Jason Smith. The ABC’s of Communism. 28
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The ABC’s of Communism Bolshevism 2011

Jason W. Smith, Ph.D.

 

Chapter 28. The 2008 Collapse of Global Capitalism

First of all, I invite you to categorize principal acting and conditioning causes in the world as 2009 ended and 2010 began:

(1) Iraq: The US has suffered the greatest catastrophic military defeat in its history at the hands of guerrilla forces in Iraq. As I predicted in the last edition of this handbook the responsible members of the US ruling oligarchy have taken command of the Pentagon and arranged for US withdrawal in such a way that they are not being literally chased out the bar room door but being allowed to exit in the rear, albeit like cheaters in the back-room poker game, they are going out back-to-back. The iconic photograph of the US defeat in Mesopotamia will be Bush being chased out of Baghdad with shoes flying toward his head. A fitting photo equivalent to the frantic helicopter escape of the US invaders from atop their Viceroyalty in old Saigon two generations ago.

What the failed Gringo military expedition has left behind in Iraq is a total fucked-up mess. I’m speaking of the material foundations of life. Millions of Iraqi’s displaced into foreign lands or slaughtered at home and an entire infrastructure destroyed. Whatever Iraqi governments emerge from the extant chaos they will expect the USA to pay for all this damage. So the cost of this war is going to go on and on and on. What the neo-con US fascist rulers did to the USA would be hilarious if it were not so tragic (it has cost the North American people with well over a half a trillion dollars so far in direct spending, all of which the US then ruling gang borrowed; meaning the people are stuck with at least another trillion, minimally, in interest costs.)

Meanwhile the people are losing everything: roads, rail maintenance, alternative energy, schools, hospitals, pensions, affordable food and housing, health care, decent social security, jobs, etc. etc.) The new populist regime in Washington should be supported in every way as it struggles to help the people during the orgy of help provided to the capitalists. Not just because it is the right thing to do – always to help the working people – but because it gives us the opportunity to explain the truth to the masses impacted by the cruelty of the US ruling oligarchy. This time the enemies of the people must be prevented from ever being able to launch another capitalist general crisis disaster. This is the only logical alternative to their ongoing assaults against humanity and the time is at hand to prepare the population by education as to the nature of their most deadly enemies – their class enemies within our country. There will be a settling of accounts – there always is – and we have plenty of revolutionary action precedents to guide our vanguard workers as they lead in the struggle to overthrow the vicious capitalist oligarchy of trillionaire and centi-billionaire families.

Bottom-line, politically, the gringo regime has left behind an Iranian style government in Baghdad that will not last long (if the Sunni population has anything to say about it) and a would-be independent Kurd Republic in the north. I predict that the gringo’s will not even get a permanent military base in Iraq as they run through the back door, hoping it doesn’t hit them in the ass, again, on the way out.

(2) The Truth about the US imperialist Iraq War Objectives: This war was a war against Capitalist Europe, New Class Russia, and Socialist China as much as it was a war against the Arabs and Muslims. The gringos lost it all. They lost the oil of Central Asia. They lost the bullshit awe and aura prestige they had hoped to convince the world should be theirs, when the world saw that they could be militarily whipped by what the gringo racist bosses considered to be rag-headed camel-driving Arabs, who were simply guerrilla’s conducting a traditional national liberation insurrection. It’s far too late to expect the rest of the world to accept any interpretation of what happened to their war objectives than this one I have just stated. In short, no matter how many lies of fact and omission that the cap press spews out to the politically and historically challenged North American people (kept in near total political and historical ignorance by the capitalist media and lower grade textbooks) there is no putting that genie back into the bottle.

(3) Consequences: The most important immediate consequences on a global basis of the US disaster in Iraq are:

(A) The US rulers having lost their hegemony (dominance) over all of the capitalist classes of the world. Let’s say it again – they lost the entire world! They even lost their hegemony over the English-speaking world not just over the other major capitalist countries and the developing capitalist countries. The US oligarchy’s command structure under Bush II also,

(B) accelerated the process of realigning the world’s industrial capitalist powers and gave New Class ruled Russia the breathing space it needed to rebuild its economic and military foundations and to effectively confront US imperialism in Georgia, the Ukraine, and I predict soon in every former Soviet Republic. Along these lines it appears to me as if the Putin-Medvedev New Class Regime and Party has realized that they may well have to accept a second Bolshevik Revolution to achieve their objectives of reconstituting the old USSR and regaining national security for their frontiers. The current crisis confronting global capitalism may help Russia’s New Class leaders understand they are far better off with us than with our enemies. A second Bolshevik Revolution in alliance with the Putin-Medvedev New Class Moscow Regime is quite possible and hopefully will occur. I for one find it extremely refreshing to be dealing with an open and honest New Class group of leaders such as the Putin-Medvedev group than I did when we had to deal with the two-faced whimpering traitor Gorbachev.

(C) Communist Party led People's Republic of China is now in a position no one of us could have realistically predicted eight years ago. Of course China’s Communist Party, through its own efforts in organizing the Chinese people, is primarily responsible for putting China in the position of a responsible equal leader with other states (of the capitalist persuasion) internationally! However, the Bush fascists certainly helped them along (without meaning too, of course). Remember how the Bush Gang started out so provocatively against China? Confronted with renewed Yankee aggression the Chinese leadership stepped-up to the plate in ways they never would have done eight years ago. Among other military advances China has fielded a nuclear fueled submarine fleet with nuclear tipped ICBM missiles. – And, this was precisely because the imbeciles in Washington dropped their sheep’s clothing and exposed their plans for naked aggression;

(4) Consequences: The most important long term consequences on a global basis of the US disaster in Iraq are:

(A) The blatant obviousness of the Gringo Regime's strategic planning for world domination forced the Chinese Communist Party’s leadership to do something it had not wanted to do; that is to take the lead in forming a de facto Global Socialist Alliance of China, Cuba, Vietnam-Laos and progressive countries like Venezuela, Brazil, and even Bolivia, Nicaragua, and Ecuador. China’s past decade has featured a friendship offensive that has given it a mirror-image of goodness compared to the US evil witch in the Snow White fable, and all of this came to a brilliant climax with the hugely successful Olympics in summer 2008 Beijing. It will take a lot more than the pathetic current stumbling around of Hillary Clinton to change the view of the world on US imperialism.

(B) Washington launched a truly childish plan to destabilize Latin America that began in 2008 and continued through 2009. But, in the end they got absolutely nowhere except to dig an even deeper pit for themselves from which it will be increasingly difficult for them to escape. In fact, they lost the initiative altogether and are currently stuck in political and military quicksand in South America. What else should you expect from a Green Beret Navy Seals run destabilization program? (It was all explained by Kaplan in his Annapolis lectures as he remarked in comments in his Thanksgiving Day article in the Los Angeles Times two years ago.) If it had not been for the (a) wearing down and wearing out of their military machine in Iraq, and (b) their running out of money as a consequence or the ongoing global capitalist collapse (they triggered), they would already have invaded South America in a war against Venezuela, Bolivia and Ecuador. Instead (c) they were forced to settle for small-unit trouble-making activities (ranging from the Ecuador probe to the current flight of Venezuelan counterrevolutionary chiefs to Peru) – which (d) have in the end left them nowhere.

Finally, do not underestimate the importance of this new fact in world history and that is that the number one enemy has run out of money – at least for the moment. – And, this means the US ruling families will be incapable of starting another Iraq style war in the Americas; that is a wonderful new perspective. For one thing Cuba is finally, relatively, safe – not that it doesn’t have to be constantly on guard – as is Venezuela.

(C) Washington has scared the living daylights out of those who had thrown in their lot with their would-be "puppet masters" such as the Uribe trafficker-industrialist clique in Bogotá, Colombia, and the similar trafficker-industrialist clique of 12 families behind social fascist Alan Garcia in Peru. -And, these types are back-treading as quickly as they can from their ill thought out earlier commitments. For Garcia it is too late and his end and the end of his gang as well, is in sight. For Uribe? Well, he still has a little time left to do the right thing. For a comical view of what is going on in these two puppet   regimes you might take a look at the old movie Moon Over Parador (Richard Dreyfuss, Sonia Braga, Raul Julia and Jonathan Winters.)

Uribe had been on the DEA’s “most wanted” list until he was suborned by the CIA in a deal where he was to be used against all the guerilla forces in the Americas. But, now, in power, and potentially somewhat independent of his imperialist sponsors, he has struck out in an “independent” way that will make his “base”, the Colombian big bourgeoisie (including the worlds richest drug traffickers – some of whom I have known for many years – see my books, Shining Path, the Peruvian Revolution, Rivers of Blood and High Finance South American Style!), the accomplices of Washington’s new ultimate nemesis Hugo Chavez. Caracas has more money to give Uribe than does Washington and Venezuela’s money comes from “honest” sources (e.g. contracts for building an oil pipeline across Colombia where oil can be shipped directly to China from a Pacific port.)

Peruvian puppet Alan Garcia had gone along with the Bush-Cheney demand to allow US Marines into Ayacucho but the rebellion of the opposition parties and the Peruvian people appears to be forcing their withdrawal as I write. – And. Most promisingly the corruption of the social fascist regime of Alan Garcia in Lima Peru is resulting in the mass demand for the resignation of this traitor and his entire gang. We will see. In the meantime the patriotic Peruvian Army officers may oust the traitor and if not there is forming in Brazil a well-armed highly trained International Brigade preparing to enter the armed struggle in both of these semi-colonial provinces of the Gringo Viceroyalty for the Central Andes in Lima. Their end is not just in sight but assured when these brotherly forces enter the arena placing themselves under the orders of the National Liberation Armies operating in these subjugated nations.

(5) Historical Consequences

(A) With Bush II, U.S. Imperialism immediately embarked upon a program of seizing defeat from the jaws of the victory they could have had. At the very least they could have maintained their hegemony over the capitalist world for several decades into the 21st century. Instead they threw it away in two short years. This is a historic defeat for them of catastrophic proportions; a defeat from which they shall never recover. For them, as for Hitler seventy years ago, all that remains is the running, and dying. For us, whatever short-term advantages some of the timid among us may have thought we might have lost with the disappearance of the Soviet Revisionist Ruling Clique from the Historical Stage, the stupidity and ignorance of the US hegemonists has more than offset. The emergence of the Putin-Medvedev New Class Russian regime’s hostility toward the imperialist encirclement they confront is far better for us than if there were the old modern revisionist labor-fakir regime parading as socialists and communists whose real world system made everything we believe in a farce. Getting rid of these scumbags like Gorbachev and gang, defeats once and for all the Orwellian twist of Modern Revisionism as we came to know it.

(B) At the moment, there is great instability in the global class struggle and all of you revolutionary cadre need to continue to study and observe, the past and the present, in order to deal the telling blows needed to remove the Gringo ruling families from the scene, liquidate their State and Government establishment. In their place we want a new Constitutional Convention to reorganize the Government and we will have to win over the Army, Navy, Air Force and Marines, by building our cadre in those branches of the capitalist State apparatus. The same in many Local, State and Federal police establishments. We will make our revolution with the Army not against it. Finally we have to build a massive united front of industrial worker’s unions as the instrument which will lead the proletarianization of our political life. Then we can then proceed to build a new Socialist Order in the United States.

You should begin by getting involved in organizing working people so that the next time there is a mass spontaneous outpouring into the streets (as conducted by Hispanics in 2006) you will be doing far more than handing out leaflets – which at any rate were full of inaccuracies and profound errors, so typical of the historically ignorant US Left. The US ruling families are prepared to lock-up militant White workers alongside those of the African, Hispanic and Asian origin when the inevitable collapse comes – we must be at least as ready to lead those workers in an armed struggle for the overthrow of the fascist regime in Washington and to substitute working class power in its stead. Beginning with what our Constitution calls for in these circumstances – that is, a new Constitutional Convention that will outlaw unbridled capitalism and guarantee the North American people they will be the benefactors of whatever structure comes out. Remember that our enthusiasm for a progressive capitalist government under Mr. Obama must inevitably result in having to face the necessity of having to split the capitalist alliance which took power in January, into its most progressive sector and its reactionary left-over sector. Depending on how that battle unfolds and plays out we will decide what to do next in US electoral politics.

But the important things for us Bolsheviks to do at this time is (a) to complete our education begun with this book and (b) find an area of US productive industrial life where we can trigger some of the coming events we need to see. (c) Finally, the time has come to build a real Communist Party and we have begun with the establishment of the Communist Party USA (Foundation).

I describe in Chapter 13 below how, in the Czarist empire, Lenin and Stalin found the Russian oilfields of the Black and Caspian Seas to be the area where they could and did concentrate their efforts in 1901, giving them local permanent victories with a union in the oilfield and then the Empire-wide general strike that led to the Russo-Japanese War of 1904, the defeat of the Czar, and the First Russian Revolution (of 1905.)

(C) Socialism Unfolding in the 21st Century: China and Latin America: As we shall see the World (Stalinist) Socialist Stage climaxed at the end of the last century with (i) the collapse of Modern Revisionism in the USSR and Eastern Europe and the restoration of outright ”old fashioned” capitalism in some of these countries, and as often, as in Russia, the old bureaucratic “socialist” New Class has emerged as the ruling and owning technocratic New Class of an otherwise title-deed holding bourgeois variety of capitalist. (ii) – And, the collapse of US hegemony over the capitalist world.

(D) However, (Stalinist) Socialism as a Stage survived and advanced into a new Stage in China, Vietnam-Laos and Cuba, albeit with an embarrassingly retrogressionist left-over in Korea.

Following the difficult beginnings we shall review in Chapter 13 and 14 below (Chapter 13: The Stalinist Socialist Stage; and Chapter 14: Bolshevism Spreads to China), China managed to pull it all together and embarked upon a massive program of industrialization and agricultural modernization which features the proletarian Party in command of a mixed economy. Since China is China – that is at least one fifth of the entire world, Socialism, (much to the chagrin of our ideological counterparts, on the payroll of the trillionaire and billionaire families that now control at least seven of the major capitalist countries), cannot be disposed of in daily propaganda. Nor, of course, in the real world of socialism vs. capitalism.

In short, World Socialism is now in an advanced Stage. What we will be calling the Second Socialist Stage (the Stage of Advanced Socialism.) Here the construction fronts of Socialism are the primary concern of the Parties in power. – And, that is to say, simply the bringing of adequate technological advance to the table. That is, something that the founders, Marx and Engels, had taken as a theoretical “given.” Nevertheless, what in practice history gave us, was its opposite - extreme technological backwardness. The greatest 20th century struggles (after those of survival) accordingly, were to achieve this technological foundation we had expected to inherit.

Simultaneously, struggles to seize power have also necessarily continued unabated in the unliberated parts of the world. This being especially true in the former colonial and semi-colonial parts of the globe. Especially Latin America only now freeing itself from the evil grip of US imperialism.

(E) The foremost revolutionary seizure fronts are now in Latin America. Thanks to the perseverance of Fidel Castro and the Cuban Revolution, communists were in place to assist the anti-imperialist working class, small farmer and patriotic-nationalist bourgeois forces in Latin America, when they confronted the reality of what the Gringo’s had imposed upon them in the 1970’s, 1980’s and 1990’s.The so-called neo-liberal model of imperialism. Furthermore, these indigenous anti-imperialist forces have formed a broad alliance (ALBA: Bolivarian Alternative for Latin America) in Venezuela, Bolivia, Ecuador and Nicaragua, with Cuba. Brazil may join soon. The probability that they will be able to hold onto state power is quite high.

(F) At the same time we must recognize that US imperialism has not gotten soft. For example, in 2008 the imperialists tried a surprise insertion of combat troops into Peru. Peru’s President long-time traitor Alan Garcia proved himself to be the Arch-Comprador of Latin America. (Comprador means “collaborator” with a foreign power or capitalist entity of some kind for personal financial benefit.) Those of us who know about these things knew, of course, that Garcia was just one more sell-out to the Gringo establishment and had been taking money from them for decades. At any rate Bush and Cheney summoned Garcia to Washington and called in their markers. Garcia had little choice but to pay up as he has been on the gringo payroll for all of his political life. This time he sold his country to the gringo regime in exchange, I am told, for some twenty million dollars up-front, (handed to him in a suitcase by the Dark Lord himself!) plus a monthly CIA stipend of several million dollars, delivered to him monthly by a courier from the nest of evil at Surce (the HQ of the Gringo Viceroyalty for Peru and the Central Andes in Lima.) Thus he gave permission for the gringo regime to establish their much sought after South American military base. The Empire hoped it might gain an on-continent base from which to fight against national liberation not only in Peru but throughout the continent. Patriotic Peruvian Army men took the initiative threatening to depose the Arch-Traitor, as demanded by their opposition party led by Captain Humala. Mass demonstrations throughout the nation greeted the Traitor’s move and demanded the withdrawal of US imperialist troops. As I write the Peruvian people are arising en masse demanding the resignation of the traitor Alan Garcia and his corrupt social fascist party. A miners strike in March and April left the social fascist regime without any working class support whatsoever! Furthermore, the CFPUSA is supporting the call for an International Brigade to reinforce the national liberation fighters in their struggle against fascist dictatorships in Peru and Colombia.

The New York Times reported on its front page March 18, 2009, the advances being made by the Communist Party of Peru Shining Path of Carlos Mariategui which are substantial and occurring daily in critical zones of the nation. The liquidation of the Peruvian Army units challenging the Rebels is assured in the coming 18 months unless the soldiery in those units rebels and shoots their officers, coming over to the side of the Revolution. However, their fate works out Garcia’s end is in sight. Garcia’s brand of comprador social fascism in collaboration with US imperialism is about to be sent to the trash can of history, no longer an option for the Peruvian bourgeoisie, or the ruling 12 capitalist families. The day that recognition becomes class policy on the part of the latter and/or new daring rebel strikes against the Traitor’s Army occur in the Lima region, will be the last day of US imperialist power in this critical Andean nation. I predict the patriotic national capitalist class will break with the compradors.

In short, what we have now as the 21st century begins to unfold is (1) advanced socialism in power and moving forward in the construction of the technological bases which will make its “permanence” possible and (2) revolutionary socialists in the process of seizing and/or developing power in the Latin American capitalist countries (and elsewhere). Two distinctly different things, yet intimately interrelated.

 

The Current Situation is a Dress Rehearsal for the Final Global Capitalist Stage Collapse:

How and Why Did it Happen

When I was an undergraduate forty years ago Monthly Review long time editor, Stanford University (Marxist) Professor of Economics, Paul Sweezy, had been writing a series of editorials about the trends in US banking. Namely, the greedy trend of loaning increasing amounts of a bank’s reserve capital, leaving less and less behind for possible losses and subsequent write downs. That tendency was simply exacerbated over the coming years until banks had virtually all of their ready cash on loan; then they borrowed more to loan more and had 150 percent of their assets on loan.

Now they can loan 9 times their assets! All they have to do is to go to the Fed discount window and show a capital infusion of say 1 billion dollars and they are handed 9 billion to re-loan! Furthermore, the paper they show supposedly worth a billion dollars is often of highly questionable value itself as in the case of the derivative house mortgage securities worth essentially nothing right now which were offered up as collateral securities for that new 9 billion – with which they might buy more of this shit. All of this justified by increasingly relying upon the ultimate insurer, which was the US Government (they own), which could be counted on to come to the rescue in case things went south and the banks could not call upon reserve capital they did not have. After all what choice would the US Government have? Let the economy collapse?

– And, they have been proven correct as events in October 2008 proved, when the US Congress was forced against its gut instincts to step up to the challenge of total collapse and back the banks to the hilt. – And now that that collapse is at last underway, this is just the beginning. All of this anticipated, in other words, by the very capitalists who had engineered the policy of unlimited selfish loaning without regard to the consequences – without regard to the amounts of value and surplus value actually being created. This disastrous inherent capitalist contradiction is currently playing out. In other words the General Contradiction of the Servitude Epoch is now coming to grips with the General Crisis of Capitalism again, as I have been predicting for the last five years in this book.

Since that time one after another serious financial engineering problem has been allowed to surface and become manifest. Beginning

(1) With the need to ship capital abroad not just to implant the machinery (traditional imperialism) to which colonial cheap labor could be forced to work but this time to buy all the stuff being produced in these cheap labor centers. That’s all “globalization” really means.

(2) Then imperialism’s need to back up its international hegemony with military force led to a still greater outlay of cash in non-productive ways, thus to larger budgetary deficits for the US oligarchy; which could not force the public to swallow this bitter medicine – they had to lie to the US people and trick them into allowing these military expenditures to occur and lie again to justify the financing to be done via borrowing.

(3) As foreign creditors became increasingly wary of US financial engineering policies and began to look around for alternative safe investments, US engineers had increasing difficulty in borrowing the money needed to stop the bleeding; that is, to offset the cash outflow to cheap labor centers and growing budgetary deficits.

(4) Then Imperialism stumbled fatally when it dropped its sheep’s clothing showing its true wolf nature in its war against Iraq which was in fact as much a war against Capitalist Europe, New Class ruled Russia, and Socialist China, because it was the gringo’s attempt to corner the world’s oil supply. (They failed completely and finally in this regard, and are walking away like an embarrassed dog licking its wounds after a thorough ass whipping.) Now imperialism’s vaunted military superiority is seen for what it is – mostly bullshit – propaganda designed to scare by shock and awe an unprepared and far weaker foe. Now, it is seen that standard guerilla warfare techniques can bring the great juggernaut crashing to its knees. Frankly, if I were a guerilla commander I would find fighting these gringo soldiers extremely gratifying. These are the easiest to beat and all it takes is the determination to go in against them standing up, forcing them to fight hand-to-hand without their close air support. Under these constraints they are destined to receive a serious ass whipping.

(5) Finally, and most importantly, the world’s other capitalist classes, and the world’s working class governments have many alternatives now to the use of the US dollar as the sole international currency. The world ruling families are currently considering exactly how to replace the US dollar and simultaneously be sure that whatever international currency results will be decoupled permanently from the US economy and its proven danger to the health of capitalists in every other country. They could take over the existing currency in every respect if the gringos agree to give it up and create a new and second (domestic) currency with which they can fuck around to their heart’s content as they will only be hurting their own people and not the world’s people.

(6) The US rulers and their bureaucrats have lost the confidence of their class (the 2000 families in the world who have as much money as five billion ordinary people) after having loaded them down with investment vehicles seeded with poison pills from the US subprime mortgage market. (These loans would never have been allowed to be packaged with the majority of good subprime loans if the US rulers had not been so desperate for foreign money obtained in any way.) The gringo conspirators dumped 600 trillion of this worthless paper on their international class brothers. Now Swiss bankers say the amount is twice that or 1.2 quadrillion dollars of worthless paper!

(7) Imperialism’s many (nearly countless) recent attempts to kill Chavez, Correa and Morales and restore comprador puppet regimes in Venezuela, Ecuador and Bolivia have all failed miserably in the face of sophisticated revolutionary strategy and tactics The rest of the American continent, with the two noticeable exceptions of Gringolandia puppets Garcia (Peru) and Uribe (Colombia), is working its way into an anti-imperialist de facto alliance of these nations against the Empire.

Finally, there are a multitude of structural failures coming to a head simultaneously for US imperialism’s ruling oligarchy.

(8) The Real Estate and Housing Market crisis (interlinked intimately with the subprime mortgage crisis) is one.

(9) The shift of US incomes from manufacturing working class incomes too far less lucrative so-called “service” jobs and everything that reduction in income for a hundred million people involves, another.

(10) The US educational crisis closely linked to the transformation of US research from project focused individual scientist sponsored work to massive industrial style expenditures on group sponsored projects. High energy physics being a good example. Imperialism is interested in expensive science far more than inexpensive science (because that is where the ruling families make their money i.e., contracting to build these massive facilities}, when what is needed could be done in a Microsoft lab (http://groups.msn.com/NewPerspectivesinPhysics at the CFPUSA website or read the book by that name – the only copies of which currently are in the library at Boise State University).

Note: the gyroscopic Lenin Atom shown on the Home Page has three parts you want to memorize as you read the four papers at New Perspectives in Physics. The nucleus is shown as a Helium atom and the horizontal gimbal shows the orbital of 2 electrons (there are never more than two electrons in any one orbital and this is the reason why) and the vertical gimbal shows the orbital of the gravitons.

(11) European central bank purchases of US paper have been halted and it is a question in doubt as to whether they will be resumed. Do not be confused by momentary panic buying by European banks occurring as I write for this is just helter skelter panic running to put money somewhere safe. They are about to find out the cave they ran into to weather the storm is already occupied – by a Grizzly!

(12) Foreign billionaire-trillionaire and other wealthy foreign purchasers of US paper are looking elsewhere, have stopped buying US paper and it is uncertain when if ever they will resume such buying. Do not be confused by panic US securities buying on the part of foreign bourgeois and other capitalist elements at the moment because that is just panic. People scared to death by the US imperialist dumping of worthless securities on them destroying thereby not only their life savings but their means of making money! ASAP these US instruments will be traded out for Euros or some other safer instruments than dollars (about to collapse in value introducing the next crisis - the monetary crisis - and is coming immediately.)

(13) Foreign governments are increasingly unlikely to accept US demands for money to support their troops on these foreign soils.

(14) Debt service payments to US banks on the debt intentionally heaped on third world countries has been under attack for some time (as Fidel points out in his letters to Brazilian President Lula – go to GRANMA international edition in five languages including English, on a daily basis, for the full text of these letters) and now will be placed at the bottom of the list of foreign government obligations.

(15) Sales of high-tech armaments have been reduced to the level of sweetheart deals only (with corrupt buyers, as in the case of Saudi Arabia) because internationally US war makers find the world arms market - one where competition is increasingly stiff.

(16) US Corporations are cheating on profit repatriation and buying more and more stable international currencies instead (e.g., the Euro).

(17) Financial alternatives for financing such critical inputs as petroleum (to the US financing centers in New York and London) are emerging and this reduces the amount of cash flowing back into the US.

(18) Actually, the US financial situation is worse than broke – it has an outstanding debt in excess of 10.5 trillion dollars (outside of the US Fed bail outs now over four trillion dollars, if not more) – which means that if every citizen sold everything they own including the shirts on their backs they could not now come close to paying this debt. Furthermore, this debt is increasing by many billions monthly.

For practical purposes this debt will never be paid. Investing billionaire and trillionaire families from Arabia, Asia, and elsewhere, have been willing to settle for timely interest payments, but the ability of the US Regime and its central bank to keep that up is now in question. Failure will, of course, mean the end of the post-World War II global economic order. Actually that is what is happening as I write. The Old Order has failed and the international capitalist oligarchy of trillionaires and centi-billionaires are working out the new order right now.

The US trillionaire centi-billionaire oligarchy cannot get out of this capitalist crisis they have created by paying in dollars worth a fraction of what they were worth when they were borrowed - this will not do either. A new non-US international currency may result. Or, a second US currency (one domestic and the existing one converted to solely “international” status.) Either way, the US place in the world will shrink accordingly. A new world order absent US domination is about to emerge. Not exactly what the “neo-cons” told people to expect as a result of their policy of world conquest. The fact is that the war against Iraq, and its failure, is the immediate trigger for the way in which this dress rehearsal for the coming, inevitable, total collapse has precipitated.

In order to escape their current crisis the ruling Gringo families must either pull a coup and take military control of Washington establishing a new government without any constitutional prohibitions against trespassing on the People’s rights – or – accept a continuing budget deficit running into several trillion dollars annually for many years. Either will remove the USA from being a victorious participant in whatever international order comes out of this most recent capitalist dog-fight.

(19) China’s leader has (Friday the 13th of March) called on the US to assure him and his government that the US would stand by its securities and their value. He said he was worried. He should be. The US does not have the ability to stand by its financial agreements on the value of its T bills or any other paper. China will end up writing down the Lion’s share of their trillion dollar loan to the gringos and will have to accept that as the price of their industrialization. Would China have been better off going the Soviet route? Who knows? I don’t think so for a variety of reasons (at any rate that is the way history unfolded) but the cost is going to include getting fucked out of a trillion dollars. Something the deadbeat gringo capitalists are getting quite good at. As illustrated perhaps by the Saturday Night Live November 21, broadcast lead where Wu Jintao is questioning Barack Obama on US monetary policy.

Our Communist solution to the current capitalist crisis is obvious. We would seize all of the assets of the 2000 families without compensation and outlaw any debts to them. End of problem but also end of system – the end of the capitalist system. That is obviously the working class solution to the problem. In the meantime we will fight over the issue of making the capitalist nationalization of financing a permanent reality rather than giving these entities back to the oligarchy once we have saved them. Then move to nationalize the oil and gas companies and finally move to guaranteed annual incomes for all our citizens and guaranteed jobs and educational futures. Seizing oil, gas, and banking can provide a massive source of revenue to the North American people.

(20) Because none of the Left parties are yet strong enough ideologically or practically to mount this serious challenge to the oppressive Regime on the Potomac, the US ruling families and their foreign comprador allies (e. g., Bush and Saudi families) will recover from their current crisis. Now with the Communist Foundation Party USA it will be possible in the not too distant future to organize and lead an armed insurrection for state power. In the meantime, will the US oligarchy be able to maintain their pace of aggression against the rest of the world? I doubt this also.

They don’t have the material wherewithal to use against the rest of the world any longer, because they don’t have the money to pay for military equipment, deployment (US soldiers require huge amounts of supply on an hourly basis; gas and diesel not to mention uranium are expensive for planes, tanks and ships, respectively) nor troops. They can phony up with promises, as they have been doing for decades, but that is not likely to work much longer, given the new US “deadbeat” reputation among international bankers. – And, how will the North American people step up to the plate upon which this dish has been served? Open revolt is just beginning and will soon spread. We need to be in place to provide leadership – identify enemies of the people and take appropriate action – identify immediate military targets and prepare to take them.

(21) The financial inability of the USA to pursue its world aggression policy means that there is going to be a temporary stalemate once again in the world-wide struggle of labor against capital. For Latin America this means a brief respite (of a few months), if you will, from the danger of massive US intervention, and a shift to preparing for gringo aggression on a localized basis; Imperial attacks coming in the form of small unit assaults (e. g., the Ecuador probe; the current attempted occupation of Ayacucho, Peru, and its now underway use of US troops against the Rebel Army in Peru) and civil disorder organizing (e. g., right-wing student demonstrations; and mafia-union strikes in Venezuela) and getting their new 4th nuclear Fleet into position. It means the ALBA nations have a short period of time to catch their breath and get ready. However, desperation will lead to a US massive assault on South America eventually unless their financial bankruptcy intervenes first. Or, unless, the US working class takes power at home. Or, at the very least until a new, yet to be formed, progressive alliance in the Gringo Regime finds itself able to act definitively to stop once and forever more gringo invasions of Latin America for any reason whatsoever! This is possible and we must pursue every opportunity to educate the North American people about the truth of Cuban and Venezuelan socialism. Lifting this burden from the shoulders of the American people North and South would be a tremendous achievement!

(22) Getting ready for Latin America means

(A) Getting rid of the rightist agitators and organizers on university campuses; also, as a corollary to this, restricting US Embassy personnel in their movements in imperialism’s target countries and also expelling these Embassy front organizations in these target countries, denying legal status to those taking their funds.

Shutting down these fascist student circles should be number one on the proletarian police target list. You know what to do. Do what they have always done to us and permanently remove the ringleaders – disband the members to prison, work camps, Miami.

(B) Cleanse unions of their mafia components in the same way;

(C) Deploy ALBA air arms to secret SAM protected air-strips the moment Paul Revere rides. “Stealth” technology the gringos use is not effective against satellite recon so they always fly at night and, according to Mr. Putin, never effective against modern long-range Russian SAM’s! We are about to find out. Iran has installed them to protect its nuclear installations against US supplied Israeli stealth technology

(D) Stepping up the popular revolution at home winning new and larger numbers of people to our side, especially the newly empowered would-be small proprietor farmers. – And with regard to Latin American farmers, as you will learn in this book, these are historically the same kind of capitalist farmers who traditionally have provided the cannon fodder for armed struggle against Reactionary regimes, as farmers did in the English Civil War, the North American Revolutionary War, the French Revolutionary Wars, the Russian Civil War (with its five million man Bolshevik Red Army almost all of whom were at the end, would be, small capitalist farmers); the Chinese Peoples Liberation Army; the Cuban Army (see Chapters 12, 13 and 14 in this book.) In the process it is important to destroy the latifundistas and their underlings as classes.

(E) Continuing the massive investment in industrialization of the ALBA nations to provide the now essential industrial base for combating gringo imperialism.

(F) Stepping up the pace of trans-Continental transportation system construction (rivers, rail, and road) to support economic and, now as importantly, military integration of the South American continent.

(G) Introducing military conscription for all citizens as part of building up the people’s armies in the ALBA nations, which we will need not only against imperialism but against counter-revolutionary forces at home.

These are relatively simple steps to take in the preparation for imperialist death-throe attacks on the ALBA countries. Relatively simple, at least, compared to the problems now confronting the Empire.

The Empire is highly dangerous still, given its offshore Carrier Death Stars. However, the Rebel Alliance of ALBA nations is also powerful and as in “Star Wars” can definitely prevail!

 

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