AN ILL-DIVIDED WORLD

We are told by politicians and political commentators that although we live in tough economic times "we are all in this together". This touching sentiment seems a little difficult to grasp when we read about how two members of the capitalist class are coping with the economic situation. "News International boss James Murdoch has declined a $6m (£3.7m) bonus, citing the "current controversy" over phone hacking at the News of the World. His father, News Corp boss Rupert, received a $12.5m (£7.7) bonus. His total remuneration for the year to 30 June was $33.3m (£20.5m), up 47%. James Murdoch saw his pay packet rise 74% to $17m, but said declining the bonus was the "right thing to do". (BBC News, 2 September) RD

NO LOG CABIN HERE

It is a popular myth that US schoolchildren have been taught over the years. How in America you can rise from poverty to become the president of the USA. Abraham Lincoln and his log cabin is usually trundled out in support of the myth. In fact many of the present day US politicians are extremely wealthy individuals as this report illustrates."GOP presidential contender Mitt Romney, scheduled to attend a series of fundraisers this weekend in San Diego, is also working on plans to nearly quadruple the size of his $12 million oceanfront manse in La Jolla. Romney has filed an application with the city to bulldoze his 3,009-square-foot, single-story home at 311 Dunemere Dr. and replace it with a two-story, 11,062-square-foot structure." (SIGN ON San Diego, 26 August) RD

CONSPICUOUS CONSUMPTION

Inside a capitalist society it is the norm for the poor to to try to survive from day to day whilst the wealthy indulge themselves with the best of everything. It is not enough for some of them though. Not content with the best food, clothing and shelter some of them like to indulge themselves with over-priced baubles just because they can. "A Porsche once owned by Hollywood legend Steve McQueen has been sold for a record-breaking $1.375 million. ...... The car appears in the prologue of the film (Le Mans) being driven through the French countryside by McQueen. According to RM Auctions, who handled the sale at its Monterey, California event on August 19th, it was the highest price ever paid for a Porsche 911. ....Nevertheless, it was far from a record for a car from the noted automobile enthusiast's extensive stable. In 2007, an ex-McQueen 1963 Ferrari 250 was sold for $2.3 million, nearly five times the amount of what similar cars were going for at the time." (FoxNews.com, 26 August) RD

A BILLION DOLLAR DEAL

The conflict in Lybia has proved to be very profitable for the British oil firm Vitol who have supplied fuel and associated products to the rebels and traded oil on their behalf. The deal is estimated to be worth about $1 billion. "The deal with Vitol was said to have been masterminded by Alan Duncan, the former oil trader turned junior minister, who has close business links to the oil firm and was previously a director of one of its subsidiaries. Mr Duncan's private office received funding from the head of Vitol before the general election. Ian Taylor, the company's chief executive and a friend of Mr Duncan, has given more than £200,000 to the Conservatives. Vitol is thought to be the only oil firm to have traded with the rebels during the Libyan conflict. Oil industry sources said that other firms including BP, Shell and Glencore had not been approached over the deal. One well-placed source said this was "very surprising" because other companies would have been keen to be involved." (Daily Telegraph, 1 September) Of course, the other firms are unhappy with the deal and questions are likely to be raised in parliament. The enquiries are likely to be about how political donors were given the business, but no one will query the accepted fact that war and military conflict is often an excellent business opportunity. RD

WARTIME ILLUSIONS

There are many illusions about the cause of World War Two. One of them is that it was a war about democracy. Nonsense. How come the Stalin dictatorship in Russia was supporting democracy? Another illusion was that it was about persecution because of Germany's treatment of the Jews, but Germany was not alone in persecuting the Jews. Even now over 60 years later there is plenty of examples of Jewish persecution in Eastern Europe. "Vandals have desecrated a monument marking the spot in Poland where hundreds of Jews were burned alive during World War II. They defaced the stonework, scrawling 'they were flammable' and also daubing a swastika on the memorial. The monument in the eastern town of Jedwabne honors the victims of July 10, 1941, when about 40 Poles hunted down Jews, closed them in a barn and set it alight. It is estimated between 300 and 400 Jews were killed." (Daily Mail, 1 September) If the second world war was fought to protect democracy or to stop persecution then it failed badly. The truth of course is that the war was fought, like all wars are, over trade routes, markets, sources of raw materials and spheres of economic and political influence. RD

poverty trap for kids

Poverty trap for children as fifth of Scottish families jobless. The number of under-16s living in households without adults in employment rose to 145,000 (15.8 per cent of under- 16s) this year from 141,000 (15.3 per cent) last year. In Scotland, there were 359,000 workless households in June.

Mr Peter Kelly, the director of the Glasgow-based Poverty Alliance, said that if people were going into part-time or low-paid work, their earnings would not be enough to make a huge difference to their lives. "Sometimes you have to question the extent to which giving someone a job can lift them out of the low-income bracket. We want to see people moving into jobs that lift them out of poverty."

THE COLD WAR HEATS UP

In a multinational race to seize the potential riches of the formerly icebound Arctic, being laid bare by global warming, Russia is an early claimant. "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. The global Arctic scramble kicked off in 2007 when Russian explorer Artur Chilingarov planted his country's flag beneath the North Pole. "The Arctic is Russian," he said. "Now we must prove the North Pole is an extension of the Russian landmass." (Christian Science Monitor, 14 August) It is typical of how capitalism operates that global warming should lead to a heating up of international rivalry over the potential profit-making in the Artic region. RD

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