Friday, November 16, 2012

Is Capitalism ending ? What Next by Saba Navalan


The capitalist and totalitarian countries that have entered into every nook and corner of the world and established their powerful hold are now finding themselves in a ‘never before experienced’ crisis. Greek, Portugal, Spain, Italy and such other pillars of European empire are slowly falling apart, one by one.

Countries like Germany, France, Britain etc., have begun their attack against the people in order to save themselves from the above-mentioned crisis. People who have been rooted in the American Economy and have suffered on account of its impact are now waging a bitter fight. The European populace that had so far been bound under the spell of expressions like European Civilization, Western Democracy etc., has come to realize that these are nothing more than empty slogans.

Each and every European political leader knows only too well that the monopolist economy is in doldrums. The American President Obama can’t have any doubt about the fact that the Imperialist Economy is on its death-bed. Hence, today these countries are intent on undertaking initiatives and activities solely for saving their skins, so to say, in order to make possible their survival for the time being.

Starting from 2009 till date many world leaders and experts in the field of Finance and Economy have repeatedly stated one thing often: "Karl Marx is right". Whether those who have been claiming themselves to be the sole guardian of Marxism have in fact an in-depth knowledge of the ideology or not the Power Poles have a very clear knowledge of its relevance and significance.

And, what did Karl Marx say? He emphatically insisted that the capitalist economy would experience its boom and recession. And, in a span of every 18 to 20 years this cycle of boom and recession would take place, said he. And his calculation has proved right all these years. The cycle of boom and the recession continue routinely.

When we probe into all those chaos and destructions taking place in every nook and corner of the world we can see the design of the power poles. Seen in this light it is but natural for us to wonder whether their applauding Karl Marx could be genuine and in the end many could see the hidden agenda of it all. For, the crisis that the capitalist countries are facing today is not a temporary one. It is a terrible crisis from which they can hope to get no reprieve nor salvation, to say the least.

This inescapable critical situation is turning worse day by day, with no proper viable alternatives to face it and come out of it successfully.

Previously, once in every 20 years span the capitalist economy had faced many a crisis. The way at one stage of the cycle of money circulation[பணச் சுழற்சி] the distribution of things increasing more than the need for them was considered the root-cause of all such crisis.

And, the deep downward slide in Economy such as this would remain for many years at a stretch. And, during this period comprising a sizeable number of years there would be many struggles and resistance-movements surfacing and intensifying. And, the struggles would turn so severe as to question the very system of capitalist economy. And there would be signs for social change through revolution. The financial crisis which began in the mid-sixties and extended up to the 70s had indeed given birth to many a struggle and resistance movement and moved them forward to the brink of socialist revolution.


Aiming at reducing the span of such financial crisis there were many plans and policies planned and brought into force in America and European countries. It was based on the capitalist-oriented ideas of the British economist by name John Maynard Keynes whose thoughts were aimed at saving and nurturing Capitalism that the present World of Economy that we live in and which is moving fast towards peril had been conceived and structured. Having a close look at all the destructions and perils that result out of the wars that the world is witnessing now we can clearly see how the economic policies of Keynes have impacted them.

Whenever there would arise financial crisis the production would invariably go down. This would result in the number of unemployed persons going up. And the people’s buying capacity would weaken and this would result in a further decrease in production. Reacting to these crises there would be people’s struggles. And, how to face such a bleak unenviable situation is what John Maynard Keynes has enumerated. In order to face the financial crisis that affected the entire world in 1920 the world war was unleashed.

In 1930 Keynes came forward armed with new concepts of Economy. And, he was hailed as a great revolutionary economist in Europe and America.

By  the 1970s Keynes philosophy of Economy was, by and large, approved of and accepted by almost all capitalist countries the world over. Governments and Economic financial forums and organizations have all been conceived and structured along the line of Keynes philosophy alone.

The central theme of the book by Keynes released in the year 1930 was Money. In this he argues that when the savings of the people become more than the money being invested by them it would result in a fall in the production. As a chain reaction, the profit earned by the bosses go down. Unemployment problem surfaces. In other words, people should spend their money so that the capitalist entrepreneurs could earn more profits. Thus, more employments would be created and unemployment problem would cease to be, says Keynes.

And all the books that he had penned subsequently, one after another insisted in different ways the viewpoint that the capitalists who are but swindlers of investments should not be troubled and disturbed. The book titled ‘Means to Prosperity’ penned by Keynes in 1933 gave forth valuable suggestions to the capitalist countries. It comprised views on how to remove the social malady called unemployment without letting their economy suffer. In the course of discussing this aspect, the book focused on how to stall people’s revolution and how to safeguard the capitalist economy.

And, the book written by him and released in the year 1936 presented a clear action-plan and strategy for this.
When the Second World War was raging Keynes wrote a book on how to raise and disburse money to war. Arguing that it was wrong to spend State money and money acquired from big industries Keynes insisted that war-expense should be meted out through levying more taxes for people’s savings.

Keynes became the financial consultant of England’s bank. He travelled to America and propagated his economic policy. And, he was honoured with the much esteemed royal award from the king of England.. the House of Lords made him a fellow of their prestigious Assemblage.

Richard Nixon who was the American President then proclaimed his loyalty to the economic policy of Keynes by saying that they were all Keynesinians! Keynes was thus whole-heartedly and unanimously approved of and accepted by all those financial experts, politicians and such others sections bent on safeguarding and nurturing capitalist economy.

But, within half-a-century since the claim had been made that Keynes had belied the veritable truth that Karl Marx had proclaimed to the entire world that capitalist economy could not last long the capitalist economy has reached a state off no return. America and the European countries are counting their days.

The ideas enumerated by Keynes that the world should be reshaped and restructured without causing any trouble to the ‘big bosses’ and that the States of the western World should play the main role had been realized in the form of World bank and the International Monetary Fund. In the year 1944, integrating 45 countries the IMF came into being.

The IMF was structured in such a way as to exploit the economy of poor countries, in connivance with the power-mongering and corrupt rulers there and apportioning one part of the money thus collected to the State Treasuries of the West and the remaining portion to increase the profits of the multi-national business-houses.

The Economic Policy of Keynes while accepting the boom and recession cycle of Economy that Marx had highlighted had introduced an action-plan to face the challenge without incurring any loss to the investments and profits of the capitalist Corporate- Houses and big-bosses.

A specific amount should be left in the hands of the State.

That amount should be enhanced through a system structured to swindle the other poor countries of the world.

The amount thus collected and the savings of the people should be used during periods of crisis.

These formed the foremost basis of Keynesian Policy.

The manner in which the State funds and the savings of the people should be spent was clearly stipulated.

Keynesian Policy holds that during the periods when economic crisis arise this money should be used to ‘stimulate’ economy.

Its subtext or hidden meaning is heinous and highly repulsive.

In essence, it means simply this: that the capitalist corporate-houses and big-bosses should keep their money absolutely safe. The business tycoons should rob the hapless people and safeguard their own money. As soon as the malady of unemployment surfaces they should begin to invest in State public sector undertakings. And, they should start that which they call ‘developmental work’ such as laying roads, and other such construction works, without delay.

And, they should reconstruct and bring to life those Government Organizations and buildings that are sick or on the verge of closing down. For, these would need workers.
Through these initiatives the problem of unemployment could be well-addressed. When the number of those who have got employment in these sectors increase that would result in improving the purchasing capacity of the buyers. Consequently, there would be a boom in Production. Thus, the ‘big-bosses’ who have the production under leash could make profits on a steady basis. And, the capitalist economy would have its run smoothly.

This was the unique strategy that Keynes had cunningly suggested for the practical purpose of retrieving Capitalism from crisis.

Till the close of the 90s the capitalist set-up clung to Keynesian Economic Policy and moved ahead through perilous paths. After that, the Keynesian Policy and action-plan became inactive. Now, they are frantically searching for a new set of economic policies and regulatory measures. This endless search is yet to find a feasible solution. Those who had turned a blind eye to viable alternatives have now begun to intensify their various forms of violent attacks against the European people and other countries.

Today, the power-poles are counting the days for their total destruction. A grim situation has arisen whereby there is no need to wait for another ten years to go to docks. The situation has turned so cancerous that they have no reprieve from awaiting the imminent annihilation.

The oppressive economic policy that Keynes had enumerated so as to temporarily set right the falling economy was being followed and practiced by the European and American countries. In other words, whenever there arose a downward slide the State intervened in the Economy and set out to have all kinds of machinery aimed at improving the economic situation. The foolish economic policy of Keynes which had totally ignored the dynamics of the society was all intent on feeding the money-hungry monsters of capitalist economy.

The ‘big-bosses’ who were allowed to roam around freely, with no worry nor burden whatsoever decided on who to rule the countries in question and chose those who would be willing to serve their vested interests. Generally, during those periods when the State would be investing money from their exchequer to overcome economic crisis those called the ‘Leftists were made to form the government. Once the economic condition comes out of the crisis those called the Rightists’ were brought to rule. With the sole intention of serving a handful of ‘Big-Bosses’ and Power-Centers’ right from the Media all other forms of tools and accessories that promote specific mindsets through spreading certain ideas and viewpoints functioned. Each and every part of the World was set to motion under a specific mode of operational system.

While the economic policy of Keynes succeeded in offering the strength to temporarily stall the impending peril to the capitalist economy the year 1970 brought forth another crisis to the capitalist system of governance of the Western World.

The Macro Economy which we see everywhere today had sprouted its seeds after the Second World War. Mammoth multi-national business-houses came into being. Small industries and micro-productions had all been swallowed by the mammoth-business houses. A section of the middle-class endowed with productive-skills changed into labourers. And, from amidst these working class there erupted intense struggles demanding decent living wages all over Europe and America, through the entire stretch of the second half of the 1960s.

It was during this period that France witnessed Students activism and People’s militancy. In many parts of the Western world there were anti-State uprising. It was the workers united struggle that paved the way for all these uprisings. For, the workers’ intense struggles against the exploitations at the hands of giant industries born of the industrial boom had indeed shaken the States, at least temporarily. England witnessed a massive worker’s strike. America was shaken to the core by striking workers.

In the end, other ideologies such as Post-Modernism changed the course of anti-State protests and struggles. Particularly, the intellectuals belonging to the upper rung of the middle –class sections of the society who were feeling bitter about the activities of the Communist Party set forth narrow-sighted and small-scale struggles against the mobilization and uprisings of the masses. They categorized it into the apology of ideology called ‘meta-narrative’. The impact of all these spread up to the Latin American countries.

With a view to set right the crumbling economy of the States these philosophies were born at the ideological level , through academic institutions. These struggles carried out by such philosophies as Post-Modernism, supporting the cause of Capitalism have played a significant role in sabotaging the French Maoist Parties which continued even after the Students Uprising in 1968.

Apart from these, the policy of Neo-Liberalism jointly brought into force by the government of Margaret Thatcher in Britain and that of Ronald Reagan in America had succeeded in temporarily rectifying the structural crisis of the West after the 1970s.

Neo-Liberalism had clearly defined policies for re-colonization in the post-colonial period.

Today’s capitalism is a mixture of Neo-Liberalism and Keynesian policy. The Neo-Liberalism which came into being in America and Britain began to spread far and wide, the world over. Throughout the period past the 80s can be called the period of Neo-Liberalism. It was when the philosophy of neo-Liberalism was being used all over the world it came to be known by the term ‘Globalisation’.

Militarization, Violence etc., proved to be the basis of Neo-Liberalism. Cultural violence was called Cultural Globalization. And, Economic violence came to be referred to as Economic Globalization. Caught under the violent and oppressive approaches of it all the People’s Movements, on the one hand, were subjected to military oppression. On the other hand, Non-Governmental Organizations were formed. These voluntary organizations purposefully changed the course of those struggles. These voluntary organizations that receive steady funds from the ‘money-giants born of Neo-Liberalism curbed the uprisings of the masses in all possible manner and converted each and every region of the world as vulnerable zones of exploitation. And, the exploiters euphemistically called them ‘Marketable regions.

The income of the small upper fraction of the society increased by leaps and bounds. The free movement of Capital, free Market and the like formed founding principles of globalised neo-liberalism.

These principles made it a point to bring forth new regulatory measures to the working class. These rules and regulations helped in keeping even the purchasing power of the working class under the control of those belonging to the upper-class.

Globalized Neo-Liberalism created competition and rivalry between the workers. The average monthly income given to the European worker is 1300 dollars. In countries like Sri Lanka and India the monthly income of 100 dollars is considered to be very high. In several Latin American and African countries this amount doesn’t go beyond 50 dollars. These disparities gave rise to competition and rivalry between the members of the working class. And, the unenviable climate has come to prevail whereby the worker living in the Western world has to live in constant fear and apprehension. And, this has paved the way for the investors to happily drain the workers of their last drop of blood and relish it joyously.

Further, it had systematically caused the crisis of unemployment. Even those ‘brainy employees working in the various sectors of Information Technology of born of Modern Scientific and Technological advancements. Constant fear was strategically spread in their midst. They were thus converted into slaves born of Liberty, so to say.

Thus, Neo-Liberalism paved the way and chalked-out the means and methods for facing the intense people’s protests and workers’ struggles during the post second world war period till the 70s. above all, it also gave the power to curb the income of the workers in the hands of the upper-rung mega-business magnets.

Capitalism which had held the workers in its oppressive beastly hold began to question their fundamental rights, the basic amenities and welfare measures, their education, social security etc. It began to deprive the workers of all these, one by one, in quick succession.

The money that started flowing as the exclusive asset of a certain few individuals slowly began to convert into sizeable capital. In order to maintain and handle the money flowing excessively a special mechanism was later on created. Since the closing period of the 80s itself the stock market put on the mantle of being the central institution for handling money.

Here, the shareholders of this Central Institution created a money-ring. The banks gave loans for ordinary people. And, it also introduced ways and means of getting it back. Through this even the money that the people of the western world had in their hands as balance came to remain in the hands of the bank economy. The bank economy gave rise to a society of borrowers. Almost 98% of the people of the western world obtained all their basic facilities such as food, clothing and shelter through credit cards and other forms of bank loans.

Sucked to the last by the banks and their credit mechanism the people reach a stage where they could not repay the loans obtained. The giant-business tycoons who have got their profit in the money-ring return to their places with their money safe and sound. Finally, the banks suffer loss and crash. Neo-Liberalism and its globalization couldn’t succeed.

With no cash at hand the Governments issue bonds and receive huge loans. And the amount of loan grow bigger and bigger, crossing all limits.

The multi-national concerns that have received the bonds begin to exert pressure and control the governments. With the states coming into the tight grip of the swindlers and exploiters what little of Democracy that remains still turns into gory Fascism.

Based on Keynsian’s Economic Policy the State reaches a stage where it is not able to manage the menace of Unemployment. And, the situation arises where it is not in a position to be the catalyst for enhancing Economy.

Thus, the American and European countries have been shaken to the core. Even after this pitiable condition the loyalists of Capitalism started claiming and proclaiming from 2008 onwards that they would diligently face all these critical situations and that they would establish a new world order.

From the month of September 2007 onwards the debt-amount incurred by the American government has increased into 3.99 billion per day. And, it was steadily increasing and they could do nothing to check it and bring it down, even temporarily. They could not give shape to even an iota of what they boastfully claimed to be within their reach – THE NEW WORLD ORDER.

Europe is moving faster than America to reach its razor’s edge. Removing the social welfare schemes which they had brought into force with the express view of calming down the militant workers of the western world, they try to stall the ever so monstrously growing debts and loan amounts.

All over Europe the social malady of unemployment has reached its peak, hitherto never once experienced. As the people’s purchasing power has turned nil the bank-mechanism which forms the basis of capital investments and financial transactions is also slowly dying. There are signs that indicate the reduction of financial grant given to the unemployed by half. The governments which are not in a position to give funds for providing free education are all set to privatize Education.

There are protests and struggles all over Europe intensifying with the passage of time. Students, workers, middle-class employees, unemployed – so different sections of people join the strikes and struggles

Creating conflicts inside the country and cause people clash against each other and causing bitter war in the foreign lands alone could be the final solution proposed by these power polls. The monopolist countries are busy daydreaming that they could steal fuel from the milled-east.

But in all those regions the prevailing climate proves to be vehemently against them.

The remaining workers have started realizing the politics being played by these power-polls.

The labourers of Greece have shown an exemplary example. The Government of Greece with a view to rob the people of their balance money, what little they have got, had increased land-tax and announced that it would be implemented with immediate effect. Further, it announced that the land-tax would be assessed at the time of calculating the electricity units for billing. Last week, the State had issued an order to the Electricity Board to disconnect power-supply to those who have not yet paid the bill. But, the employees of the Eelctricity Board not only refused to do so, but also went a step further and disconnected the power-supply to the head-office of the Health Ministry which has not yet paid its bill amount to the tune of 3 millions.

Yes, the workers of the world have started acting with a speed and forcer many times more than the speed and force with which Neo-Liberalism had become Globalization. They have started acquiring and enhancing the skill of taking the power into their hands..

Today, the situation has changed. On one side we have workers, unemployed persons, the rest of the working class and on the other side just a handful of labourers.

The power-centers are doing everything possible to retain the prevailing situation and lengthen it and to release itself from social changes and reforms.

Wherever we see we come across protests and uprisings. These have become the headlines of our everyday life on earth.

Even those media that have been brought under the total control of the multinational concerns are not in a position to blackout these upheavals and uprisings against globalization and its adverse impacts. In the streets of America, Britain, Canada, France and such other countries and the countries such as Greece, Spain and Italy the economy of which are in doldrums are facing protest marches and meetings at every street-corner.

They question Totalitarianism and capitalism. The exit-point for Totalitarianism and Capitalism have arrived all too closely, clearly visible for everyone to see.

But, that alone would not pave the way for socialist economy to arrive and thrive.

The governments would stretch its efforts all too far in order to retain the present means and methods, strategy and system of production. And, people’s mobilization and uprisings against these anti-people approaches would also continue and intensify. How to safeguard these up[risings and struggles which are historically very significant and how to take them to the next level? This is the million-dollar question facing us.

Here we can see two different situations. The well-organized and all too closely knit leadership of the power-polls and power-centers prevail all over the world as strong as ever. In the midst of internal conflicts and contradictions we can see a centralized pattern comprising mutual cooperation between the leaderships, their mutual understanding, ideological order, governance, tools and accessories to oppress and suppress etc. the entire world is pushed further and further, towards the brink of an unfathomable abyss, by the hands of a select few who keep rolling and revolving the globe in their finger-tips.

These big-bosses and power-mongers are the ones who more often than not decide, using strategies that would promote their own interests, the social set-up and the production-patterns. Hindutva was used to systematically safeguard a section of feudalist community. And so they vigilantly safeguarded semi-feudalist set-up and Casteism. This set-up approved of the zamindari system and retained a part of the feudal set-up. And, in fighting agianst this social set-up created by the power-poles they created confusions and contradictions amidst the Communists.

When the workers unity and uprisings grew in Europe, they created competition and rivalry between the workers and created income-based competition and rivalry too and also introduced Neo-Liberalism to oppress the workers of the world community. They systematically created new markets in Asian and African countries. Creating abject poverty in Asian countries, the like of which was never experienced before, with the help of voluntary organizations they have succeeded in creating the general mindset of looking forward to and avidly receiving freebies . And, the power-poles crush the resistance-movements of people mercilessly, using all its official machinery. The world countries have helped the Sri Lankan government to successfully carry out the most gruesome genocide of the decade in the island.

In Libya, assassinating Gadaffi who had the support of people they had sown the seeds of Islamic fundamentalism. They have turned Syria into a bloody land. Even people’s uprisings are twisted according to their whims and fancies.

On the other side of it, the workers are pushed and pulled in such a way that they are left with none to guide them but take forward their protests and resistances. Nowhere in the world a strong and firm political leadership of the working class can be seen. Particularly, the working class of Europe are left in the lurch and stand abandoned in the streets.. workers’ strike, protests at street corners and junctions etc., prove futile and meaningless many a time. Though these struggles laden with sacrifice and commitment appear initially as causing a terrible jolt to capitalism , later on with small victories or defeats they are brought to a close.

The cunning States of today adopt two major approaches in handling these struggles – they either oppress them or absorb them.

This is a matter that requires in-depth study and discussion.

Whatever it be, the world and its nations need a strong leadership to face these two cunning approaches of the States and to lead workers’ struggles and people’s uprisings. This is felt need of the hour, as never before.

For, uprisings and struggles not armed with such strong leadership would easily or eventually come to a compromise and it would cause misery and despair in the minds and hearts of workers. Hence, while accepting whole-heartedly that we need such workers’ struggles and people’s uprisings, we should realize that building a strong and able leadership which could guide and channelize these movements and set out to work for that in right earnest and without any further delay.

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