August 2011        

The crisis of the system deepens and spreads

The crisis of the capitalist system continues to deepen and is most intense and complex around the euro and the growing mountain of debt foisted upon the people by monopoly capital. The periods of relative stability between slumps continues to shorten as policies being imposed to solve the crisis in the interests of state monopoly capital are exacerbating the contradictions within the system itself.
     The American economy once again appears to be on the dive, and the sham of American liberalism lies on the rocks as Corporate USA demands greater access to the public purse, further cuts in spending, and the opening up of Medicare to private medical corporations. Obama, the hope of American “liberals” and European social democrats, has been shown to be a complete fraud.
     Within the EU the impact of the austerity measures on the peripheral countries continues to deepen and appears to have no solution except more of the same. In a statement issued on 22 July regarding the much-heralded solution by the EU heads of state and heads of government to the Greek crisis and the new bail-out package the CPI stated: “This agreement is not a solution to the unpayable and odious debt imposed upon the Irish people. It can only bring a moment’s respite to the crisis, not a solution.” How right we were!
     Once again the mandarins of the EU rush hither and thither, looking under every rock for a solution but finding none. Now Italy and Spain totter on the brink, and the same mandarins stand terrified as the house of cards grows taller and the debt crisis casts an even longer shadow across the land. The Nero-like figures of European social democracy plead for scraps from the corporate table while remaining incapable of and unwilling to oppose this massive transfer of public wealth.
     The system is incapable of finding a solution other than pursuing the present strategy. German monopoly capital will quickly snap up public assets throughout the EU and in particular in the peripheral countries. With this growing dominance of German capital will come greater political and economic power for it at the heart of the EU.
     Only resistance by working people can stop the massive transfer of wealth from working people, family farmers, small business people and the unemployed into the coffers of the corporations, aided and abetted by governments throughout the EU. It is only with the social and democratic control of capital that we can begin to create a more rational and sustainable economic system.

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