Author: ajohnstone

Oil Profits



 The US’s biggest oil companies pumped out record profits over the last few months as Americans struggled to pay for gasoline, food and other basic necessities.

ExxonMobil reported an unprecedented $17.85bn (£14.77bn) profit for the second quarter, nearly four times as much as the same period a year ago.

 Chevron made a record $11.62bn (£9.61bn). 

The sky-high profits were announced one day after the UK’s Shell shattered its own profit record of $11.4bn (nearly £10bn) for the three-month period from April to June.

The record profits came after similarly outsized gains in the first quarter when the largest oil companies made close to $100bn in profits.

High energy prices are one of the leading factors driving inflation to a four-decade high in the US. Gas prices have fallen slightly in recent weeks but are now averaging $4.25 a gallon across the US, more than $1 a gallon higher than a year ago. Soaring energy prices are driving up the cost of everything from apples to toilet paper.

Exxon, based in Irving, Texas, increased its oil and gas production as crude prices hovered above $100 a barrel. Revenue at Exxon soared to $115.68bn, up from $67.74bn during the same quarter last year.

Shareholders reaped the benefits of high energy prices during the quarter. Since the start of 2022, Exxon and Chevron shares have risen close to 46% and 26%, respectively.

Frances O’Grady, the general secretary of Britain’s Trades Union Congress, called the “eye-watering profits” “an insult to the millions of working people struggling to get by because of soaring energy bills.

“Working people are facing the longest and harshest wage squeeze in modern history. It’s time working people got their fair share of the wealth they create, starting with real action to bring bills down,” said O’Grady.

Oil company profits boom as Americans reel from high fuel prices | Oil and gas companies | The Guardian

Climate Change Hots Up



 Climate experts are concerned that the impacts of global heating will be even more drastic than previously thought.

Friederike Otto, a senior climate lecturer at the Grantham Institute for Climate Change, Imperial College London, said: “In Europe and other parts of the world we are seeing more and more record-breaking heatwaves causing extreme temperatures that have become hotter faster than in most climate models.

“It’s a worrying finding that suggests that if carbon emissions are not rapidly cut, the consequences of climate change on extreme heat in Europe, which already is extremely deadly, could be even worse than we previously thought.”

Meteorologists have said the results of this study are “sobering” as they confirm what was previously feared – that climate change is having a large impact on temperatures, making extreme heat more likely.

Fraser Lott, a climate monitoring and attribution scientist at the Met Office, said: “Two years ago, scientists at the UK Met Office found the chance of seeing 40C in the UK was one in 100 in any given year, up from one in 1,000 in the natural climate. It has been sobering to see such an event happen so soon after that study, to see the raw data coming back from our weather stations.

Experts have called for rapid cuts in emissions to prevent the situation from worsening. Extreme heat kills thousands of people across Europe, and it is thought hundreds of excess deaths in the UK were caused by the recent heatwave.

“Heatwaves are the deadliest type of extreme weather event in Europe, killing thousands each year,” said Roop Singh of the Red Cross Red Crescent Climate Centre. “But they don’t have to be. Many of these deaths are preventable if adequate adaptation plans are in place. Without rapid and comprehensive adaptation and emissions cuts, the situation will only get worse.”

Climate breakdown made UK heatwave 10 times more likely, study finds | Extreme weather | The Guardian

Poland’s Double-Standards on Refugees

 The United Nations Special Rapporteur on migrants’ rights has said Polish authorities must stop locking up migrants near the Belarus border and put an end to the “very different” treatment of Ukrainian and non-Ukrainian refugees.

Felipe Gonzalez Morales praised the actions of Polish authorities and citizens who have given protection and assistance to more than two million Ukrainian refugees and lodged them in their homes since the start of Russia’s invasion in February. But non-Ukrainian nationals fleeing that country have faced difficulties obtaining residence permits and proper shelter and have not enjoyed the same legal protections, he said.

Some people fleeing the war have been from third countries, often in the Middle East, Asia or Africa, who had been studying or working in Ukraine at the time of the invasion.

“I note with concern that this double standard approach has led to feelings of being discriminated among third-country nationals,” Morales said.

As well as the fallout from the war in Ukraine, Poland has faced attempts by tens of thousands of migrants and refugees since mid-2021 to cross its border with Belarus and enter the European Union.

Poland to set up an emergency zone, build a steel border barrier and introduce a campaign of pushbacks. Meanwhile, estimates suggested at least 20 migrants and refugees have died in the area’s freezing forests and bogs. Morales said these migrants and refugees, many of whom are from the Middle East and Afghanistan, were “routinely” being locked up in de facto detention centres in Poland near the border, including children, in violation of international humanitarian law.

End ‘double standards’ on refugees, UN expert urges Poland | Migration News | Al Jazeera

Shaking hands with a murderer

 



Following Biden’s friendly overtures to  Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS), France’s President Macron warmly greets the man responsible for the assassination of a journalist as well as the instigator of bombings in Yemen. 

The fiancee of the late Khashoggi expressed outrage at the visit. “I am scandalised and outraged that Emmanuel Macron is receiving with all the honours the executioner of my fiancee, Jamal Khashoggi,” Hatice Cengiz said.

“I feel profoundly troubled by the visit, because of what it means for our world and what it means for Jamal (Khashoggi) and people like him,” Amnesty International Secretary General Agnes Callamard explained, describing MBS as a man who “does not tolerate any dissent…The visit by MBS to France and Joe Biden to Saudi Arabia do not change the fact that MBS is anything other than a killer,” said Callamard, who at the time of the killing was the UN special rapporteur on extrajudicial killings and led the independent probe.

Saudi Arabia is seen by many in the West as an essential partner due to its energy resources, purchases of weaponry and staunch opposition to Iran’s theocratic regime. Russia’s invasion of Ukraine has made the oil and gas reserves of the kingdom all the more important for the West.

Callamard expressed concern that “values were being obliterated in the face of concern about the rising price of oil”.

Camille Lons, a research associate at the International Institute for Strategic Studies (IISS), said that the war in Ukraine has put “energy-producing countries back in the spotlight, and they are taking advantage of it. This gives them political leverage that they will use to reassert their importance on the international stage”

Against All Wars

 


Society has entered one of its darkest phases now. The world is paralysed. The capitalist class is facing a deep economical and political crisis and is seeking a solution.  Some workers believe that the only way to improve the current situation is to promote nationalism and identify nationalism as the only road to freedom. Voices of nationalism have spread all over but nationalism is in fact the obstacle to human progress.


A nation sacrifices its people in wars. If it wins, only those industrialists and politicians can enjoy the fruit of success. If it is defeated, people have to suffer to rebuild the wealth of their rulers. Nationalism is a monster that kills their fathers, mothers sisters and brothers, daughters and sons. The world has had enough and far more than enough of war. We are reminded every day of the inroads that war is making on our lives—less food,  curtailment of our liberties. Worst of all is the loss of the hope of a better world.  We are in the middle of an economic crisis, a health crisis, an energy crisis, a labour crisis. The standard of living, we are told, must go down and we are exhorted to work harder and longer. This fear of the future is not due to any fault or weakness of the working people but simply and solely to the policy of governments and businesses.

 Nationalism will not bring security but to misery. It strengthens the state and helps the capitalists plunder the poor. It restricts our freedom; it forces us to fight against our peace-loving nature; it encourages us to compete with people of other nations while we are supposed to help each other. Working people have absolutely nothing to gain from war. Only peace is in our interest. The class war is sole effective guarantor of peace between peoples. It is this war of the classes that we must concentrate upon, and in that connection the war against false values, against evil institutions, against all social atrocities. 



They are really not against war and are not for the overthrow of the system that produces war; they are not really for peace and are not for the overthrow of the system which makes peace impossible. For the capitalist, it does not matter whether he produces guns or butter so long as he produces profit.



Since the war in Ukraine began, the Western media have been used to prove the barbarity, the cruelty, and the oppression of Russian militarism. Conservatives and radicals alike are giving their support to the Ukrainians for no other reason than to help crush that militarism, in the presence of which, they say, there can be no peace in Europe. As long as the class society continue to exist there can be no long-term guarantee that humanity will ever achieve permanent peace. For the bankers and industrialists, for the armament manufacturers  and food speculators, – for all the capitalist vultures who feast on the bloody war, – opportunity to coin billions out of human carnage has arrived again. To camouflage the real character of this merciless plundering and unprecedented pilfering of the people’s pockets, the bankers and bosses have termed the Ukrainian war one of self-determination and national defence


The Socialist Party is for the triumph of peace and fraternity among all human beings. It seeks to end all oppression and of all exploitation of man by man. It has always taught that the workers of all countries are brothers and sisters and that the enemy is the exploiter, whether born alongside us or in a far-off country, whether speaking the same language or another. Capitalism is war; socialism is peace. We believe that there is no fundamental cause for people to quarrel with each other. We believe that international disputes do not originate with ordinary working men and women, but are instigated by the few who profit from prejudice and conflict. The Socialist Party’s energies have always been directed towards the elimination of the causes of war. Our battle cry is and will remain ‘War on war!

European Harvests to Fall

 Yields of key crops in Europe will be sharply down this year owing to heatwaves and droughts, exacerbating the impacts of the Ukraine war on food prices.

Maize, sunflower and soya bean yields are forecast by the EU to drop by about 8% to 9% due to hot weather across the continent. Supplies of cooking oil and maize were already under pressure, as Ukraine is a major producer and its exports have been blocked by Russia.

Large parts of Europe have been afflicted by drought and hot weather in recent weeks, including Spain, southern France, central and northern Italy, central Germany, northern Romania and eastern Hungary. Cereal yields are down about 2% overall, compared with the five-year average.  Drought and heat stress in many regions coincided with the flowering stage for key crops, and water reservoirs in many places are at levels too low to meet the demand for irrigation.

Falls in Europe’s crop yields due to heatwaves could worsen price rises | Farming | The Guardian

Join a Union

 



The American labor movement is experiencing a resurgence, with an increase in the popularity of unions and of workers organizing.

An August 2021 poll conducted by Gallup found support for labor unions at their highest point in the US since 1965, with 68% support in the US. Labor unions were the only institution for whom Americans’ approval did not decline over the past year, in a June poll on confidence for 16 major US institutions.

During the first three-quarters of the fiscal year, the National Labor Relations reported an increase of union election petitions by 58%, up to 1,892 from 1,197.

But the corporate pushback in America has been fierce, and has come amid allegations of union-busting, and brutal campaigns to try and discourage workers from organizing.

US sees union boom despite big companies’ aggressive opposition | US unions | The Guardian



“No es sequía, es saqueo”

 Mexico is facing its worst water crisis in 30 years as reservoirs serving about 23 million people dry up. The climate crisis has caused consistently hotter summers, and this year’s La Niña weather patterns created the perfect conditions for severe drought. More than half of Mexico is suffering from drought, and the national water authority, Conagua, declared a state of emergency in four northern states. Several cities have now reached the point of critical water scarcity when water supplies ran out.

While drought grips Mexican cities like Monterrey with people lining up with buckets for brackish water Coca-Cola and other firms are still extracting groundwater. The drought in North Mexico means taps run dry. People cannot afford bottled water so water tankers (pipas)  are the only way to deliver water to homes and businesses. Monterrey is facing a “sanitary crisis” as those who cannot afford bottled water drink unclean water from the pipas.

Anger is growing that beverage companies with bottling plants, including Coca Cola and Heineken, are extracting billions of litres of water from public reservoirs. Several brewers and soft drinks companies have factories in the city, and these use about 60 times the amount consumed by the city’s population, nearly 90bn litres a year in total, and over half of that – nearly 50bn litres a year (or 50m cubic metres) – is water from public reservoirsactivists have popularised the phrase: activists have popularised the phrase: “No es sequía, es saqueo” (“It’s not drought, it’s plunder”) 

Jaime Noyola, director of the Alliance of Users of Public Services, says his organisation predicted the crisis months ago. The public-interest group regularly protests outside government buildings. They allege that local leaders, including the governor of Nuevo León state, Samuel García, are directly profiting from drinks companies’ water use.

“From the behaviour of the companies, we don’t see anything that indicates they will give up water voluntarily,” Noyola says. “And on the part of the local and state government, there’s a crisis of ineptitude, and they blame everyone but themselves.”

Though a group of drinks companies, including Arca Continental and Coca-Cola, have collectively pledged to give up 28% of the water they use while the drought continues, the companies did not mention lowering prices of the essential drinking water they sell.

“How do you assign a price to water? It’s a human right,” says Noyola. “But these companies, namely Coca-Cola, in selling bottled water as the only potable water source, have made their product obligatory. Now water costs nearly as much as gasoline.” 

Mexico is the world’s largest per-capita consumer of bottled water. Noyola adds: “Even if they stop production, they are still selling their products while people are suffering and infections are spreading [from people drinking water from the pipas].

The water crisis has sparked protests and violence along class lines, as wealthier areas are given higher water quotas than poorer areas, and still have tap water for up to 12 hours a day. On 16 July, residents of two impoverished Monterrey suburbs learned that a portion of the remaining water from a nearby reservoir would be diverted to the city. In response, they blocked a highway with a barricade of cars, tyres, rocks and tree branches, stalling traffic for two days. Then they burned the water pipes.

“I won’t be surprised if people get together and start hijacking the pipas,” Noyola says.

‘It’s plunder’: Mexico desperate for water while drinks companies use billions of litres | Global development | The Guardian

Our War Policy

 



Although our attitude towards nationalism has been stated many times, there are still those who do not understand it or cannot reconcile it with what they are supposed to be the socialist point of view. It is not easy to oppose the emotionalism of powerful patriotic movements but that difficulty is not removed by being acquiescent and avoiding adopting the Marxist analysis


Let us set out the Socialist Party’s answer to the appeals of the patriot that all citizens ought to defend the independence of the country in which they live. Our answer is plain and definite. Under capitalism all the workers in every land are wage slaves. In wars between capitalist nations, victory or defeat,  leaves their position in society unchanged. Even the standard of living of the workers in both the “victorious” and “defeated” countries alters little. The abolition of capitalism and the establishment of socialism is the sole issue for the Socialist Party.


Should workers support wars waged by capitalist States? Should workers support nationalist movements? The Socialist Party’s reply to both questions is an unambiguous no! We support no capitalist war and we support no nationalist movement. Wars waged by capitalist State involves no working-class issues, and on no account would socialists support them. The Socialist Party alone in this country consistently opposed every capitalist war. 


 The only enemy of the working class is the capitalist class. Therefore to urge the workers to fight for Britain, China, Russia or Ukraine is to ask them to neglect the problems and the interests of their class. Such propaganda under capitalism, on whatever pretext, is anti-socialist. In comparison with the loss of working class life and limb in war, the difference between exploitation by domestic capitalists and exploitation by foreign capitalists matters nothing at all to workers. We hold an attitude of unqualified hostility to capitalist wars. 


We are interested in one struggle only, class struggle the endeavour by wage earners to overthrow capitalist private property and all forms of the wages system. The national movements blazing away in different parts of the world are not working-class, but capitalist, in their aim. We, therefore, oppose them. Patriotism has the effect of binding together the classes in each geographical area. The Socialist Party desires that conflicting class interests shall be recognised, not obscured.


Socialism and patriotism are irreconcilably antagonistic. Patriotism is anti-working class and Russian nationalism is no less so than is British. The one encourages the other. We wish to stifle both so neither can thrive.  The assumption by some on the left-wing that the enemies of the Western powers are necessarily the friends of socialism is too shallow to need refutation.  It has been argued that  that the existence of foreign control enables capitalist politicians to blame the evils of their system on to the “foreigner.” Against this, however, must be placed the great harm wrought by the exaggeration of national feeling, and hatred of foreigners. This breeds a state of mind quite unsuited to working-class organisations: and saps the solidarity of members of the working-class with each other.

 

Consequently, the Socialist Party is frequently branded as a“puppet” of imperialism because we tell the workers that rule by one section of the capitalist class does not differ in essentials from rule by another section. Instead, we tell the truth, which is that another nation’s “independence” should concern no more the workers there than does British “independence” matter to us. Their governments are all operating on behalf of the capitalist class. Just as we told fellow workers in past wars not to support the wars of the ruling class, so we tell the Russian and Ukrainian workers now.  Does any objective observer believe for one moment that Ukrainian capitalists are one whit less brutal in their exploitation of their workers than  the Russia, or for that matter are UK, EU, US, or any other Imperialist capitalist class?  The Ukrainian workers will be no better off when they have had a change of masters imposed.


Capitalism as a world system is not weakened by the victory or defeat of our respective nation-states. The lives of workers are needlessly sacrificed to satisfy the interests of the ruling class. The Socialist Party can proudly boast that it has never urged the workers to fight in or prepare for capitalist wars, and has never, directly or indirectly, aided any political party doing so.


Our advice to both Ukraine’s and Russia’s workers is to build up organisations to fight their own capitalist class—they will need them soon enough. Our advice to all workers is to acquaint themselves with their own class interests and get rid of the illusion that they can dictate foreign policy to their masters.

Working people suffering – Banks aren’t.

 Families are spending an average of £89 more a month on energy, food and fuel than they were before the pandemic, Lloyds Banking Group said.

Lloyds’ chief executive, Charlie Nunn, said about 20% of the bank’s customers had had to adapt their spending “significantly” to rising prices, forcing them to refrain from purchases such as white goods and computers. He added that customers had cancelled or blocked 2.2m subscriptions services such as Netflix since the summer of 2021.

 UK banks have largely benefited from nine consecutive months of interest rate rises by the Bank of England, where policymakers have been trying to get soaring inflation under control. Rising rates are usually good news for bank finances, since banks are able to charge borrowers more for loans and mortgages, which in turn increases their net interest margin – a key measure of profitability and growth. Lloyds pre-tax profits for the three months to the end of June were in line with the same period last year at just over £2bn, exceeding analyst estimates of £1.6bn.

Lloyds’ net interest margin – the difference between what it earns from loans and pays for deposits – rose to 2.87% in the second quarter compared with 2.5% last year.

Lloyds lays bare impact of soaring inflation on everyday customers | Lloyds Banking Group | The Guardian