Socialist Stanza No. 4

The Socialist Way

Meandering and uneven

Appears the onward road,

And few the hopeful travellers

Who have set out abroad

Towards the shared destination,

Beyond those distant hills

That can seem too steep for climbing,

Which commonly instils

Reluctance to take the first steps,

Although most would advance

If they could be persuaded it’s

Not too great a distance.

Maybe tomorrow the journey

Might finally make sense,

Or will the road be untraveled

For generations hence?

D. A.

 Last year, Andrew Bailey, the Governor of the Bank of England, called on workers to exercise self-restraint over wage demands so as not to cause inflation to get established. Last week he called on businesses to exercise self-restraint on price increases for the same reason.

Neither workers nor businesses are taking any notice. In Tuesday’s Times, it’s Financial Editor, Patrick Hosking, explains why business won’t be any more than workers:

“Surely, when first introduced to an economics textbook, Bailey learnt that firms are not driven by altruism or patriotism but by market forces and profit? They will charge what the market will bear (…) While modern-day corporations have to consider many stakeholders, they still see their primary duty over the long run to maximise profits for the shareholders.”

There you have it.

Explaining what “charge what the market will bear” means, Hoskins adds:

“Until businesses see more capitulation by their customers, the price escalation will go on. Business will stop lifting their prices only if enough customers defect to competitors, trade down to cheaper lines or find near-substitutes. Or stop buying at all. For the poorest households, this has happened already.”

Nice system capitalism, isn’t it?

 Dr Richard Werner, a Professor of Banking and Finance at the University of Winchester,  claimed some years ago to have found evidence that an individual bank on its own can create money ‘out of nothing’:

More recently, in an article on his blog,  he argues that banks should not be allowed to fail because they create most of the money needed to keep the economy going. He seems to think that banks have two quite different and unrelated functions: to act as a safety deposit box, keeping safe money that people don’t want to use for the time being, and to create new money. Apparently, for him, the two are unconnected.

 The Socialist Party is very rarely mentioned in mainstream media, even during elections in which we campaign, leaving us to agree with Oscar Wilde when he stated ‘the only thing worse than being talked about is not being talked about’.   Here’s the latest rare exception:

The Socialist Utopia: Why socialism is ‘misunderstood and misrepresented’ – Ivo Vegter

‘One man with an idea in his head is in danger of being considered a madman: two men with the same idea in common may be foolish, but can hardly be mad; ten men sharing an idea begin to act, a hundred draw attention as fanatics, a thousand and society begins to tremble, a hundred thousand and there is war abroad, and the cause has victories tangible and real; and why only a hundred thousand? Why not a hundred million and peace upon the earth? You and I who agree together, it is we who have to answer that question.’

William Morris 

The French are up in arms because French capitalists, through  the auspices of the executive that runs France on behalf of capitalism, wants to prolong the age at which French workers can cease to be wage slaves. Note that even having ceased to be in receipt of a wage or salary, and retired, the vast majority still remain part of the working class. The proletariat cannot be expected not to kick against the pricks when it feels the provocation warrants it. Workers are not beasts of burden but must often feel they are treated as such. The working class produces the whole cake; it should looking to own all of it, not a few crumbs. Do these protests signify a new wave of class consciousness ? Not in the sense that those protesting are calling for the replacement of capitalism by socialism. That requires a majority understanding  of, and desire for, a class free, money free, state free society in place of the present exploitative system which is run to benefit the minority. Alongside ‘Liberté, égalité, fraternité,’ the rallying cry should be, Workers of the world unite! You have nothing to lose but your chains!

‘French authorities struggled on Thursday to suppress the protests against President Emmanuel Macron’s pension reform. Over a million demonstrators took to the streets across the country in what some security sources described as an “insurrection” against the government in Paris.

Tens of thousands of workers went on strike and protesters blocked public transportation, schools and oil refineries. Attempting to break up the protests, police used tear gas, water cannons, flash-bangs and batons. Videos making rounds on social media showed heavily armored officers clubbing unarmed demonstrators. 

The  entrance to the city hall in Bordeaux, the regional capital of Nouvelle-Aquitaine, was set ablaze at one point. At least one unit of firefighters switched sides and joined the protesters. Multiple eyewitnesses described the situation as “out of control.”

“It’s war in Paris, no time to post, take care of yourself,” tweeted one independent media outlet.

Almost 150 police officers and gendarmes have been injured, Interior Minister Garald Darmanin said on Thursday evening, calling this “absolutely unacceptable” and demanding harsh punishment for the attackers.
Darmanin also told reporters that 172 people were detained for questioning about the “looting and arson” in Paris, and that 190 fires had been set in the French capital, 50 of which were still burning as of 10 pm local time.

The interior minister blamed the “extreme left” and “black bloc” anarchists for the worst of the violence.

The police estimated more than a million protesters were in the streets.

The outpouring of popular discontent was triggered by President Macron’s announcement that the retirement age will be raised from 62 to 64, starting next year. Macron insisted that the change was necessary, otherwise the pension system would go bankrupt within the next several years. 

The Elysee Palace imposed the change without consulting lawmakers, who have been trying to deal with the controversial proposal since January. Protesters responded by calling on Macron to resign. 

Appearing on TV on Wednesday, Macron said his only mistake was “failing to convince people” of the decision’s merits, but insisted he would not back down, even if that meant having to “shoulder unpopularity.”

While there is a constitutionally protected right to protest, Macron said, if the malcontents use violence, “then that is no longer democracy.” 

Though heavily criticized due to the harsh coronavirus lockdowns and mandates, Macron easily won re-election in 2022, eventually defeating Marine Le Pen by a 17-point margin. The runoff election saw the lowest turnout since 1969.’

RT24/3/23

Dave C

Consumer prices in the UK unexpectedly surged in February, driven by soaring food and energy bills, the Office for National Statistics (ONS) reported on Wednesday.

Annual inflation as measured by the consumer prices index ran to 10.4% last month – exceeding the 9.9% consensus forecast among economists – up from 10.1% in January, placing further pressure on British households.

The ONS attributed the sharp increase to the growing cost of fresh food, non-alcoholic drinks and the rising price of restaurant meals.

“Food and non-alcoholic drink prices rose to their highest rate in over 45 years with particular increases for some salad and vegetable items as high energy costs and bad weather across parts of Europe led to shortages and rationing,” ONS chief economist Grant Fitzner said.

Overall inflation for food and non-alcoholic drinks surged to 18%, the highest level since 1977.

The surprise surge in inflation during February followed three consecutive months of slowing price increases, which gave hope that Britain was moving further away from October’s 41-year high of 11.1%.

The data comes ahead of the Bank of England’s announcement on interest rates on Thursday and is likely to add pressure on the regulator’s decision amid an unfolding upheaval in the global banking sector. The UK central bank has been increasing borrowing costs aggressively in an effort to tame inflation.

“Given the market movements of late, this puts the Bank of England in an incredibly difficult position as it may not be enough for [it] to press pause on the rate hikes,” Richard Carter, head of fixed interest research at Quilter Cheviot, told Reuters.

Households in the country continue to struggle with soaring food and energy bills, while workers across a range of sectors have launched mass strike action in recent months amid disputes over pay and conditions.

24//23

Dave C

 Lebanon is in the fourth year of a deep economic crisis, which experts say has its root in decades of corruption and mismanagement by a political class that has ruled the country since the end of the 1975-90 civil war. The crisis has led to school closures and left families unable to afford food and pay for fuel or other basic needs. Government-subsidised electricity, meanwhile, is mostly unavailable.

Al Jazeera’s Zeina Khodr said, “There is anger. People believe that the political and business elite do not want to solve the crisis because that will involve economic and structural reforms and fighting corruption. If the elite does that, they lose control over the state and its resource which they have been exploiting for years now.”

Patrick Mardini, director of the Lebanese Institute for Market Studies, said “the main reason behind the currency devaluation is the massive printing of Lebanese pound that is being pumped into the system. He told Al Jazeera that “at the beginning of the crisis, we had around four trillion Lebanese pounds in circulation; today we are at around 70 trillion”.

Mardini said the situation was compounded by a lack of confidence and trust in the Central Bank and the whole banking system, as a whole.

Lebanese take to streets as anger over economic meltdown grows | News | Al Jazeera

 Canada had an increase of more than 1 million citizens in 2022, bringing its population to more than 39.5 million. 

The 2.7-percent increase was the highest since 1957 with international migration accounting for nearly 96 percent of the growth.

Statistics Canada said that “high job vacancies and labour shortages” have fuelled the high rate of immigration. It also noted Canada’s ageing population, with one in seven residents between the ages of 55 and 64, providing opportunity to welcome more people.

Immigration fuels record-high population growth in Canada | Migration News | Al Jazeera

The Intergovernmental Panel on Climate Change released a new synthesis report. 195 governments commissioned it and the summary was agreed line by line. It is accepted fact by nations worldwide, and a shared basis for future action.

The report’s conclusions are terrifying and wearily familiar.

Every region is experiencing “widespread adverse impacts”. 

Almost half the world’s population is “highly vulnerable” to climate change impacts. Expected repercussions will escalate rapidly. 

It concludes that there is a “rapidly closing window of opportunity” to secure a livable future.

The message is the same: immediate and deep cuts to greenhouse gas emissions in all sectors.

Will it happen?

 Russian President Vladimir Putin has warned London against the planned delivery of depleted uranium (DU) armor-piercing tank rounds to Ukraine, saying the weapons will be treated by Moscow as containing “nuclear components.”

Putin commented on British plans to include DU munitions in a forthcoming delivery of Challenger 2 main battle tanks as he spoke alongside Chinese President Xi Jinping following talks in Moscow on Tuesday.

“I would like to note that if this happens, then Russia will be forced to react accordingly, bearing in mind that the collective West has already started to use weapons with a nuclear component,” he stated.

A similar warning was issued by Russian Defense Minister Sergey Shoigu on the sidelines of the Russia-China talks, who said the move would bring the world yet another step closer to a nuclear disaster.

“Another step has been taken, and there are fewer and fewer left,” Shoigu told reporters.

The looming delivery was announced on Monday by Annabel Goldie, the UK minister of state at the Ministry of Defence, as she responded to a written inquiry on the matter. She confirmed the plans to deliver DU rounds to Kiev, lauding them as a highly effective weapon.

“Alongside our granting of a squadron of Challenger 2 main battle tanks to Ukraine, we will be providing ammunition including armor-piercing rounds which contain depleted uranium. Such rounds are highly effective in defeating modern tanks and armored vehicles,” Goldie said.

The DU munitions have long been the subject of international controversy, with critics of their use highlighting the toxicity and radioactivity of the material. Depleted uranium is used to make the hardened cores of armor-piercing rounds, excelling in this role due its high density. The round’s core evaporates on impact, turning into aerosol and contaminating the environment with uranium.

The UN has already expressed alarm over the UK plans. Farhan Haq, a spokesman for Secretary-General Antonio Guterres, told a media briefing that the international body had long voiced concerns about the consequences of DU use, as well as about those who supply such weaponry. 

These munitions were actively used by NATO during the First Gulf War, as well as during the bloc’s aggression against former Yugoslavia, both in the form of tank and aircraft artillery shells. The use of the munitions was acknowledged by NATO in a 2000 report, with the US-led bloc revealing that it had used some 10 metric tons of the material in Yugoslavia – and 300 metric tons in Iraq.

The report acknowledged that the material poses a threat due to its toxicity in an “aerosol form,” but insisted the DU was not “particularly highly radioactive.”

21/3/23