty, that it will continue to worsen the current economic problems facing

    Canadians.

    Thesefactsrevealafundamentaltruth.ThecrisisintheUSAisnotcausedbyBush,Cheney,

    Rice or Gates or any other corrupt group of servants of imperialist power. The Bush

    administration isaproductofasystem, the resultandoperationof theobjective lawsof

    capitalisminitsfinalstageofdevelopment imperialism.Capitalistpoliticianswilladmitthat

    apolicyisflawedandmustbealtered,butnotasingleonewilladmitthatthesystemitselfis

    brokenandcannotberepaired. Capitalismishistoricallyspentandmustbereplaced.Thisis

    whatworkingclass leadersarecalledupontodo lead thestruggle toreplacecapitalism

    withsocialism.

    TheNatureoftheCrisisandtheProspectofRevolution

    Revolution,likecyclicalcapitalistcrises,isanobjectiverealityofthedevelopmentofsociety

    and itsproductive forces in relation to theprivateownershipandaccumulationofcapital.

    Revolutionwillnotdisappearbecauseithasbeendemonizedbyfinancecapitalanddefined

    byacademiaassomeaberrationofhumandevelopment.Pleadingwithcapitalismtoreform

    itselfwillnothaltthebuildupofrevolutionaryforcesor limitrevolutionarymovementsto

    demandsofreforms.WhatMarxandEngelsdescribedintheirdayandLenininhis,wasnot

    theform

    that

    revolution

    might

    take,

    but

    its

    underlying

    causes

    and

    its

    inevitability.

    Why

    is

    revolutioninevitable?

    What all capitalist societies and the globalprofit system confront is the seismicbuild up

    betweena rapidgrowthof theproductive forces in theeraof thescientificand technical

    revolutionandtheantiquatedrelationsofproductionthatattempttocompressandcontain

    it.Summedup,thecontradictionthatunderliesourmodernworldandwhichhastakenon

    globalproportionsisthecontradictionbetweensocialproductionandprivateownershipof

    themeansofproductionandappropriationoftheresultofthatproductiverelationship.

    Everyleft

    theorist

    acknowledges

    and

    describes,

    sometimes

    brilliantly

    and

    in

    the

    greatest

    detail, thegrowingdisparity inglobalwealthandpovertybut few reflecton its inevitable

    outcome,therevolutionaryconvulsionsitcreates.

    Leftsocialdemocracyisstuckinaperpetualcircleofdescriptiveanalysisofthehorrorsof

    imperialismandanoutpouringofameliorativefixestoalleviateitsworstfeatures,butfew

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    accept imperialisms certain demise and that socialism, its inevitable, necessary and

    historicalreplacement,resultsfromrevolution.

    What crisisphenomenawill come together to create conditions fora rapid revolutionary

    advance is not completelypredictable.But not to study them from theperspective of a

    revolutionaryviewofhistoricaldevelopmentisnotreality.

    Todaytheworldsystemofcapitalism is inastageofvolatility.That iswhy it is imperative

    thatthesocialistalternativetocapitalismneverbesetasideforthefuture,assomethingof

    awistfulnotionnot forour time. Itcanvery rapidlybecome theurgentnecessityaround

    whichmillionswouldbepreparedtounite iftheeconomicconditionsoftheworkingclass

    made itclearthatsocialismwas thewayout.Socialism is thewayoutand it is incumbent

    uponall

    who

    claim

    to

    want

    genuine

    change

    to

    say

    so.

    Such is theviewof theCommunistPartiesofGreece,PortugalandCyprusandnow India

    whereactivemasspartiesoftheleft,includingmassCommunistParties,havewonsupport

    of importantsectionsofworkingandexploitedclasses.VenezuelaandBoliviahave joined

    Socialist Cuba where revolutionary class forces have assumed power and proclaim their

    intentiontoinstitutesocialistsolutionstothedevelopmentoftheireconomies.

    Thesocialiststatesandthose intransitiontosocialismandallofthenonalignedcountries

    impacted

    by

    the

    current

    global

    crisis

    of

    capitalism

    are

    in

    a

    better

    position

    to

    preserve

    peace

    andmitigate the ruinous effectsof the current crisisof capitalismonworkingmassesof

    theircountries.That iswhatsocialismofferstheworkingclassand itsallies,peaceandthe

    opportunitytobuildtheeconomyintheirowninterests.

    WhathasallofthattodowithCanada?Dotheseeventsoffertheopportunitytoposethe

    socialistalternative?Theydo!

    How it is to be done requires some careful thinking. Where does it start? It starts with

    recognizingthatthesystemisbothinageneralcrisisandisatthebeginningofaneruption

    ofa

    new

    cyclical

    crisis

    of

    unknown

    depth

    and

    duration.

    CanadianPartiesofBigBusinessCowerandWait

    Theeconomiccrisisofthesystemcreatesamomentofindecisionforthecapitalistparties.

    Political paralysis is gripping the Conservative minority government and the Liberal

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    Opposition as their leaders wait timorously for the outcome of the US elections in

    NovemberandanewPresidenttoestablishtheframeworkofCanadianUSrelationsforthe

    nextfour

    years.

    ThetotalbankruptcyofCanadiancapitalistpoliticsisnowfullyexposed.Thefactthatnota

    singlepartyleaderhasthecouragetostepforwardbeforetheUSNovemberelectionsand

    enunciate an independentprogram thatplaces the interestsofCanadianworkingpeople

    first lays bare this reality. The fear in Canadian ruling circles to confront the new US

    president and Government with a program of economic and political development, that

    befitsafullysovereignstateandplacestheinterestsofitsworkingpeopleatthetopofthe

    political agenda, stands in stark contrast to socialist Cuba and Venezuela that have

    embarkedonanindependentpathofdevelopmentwithoutseekingUSapproval.

    PrimeMinisterHarperandhisgovernmentare incapableofconceivingofaworldwithout

    USimperialistoversight.AllissuesimpactingthevitalinterestsofCanadianworkingpeople

    aresubordinated toUSstrategicgoals.Canadianeconomicpolicyas farasPrimeMinister

    Harperisconcerned;awaittheoutcomeofaUSPresidentialelection.

    An independent economic program to protect Canadian workers from the made in USA

    global economic crisis which is destroying Canadian jobs, depressing wages, slashing

    purchasingpower,burdeningtaxpayerswithbankbailouts,payingforawarandoccupation

    inAfghanistan,

    shipping

    Canadian

    energy

    resources

    to

    US

    refineries

    and

    militarization

    of

    the

    economycanonlybewonbyopenlyconfrontingCanadiancapitalpowerrelations.

    TheEnergySectorStrengthorWeakness?

    US dominance both as the principal importer and owner of Canadian energy resources

    revealsthevulnerabilityoftheCanadianpeopletothepolicyofresourceselloutpromoted

    bytheHarperConservatives. Insteadofasourceofstrength inthepresentcrisisasPrime

    MinisterHarpervaingloriouslyassertsprivateforeigncontrolofCanadianenergyresources

    anda

    single

    US

    market

    for

    the

    product

    is

    Canadas

    greatest

    economic

    weakness.

    TheenormousprofitsgeneratedfromtheTarSandsthatHarperboastsmakesCanadathe

    newenergysuperpowerarebeinggleanedfromthelabouroftheenergysectorworkersof

    Alberta, Northern BC and now Saskatchewan. These workers construct the plant and

    refineries, installandmaintain thegathering systemsandpipelines thatextract,produce,

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    andtransportbothrawandsemiprocessedoilandgastotheUSmarket.Theirlabouristhe

    principalsourceofnewcapitalflowingintothehandsofprivateinvestors.Whathappensto

    thiscapital?

    CapitalFormationfromtheEnergySector

    Capitalaccumulations from theexploitationof theTarSandsarenotused toeither lower

    costs of energy to Canadian consumers, industry and agriculture or to help halt the

    precipitousdeclineofeasternCanadianmanufacturing.NewcapitalfromtheTarSandsgo

    directly into the pockets of the private energy sector to reinvest in exploration and

    productionandincreasinglytoengageinforeigninvestmentplaysinSouthAmerica,Central

    Asiaand

    the

    USA.

    ItisalsoincreasinglybeingusedastheprinciplestrategicsourceformeetingUSmilitaryfuel

    requirements. LargeincreasesinupgradingandrefiningcapacitiesinIllinois,Oklahomaand

    Mississippiarebeingconstructedwhileupgradingandrefiningcapacitiesarebeingcurtailed

    in Canada. RoyalDutch Shell (RDC formally Shell Canada) announced in June that it is

    haltingitsplannedSarniaOntarioexpansionandwithitthousandsofCanadianconstruction,

    operationandmaintenance jobs ina region indesperateneedof jobs. RDCsaid thevery

    nextdayaftertheSarniaannouncementthat itwillstopanyfurtherplannedexpansionof

    PhaseII

    through

    Phase

    IV

    of

    its

    Ft.

    Saskatchewan

    Alberta

    upgrader.

    Shifting

    the

    upgrading

    capacitiestoOklahomaand intononunion jurisdictionswherewagesare lowerandsafety

    regulationsarevoluntarybythecontractorsandowners.

    Intheirinsatiablegreed,theenergyinvestorsareplottingtoreplaceCanadianenergysector

    workerswith importedforeign labourunderthetermsofthenew immigrationrulesofBill

    C50.TogetherwiththeHarperGovernmentsamendmentstotheImmigrationandRefugee

    Protection Act (IRPA), it will clear the way for a flood of low wage foreign temporary

    workers intotheenergysectortobeusedascheap labourtofurtherweakenthebuilding

    tradesunionsworkingintheconstructionofTarSandsmegaprojects.

    BillC50 ispartof the setofagreements struckunder the SPPandTILMA inan effort to

    depresswages,breakunionsandruinstablecommunities.TheAlbertaenergygiantsCNRL

    andSuncorhaveconstructedbarracklikecampsatFortMcMurraywhichhousetheinfluxof

    largenumbersofforeignworkersdirectlycompetingwithCanadianworkers inthefieldof

    skilledtrades,technologyandengineering.

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    This is what Prime Minister Harper means when he speaks of Canada as an energy

    superpower.Removingtherhetoricweareleftwiththepoweroftheenergydevelopersto

    shapegovernment

    policy

    to

    provide

    cheap

    labour,

    keep

    corporate

    taxes

    low,

    remove

    all

    export barriers and defy the rising public outcry against rising prices and the obvious

    environmental damage being created by irresponsible and uncontrolled private

    development.Asothershavesaid,thePrimeMinisterisnothingmorethananenergysuper

    marketer,sellingoutthefutureoftheresourceandtheenergyneedsofthewholecountry

    forafastbuck.

    ProductionCapitalOut,Usury,SpeculativeCapitalIn!

    Furtherexacerbating

    the

    current

    economic

    crisis

    is

    the

    conflict

    among

    some

    sections

    of

    the

    capitalistclassesthatderivetheirprofitsfromexploitingworkersengagedintheproduction

    of industrial and manufactured commodities. The Canadian Manufacturers Association

    supportedbytheLiberalsconfrontFinanceMinisterFlahertysedictthateconomicplanners

    mustacceptas theirfirstdutyto theirclass,theBankofCanadaandFederalGovernment

    policyofbailingoutthebankingsector,shoringupusurycapitalandshoringupthelossesof

    large investorspeculators.Theproductivesectorgetswhat is left.Themeetingsbetween

    OntarioandQuebecpremierswereareactiontothatpolicyandthemostrecentmeetingof

    theprovincialpremiersinQuebecCityrevealedthatsplitbetweenresourcesectorprovinces

    andmanufacturing

    based

    provinces

    is

    real

    and

    growing.

    The

    fiery

    denunciations

    by

    Premier

    DannyWilliamsofNewfoundlandLabradorofPrimeMinisterStephenHarper isarevealing

    symptomofthesplitswithintherulingelites

    TwoServantsFightingtoServetheSameMaster

    Tosaythere isnodifferencebetweentheLiberalsandConservatives isthesameassaying

    thereisnodifferencebetweentheUSRepublicansandDemocrats,theBritishToriesandthe

    BritishLabour,theSarcozyRepublicanstheFrenchSocialists,andonandon.Suchtautology

    getsus

    nowhere.

    Thereisbroadagreementontheleftthatthedivisionsamongcapitalistpartiesarequarrels

    among servants vying for the rewards flowing from serving the same master, finance

    capital.What isnotoftenconsidered isthatthesequarrelsarerealandcanbecomebitter

    andsometimes,asishappeninginTurkeyandPakistan,quitebloody.

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    In Canada these realities of capitalist politics stem from the confrontation between the

    dominanceofnewcapitalarising fromenergyproduction,and theoldcapital invested in

    manufacturing,the

    parasitical

    weight

    of

    banks,

    usury

    and

    speculative

    capital

    versus

    the

    needsof theproductive sector of the economy for cheap investment capital. Itpartially

    explains the splits in the capitalists parties, the divisions between eastern and western

    regional capitalist interests, between the federal government and the provinces, all

    attesting to disunity among competing capitalist interests engaged in the most vile and

    acquisitivepursuitofselfinterestattheexpenseofCanadaanditspeople.

    Similarlyonan international scale,competitionbothwithinandamong imperialist trading

    blocs, principally the EU and NAFTA and, its most recent iteration, the Security and

    ProsperityPartnership (SPP), are sharpenedby the currentglobal crisis further inflaming

    interimperialist rivalries. Within theEU itself, thereare stressesanddisunity. These are

    exemplifiedbytherecentdefeatoftheEUReformConstitutionbythevotersofIreland.This

    disunityhas created a serious crisisofpolitical and economic development for European

    financecapitalanditsplanstotransformacapitalistEuropeintoacontenderwiththeUSA

    forworldimperialistdominationandcontrol.

    ThedreamsoftheambitiouscorruptrulingelitesofUkraine,dismemberedYugoslaviaand

    Kosovo,GeorgiaandformerEuropeansocialiststatesadmittedtoNATO,thatacornucopia

    of riches andwealthwould reward theirbetrayalof socialism and thepeople confronta

    bitterreality.

    These

    states,

    confront

    the

    hard

    nosed

    demands

    of

    the

    dominant

    European

    capitaliststates,Germany,France,ItalyandtheUK. Thesupplicantsmustfirstgiveuptheir

    sovereignty, theirmarketsand their resourcesandallof thegainsmadeunder socialism,

    beforetheywillbeletinthedoor.

    InthecaseofPolandandCzechoslovakia,andUkrainewhereasmallelitebeggingtheUSA

    forapositionofprivilegewithinNATOandattheimperialisttable,permittheUSAtostation

    forwardadvancednuclearweapons installationson their territory thusmenacingRussian

    security,expose theirowncountriesand itspeople tocertaindestruction in theeventof

    nuclearwar.

    TheRoadAheadIncreasedInstabilityoftheCapitalistSystem

    Allof these factorsarebound tocreateextremepolitical instabilitywithineachcapitalist

    country and the global capitalist system thatwill shape class relations for some time to

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    come.Tosaytheglobalsystemofcapitalism is integratedwithoutexplainingthetenuous

    andcontradictorynatureofthatintegrationrobstheworkingclassofanimportantweapon

    inits

    struggle

    for

    its

    own

    interests,

    the

    ability

    to

    take

    advantage

    of

    inter

    capitalist

    and

    inter

    imperialistcontradictions.Worsethanthat, itperpetuatesthe illusionofthe invulnerability

    andpermanenceofglobalcapitalismintheimperialiststageofitsdevelopment.

    AnotherWorldintheMaking

    The doctrines of a small group of imperialist states led by theUSA that rely onmilitary

    power and political and economic threats, and proclaim their right to violate the

    sovereigntyofpeoplesandnations toexactregimechange, to intervenemilitarilyand

    unilaterallyin

    international

    affairs

    is

    being

    challenged.

    More peoples and countries, recognizing that imperialism cannot be reformed, reject its

    tenetsandaretakingmatters intotheirownhands.Theyaredeclaringpeaceastheirright

    andboldlyestablishingnewformsofgovernanceutilizingtheirownnaturalresourcesand

    peacefulcreativelabourtoprovidefortheeconomicandsocialneedsoftheirpeople.

    A group of states, the Peoples Republic of China, the Democratic Peoples Republic of

    Korea,thePeoplesRepublicofVietNam,theRepublicofCuba,theBolivarianRepublicof

    Venezuelaand theRepublicofBoliviahavechosen socialistmodelsofpolitical,economic

    andsocialdevelopment.Thesemodelsarebasedon stateownershipof thecommanding

    heightsof theeconomycombiningother innovative formsandmethodsofproduction to

    overcomeproblemsofunderdevelopment.

    The socialist states emphasize economic cooperation, the application of science and

    technologytoincreaseproductivityandeaselabourtomeettherisingneedsofthepeople

    fornecessities.Atthesametimethesocialiststatesaresystematicallyimprovingthehealth,

    advancededucationandculturallifeofthepeopleandimplementingvigorousprogramsto

    preserve the environment, conserve energy resources and avoid the worst aspects of

    consumerism.

    OtherstatessuchasEcuador,Chile,Paraguay,Nicaragua,ArgentinaandBrazil,Russiaand

    India,SouthAfricaandByelorussia (Belarus)andmanyothers thatareconsidering joining

    them,representnationsintransitionthatarenotfullyintheorbitofimperialismandoptfor

    anonbelligerentstanceininternationalrelations.

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    Thesestatesareweaklyintegratedintheglobaleconomicsystemofimperialismandoften

    act independentlyof itwhen theirvitaleconomic interestsareat stake.Theyareactively

    engagedin

    building

    new

    non

    belligerent

    trading

    blocs,

    free

    of

    military

    threats

    and

    imperial

    ambition. Mutually beneficial economic relationships built at a regional level and that

    objectivelychallengethedominanceandextremeaggressivenessofthe leading imperialist

    statesledbytheUSAissomethingnewininternationaleconomicrelationssince1990.

    Thenew trends in internationaldevelopmentattract theattentionof themajorityof the

    peopleoftheworldandraisehighthehopesforpeaceandeconomicprogressfreeofwar

    andoppression.

    Thesetrendsalsoarousetheenmityandscornoftheolddiscredited imperialistcentresof

    powerand

    privilege

    and

    their

    dominant

    role

    in

    global

    affairs.

    These

    trends

    are

    causing

    old

    imperialist powers to resort to threats, occupations, militarism and war, inflicting

    unspeakable crimes against the people, as people attempt to emerge from poverty and

    exploitation.

    CanadasChoice OldImperialistConflictorTowardsaNewEraof

    NonbelligerenceandCooperation?

    These

    developments

    challenge

    Canadians

    to

    consider

    alternatives

    to

    the

    dominant

    subordinaterelationshipthatpresentlyexistsbetweenCanadaandtheUSA.Withadifferent

    government,Canadacouldmoveclosertothesetrendsininternationalrelationsthatreject

    war,aggressivenessandbelligerenceamongstates.

    PrimeMinisterHarperdoestheoppositeandhasabandonedanypretenceofpromotinga

    foreign policy of peace. USCanadian military and foreign policy collaboration has led

    Canada into membership in the imperialist military alliances of NATO, NORAD and

    NORTHCOM,adaptingand integratingCanadasmilitaryandforeignpolicy instepwithUS

    imperialistglobalambitions.

    Canada,theWorkingClassandtheFuture

    Canadiancapitalism isnot immune to thecurrentglobalcrisis; in fact thedecisionsof the

    Harper Government aggravate the general crisis and make itworse. All of the solutions

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    offeredthusfarpromotedbytheminorityrightwinggovernmentaredesignedtodeepen

    Canadian involvement in imperialistwar,divertpublicwealth tobailoutprivate investors,

    andpromote

    high

    energy

    prices

    and

    a

    low

    wage

    policy

    that

    reduces

    purchasing

    power

    of

    consumersforallbuttheupperincomeelites.

    Allof the solutionsofferedby geniusesof high finance aredesigned toprotect the

    profitsof richest andmost powerful finance and resource capital formations. From the

    GovernoroftheBankofCanadatotheFinanceMinister,tobankCEOsandthefullrangeof

    corporate groups such as the Canadian Councilof Chief Executives (CCCE), the Canadian

    ManufacturersAssociation(CMA),theCanadianAssociationofPetroleumProducers(CAPP)

    and the stock exchanges S&P/TSX,while disagreeingonmethods, all agree that it is the

    workingclassandthenoncorporatetaxpayersthatmustbearthebruntofthislatestfree

    marketdrivenfiasco.

    Capitalists in all countries, including Canada sensing the vulnerability of politically and

    economicallyunorganizedworkingpeoplewill imposeharshconditions that include rising

    monopoly prices,wage freeze, and severe consumer debt pressure. Thesemeasures all

    resultinfallingpurchasingpowerinthehandsofworkers.Thisprocesswillcharacterizethe

    classstrugglesolongasthecurrentcrisisworsens.

    Thecrisishassharpenedallclassrelationshipsandwillcompelallthosewhomustlabourto

    liveto

    reconsider

    their

    previous

    assumptions

    about

    the

    capitalist

    systems

    ability

    to

    meet

    theirneedsnowand in the future.The crisisposes thesequestionsmosturgently to the

    working class.Workers confront abitter choice.Believe the theoriesof thosewho claim

    capitalism can master the current crisis and manage its way out and wait for them to

    attempt to do it, or do their own thinking and intervene in the political and economic

    processtodefendtheirinterestsnow,andworkonaworkingclasssolutionforthefuture.

    Howeachworkerandeachworkingclassorganizationanswersthatquestionwilldetermine

    howrapidlytheworkingclassentersthestruggleforitsownvitalclassinterests.

    The thesesofawide rangeofeconomicanalysts from theavowedlyproimperialist toan

    array of neoMarxist academics and even some Communist theorists is, that the current

    situation is simply another predictable and recurring cyclical event in evolving global

    capitalist economy and that the economic gurus of Wall St., Fleet St. and Bay St., can

    managetheirwayoutofthecrisis again.Thatblandassurance,inallofitsleftandright

    variants ispropagatedeveryminuteofeverydayby the corruptmedia. It is suspect and

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    shouldnotbetakenatfacevalue.Thecurrentcrisisneedsdeeperanalysisandthatcanonly

    comefromafreshlook.

    Whatdoallofthesetheorists invitetheworkingclasstobelieve?Theworkingclassofthe

    leadingcapitaliststates,areinvitedtobelievethattherulingelitesoftheimperialistsystem

    ofstateshavemastered the lawsofcapitalistdevelopmentand in timewilldeviseaplan,

    andinfactarebusyimplementingsuchaplan.Theplanmostassuredly,willsavethestatus

    andprivilegesofworkersand farmers in theadvancedcapitaliststatesat theexpenseof

    workersandfarmersinunderdevelopedstates.Suchtheoriesareflawed.

    ACapitalistCrisisStrikingattheEpicentreofImperialism

    The current global crisis of capitalism is most severe at the epicentre of the imperialist

    system theUnitedStatesofAmerica. Infact,itarisesfromthere.Unlikepreviouscrisesof

    capitalismsuchastheAsiancrisis,theArgentinacrisis,thecollapseoftheRussianeconomy

    following1990counterrevolutionaryoverthrowoftheSovietUnion,USAfinancecapital is

    unable this time to turn a capitalist crisis of global proportions into an opportunity to

    strengthenitsdominanceintheglobalimperialistsystemofstates.

    In fact the current crisis is weakening US dominance and exacerbating interimperialist

    tensions. Regardless of how the current crisis is resolved, the USA will emerge from it

    weaker than when it began. This is not the aftermath of WW2 when the US economy

    emerged unscathed bywar on its territory and became the undisputed dominant global

    imperialistpower.AtthattimeUSfinancecapitalistsembarkedonalongtrajectoryofprofit

    makingbyinvestinginthereconstructionofwarravagedcapitalistEuropeandtherearming

    ofGermanyinviolationofsolemnagreementswiththeSovietUnion.USimperialismcreated

    andarmedNATOandbuiltup the firststrikestrategicnuclearcapabilityof theUSarmed

    forces,allofwhichwasaimedatdestroying theonly threat toUS imperialistascendancy,

    thesocialistsystemofstatesledbytheSovietUnion.

    Thecapitalists

    of

    the

    west

    European

    states,

    ruined

    by

    Hitlers

    war

    of

    aggression

    learned

    nothingfromthatexperience.InfactmanyofthemhadactivelycollaboratedwithHitlerand

    expectedtobethebeneficiariesofafascistvictory.Thwarted,theyeagerlyembracedthe

    USfinancecapitalistplanfortheanticommunistreconstructionofEurope.Anticommunism

    hasalwayshaditsrewardsforitsmostardentexponentsandstilldoestothisday.

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    ThelongpostwarperiodofunimpededUSexpansionismisoverandUSimperialismisnow

    enteringtheperiodofitshistoricaldecline.Asanydyingorganism, itresortstoanyandall

    meansto

    prevent

    the

    inevitable.

    In

    its

    moribund

    state,

    US

    imperialism

    resorts

    to

    militarism

    asitsfirstoptioninassertingitsprimacyintheimperialistsystem.

    LegionsofbourgeoistheoristsandneoMarxistsnevertireofassertingthatUSimperialism

    transcendsthelawsofcapitalistdevelopmentandisexceptionalforitsabilitytomanageits

    wayoutof crisisandovercome the fundamental lawofcapitalism, socialproductionand

    privateappropriationofsurplusvalue.

    ThetheoryofAmericanexceptionalism, inessenceatheoryofcapitulationto imperialism,

    was firstpropoundedbyKautskyanddemolishedbyLenin. It isbasedon the theory that

    imperialismhas

    evolved

    into

    a

    unified

    system

    that

    has

    eliminated

    inter

    imperialist

    rivalry.

    It

    thereforelogicallycreatesanoverarchingsinglefinancecapitalistmonopolythatdirectsthe

    whole system thereby removing the basis of interimperialist war and conflict. And

    therefore as a unified system it can manage the fundamental law of capitalism the

    contradictionbetweensocialproductionandprivateappropriation.

    The theory received itsgreatestvindicationwith thecounterrevolutionaryundermining

    of the Soviet Union. With the destruction of the Soviet Union and along with it, the

    Europeansystemofsocialiststates,imperialisttheoristsandacademiaingeneralproclaimed

    theend

    of

    history

    and

    engaged

    in

    a

    great

    search

    for

    the

    next

    theory

    that

    would

    replace

    Leninism.

    For the imperialist realists running the show, the removal of the SovietUnion, themain

    supportforthepeaceanddisarmamentmovements,oftheanticolonialmovement,forthe

    nonalignedstates,fortheantiimperialistandsocialistmovements,fortheworkingmasses

    and inparticular theworking class, the global landscapewas changed. Itopened up the

    possibilityforUSimperialismtoexpandempire,stealmarketshare,plunderresources,and

    exploitforeignlabour,withoutthecomplexityandburdenofhavingtoformallianceswith

    anticommunist factions to achieve their goals. Following the removal of the socialist

    roadblockthedreamsofGerman,British,French,Italianimperialiststoreestablishtheirlost

    colonialpossessions,theirformerpresocialistdominanceinEuropesoaredtogiddyheights.

    BecausethecurrentcrisisisweakeningtheUSeconomy,theabilityofUSfinancecapitalto

    useitseconomicpowertocoerceothercapitaliststatesintoabsorbingthecostsofthecrisis

    is lesseffectiveandmorecomplexandcontradictory.Fromasourceofstrengthforother

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    imperialiststates,theUSeconomyisnowitsprincipalweakness.InfactfortheUStosurvive

    thecurrentcrisisitmustaggressivelyandruthlesslyexportitseconomicproblemsfirstofall

    toits

    own

    working

    class

    and

    to

    the

    working

    masses

    of

    other

    capitalist

    and

    non

    capitalist

    states,butalsotoothercapitaliststatesandclasses.

    Thecurrentcrisisas inallpreviouscrisis leadstothedestructionofsmallandmediumsize

    businesses and in a ruthless andbitter struggle for dominance and survival among large

    financecapitalistinterests.Thisprocessisleadingtogrowingworldwideresistancefromthe

    victimsoftheglobalcrisis,inthefirstplacetheinternationalworkingclassandaweakening

    ofthepoliticalcohesionoftheentireimperialistsystem.

    There isvery little incurrentUScrisismanagementproposalsemanatingfrom itsprincipal

    powercentres,

    the

    Whitehouse,

    the

    Pentagon,

    the

    State

    Department,

    and

    the

    Federal

    Reserve that resonates positively in the capitals of the EU, Asia or South America. In

    particular thedeliberatedevaluingof theUSdollar, thecapitalistworldsprincipalreserve

    currency,hastheeffectofdevaluingUSdebtowedtoforeigninvestors,suchasChina,India,

    JapanandseveralfrontrankMiddleEasternoilexportingstates.Foreign investment inUS

    treasurybillsandUScapitalmarketsboughtwithUSdollars tenor twentyyearsagoare

    worthmuchlesstoday.

    TheUS isalsoengaged inattempting to repatriate someof itsoutsourced industrialand

    manufacturingcapacity.

    Corporations

    have

    driven

    down

    wages

    in

    the

    USA

    to

    third

    world

    levelsmakingitattractivetobringsomeofthatproductionbacktotheUSA.Countriessuch

    as Canada that became heavily dependent on branch plant economies such as auto

    manufacturingarefeelingtheaffects. Theeffectsarealsobeginning toshow inCanadas

    energysectoraswediscussedabove.

    Thecloser the statesaffectedby thecrisisare to theepicentre, themore integratedand

    dependent theyareon theUSmarket, themore integrated theyarewith theUS finance

    capitalistsystem,inparticularitsbankingsector,itsarmsindustryandspecificallyitscostly

    militarysystem,themoreinvolvedtheymustbeincostlywarsUSimperialismhasinstigated

    in IraqandAfghanistan, themorevulnerable thesestatesare toageneralcollapseof the

    globalsystem.

    Capitalist economists and theorists have postulated the opposite. That view drives the

    ideology and world view of Prime Minister Harper. He asserts that the closer the most

    advanced capitalist economies are to theUSA, themore dependent they are on theUS

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    dollar,themorerelianttheyareonUSfinancecapital,themoredependenttheyareonthe

    USmilitarysystem for theirdefence, themorewilling theyhavebeen toparticipate inUS

    warsof

    aggressions,

    the

    more

    strengthened

    will

    be

    the

    domestic

    capitalist

    economies

    they

    command,themoredependenttheyareontheUS market,themoresecuretheirprofitand

    thereforethepeopleofCanada.

    ThePathForward

    Working classanalysts andpolitical leaders that fail to studymoredeeply these evolving

    trendsandadjusttheirpoliciesaccordinglywillberelegatedto irrelevance.Financecapital

    dominatescapitalismandcommandssucheconomicpowerthatitbuysgovernmentstodo

    itswill.

    All

    governments

    in

    Canada

    are

    state

    monopoly

    governments.

    State

    monopoly

    governmentsmanagetheeconomicpoliticalaffairsofthecountryintheinterestsoffinance

    capitalandtheirpursuitofmaximumprofit.

    The capitalist state isan instrumentof class rule thatutilizes themilitary, the courts, the

    police and vast states apparatus to administer the affairs of the country, to coerce the

    workingclassestosubordinatetheirclassintereststotheprofitgoalsofbigbusiness.

    Everycitizenknows this tobe the realstateofaffairs inallcapitalistcountries from their

    ownexperience.Whethertheeconomyisinanexpansionoracyclicalcrisisphase,allofthe

    majordecisionsofgovernmentaretakenwithonepurpose, topreservetheprofitsystem

    andtheinterestofthoseclassesthatarethemainbeneficiaries.

    The deep economic roots causing the political turmoil afflicting all advanced capitalist

    countries includingCanada isgraduallycompelling thenonsectarian left toenter intoa

    moresoberanalysisofmoderncapitalistdevelopment.TheCommunistsareplayingcatch

    up.Fortoolong,anonclassliberal,socialdemocraticanalysishasdominatedthetheoretical

    discussionandkept itat the levelofacademiawhereneoMarxiststarsappropriate the

    leadershipof thediscussion. Workersand farmers,workingclassyouthandstudentsare

    leftscratching

    their

    heads

    in

    bewilderment

    as

    brilliant

    descriptions

    of

    capitalism

    and

    globalism are elaborated but without advancing a single solution that breaks the

    strangleholdoftheprofitsystemovertheeconomyandtheirlives.

    How will we explain the differences between the Communist vision of Canada and the

    Liberalsocialdemocratic vision? Communists argue that the need to abolish the profit

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    system isrevealed,notprimarilybytheexposureof thehypocrisyofwhatcapitalismsays

    aboutitself,somethingallsocialandliberaldemocratsareadeptatdoingandoftendovery

    well,but

    primarily

    by

    the

    exposure

    of

    the

    actual

    source

    of

    the

    causes

    of

    the

    steady

    decline

    of

    theeconomicconditionsoftheworkingpeople.

    TheCommunistssaythesourceoftheworseningeconomicconditionsoftheworkingclass

    isthesystemofcapitalismitselfandthatcapitalismisirreparableandmustbereplacedwith

    socialism.Theliberalandsocialdemocratssaythesourceofthecausesofthedeteriorating

    conditionsoflifeofworkingpeopleisamalfunctioningcapitalismandallthatisrequiredis

    torepairthesystem.

    Communistsassertthatitisimpossibletoseriouslyconsiderasolutiontothedilemmafaced

    byhalf

    of

    all

    Canadians

    who

    rely

    on

    wages

    and

    salaries

    to

    live,

    and

    who

    are

    only

    two

    pay

    chequesawayfrompoverty,withoutconsideringhowtofundamentallychangethepolitical

    andeconomicsystemthatexposeworkerstosucheconomicuncertainty.

    Whiletheimmediacyofthepossibilityofreplacingcapitalismwithsocialismmaylegitimately

    bediscussed,itisincumbentuponthosewhoadvocatedeferringthediscussionofsocialism

    to some distant time, to explain how that deferral strengthens the immediate and

    contemporary struggles of the people for peace, democracy and social and economic

    progress.Toassertthatsocialismisnotontheagendaimpliesthatcapitalismisdurableand

    hasovercome

    its

    internal

    contradictions

    and

    periodic

    crises

    eliminating

    the

    possibility

    of

    revolutionarysituationstherebyobviatingtheneedforarevolutionaryparty.Toassertthat

    socialismisnotontheagendacanalsobeaconvenientwaytoevadethetaskofdefending

    theachievementsofprevioussocialistrevolutionsandthe internationalistdutytoorganize

    solidarityandsupportforexistingsocialiststatesandcontemporarysocialistrevolutions.

    Postponement of the discussion of the dialectical relationship between socialism and

    immediate struggle for reform reduces the role of Communists to a choir for social

    democracyandreformismandbecomes inpracticeanaccommodationwithneoliberalism

    andanunintendedconcessiontoanticommunism.

    Theanswer toanticommunism isconsistentpartisanship for thesum totalof thehistoric

    experienceofthestruggleoftheworkingclassforsocialism.Communistsconcedenothing

    to theanticommunist revisionofworkingclasshistory.Theworkingclasscreates itsown

    history instruggleand itwilldecidewhat is relevantandwhat is tobe learned from that

    history.Imperialistideologists,theoristsandapologistshavenothingtoteachMarxism.

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    TheSourceofOpportunismToday

    Thegreatest

    threat

    to

    the

    working

    class

    fight

    back

    against

    the

    present

    unfolding

    crisis

    is

    the

    illusion it is simplyanothermechanisticcyclicalevent that shallselfcorrect, that thehigh

    priestsoffinancecapitalwillsavethesystemandtheinterestsoftheworkingpeoplealong

    with it.Such illusion istheformthatpoliticalopportunismtakestoday.Accompanyingthis

    opportunisticassessmentisthecanardbandiedaboutbyacoterieofneoMarxistacademics

    thattheworkingclassiscorruptedandincapableoffightingback. Theyimplythatbecause

    ofitsintegrationinthecapitalistsystem,throughprivateownershipofpropertyandsavings

    fromdeferredwagesintheformofRRSPandothersmallinvestments,workersareunable

    tomountanoffensiveintheirownclassinterests.

    Lefttheoristsspendtheirtimehandwringingandchurningouttreatisesexplainingwhat

    thecurrentcrisis isnt.Theysolemnlydeclare it isnta recessionoradepressionora 1929

    crashoraglobalcollapseofthecapitalisteconomy.LeninandMarxhavebeendisproven

    whichseemstobetheobjectiveoftheirefforts.Sincethecurrentcrisisisntexactlytheway

    Marxpredicted it inCapital inthe19thCenturyandLenindescribed it in Imperialism in20th

    Century the neoMarxists and their wideeyed coterie of hyperleft followers, busy

    themselvesinthe21stCenturycorrectingMarxandLeninandseekingamorecogentanalysis

    thatwindsupwithanappealtoworkerstobecomerevolutionaryas though theywere

    waitingaroundjusttobetold.

    WorkersRemainWorkers

    The economic ruinationofworkers, thosewell established and those carrying largedebt

    loadshappensallofthetimeandishappeningnowandinaparticularlyacuteway.Workers

    donthavesinecures.Ruination isclassbased.Workerswithbuiltupeconomiccushions in

    theformofsavingsorpensionsoradditionalincomefrompettybourgeoisenterprisedoes

    notchangetheirfundamentalpositionintherelationsofproduction.Thereisnodoubtthat

    some

    imagine

    they

    do,

    having

    accepted

    the

    spin

    of

    capitalist

    apologists

    that

    everyone

    is

    the

    authoroftheirownmisfortune.

    What is primary is not what is believed or imagined but what exists objectively

    independentlyofourindividualactions.Whatisprimaryisthefactthatworkersdonotown

    themeansofproductionandmustselltheirlabourpowertolive.So longastheirprinciple

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    incomeisfromsellinglabourpower,whenthereisnomarketfortheskillstheyhavetosell,

    theeffectisinstantaneousandbleak.

    MarxismLeninismstudiesclass relationshipsastheyexistobjectively,todiscoverthe laws

    underlyingtheirdevelopmentandtobaseprograms,strategiesand tacticsonthatreality.

    Theclassstruggleisaprocessandlikeallprocesses,isadevelopmentnotanevent.

    Fromthemomentoftheonsetofaglobaleconomiccrisisofthesystemofcapitalismsuch

    astheonethat isuponusnow,there isanascentperiod,aperiodofquantitativebuildup

    beforestrugglesmatureandtakeaqualitativeleap.Forexample,the1929crashfolloweda

    longperiodof relative full employment during thepostworldwarone recoverywhen a

    stratum ofworkers had achieved a relatively high standard of living. The high priests of

    financecapital

    preached

    a

    world

    of

    prosperity

    for

    all

    that

    would

    never

    end.

    Well

    it

    did.

    Whenthedepressionhititusheredinalongperiodofeconomichardshipsfortheworking

    classasawhole,bothemployedandunemployed,causingbothmassunemploymentanda

    drasticdropinpurchasingpowerofthosewhocontinuedtobeemployed.

    Theperiodbetweenthe1929crashandtheOntoOttawatrekandtheDominionDayRiotin

    ReginaofJuly1st 1935encompassedsixyearsofbitterclassbattlesduringwhichtime the

    working class and farmers realized from their own bitter experience that their only

    alternative

    was

    organized

    struggle.

    Other

    historical

    examples

    can

    be

    cited.

    The

    crisis

    now

    breakingoutisstillatanearlystageofitsdevelopment.

    Now is the time todeepen theanalysis,drawonallof thehistorical lessonsof thepast,

    apply thescienceofMarxismLeninism to theunderstandingof the realitiesof todayand

    broadenanddeepenthediscussioninthemostpublicofways.