Video: The decaying nature of capitalism poses only two possible futures – socialism or barbarism!

'Outside of socialism, there is no salvation for mankind from war, hunger and the further destruction of millions and millions of human beings.' Vladimir Lenin

The decaying nature of capitalism meant the periods of Keynesian social democracy (1945-73) and neoliberal globalisation (1974-2016) were always unsustainable, paving the way inevitably for austerity and a rising protectionist right-wing nationalism.

This ever-deepening crisis is grounded in the capitalist system's tendency to produce surplus capital that cannot be reinvested profitably, creating a barrier to productivity growth, which stagnated at 0.2% in both Britain and the US in 2016. This is why interest rates are at record lows, as governments wage a futile battle to stimulate lending. In August 2016, ratings agency Fitch calculated that sovereign debt carrying negative interest rates in the global market stood at a remarkable $11.7 trillion.

Led by the US and Britain, the wars the imperialist powers are imposing on much of the world, and the resulting migration crisis, are testimony to the system's self-destructing character. As the desperate competition for profits intensifies, the threat of devastating global conflict grows. With a record number of trade-restrictive measures implemented in 2016, the protectionism that marked the period before WW1 is inevitably returning. Protectionism will only accelerate capitalism's decay and impoverish millions of people. There is no alternative but to fight for socialism - a planned economy serving human need instead of private profit. This is starkly demonstrated by socialist Cuba and its anti-imperialist ally Venezuela, which trade doctors for oil instead of threats of invasion and nuclear warfare.

The urgent need to rebuild the communist movement is clear.

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'We stand today before an awful proposition: either the triumph of imperialism and the destruction of all culture, and, as in ancient Rome, depopulation, desolation, degeneration, a vast cemetary; or the victory of socialsm.' Rosa Luxemburg

The decaying nature of capitalism

Recommended reading: Marx’s critique of political economy

BREXIT: Britain could crash out of Europe with no Plan B

 brexit crisis web final

Britain’s political class is leading the country towards economic disaster after Prime Minister Theresa May invoked Article 50 on 29 March to trigger acrimonious Brexit negotiations with the EU. With a strong possibility that the two parties will split without reaching a trade deal, Secretary of State for Exiting the European Union David Davis has said that the government has made no assessment of the effects of defaulting to World Trade Organisation (WTO) trading rules, other than to admit that expensive tariffs would be raised for trading with EU states. Motivated by the desire to abandon a sinking ship, Northern Ireland, Scotland and even Wales are now considering plans to leave and break up the United Kingdom. The crisis is a manifestation of extreme decay setting into the capitalist system – the need for the working classes throughout Britain and Ireland to unite and rebuild the socialist movement is increasingly clear. Barnaby Philips reports.

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Imperialism: draining trillions of dollars out of oppressed nations


In Imperialism: the highest stage of capitalism, Lenin wrote that ‘the world has become divided into a handful of usurer states and a vast majority of debtor states’. Since formal decolonisation in the 1960s, his work has been dismissed as antiquated, even among sections of the radical Left. Now in 2017, with the capitalist system sinking into its deepest crisis since Lenin’s day, a new study into global trade has shown his analysis to be as relevant as ever. It revealed that between 1980 and 2012, the net outflows of capital from ‘developing and emerging’ oppressed countries being funnelled into ‘developed’ imperialist nations totalled $16.3 trillion. The truth about our ostensibly post-colonial world is that poor nations are still developing rich nations, the opposite of what we are so often told. Barnaby Philips reports.

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Brexit: Desperation grows

David Davis now Brexist minister Britain taking control of our borders
David Davis, now Brexit minister: Britain 'taking control of our borders'.

On 17 January, Prime Minister Theresa May finally announced the government’s plan for taking Britain out of the European Union. It amounted to a fantasy vision of a ‘truly global’ and independent Britain. Having confirmed that Britain would leave the Single Market, May has been left to plead for tariff-free access to it from an EU that responded by saying a new trade deal ‘necessarily must be inferior to membership’. The contradictions thrown up by Brexit have put Britain and the EU on an inevitable collision course and both sides are likely to suffer dire economic consequences from the fallout. Barnaby Philips reports.

May set out the parameters for the exit plan in a televised speech that will come back to haunt her. Compelled by the split in the Conservative Party and the desire to placate the majority of its members, she confirmed Britain would ‘take back control of our borders’ by ending the free movement of EU labour. That was a red line for the EU which meant the Single Market would always have to be sacrificed, something the usurped pro-EU wing of the party still refuses to accept. Unsurprisingly, given her brutal record on deportations as Home Secretary, May has given no unilateral guarantee that EU nationals settled in the UK will be allowed to stay.

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Trump in power - Imperialist rivalries, trade wars and the threat of armed conflict

Donald Trump trade war

At the World Economic Forum in Davos, Switzerland on 17 January 2017, China’s President Xi Jinping warned that ‘no one will emerge as a winner from a trade war’. He was responding to the then President-elect Donald Trump’s threat to impose a 45% tariff on US imports from China and a 35% ‘border tax’ on Mexico’s exports to the US. Trump’s declaration of ‘America First’ signals a willingness to wreck the post-Second World War economic order imposed by a dominant US imperialism, and to unleash inter-imperialist rivalries not seen since the economic devastation of the 1930s, through which marched the forces that led to world war. Trevor Rayne reports.

‘But what the hell? I’ll wing it and things will work out.’ – Trump

In his inaugural address on 20 January President Trump said, ‘Protection will lead to great prosperity and strength.’ Three days later Trump withdrew the US from the 12-nation Trans-Pacific Partnership and said he intends to renegotiate the North American Free Trade Agreement between the US, Mexico and Canada, signed in 1993. One Chinese economics professor said before the Davos summit, ‘The US is declining and China is rising. China will defend the international system as the US, under Trump, goes in the opposite direction.’ A section of the US ruling class believes that by turning to protectionism it can reverse the relative economic decline of the US in the world. This will not happen nor will manufacturing jobs return to an imperialist US. However, the US and China are the world’s two biggest economies and increasing tensions between them means peril: economically and militarily.

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