NET PROFIT, SOCIAL LOSS

In the mad struggle for bigger and bigger profits the owning class have no regard to what social problems may arise from their ruthless pursuit to net profits. Thus we have the decimation of fishing stocks around Iceland and the Faroe Islands. "Mackerel could vanish from Britain's fishmongers and supermarkets within three years because giant foreign trawlers and factory ships are being allowed to strip out the entire stock, scientists have warned. ..."There were about 3m tons of mackerel in the northeast Atlantic at the start of the year but by the end we will have removed about a third of the entire stock," said Paul Fernandes, a leading fisheries researcher at Aberdeen University." (Sunday Times, 17 July) RD

Who owns the North Pole - Part 36

Norway’s decision to move its military command centre 1,000km north from its former location last year highlights the rising strategic stakes in the Arctic amid predictions that global warming will unlock icebound resources and shipping routes.

“More than half of Norwegian waters are north of the Arctic Circle,” says Maj-Gen Rune Jakobsen, deputy chief of staff at the headquarters, gesturing at a map showing Norway’s maritime borders converging with those of Russia, Canada, the US and Greenland around the North Pole. “So it’s only natural that it gets a lot of our attention.”

Norway is not the only country turning its military’s attention to the frozen north. Russia’s defence ministry announced plans last week to create two army brigades to defend its polar territory, and Canada is sending more than 1,000 troops to the region in August for its biggest Arctic. After a quiet period at the end of the cold war, the Russian air force has become more active around Norway’s Arctic airspace. Norwegian officials claim Russia has even carried out mock bombing raids off the coast near Bodø.

The build-up is fuelling fears of conflict in a region estimated to hold up to a quarter of the world’s undiscovered oil and gas. Norway is counting on polar resources to prolong its oil boom as North Sea reserves decline. Statoil, the Norwegian state-controlled energy group, already has one Arctic project on-stream – the Snohvit gas field in the Barents Sea – and in April announced a big oil discovery 100km farther north. The country also stands to benefit from the opening of new shipping routes as polar ice recedes. Last summer, a mine in the far north of Norway delivered 41,000 tonnes of iron ore through Arctic waters to China, shaving 18 days off the time it would have taken via the Suez canal.

“If you put together resources, transport routes and people you have the mix you need for potential conflict,” says Jonas Gahr Støre, Norway’s foreign minister. “But it is up to the Arctic states to manage this responsibly and make sure that is not how it ends up.”

"If you want peace, prepare for war" is the age-old adage - Socialist Courier thinks that the idea of ensuring peace by military build-ups rather ominous and fool-hardy.

SOME CHILLING FACTS

Politicians are fond of painting a picture of social improvement. They love to tell us how lucky we are to live in a modern progressive Britain. The latest figures about the plight of the old and poor show what a piece of fiction this will prove to be this winter."One in five households in fuel poverty as energy prices soar. 5.5m homes spend over 10% of income on fuel, and bills will rise further to fund new power networks. Figures show a huge rise in UK households in fuel poverty, even before expected rises in the price of gas and electricity, and charities predicted that this winter would see millions more people struggling to keep warm at home. The Department of Energy and Climate Change statistics show 700,000 more UK families fell into fuel poverty in 2009, bringing the total to 5.5 million - one in five of all households." (Guardian, 15 July) RD

FUELLING POVERTY

Scotland is on course for “crisis levels” of fuel poverty with one in four struggling to pay their bills, it was claimed. Nearly one third of all homes north of the Border are now classed as “fuel poor” when the cost of rising bills is set against family incomes, according to a Government report.

750,000 Scottish households live below the fuel poverty line. This is where households spend more than 10% of their income on keeping warm. And 900,000 could soon be below the line due to recent rises.

http://www.heraldscotland.com/news/home-news/fuel-poverty-crisis-warning-scottish-fuel-poverty-crisis-warning-1.1112254

POLITICAL REALITIES

We are taught by the media that politicians are clever, devoted people whom we should respect. However from time  these politicians often reveal themselves as complete idiots. The vice-president of the USA Dan Quale once portrayed his grasp of geo-politics when he declared "I would like to visit Latin America but I don't speak Latin". Michele Bachmann, the Republican presidential hopeful recently signed her agreement to the statement that a black child born into slavery "was more likely to be raised by his mother and father in a two-parent household than was an African-American born after the election of the USA's first African-American president." This ridiculous claim was made despite the fact that slaves in the USA were forbidden to marry and were often separated from their family when sold. "It is not the first time that Mrs. Bachmann has found herself at the centre of controversy over her historical interpretation. She was widely criticised for asserting that American Founding Fathers, the authors of the Constitution, had "worked tirelessly" to end slavery, when more than half were slave owners and all signed off on a document that counted slaves as only "three-fifths" of a person." (Times, 11 July) It would seem that Bachmann's political knowledge is on par with Quale's. RD

MODERN SLAVERY

Capitalism is an awful society, not only does a tiny minority legally exploit the vast majority it also allows criminals to brutalise and dehumanise vulnerable workers. This is not a petty matter - it is a worldwide scam that affect millions. "Anyone who thinks slavery ended with the 13th Amendment is not paying attention. According to the latest State Department statistics, as many as 100,000 people in the United States are in bondage and perhaps 27 million people worldwide. The numbers are staggering. These victims of human trafficking are vulnerable men, women or children coerced into servitude for sex or labor. They might be transported from Russia to Europe, from the Philippines to Dubai, or held in their hometown. The stories are heartbreaking. The Cambodian girl sold to a brothel who was stabbed in the eye by the brothel's owner when she fought back. The Middle Eastern woman hired as a domestic in London whose employers seized her passport and locked her away in the house. The teenager in Dallas forced into prostitution." (New York Times, 1 July) RD  

Reading Notes

From "The State and the Socialist Revolution" by J.Martov,
"In reality, the state is nothing more than a machine for the oppression of one class by another, and indeed in the democratic republic no less than in the monarchy; and at best an evil inherited by the proletariat after its victorious struggle for class supremacy whose worse sides the proletariat, just like the Commune, will have at the earliest possible moment to lop off, until such time as a new generation, reared under new and free social conditions, will be able to throw on the scrap heap, all the useless lumber of the state." (Engels in his introduction to 'the
Civil War in France").
"From the ground provided by such economic illusions, we see rise again the fallacy that the liberty of the working class can be accomplished by the destruction of the State and not by the conquest of the State. This belief throws back the revolutionary working class movement toward the confusion, indefiniteness and low ideological level that characterized it at the time of the Commune of 1871."
" In her polemic against Edouard Bernstein, Rosa Luxemburg declared, quite correctly, that 'there never was any doubt for Marx and Engels about the necessity of having the proletariat conquer political power."

chinese crackers

ZhengYonggang's $600m (£377m) fortune was built by taking a state-owned firm into the private sector. Zheng does not owe his success to sheer hard work.He has insisted on working no more than eight hours a day and has a 20-minute nap on weekdays. Zheng has developed his own management strategy which he calls "pagoda structure management". Instead of micro-managing, he adopts a more Western style, with a team of senior staff responsible for their own departments.

Lamborghini sales tripled in China. Rolls-Royce's rose 146% overtaking the UK and on course to soon surpass the US. Bentley's sales almost doubled, making it the firm's third-biggest market. Porsche up 60% from 2009. Despite the surge in sales of 300kmph cars, the rush-hour speed in Beijing is rarely above 25kmph.

Discussion Meetings in Glasgow

Discussion Meeting Programme

(3rd Wednesday of month).

Community Central Hall, 304 Maryhill Rd. . 8.30 PM

See a map here on Glasgow's website

20 July Another Look At Marxism. R.Donnelly.

17 August The Socialist Party's Record - Warts And All. V.Vanni.

21 September The Role of Trade Unions. J.Cumming.

19 October Resistance, Reform or Revolution. B.Gardner.

All Welcome

SAME PAGE, DIFFERENT WORLDS

That we live in an ugly class-divided society was well summed up on one page of a recent issue of the Times. There on page  41 was an advert for Medicins Sans Frontieres begging for funds to deal with the awful threat of millions dying on the frontiers of Somalia and Kenya of malnutrition and lack of clean water. On the same page we could read of the lavish preparations for the 40th birthday party of Nat Rothschild that is taking place in Porto Negro and is expected to cost £1 million pounds. "Set to inherit £500 million, Mr Rothschild has already notched up a fortune of of $1 billion (£620 million) on his own account." (Times, 9 July) RD

Scottish suicides

The true depth of the problems facing Scotland's young unemployed has been laid bare in a report which reveals that more than a quarter are so depressed they have contemplated suicide. Others turn to drink or drugs in the face of serial rejection and bleak prospects, according to The Future You.

28 per cent said they had contemplated suicide. A third of Scots often felt their "life was being wasted", while two-thirds said being classed a "Neet" - Not in Education, Employment of Training - made them "feel bad about themselves".

Citizens Advice Scotland found the unemployment rate for young people to be around 20 per cent, almost three times the overall figure.

The human impact of the recession was also laid bare by new research showing the number of suicides during the economic crisis increased by as much as 29% in parts of the U.K. and also spiked in the worst affected countries in the European Union. The increase in suicides was most apparent in countries that had been badly affected by the financial crisis: Greece and Ireland. In those countries, the number of suicides increase by 17% and 13% respectively between 2007 and 2009.

Dr David Stuckler, from the University of Cambridge in the U.K, one of the researchers, said: "There was a complete turnaround. Suicides were falling before the recession, then started rising in nearly all European countries studied. Almost certainly these rises are linked to the financial crisis..."

THE WASTEFUL SOCIETY

One of the illusions beloved of supporters of capitalism is that while it may have problems it is the most efficient way to run society. So what do those lovers of capitalism make of the following news item? The Indian government fearing a potential shortage of grain banned its export in 2007 and this combined with a bumper crop this year has left them with a bizarre problem. "Millions of tons of grain - enough to feed more than 100 million for a year - are at risk of rotting because India's stockpile is too big to be held in government warehouses. ... Prakash Michael, who works for Spandan, a non-governmental organisation in Madhya Pradesh, said: "On the one hand, they have grain rotting in stockpiles and, on the other, people are still dying of starvation in India." (Times, 30 June) That is capitalism's efficiency in action for you.RD

Food for thought

The NDP party, recently elevated to official opposition status for the first time in its history, held a party convention on the occasion of its 50th. Anniversary. On the agenda was a proposal " to debate a change to the preamble of the constitution that would replace a commitment to democratic socialist principles – including an explicit aversion to profit making – with the soft language of social democracy." (Joanna Smith, Toronto Star (18/June/11). The decision was deferred to party caucus to
decide later and a merger with the Liberal Party was also discussed. The two items show exactly were the NDP stands – with the capitalist parties, ready to change anything and merge with anybody to get elected. The NDP has never been socialist and probably its members have no idea what socialism stands for. At least, if this proposal passes, the pretence will be over.

 Bono of the rock band U2, a leading anti-poverty campaigner, experienced a small protest at his latest concert. Apparently the band switched its operations to the Netherlands from Ireland several years ago to avoid paying Irish taxes. Now many more Irish are under the poverty line with the current poor economic situation of the former darling of the capitalist world, the former 'Celtic Tiger', and there is no money for social programs. Bono is just doing what every capitalist tries – maximize your wealth – poverty does not enter into the decision. John Ayers

Food for thought

 In a strange article (Toronto Star, 18/June/11) entitled "Take This Job and Shove it – to Asia", Heather Mallick writes how much she admires workers such as 15 year-old Chinese worker Yufeng who works in a factory making bra underwires by placing 57 steel bands into a heating machine. She is such a human dynamo that she earns 80 cents per hour, double the minimum wage. Then there is Caitlin Kelly, 53, who wrote a book, "Malled" where she tells her story of working two days a week in a suburban mall, then as a waitress for $2.43/hour plus tips. Kelly, according to Mallick is a 'mean-eyed, Class-A malcontent who resents people with more money. Kelly finally winds up at a Walmart that she considers as a hazard and was in no way going to risk her life climbing the high shelves in a poorly lit stockroom for $11 per hour. I think the whole point of the article is to contrast the stoic tornado Yufeng with the lazy and insolent Kelly who earns fifteen times as much. Are we supposed to dumb our jobs down to Chinese standards? Capital would love it but why would another worker, Mallick, be so supportive? After all, they could hire Chinese journalist for 80 cents per hour! John Ayers

THE REALITIES OF WAR

War is often depicted in films, books and TV as a heroic endeavour that brings out the best in human beings. We are taught to believe that war produces heroic bravery and sacrifice, but the realities of war are far from noble. When President Barack Obama announced the withdrawal of troops from Afghanistan the cost of that conflict - $2 billion (£1.2billion) a week must have figured large in his decision. "Much less discussed are the invisible costs such as the psychological strain on soldiers who have served repeatedly in Iraq and Afghanistan. One in five returning troops is diagnosed with post-traumatic stress disorder (PTSD). Suicides in the US military are at unprecedented level - an average of five troops attempt suicide every day, says the PTSD Foundation of America, based in Houston. Last year a record 301 soldiers committed suicide." (Sunday Times, 3 July) War is not heroic it is just another tragedy of capitalism. RD

Food for thought

John Cartwright, president of the Toronto & York Region Labour Council, bemoans the lack of good jobs (Toronto Star, 18/June/11) and blames the problem on the CEOs saying that, according to them, young people don't deserve good pay and benefits. Of course, he is way off mark as it doesn't matter what the CEOs think, capital will decide who gets what. Cartwright does tell us that the trend to contract and temp workers is all in the name of lower pay and greater profits (Surprise!)– the difference in pay and benefits between a permanent employee and a contract worker is 13%, and between the employee and the temp worker it is a staggering 34%! John Ayers

safe as houses?

House prices in Edinburgh and Glasgow have slumped in the past three months and are set to fall further.

The average price of a home in Edinburgh in the three months to the end of June was £219,530 - down 3.6 per cent from the same period last year. The average selling price of a flat in the Leith Walk and Easter Road area of the capital is now under £100,000 for the first time since 2006.

House prices in the west of Scotland have also tumbled. Prices were 2 per cent lower in the last quarter than in the same period last year, taking them back to 2006 levels. The average selling price of a home in Strathclyde is now £136,000, almost £3,000 lower than a year ago.

There were sharper falls elsewhere in east-central Scotland. The average price of a home in Midlothian in the last quarter was 10.8 per cent lower than a year ago, while the West Lothian average plummeted 9.5 per cent.

David Marshall, business analyst at ESPC explained "There are around 30 per cent more properties available for sale than you would normally see at this time of year, and the number of properties selling is around half that seen prior to the credit crisis,"

Martin Ellis, housing economist at Halifax, said the market faced "significant headwinds" that would constrain housing demand. "Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances."

the waste of capitalism

Hotels and restaurants send 130,000 tonnes of waste to landfill in Scotland every year. More than three-quarters is recyclable.

53,500 tonnes of the waste from the hospitality sector is food waste - two-thirds of which could have been eaten.

Food waste extends beyond the hotel industry, with more than £1 billion worth of food wasted by consumers in Scotland each year - an average of £430 per household. Households throw away 566,000 tonnes of food every year in Scotland.

http://news.scotsman.com/news/39Throwing-out-food-worth-millions39.6797142.jp

Who owns the North Pole Part 35

The Arctic is irresistible for three simple reasons. First, a global economy addicted to fossil fuels at almost any price will always find a dealer willing to find and sell them their fix at almost any cost. Second, the strong demand for iron, uranium, gold and other metals shows little sign of ending, and won't until new goods are refashioned from old. Third, the Arctic oceans shelter some of the richest fisheries on Earth.

US, Canada, Russia, Denmark and Norway are becoming embroiled in disputes over boundaries on land and at sea. The United States and Canada disagree on the setting of the boundaries in the Beaufort Sea – an area of intense interest to oil drillers. Canada has yet to resolve a dispute with Denmark over the ownership of Hans Island and where the control line should be drawn in the strait between Greenland (whose sovereignty remains with Denmark) and Ellesmere Island. Of even greater significance in a world of melting ice floes is control of the North West Passage. Canada insists that it has sovereignty over the sea route and therefore must be asked about usage. The US sees it as a potential area of open water which gives it automatic right of passage for its battleships. The US and Russia still have a disagreement over the exact maritime border from the Bering Sea into the Arctic Ocean. A deal was signed with the then-USSR, but Russia has refused to ratify it.

US "soft" diplomacy was backed up with a bit of hardware. Two nuclear-powered submarines were sent to patrol 150 miles north of Prudhoe Bay, Alaska. The US navy move comes as Russia is said to have increased missile testing in the region and Norway has moved its main military base to the far north.

Rob Huebert, a professor of political science at the University of Calgary, warned in a recent paper prepared for the Canadian Defence and Foreign Affairs Institute that "an arms race may be beginning...Not withstanding the public statements of peace and co-operation in the Arctic issued by the Arctic states, The strategic value of the region is growing. As this value grows, each state will attach a greater value to their own national interests in the region. The Arctic states may be talking co-operation, but they are preparing for conflict." Huebert points out that as well as opening a new ultra-hi-tech operations centre inside a mountain at Reitan, in the far north of Norway, Oslo is also spending unprecedented money on new military hardware, not least five top-of-the-range frigates. The class of vessel is called Fridtjof Nansen, after the famous polar explorer, which perhaps indicates where the navy plans to deploy them. Norway is the world's fifth-biggest oil exporter and has the largest sovereign wealth fund in the world - $550billion

Admiral James Stavridis, Nato's supreme allied commander in Europe, in a foreword to a recent Whitehall Paper published by the Royal United Services Institute for Defence and Security Studies in London, argued: "For now, the disputes in the north have been dealt with peacefully, but climate change could alter the equilibrium over the coming years in the race of temptation for exploitation of more readily accessible natural resources." He added: "The cascading interests and broad implications stemming from the effects of climate change should cause today's global leaders to take stock, and unify their efforts to ensure the Arctic remains a zone of co-operation – rather than proceed down the icy slope towards a zone of competition, or worse a zone of conflict."

Canada's former foreign minister, Lawrence Cannon, voiced confidence his nation would win the territory. "We will exercise sovereignty in the Arctic," he told his Russian counterpart in talks in Moscow.

Aqqaluk Lynge, former chairman of the indigenous peoples' forum, the Inuit Circumpolar Council said "There is a military build-up and an increase in megaphone diplomacy … We do not want a return to the cold war,"

Paul Berkman, director of the Arctic Ocean geopolitics programme at the Scott Polar Research Institute, believes the deluge of books and features highlighting potential problems cannot be dismissed as melodrama. "You have to ask why are these alarming and alarmist headlines being written and it may be there is unfinished business from the Cold War."

The race into the Arctic is inevitable in a world that prizes mineral wealth but takes the natural world for granted.

Food for thought

Two large strikes erupted in June – the postal workers and the Air Canada workers. Just hours after Canada Post locked out the postal workers after two weeks of rotating strikes, the government announced back-to-work
legislation and planned a similar fate for the customer service and sales workers at Air Canada. The latter strike was settled before legislation could be brought forward. The NDP labour critic predicted a bleak future for unions and stated that Prime Minister Harper, "has made it clear he's only here for the big employers." The government action is widely seen as support for the employers, but would you expect anything different? The government is there to support the capitalist system that pits workers against employers, and they have always taken the latter's side. It's part of the continuing attack on worker pay and benefits to pay for the last recession. The general form of attack is to grandfather the pay and benefits of older employees and take as much as possible from the younger workers and, especially from new hires. For example, the fall out from the auto crisis includes 27 000 job cuts, the veteran workers accepted pay cuts of 50-60% and new hires get $14 to $16 per hour and a self funded benefit package, which, according to David Olive (Toronto Star 4th June, 2011)," is good pay, if you're a galley-crew supervisor at Burger King". John Ayers