POVERTY AND CRIME

"The growing financial crisis is a double whammy for police in many U.S. cities: They face budget cuts as they brace for an expected surge in burglaries, thefts and robberies. "Police departments are going to have do more with less," said Chuck Wexler of the Police Executive Research Forum, a national law enforcement association based in Washington. "I expect police budgets for the foreseeable future to be flat or decline. That will mean less ability to put officers on extended tours and overtime during peak crime hours; it might mean deferring hiring officers for the future," he said. Although there has long been debate over the connection between crime and the economy, most of the criminologists, sociologists and police chiefs interviewed by Reuters forecast a rise in crimes in certain categories in the coming months as the United States heads deeper into recession territory. Crime has increased during every recession since the late 1950s, said Richard Rosenfeld, a sociologist at the University of Missouri-St Louis."
(Reuters, 21 October) RD

POVERTY IN THE USA

"The ranks of low-wage working families increased by 350,000 between 2002 and 2006, raising their numbers to nearly 9.6 million, or more than one in four of the nation's working families with children. The report by the Working Poor Families Project, an advocacy group that analyzed census data, defined low-wage families as those earning less than double the poverty rate. For a family of four, that would have been an annual income of $41,228 or less in 2006. The report's author, Brandon G. Roberts, attributed the increase to the growth in low-paying jobs, from health-care aides to cashiers, that form an increasing share of the nation's service-based economy. Many of those families struggle to pay for basics, such as health care, food and housing, a battle that Roberts said has grown more acute in the past two years as the economy has stagnated. "The stark reality is that too many American families have been in economic crisis long before this year," said Roberts, director of the non-partisan Working Poor Families Project, which advocates for state policies to improve the lives of low-income working families. "Even before this year's economic crisis, the conditions for working families were getting worse, not better." The report adds to the growing body of data illustrating that the dynamics of the modern economy have been unkind to many working Americans. Even as the economy grew at a generally robust pace from 2002 to 2006, fewer jobs were created than in previous economic expansions. And some 4.7 million of the jobs that were created paid salaries that would leave a family of four in poverty, according to the report. Overall, the report said, more than one in five jobs in 2006 paid poverty-level wages." (Washington Post, 15 October) RD

ANOTHER FRAUD EXPOSED

"For as long as man has worshipped a god, there have been forgers, crafty hucksters who seize on a believer's desire to possess material proof of the divine. In Jerusalem, it is a bountiful trade. The old adage is that if all the splinters of the True Cross were gathered from across Christendom, it would yield a wooden crucifix the size of a Manhattan skyscraper. Even back in the Middle Ages, pilgrims visiting Jerusalem told of hawkers who sold counterfeit bones and relics of saints. But indisputable historical evidence that Jesus Christ, or any of the other Biblical prophets, truly existed is something that eludes religious scholars. There was therefore much excitement in 2001 when a reclusive Tel Aviv collector, Oded Golan, announced that a stone reliquary had come into his possession inscribed with the words "James, son of Joseph, brother of Jesus." The discovery of the ossuary was hailed in some quarters as a spectacular archaeological find — solidly circumstantial proof, at last, of Christ's existence. For it would have held the remains of the Apostle James, who was killed in A.D. 62 and is described in the Bible as Jesus' brother. When the James ossuary toured Canada in October 2002, it attracted thousands of the curious and faithful. Some visitors kneeled in quiet prayer. But back in Israel, police detectives, along with a growing posse of biblical scholars, were growing sceptical of the ossuary's authenticity. After a two-year investigation, police in December 2004 charged the antiquities collector and four others of forgery, alleging that the James ossuary was a clever fake and that Golan had masterminded an international ring of thieves that over the past 20 years had duped major museums and collectors out of millions." (TIME, 16 October) RD

A BOOMING INDUSTRY EVEN IN A RECESSION

France's former Interior Minister Charles Pasqua arrives at a Paris courthouse
for the opening of a trial over a vast France-Angola arms scandal that involves
the son of late French President François Mitterrand and dozens of businessmen,
politicians and public figures

A recent issue of the magazine TIME (14 October) highlighted the immense profits to be made in capitalism even in a trade recession. " Need to start a war? No problem. While stock markets grate and financial institutions (and even whole countries, like Iceland) teeter on bankruptcy, one global industry is still drawing plenty of high-end trades and profits: weapons."
The article reported the case in a Paris courtroom where 42 officials went on trial for taking millions in kickbacks and organising huge arms commissions from the Angolan government during the mid-1990s. This group, which included a former French Interior minister and the son of the late French President Mitterand, were charged with having supplied almost $800 million worth of arms to Angola, including 12 helicopters, 6 naval vessels, 150,000 shells and 170,000 mines.
The Angolan President Jose Eduardo Dos Santos used this huge stockpile to crush the US-backed Unita rebels during Angola's devastating civil war. It is worth noting that Dos Santos is reckoned to have made millions of dollars from the transaction and that he is still in power with no prospect of a fraud trial for him.
The source of this arms hardware was the huge stockpiles of Soviet weapons left behind when the Soviet Union collapsed. The French businessman Pierre Falcone allegedly plied Angolan officials with tens of millions of dollars - some of it stuffed in in suitcases - and deposited other sums in offshore accounts.
You might imagine that these shady dealings having been brought to light could no longer occur, but you would be dreadfully wrong. "Researchers say arms trading has boomed in the decade since the Angolagate scandal was uncovered. That's partly due to hightened supply. As ex-Soviet republics emerged as economic actors in their own right, several countries developed national arms industries, refitting weapons from their stocks and manufacturing new weapons of their own. These industries have taken off in in recent years. Ukraine has about 6 million light weapons from Soviet stockpiles, and has modernised tanks, anti-aircraft missiles and other weaponry, says Hugh Griffiths, an expert on illicit weapons at the Stockholm International Peace Research Institute."
"It is very difficult to stop arms trafficing, because there is no control," says Griffiths, who has researched Ukraine's arsenal for the US government. Although NATO funds Ukraine to destroy its stockpiles, "the Ukrainians realize how much money they can make by selling surplus weapons," he says. In an action that broke no laws, the Ukrainians shipped about 40,000 Kalashnikov rifles to Kenya last year during the tense standoff following the country's disputed presidential election."
As the struggle for oil and minerals intensifies inside capitalism we have rebel conflict in Chad, Sudan, Congo and elsewhere. This conflict needs weapons and so the arms trade legitimate or otherwise flourishes. In Africa and all over the world capitalism reigns supreme. The basis of capitalism is production for profit, so in its remorseless drive for profit it leads to conflict, and eventually armed conflict. It is the nature of the beast to maim and kill and all attempts to civilise it by such grandiose titled groups like the Stockholm International Peace Research Institute are doomed to failure. As the expert Hugh Griffiths himself admits - "there are plenty of arms out there - so long as you have the money to pay for it."
RD

DRIVEL BABY, DRIVEL

"Republican vice presidential candidate Sarah Palin said Thursday that God blessed the nation with oil and gas resources and other forms of energy that should be tapped to reduce U.S. dependence on foreign suppliers. The Alaska governor told supporters at Elon University that she and GOP presidential nominee John McCain will develop new energy sources. "God has so richly blessed this land, not just with the oil and the gas, but with wind and the hydro, the geothermal and the biomass," Palin said. "We'll tap into those." Palin said some of the countries the U.S. relies on for energy use their resources "as a weapon." And she said the billions spent each year on oil imports should be circulated within the country "for the sake of the nation's security." "We need to drill here and drill now," Palin said as the crowd chanted "drill baby, drill." (Washington Times, 16 October) RD

WAR IS MENTAL

"The number of British military personnel discharged from the armed forces following a “nervous breakdown” has risen by 30 per cent since the start of the Afghan war. More than 1, 3000 have been medically discharged since 2001 when operation first began against the Taliban, new figures revealed. Of these, 770 belong to the army, which has borne the brunt of overseas operations in Iraq and Afghanistan. ...The rising numbers of service personnel leaving for psychological reasons will fuel concerns that thousands of soldiers face being traumatised by their experiences in Iraq and Afghanistan. Health charities claim that as many as one in 10 soldiers will develop a mental health problem from the horrors of combat." (Observer, 19 October) RD

NOT ONLY THE LAW

A judge has thrown out a Nebraska legislator's lawsuit against God, saying the Almighty wasn't properly served due to his unlisted home address. State Sen. Ernie Chambers filed the lawsuit last year seeking a permanent injunction against God. He said God has made terroristic threats against the senator and his constituents in Omaha, inspired fear and caused "widespread death, destruction and terrorization of millions upon millions of the Earth's inhabitants." Chambers has said he filed the lawsuit to make the point that everyone should have access to the courts regardless of whether they are rich or poor. On Tuesday, however, Douglas County District Court Judge Marlon Polk ruled that under state law a plaintiff must have access to the defendant for a lawsuit to move forward."
(Associated Press, 15 October) Charles Dickens had Mr Bumble declare "the law is an ass - a idiot". If he was alive today perhaps Dickens would have declared US senators and judges equally asinine. RD

ANOTHER MARKET GURU

Mr Brown blames the unregulated stock dealers, Mr Cameron blames Mr Brown and socialists blame the slump/boom cycle of capitalism, but here is someone with yet another explanation.
"From his base in India's financial capital Mumbai, Raj Kumar Sharma has been tracking the turbulence in the world stock markets and has come to one firm conclusion -- it was written in the stars. As an astro-finance specialist, he has made a career on predicting whether the Bombay Stock Exchange, Nasdaq, Dow Jones or FTSE-100 will go up or down by studying favourable or unfavourable planetary alignments. Where many blame banks overstretching themselves or inadequate financial controls and policy, Sharma sees a clash between fiery Saturn and its arch enemy Leo as a key factor in the recent financial turmoil. "Leo is the sign of the sun and the sun is the father in Indian astrology," he told AFP. "But the son (Saturn) and his father (the sun) don't get along, so whenever they are sitting in the same house together, they always fight and create ill-will and danger in the market," he said." (TIME.com, 16 October) RD

POVERTY RECRUITS

"The economic crisis could help the military recruit and retain troops, Pentagon officials said Friday, potentially ending years of extraordinary bonuses and waivers that have become necessary to keep enough troops to fight two wars. "We do benefit when things look less positive in civil society," said David S.C. Chu , undersecretary of defense for personnel and readiness." (Yahoo News, 10 October) RD

A REAL BARGAIN

"Presciently, the high-end Japanese bathroom-fixtures manufacturer Toto chose a time when the economy is circling the drain to launch its newest product - a $5,000 commode with a super-efficient flush. The Neorest 550 seems at first a senseless money tank, but at a swellegant downtown New York City launch party last week, the press and interested parties were almost persuaded that this fixture is more than a very dear john - if used right, it's good for the environment and it could even save you money. How? Consider the following. You'll save on toilet paper. Go ahead, toss the tissue. You're not getting your hands anywhere near your netherlands. The Neorest does it all for you: It offers a squirt of water in the rear, a squirt of water in the front, a squirt of water that pulses or a gentler stream for tough days. You can adjust pressure and direction from the comfort of your seat. Then there's a down under blow drier. No wonder the manufacturers prefer the term "Integrated Personal Cleansing System" to toilet. Or latrine." (Time, 11 October) RD

READ 'EM AND WEEP!

"In These Grim Economic Times, Here's A Gamble That's Tough To Resist. Cartier's Handsome Poker Case, Made Of Sycamore Wood And Decorated With Red And Black Marquetry, Comes With 360 Chips In Five Different Colours, Five Dice And Two Decks Of Cartier Cards. Place Your Bets; There's Already A Waiting List, Despite The $10,100 Price Tag."
(Newsweek, 13 October) RD

IT’S A MAD, MAD WORLD

"Robert Tchenguiz, the property entrepreneur, lost £1bn in just 24 hours after being forced to offload his stakes in J Sainsbury and Mitchell & Butlers as the fallout of the Icelandic banking crisis hit corporate UK. Mr Tchenguiz lost up to £600m on the sale of a 10 per cent holding in Britain’s third-biggest supermarket chain and about another £400m on his exit from the pub company, making the entrepreneur one of the biggest individual casualties of the credit crunch in the UK. He was said to be taking a philosophical approach to his losses." ( Financial Times, 8 October)
When I was a kid my mother read me the riot act about foolishly spending two shillings (20p) on the Grand National horse race. My mother and I were less than philosophical, but then unlike Mr Tchengiiz we were members of the working class. Lost £1 billion ? I shudder to think what my old lady would have said. RD

BUDDY CAN YOU SPARE A GRAND

Outside in the streets of New York you may be asked by some homeless worker for change, but not everybody in that city is finding capitalism a harsh society. "One of the quietest, most private rooms around is the discreetly deluxe Ty Warner Suite, which literally looks down on Manhattan from the 52nd story of the 52-story Four Seasons Hotel at 57 East 57th Street, between Park and Madison Avenues. With its travertine floors, grand piano, health spa and remote-controlled bidet, it is uncontested as the city’s most expensive temporary rental, clocking in at a Bolshevik Revolution-producing price of $30,000 a night."
(New York Times, 6 October) RD

CAPITALISM IS WORLDWIDE

"The Russian government will start buying stocks next week, spending billions to help prop up stricken markets, Prime Minister Vladimir Putin said Friday as parliament approved anti-crisis measures designed to get cash moving quickly into the troubled banking sector. Russia's stock markets remained closed after heavy sell offs."
(Associated Press, 10 October) RD

A FRIGHTENING FUTURE

"Pentagon officials have prepared a new estimate for defense spending that is $450 billion more over the next five years than previously announced figures. The new estimate, which the Pentagon plans to release shortly before President Bush leaves office, would serve as a marker for the new president and is meant to place pressure on him to either drastically increase the size of the defense budget or defend any reluctance to do so, according to several former senior budget officials who are close to the discussions." (CQ Today, 9 October) RD

Who cares about the poor ?

Our hearts bleed for them ...i think not . More than £100 billion will be wiped off the personal fortunes of Britain's wealthiest industrialists and entrepreneurs in the coming months as tumbling stock markets and sliding property prices take their toll according to The Times . What will the effect be on those super-rich , i wonder . One less house in their tropical paradises , one less luxury limosine ...

Certainly it will not the same as the consequences the Credit Crunch will have on the working class .

The number of people seeking advice from the Citizens Advice Bureau about how to manage their debts has surged by a third in the past year according to this BBC report. 77,000 new callers in England and Wales with mortgage and loan arrears.

"These figures show how the current economic situation is hitting vulnerable and low-income households the hardest."

Mortgage lenders, on average, started repossession action when people were four months into their arrears. No government bail-out or rescue for the poor .

House repossession was rated as the event most likely to cause mental health problems according to a survey.

"Even for people lucky enough to hang on to their home, the stress and worry of arrears building up can be enough to harm your mental health - this survey shows it worries millions of us."

CAPITALIST PRIORITIES

We live in a society where millions try to survive on a $1.25 a day, where children die for the lack of clean water and yet this society spends billions of dollars trying to find more efficient ways to kill people. The priorities of socialism would be to feed, clothe and shelter its citizens but capitalism has other priorities. "Top U.S. Army officials on Monday said a $160 billion Future Combat Systems modernization program managed by Boeing Co and SAIC Inc was "on budget, on track," but could see changes over time. Army Chief of Staff Gen. George Casey said the Army was going through a detailed review of 14 separate weapon systems included in the program to ensure that the technologies involved were on schedule. "We're committed to Future Combat Systems. It's just a question of adjusting as the world changes, and as the need changes," Army Secretary Pete Geren told reporters at the annual Association of the U.S. Army meeting. ...The Army's FCS program is a family of 14 manned and unmanned aerial and ground systems, tied together by communications and information links."

(Yahoo News, 6 October) RD

PUTING HIS FOOT IN IT

Last year when he was Chancellor of the Exchequer Gordon Brown outlined his annual budget speech with these words - "Britain's growth will continue into its 60th and 61st quarter and beyond ...Inflation has fallen from 3% to 2.8%, and will fall further this year to 2% ...Looking ahead to 2008 and 2009 inflation will also be on target. And we will never return to the old boom and burst." (quoted in Time, 13 October)
He was warmly applauded by the Labour benches and praised by the press for his sagacity and prudence. What a difference a year makes. Inflation stands at about 4.7%, mortgage lender Bradford and Bingley has been nationalised and a deep economic recession looks likely. Capitalism is an anarchic, uncontrollable system. Boom and burst are the very foundation of capitalism. No doubt a future Conservative Chancellor of the Exchequer will in turn pretend that he can control this mad profit system. RD

A MUCH BETTER IDEA

Robert Reich, former US secretary of labour, commenting on the recent economic crisis showed that he understood that China was a capitalist country when he said "There are still only two kinds of capitalism. There's authoritarian capitalism as in China and Singapore, and there's democratic capitalism as in US and Europe. If there's anyone out there who has a better idea, I'm sure the world would love to hear it." (Newsweek, 13 October)

If someone can get us Mr Reich's address we will send him a subscription to the Socialist Standard so he learn about the socialist alternative. RD

SOUTH AFRICAN NIGHTMARE

The end of Apartheid and the election of the ANC to power was supposed to see the grinding poverty of the townships ended, but the ANC have turned out to be powerless to run capitalism in a way that would end exploitation and poverty. Despite 14 years of power the ANC are just another political party dedicated to running capitalism. "A dusty maze of concrete, sheet metal and scrap wood, Diepsloot is like so many of the enormous settlements around Johannesburg, mile after mile of feebly assembled shacks, the impromptu patchwork of the poor, the extremely poor and the hopelessly poor. Monica Xangathi, 40, lives here in a shanty she shares with her brother’s family. “This is not the way I thought my life would turn out,” she said. Her disappointment is not only with herself; she is heartsick about her country. Fourteen years after the end of apartheid, South Africa — the global pariah that became a global inspiration — has lapsed into gloom and anxiety about its future, surely not the harmonious “rainbow nation” so celebrated by Nelson Mandela on his inauguration day." (New York Times, 5 October) RD