CLUNKERS AS CASH

While the "Cash for Appliances" programs will vary by state, some of the
proposed rebates that have been annouced so far, range from $50 to £100 per item

Capitalists can only access the surplus value extracted from the working class when they sell the products on the market. In times of recession they can reduce the price, but a method of selling and not reducing the price is preferable, trading in your old car as junk for a new car at a reduced price has met with some sucess, so the same method is to be used for refridgerators etc.

On the heels of its ballyhooed "Cash for Clunkers" program for cars, the federal government is expected to finalise details in the coming weeks of a tax- supported shopping extravaganza, known as "Cash for Appliances"

"Clunkers" is one of several stimulus programs whose purpose is to shift expenditures by households, businesses and governments from the future to the present," the coucil wrote in a September report. "Such time shifting is valuable in a recession when the economy has an abundance of unemployed resources that can be put to work at low net economic costs".

GOD AND MAMMON

"After what it must have deemed a decent interval since triggering a furore over its attack on traders and bankers as "robbers and assassins" last year, the Church of England is shamelessly seeking more yield. Just to refresh your memory, Rowan Williams, the archbishop of Canterbury and head of the Anglican Church, last September said it was right to ban short selling, while John Sentamu, archbishop of York, called traders who cashed in on falling prices "bank robbers and asset strippers". But the Church Commissioners had a tough year in 2008, as the Church's total assets dropped from £5.7bn to £4.4bn, a 23 per cent fall over the period. Clearly, faith alone was not enough. As the FT's People column reports on Wednesday in an appropriately headlined piece "God meets Joy", the Church of England has appointed fund manager Tom Joy to run its £4.4bn investment portfolio from a "very strong field of more than 70 applicants". (Financial Times, 6 August) RD

THE PRICE OF COAL

"A gas explosion tore through a state-run coal mine in Northern China, killing 42 people and leaving 66 others trapped underground. More than 500 people were working in the Xinxing mine in Heilongjiang province at the time. In the first nine months of this year, China's coal mines have suffered 11 major accidents with 303 deaths." (Observer, 22 November) RD

KING OF THE BRONX

Jacob Selechnik at his office in the Bronx, from which he oversees an empire of
apartment houses

"In the feudal world of real estate, where a handful of landlords claim ownership to its skyline of cramped apartments, Jacob Selechnik is most certainly royalty. He has been buying buildings in the city's poorest borough for nearly 50 years, amassing an empire that reached a peak of more than 7,000 apartments. Brokers estimate his net worth at more than half a billion dollars. What's more, Mr. Selechnik, who has $300 million in proceeds from recent sales and uncommon good will from banks, sees the haemorrhaging real estate market as an open season for bargain hunting."
(New York Times, 18 November) RD

FOR A PAIR OF GLOVES?

"Yves Saint Laurent. Advert" 

These jet-black gloves fuse bangles with supple leather for dramatic effect. The statement piece of the season - with a price to match.   Price: £2,345: (Independent, 9 November) RD

ALL RIGHT FOR SOME

"Britain may still be in recession, but the appetite for the finer things in life, it appears, lives on. Topping all expectations, Bonhams, the upmarket auction house, last week sold a decanter of whisky to a bashful buyer for a record-breaking £27,600. The unique Dalmore Oculus, blended from some of the most exceptional whiskies of the past 140 years, had been expected to reach up to £20,000. Instead it raised the largest amount of money ever paid for a Dalmore whisky. The buyer asked to remain anonymous." (Observer, 22 November) RD

OOPS, SORRY ABOUT THAT

"The head of Goldman Sachs apologised for the Wall Street investment bank's role in helping to create the financial crisis. After being ridiculed for saying he was doing God's work, and seeing his company labeled as a blood-sucking vampire squid, Lloyd Blanketing delivered a mea culpa to a conference in New York.

"We participated in things that were clearly wrong and have reason to regret," Blankfein said. "We apologise."

So that's all right then." (Observer, 22 November) RD

Smart meters can't wait until after election, says energy boss

In a Socialist Society technical innovation can be welcomed as a further reduction in repetitive work and a further increase of opportunity to use the time saved for developing your interests: In a Capitalist Society technical innovation becomes a further opportunity for employers to increase their profits and reduce the number of workers.

Scotland on Sunday's article about "Smart Meters" is an example of this process.

SMART meters will be the biggest revolution in the power industry since North Sea gas was discovered, and legislation enabling their use should be pushed through parliament before the general election, says the head of the Energy Retail Association (ERA).

Garry Felgate said he expects an announcement on the roll-out of smart meters for residential customers to accompany next month's pre-budget report from Chancellor Alistair Darling

He said bills might also be reduced because utility companies would be able to save money on administration and postage costs associated with sending out amended bills when customers are unhappy with estimated amounts.

"The new meter technology will streamline a lot of our internal procedures, helping to improve account handling and turnaround times for processes like a change of tenancy or a change of supplier. Fundamentally, they will make it easier for our customers to do business with us."

Darling's pre-budget report is also expected to be accompanied by an outline for the UK government's "social pricing support" under which the ERA expects Westminster to define which customers need support.

I'm sure banks will be happy enough to lend the necessary capital in this stringent period to facilitate the energy bosses impatience, however, bills might be reduced, so it shows they're thinking about us.

THE ADVANCE OF CAPITALISM

"With the stroke of a pen, the last of Kenya's honey hunters may soon be homeless. Since time immemorial, the Ogiek have been Kenya's traditional forest dwellers. They have stalked antelope with homemade bows, made medicine from leaves and trapped bees to produce honey, the golden elixir of the woods. They have struggled to survive the press of modernity, and many times they have been persecuted, driven from their forests and belittled as "dorobo," a word meaning roughly people with no cattle. Somehow, they have always managed to survive. Now, though, the little-known Ogiek, among East Africa's last bona fide hunters and gatherers, face their gravest test yet. The Kenyan government is gearing up to evict tens of thousands of settlers, illegal or not, from the Mau Forest, the Ogiek's ancestral home and a critical water source for this entire country." (New York Times, 15 November) RD

POLLUTION AND PROFITS

Every vote seeking politician in the world waxes elequent about the urgent need for a curb to be placed on global emmisions. They fly hither and thither across the world addressing congresses about their deep concern for the planet's future. Behind these vote catching antics however lies a more pressing problem - how to compete against international rivals in obtaining a larger share of the profits. At a recent meeting in Singapore those politician showed where their real priorities lie.

"A key element of the international plan to address climate change is in jeopardy after several of the most powerful nations failed to confirm a previous commitment to halve gas emissions by 2050. The Asia-Pacific Economic Co-operation (Apec) forum, which includes the US, China, Japan and Russia deleted their commitment from the final version of the official communiqué issued after a two-day meeting in Singapore. ...Most climate scientists believe that a 50 per cent reduction in global emissions by 2050 is the minimum needed to have a chance of avoiding catastrophic change." (Times, 16 November)

For national governments to reduce industrial pollution would be economic suicide. Their costs would go up and they would not be able to compete with other nations that had not reduced their pollution. Inside capitalism in the battle between less pollution or more profits there is only one winner. RD

BABIES AND BOMBS

The charity World Vision is running an appeal for funds that it calls Child Health Now. It recently took a full page advertisement in The Times (16 November) that illustrated the plight of the world's poorest children. It reported that twins in Zambia had severe diarrhea but that the clinic they attended had only enough drugs to treat one of them. The untreated one consequently died and joined the estimated two million children that die every year of this untreated condition. The advertisement then went on to point out "A simple mixture of salt, sugar and water that costs just a few pence can save a child's life, without requiring hospital treatment." The death of a child for the lack of something costing a few pence is shocking enough but the charity then claimed "Today, World Vision launches its Child Health Now campaign, calling for an end to preventable child deaths. ...If the UK government, and the international community, channeled more aid into simple community provisions, like vitamins and rehydration salts for children cut off from health systems, the lives of six million children a year could be saved."

What the well intentioned World Vision do not understand is that we live inside a capitalist society where the priority is making profit not saving children. As we reported in the July 2009 issue of the Socialist Standard "Military spending worldwide rose by 4 per cent to $1.46 trillion." Immense expenditure to protect markets, sources of raw materials and profits, yet millions of kids die for the lack of a few pence. RD

A NICE LITTLE EARNER

"All over America demand for firearms and ammunition is rising amid concerns that rising unemployment, which passed 10 per cent this month, will lead inexorably to higher rates of crime. ... Smith & Wesson is expecting sales to rise by 30% to $102 million (£61 million) in the first quarter of next financial year, after growing by more than 13 per cent this year to $335 million. At Strum and Ruger, sales for the third quarter hit $71.2 million, up 70 per cent from the same period last year. At Glock, the leader in law enforcement markets, pistol sales rose by 71 per cent in the first quarter of the financial year in 2009 in comparison with the same period last year."  (Times, 16 November) RD

Obama eyes Afghan costs: $1 million per soldier

While President Obama's decision about sending more troops to Afghanistan is primarily a military one, it also has substantial budget implications that are adding pressure to limit the commitment, senior administration officials say.

The latest internal government estimates place the cost of adding 40,000 American troops and sharply expanding the Afghan security forces, as favoured by Gen. Stanley A. McChrystal, the top American and allied commander in Afghanistan, at $40 billion to $54 billion a year, the officials said.

Even if fewer troops are sent, or their mission is modified, the rough formula used by the White House, of about $1 million per soldier per year, appears almost constant.

So even if President Obama opts for a lower troop commitment, Afghanistan's new costs could wash out the projected $26 billion expected to be saved in 2010 from withdrawing troops from Iraq. And the overall military budget could rise to as much as $734 billion, or 10 percent more than the peak of $667 billion under the Bush administration.

Such an escalation in military spending would be a politically volatile issue for Mr. Obama at a time when the government budget deficit is soaring, the economy is weak and he is trying to pass a costly health care plan.

( New York Times 14^th November)

GLASGOW BRANCH ACTIVITY

THIS IS DEMOCRACY?

American politicians are fond of lecturing other world politicians about how the USA is a wonderful model of democracy in action. A recent study on the wealth of U.S. Congress would seem to suggest that they have a wonderful model of "government of the people by the people- " by the rich people that is" Apparently, times aren't so tough all over. According to a new study compiled by the Centre for Responsive Politics, 237 members of the U.S. Congress, or 44 percent, are millionaires. "What's easy to see is that the economic reality of our elected officials is not reflective of the general population," said Dave Levinthal, who helped compile the study's findings. Nationwide, only 1 percent of U.S. citizens qualify as millionaires."
(Sphere News, 6 November) RD

HOME OF THE BRAVE?

"Gen. Eric Shinseki was famously shunned by the Bush administration for daring to state the true costs of occupying Iraq. As President Obama's secretary of veterans affairs, he is, thankfully, no less candid about the grinding problems veterans face at home. They lead the nation in depression, suicide, substance abuse and homelessness, according to data that Mr. Shineski is delivering in salvos in his current role. About one-third of all adult homeless men are veterans, and an average night finds an estimated 131,000 of them from five decades bedding down on streets and in charity sanctuaries. About 3 in 100 of them are back from Iraq and Afghanistan. The problem of homelessness for Vietnam veterans is, shamefully, well known. But the men and women in this growing cohort took just 18 months to find rock bottom, compared with the five years-plus of the previous generation's veterans." (New York Times, 11 November) RD

CAPITALISM IS GANGSTERISM

Politicians and clergymen and even well paid TV personalties will claim that the middle east conflict has something to do with morality and justice and that it has nothing to do with crass consideration such as "making a couple of bucks" as Al Capone once famously said. "The British oil giant BP will today take control of Iraq's biggest oilfield in the first important energy deal since the 2003 invasion. The move has created uproar among local politicians invoking resentful memories of their nation's colonial past. The agreement to develop the Rumaila field, near the southern city of Basra, will potentially put Iraq on the path to rivalling the riches of Saudi Arabia within a decade — if the Government can fend off corrupt officials, continuing terrorist attacks on pipelines and political uncertainty." (Times, 3 November)

Hey, Iraq workers may continue to live in poverty, so what, we can make a couple of bucks. That is how capitalism works, isn't it Al Capone? RD

THE NEW IMPERIALISTS

It used to be popular for supporters of the so-called Communist Party to decry Imperialism. They would point out how Britain had exploited Africa and India during their colonial conquests. Later on they would concentrate on the role of the USA in Central and South America. Changed days now with China investing heavily in all sorts of corrupt regimes throughout Asia and Africa. "Barely a fortnight after soldiers loyal to Guinea's military junta butchered at least 150 demonstators calling for civilian rule, a deal for oil and mineral rights worth about $7 billion has been struck between China and Guinea. ...It seems that China's commercial march across Africa will continue unabated, however vile the human-rights record of the government it seeks to befriend." (Economist, 17 October) RD

MIRACLES, ANCIENT AND MODERN

One of the condition of attaining sainthood according to the Roman Catholic Church is two miracles. One gets you beatified and the other gets you canonised. It is understood that the Pope may beatify Cardinal Newman during his visit to the UK next year, but the claim of an American clergyman may bring on the full sainthood. According to Deacon Jack Sullivan, from the archdiocese of Boston, Massachusetts he was afflicted with a serious spinal condition causing intolerable pain with utterly no prospect of relief. He was told he was on the brink of complete paralysis. "I was completely helpless and the situation seemed hopeless. But it was this state of mind that led me to prayer. ..."Please Cardinal Newman, help me to walk, so that I can return to my classes and be ordained". (Times, 10 November)

Next thing the clergyman was up and walking, something he hadn't been able to do for months. Amazing as this may seem - and certainly a boon to a hard pressed NHS - it pales into insignificance according to the same newspaper report when compared to an earlier miracle. 

"In the Miracle of Calanda in the 17th century, the amputated leg of a young Spaniard grew back."

They just don't have miracles like that nowadays, do they? RD

CRISIS, WHAT CRISIS?

Warren Buffett is considered
one of the world's greatest investors

Billionaire Warren Buffett's investment firm has reported that profits almost tripled in the third quarter. Berkshire Hathaway said it's net profit was $3.2bn ( £1.9 bn ) in the three months to September, compared with the $1.1bn in the same period last year. ( BBC News 8 Sept 09) RD