DR. DOOM AND DR. MARX

You don't often hear of university professors praising Karl Marx or this business journal reporting it, but we must give credit where credit is due. "Economist Nouriel "Dr. Doom" Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx's critiques of capitalism is playing itself out in the current global financial crisis. ..."Karl Marx had it right," Roubini said in an interview with wsj.com. "At some point capitalism can self-destroy itself. That's because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What's individually rational ... is a self-destructive process." (International Business Times, 13 August) Being a university economic professor he couldn't get it all correct of course. Marx never claimed that capitalism would "self-destroy itself". That destruction can only come about by the political action of the working class. RD

Who owns the North Pole- Part 40

Within the next year, the Kremlin is expected to make its claim to the United Nations in a bold move to annex about 380,000 square miles of the internationally owned Arctic to Russian control. At stake is an estimated one-quarter of all the world's untapped hydrocarbon reserves, abundant fisheries, and a freshly opened route that will cut nearly a third off the shipping time from Asia to Europe. But in the absence of a regional deal, tensions are mounting. Alexander Konovalov, president of the independent Institute of Strategic Assessments in Moscow, says "... time is running out to make an orderly division of the territories."

This month, Canada holds Operation Nanook, an Arctic military exercise designed to send a message to Moscow. Canada also has plans for its own territorial claim. The US, which has not signed the UN Convention on the Law of the Sea, under which any territorial divisions would be made, is also beefing up its regional military might.

From here

banking on repression

The 84% state-owned Royal Bank of Scotland faces damaging revelations about its ethical record after it emerged that the bank was part of a deal to issue more than $800m (£489m) in Belarusian government bonds earlier this year, a month after the country's leader, Alexander Lukashenko, ordered the brutal repression of pro-democracy campaigners. In Belarus, hundreds of opposition activists were arrested and many of those who stood against Mr Lukashenko in last December's disputed elections have since been thrown in jail after a series of show trials that have been condemned by international observers. Many pro-democracy groups have urged Western businesses to shun the regime until their demands for reform are met.

RBS is the only British bank to have recently done financial deals directly with the Belarusian government. The scandal of raising bonds for Belarus, a country with by far the worst human rights record in Europe, cannot be described as a one-off lapse of judgement on the bank's part. The bank's apologists, no doubt, will claim that it has done nothing illegal because the government of Belarus is not under international sanctions, apart from a feeble EU travel ban placed on top officials.

Natalia Koliada, from Free Belarus Now, said: "When British businesses invest in Belarus, or RBS sells their government's bonds, it helps support an authoritarian regime."

Full details here

THE AMERICAN DREAM

One of the illusions dreamt up by supporters of capitalism in the USA is that whilst in backward Europe you may have remnants of the old class struggle, in modern America they have left all that behind them. Recent developments there seem to give the lie to that notion. "Unions reacted furiously Friday to a proposal by the Postal Service to lay off 120,000 workers by breaking labor contracts and to shift workers out of the federal employee health and retirement plans into cheaper alternatives. Labor experts and other unions also sounded the alarm that any move by Congress to break postal contracts would further wound an already ailing labor movement, much as President Ronald Reagan's firing of striking air traffic controllers did in 1981." (Washington Post, 13 August) Many US workers are about to learn that in a time of economic crisis it is they who will suffer the consequences. For 120,00 of them the American dream is about to become the American nightmare. RD

SHOPPING AT TIFFANY'S

Times are hard for some sections of the capitalist class as markets crash and profit margins shrink, but there is one section of the exploitation machine that is doing very well. "Tiffany & Company's net income rose 30 per cent in the second quarter, propelled by strong growth across all regions as high-income shoppers continued to be drawn to its jewelry and other goods. The Tiffany's detailed quarterly and first-half results handily beat Wall Street's expectations, and the company raised its full-year profit forecast again as a result." (New York Times, 26 August) The reason for Tiffany's success is that it caters for the extremely wealthy and they are still in a shopping frenzy over such essentials as high-priced jewels. RD

ARTFUL DODGERS

Newspapers love to run stories about some member of the working class who unlawfully claims state benefits. "Benefit dodgers" and "claimant crooks" scream the headlines. In fact the amounts claimed are usually very small-time compared to the dodges that the owning class get up to. "Britain and Switzerland have agreed a ground-breaking deal that could bring in £6 billion for the Treasury and which marks the end of an era where the super-rich used the country to shelter their wealth." (Times, 25 August) The Treasury estimated that in 2006 the tax evasion and avoidance came to £14 billion using the Swiss banks. So big is the evasion that the Swiss banks have agreed to a one-of payment of £384 million to the Treasury. "This doesn't mean the end of tax dodging of course. The world's wealthiest will always be able to find smaller, more obscure territories with a firm attitude on privacy." (Times, 25 August) RD

who owns the north pole - part 39

Two major Arctic shipping routes have opened as summer sea ice melts, satellites have found. The European Space Agency's Envisat shows both Canada's Northwest Passage and Russia's Northern Sea Route open simultaneously.

Shipping companies are already eyeing the benefits these routes may bring if they remain open regularly. A number of major shipping companies are looking to the opening of these routes to shorten journey times and make their businesses more efficient. The Northern Sea Route has been free enough of ice this month for a succession of tankers carrying natural gas condensate from the northern port of Murmansk to sail along the Siberian coast en route for Thailand.

"But this time they've really been open, with a proper Suez-size tanker going through the Northern Sea Route with a full cargo - that's a real step forward" observed Peter Wadhams, an Arctic ice expert from the University of Cambridge.

NOT SO NEAT FOR THE NEETS

Amongst the many promises made by the coalition government was one to increase the number of apprenticeships and education facilities for the 15 to 18 year olds. Like many other plans of the government this one has run into the realities of capitalism."The proportion of 18 to 24-year-olds in England not in employment, education or training (Neet) has risen to 18.4%, official figures suggest. The figure from the Department for Education is the highest for the second quarter since 2006, and is up from 16.3% last year. Nearly a million (979,000) 16 to 24-year-olds were Neet between April and June this year, the figures show." (BBC News, 24 August) RD

BEHIND THE GLAMOUR

Fashion conscious shoppers in the smart streets of Madrid may see themselves as trend setters as they buy clothes from the Zara stores. but Zara is under investigation over the use of "slave labour" at factories in Brazil. "Workers discovered to be producing clothes for the Zara label in sweatshop conditions in Sao Paulo are to receive compensation, Inditex, the parent company of the retail chain, confirmed. Authorities said they rescued a team of workers (14 Bolivians and one Peruvian) from an unlicensed factory that sewed garments carrying the Zara label. The 15 immigrant workers, one of whom was reported to be just 14 years old, were said to be living in dangerous and unhygienic conditions on the factory floor, forced to work 12-hour shifts for between $156 (£95) and $290 (£176) a month. The minimum wage in Brazil is $344." (Daily Telegraph, 18 August) This is typical of the hypocrisy of capitalism. Behind the glitter of high fashion lurks the exploitation of defenseless children. RD

A WORLDWIDE PROBLEM

A common fallacy about capitalism is that the problems are geographical not social. Some areas of the world may have endemic problems like Africa or Asia but here in Europe we are OK goes the argument. This is of course nonsense - take the example of South Africa. "More than a quarter of all South Africans are jobless, according to official statistics. More than 65 percent live on less than 550 rand ($75) per month, or $2.60 a day. And yet, the gross domestic product, on a per capita basis, is $10,700. What those figures suggest is that South Africa isn't a poor country: It's a country where the wealth is concentrated in a few hands.(Christian Science Monitor, 6 August) Capitalism is a worldwide social system - its problems are worldwide, so is the solution to these problems. RD

empty houses and homeless

About 23,000 houses are lying empty across Scotland, while more than 160,000 households are stuck on waiting lists for properties, according to Shelter. There are over 840,000 empty homes in the UK.

http://www.bbc.co.uk/news/uk-scotland-14623294

RECESSION? WHAT RECESSION?

In the USA, like every other capitalist nation, politicians love to tell us during an economic downturn that "we are all in this together" or some such vote-catching piece of nonsense. The recent spending spree in New York by the owning class gives the lie to that piece of codswallop. "Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin Bianca platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years. Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy." (New York Times, 2 August) RD

ETHICAL MURDER

Capitalism has many contradictions. Murder is judged to be unethical and punishable by law, but if you do it in uniform fighting for your master's economic interests it is seen as heroic and can earn you a medal. In order to justify murder amongst its airmen the USA government has run a course on the subject for many years. "Air Force pulls 'Jesus Loves Nukes' Training. The Air Force has suspended decades-old Bible-centric ethics training intended to make Christian officers comfortable with the possible use of nuclear weapons. The training program was given to all new missile officers by Air Force chaplains. "We're in the process of reviewing that training and we'll make a determination whether or not to continue [it] or if it will be a different course," Air Education and Training Command spokesman Dave Smith told Military.com." (Military.com 2 August) RD

shops and shoppers disappear

One in nine Scottish shops is lying empty as the retail sector slowdown shows no sign of easing, new figures have revealed. Scotland’s store vacancy rates stand at 11.1%.

Stephen Robertson, British Retail Consortium Director General, said: “Fewer people are shopping because households are facing high inflation, low wage growth and uncertainty about future job prospects.”

Colin Borland, spokesman for the Federation of Small Business in Scotland, said “Hard-pressed families are reviewing every pound in their weekly budget. People are thinking before they buy and that, of course, has a knock-on effect on foot-fall and wider business confidence. As soon as people start to see vacant units appearing in high streets, it is almost as if they are contagious. It gives the impression the area is on the way down and means there is less economic activity to sustain remaining businesses.”

The Lairds of the land still rake it in

Scotland’s aristocrats are earning millions of pounds from windfarms on their estates , according to figures from the Renewable Energy Foundation, a charity that promotes sustainable development.

Fallago Rig in the Lammermuir Hills in the Borders, will earn landowner the Duke of Roxburghe £720,000 a year. In the course of the 25-year lifespan of the windfarm, the Duke of Roxburghe could earn something between £18 million and £62.5m.

Sir Alastair Gordon-Cumming will earn £435,000 from the 29 turbines on the Altyre estate near Forres in Moray.

The Earl of Seafield also has eight turbines on his estate near Banff in the north-east which are estimate to be able to earn him £120,000 annually.

The Earl of Moray receives £540,000 a year from 36 turbines at Braes O’Doune near Stirling.

ALL RIGHT FOR SOME

Capitalism is at present going through one of its recessions. We have rising unemployment, businesses threatened with bankruptcy and mortgage foreclosures leading to re-possessions. However its not all doom and gloom, some capitalist concerns are doing well despite the recession. "Sales of London homes that are so luxurious they contain temperature-controlled cupboards for storing fur coats has helped profits to rise 20 per cent at Saville. The upmarket property group said that demand from foreign millionaires had enabled it to sell more homes than ever in the £5 million-plus bracket ... Saville said that first-half profits rose from £17.2 million last year to £20.6 million." (Times, 19 August) RD

YESTERDAY'S HEROES

It was a media sensation. The newspapers and television coverage was immense. The heroism of the miners existing in awful conditions on the brink of death was lauded internationally, but this is capitalism and the heroes were members of the working class so the outcome was predictable."One of the myths surrounding the 33 miners who were so dramatically rescued after being trapped for 69 days deep inside a Chilean mine is that they're all millionaires and no longer need to work. The truth: nearly half the men have been unemployed since their mine collapsed one year ago Friday, and just one, the flamboyant Mario Sepulveda, has managed to live well off the fame. Most have signed up to give motivational speeches. Four, so far, have gone back underground to pound rock for a living." (Associated Press, 4 August) RD

CAPITALISM'S VALUES

The newspapers are full of stories about half a million children dying of lack of food, clean water and basic medical care in East Africa. We can also read about millions of people trying to survive on less than $1.25 a day. Contrast all that with how our parasitical masters live."Supermodel Linda Evangelista is asking French billionaire Francois Henri-Pinault for $46,000 a month in child support. He's the father of Ms. Evangelista's four-year-old son, Augustin James. And Ms. Evangelista argues that $46,000 is the minimum required to provide for young Augustin in the manner to which he has grown accustomed." (Wall Street Journal, 3 August) RD

FUTURE CONFLICTS

Capitalism is an extremely volatile society and it is impossible to predict when and where the next military explosion will occur. The Middle East is a likely candidate because of its oil resources but there are other potential battlegrounds. "Rapidly expanding oil exploration looks likely to escalate territorial disputes in the South China Sea , which is suspected of containing vast oil and natural gas resources. A Philippine company, Philex Mining Corp., announced Tuesday that it plans to drill at least two wells and expand its surveys in Reed Bank, in one of the most contested areas of the South China Sea, the Wall Street Journal reports. China claims the sea in its entirety and several other countries in the region, including the Philippines, Vietnam and Taiwan claim parts of it." (Christian Science Monitor, 1 August) No doubt if a military conflict arises it will be depicted as one of democracy, justice or some such high-sounding principle. It will of course be a naked scramble for profits. RD

HUMAN NATURE

Whenever socialists point out that socialism will be a society wherein everybody will work to the best of their ability and take according to their needs; a society without ownership, wages or prices, we are invariably taken to task for our naivety. What about human nature? we are asked. It is human nature to be greedy. At various times we have explained our position using many illustrations from history but it is unlikely we could improve on this argument by the writer George Orwell nearly 70 years ago. "The proper answer, it seems to me, is that this argument belongs to the Stone Age. It presupposes that material goods will always be desperately scarce. ....but there is no reason for thinking that the greed for mere wealth is a permanent human characteristic. We are selfish in economic matters because we all live in terror of poverty but when a commodity is not scarce, no one tries to grab more than his fair share of it. No one tries to make a corner in air, for instance. The millionaire as well as the beggar is content with just so much air as he can breathe." (Tribune, 21 July 1944) RD