CLASS WARFARE: A war with Iran to save the US Dollar?

06/02/2008

A war with Iran to save the US Dollar?

Mike Whitney, writing over on Dissident Voice, senses logic in Bush’s recent trip to the Middle East, locating the visit in an issue covered by this blog some time ago – Iran’s desire to set up an oil bourse.

Witney suggests, as most of us have, that the trip had sod all to do with Middle East peace, as the White House claimed, noting how “three days after Bush left Jerusalem, Israel stepped-up its military operations in the occupied territories and resumed its merciless blockade of food, water and medicine to the 1.5 million people of the Gaza Strip. Bush must have green-lighted Israel’s aggression or it would have been seen as an insult to the President of the United States.” Rather, the trip was all about the US trying to restore Middle East confidence in the falling dollar, which seems to have worked for the moment. Indeed, as Reuters reported:

“After a flurry of public disagreements over currency reform last year, Gulf central bankers are trying to close ranks, talking up the pegs as a source of stability and playing down the dollar’s weakness as a temporary phenomenon.”

Gulf states have watched the economic woes in the US closely, not least because the petro-dollar props up the US economy, as it does in the Middle East oil states, and because they are having their own economic anguish. In Saudi Arabia and neighbouring Oman inflation has reached a 16-year high and is at a 19-year peak in th UAE. Currency traders anticipate another 8% rise in the dirham and riyal by April. Gulf policymakers are intervening directly in loans, property and commodity markets to offset rate cuts. Property prices has rocketed in the Gulf; doubled in the UAE in the last year. Gulf states regularly provide food subsidies and employers grant pay increases of up to 70%. In Dubai, workers have rioted, demanding a living wage. It is expected that throughout the Gulf interest rates will compel Central bankers to covert to either the euro or a basket of regional currencies. For the moment, the loyal Saudi princes have, their fingers crossed, continued their support for the dollar.

Whitney posits, convincingly in my opinion, that Bush’s trips to the Middle East, all this sabre-rattling, and supplying of arms to Israel and Saudi Arabia, is all down to Iran’s belated plans to launch an oil bourse – this week!!

Whitney writes:

So, how important is it that oil continues to be denominated in dollars? Would the United States really wage war to defend the dollar’s status as the world’s “reserve currency”?

The answer to this question could come as early as this week, since the long-awaited Iranian Oil Bourse is scheduled to open between February 1-11. According to Iran’s Finance Minister Davoud Danesh-Jafari “All preparations have been made to launch the bourse; it will open during the 10-day Dawn (the ceremonies marking the victory of the 1979 Islamic Revolution in Iran). The bourse is considered a direct threat to the continued global dominance of the dollar because it will require that Iranian “oil, petrochemicals and gas” be traded in “non-dollar currencies”. (Press TV, Iran)

The petrodollar system is no different than the gold standard. Today’s currency is simply underwritten by the one vital source of energy upon which every industrialized society depends—oil. If the dollar is de-linked from oil; it will no longer serve as the de-facto international currency and the US will be forced to reduce its massive trade deficits, rebuild its manufacturing capacity, and become an export nation again. The only alternative is to create a network of client regimes who repress the collective aspirations of their people so they can faithfully follow directives from Washington.

As to whether the Bush administration would start a war to defend dollar hegemony; that’s a question that should be asked of Saddam Hussein. Iraq was invaded just six months after Saddam converted to the euro. The message is clear; the Empire will defend its currency.

Iran switched from the dollar in 2007 and has insisted that Japan pay its enormous energy bills in yen. The “conversion” infuriated the Bush administration and has moved Iran to the top of the White House’s target list. In fact, even though 16 US Intelligence agencies issued a report (NIE) saying that Iran was not developing nuclear weapons; and even though the UN’s nuclear watchdog, the IAEA, found that Iran was in compliance with its obligations under the Nuclear Nonproliferation (NPT) Treaty; a preemptive US-led attack on Iran still appears likely.

And, although the western media now minimizes the prospects of another war in the region; Israel is taking the precautions that suggest that the idea is not so far-fetched. “Israel calls for shelter rooms to be set up in a bid to prepare the public for yet another war, this time, one of raining missiles.” (Press TV, Iran)

“The next war will see a massive use of ballistic weapons against the whole of Israeli territory,” claimed retired general Udi Shani.

Russia also sees a growing probability of hostilities breaking out in the Gulf and has responded by sending a naval task force into the Mediterranean Sea and the North Atlantic.

According to an article on the Global Research site: “The flagship of Russia’s Black Sea Fleet, the Moskva guided missile cruiser, joined up with Russian naval warships in the Mediterranean on January 18 to participate in the current maneuvers….The current operation is the first large-scale Russian Navy exercise in the Atlantic in 15 years. All combat ships and aircraft involved carry full combat ammunition loads.

France is also planning military maneuvers in the Straits of Hormuz. Operation “Gulf Shield 01,” will take place off the coast of Iran and will employ thousands of personnel in combined arms operations that will include simulated attacks on oil platforms.”

Exercises are scheduled to take place from Feb. 23 to March 5, and will involve 1,500 French, 2,500 Emirate, and 1,300 Qatari personnel operating on land, at sea and in the air, the ministry said…Around a half-dozen warships, 40 aircraft and dozens of armoured vehicles will be in the war games, Fusalba said.

The Jerusalem Post reports: “An American missile ship set to dock at Haifa port on Monday is equipped with anti-missile defence system that could be deployed in the region in the event of an Iranian missile attack against Israel….The US San Jacinto is an Aegis Cruiser in the Ticonderoga Class …It carries the most advanced underwater surveillance system available today and is equipped with the Aegis Missile System to protect against aircraft and missiles. The ship will remain in Haifa for three days.”

Also, within the last week, three of the main underwater cables which carry Internet traffic to the region have been cut in the Persian Gulf. As a result, three-quarters of the international communications between Europe and the Middle East have been lost. Large parts of the Middle East have been plunged into darkness.

Is this merely a coincidence or is it part of a broader military operation?

Ian Brockwell, of the American Chronicle said:

On the assumption that the cables cut were no accident, we must ask ourselves who would do such a thing and why. Clearly Iran, who were most affected, would gain nothing from such an action and are perhaps the target of those responsible?…Maybe this is a prelude to an attack, or perhaps a test run for a future one?

Communication has always been an important factor in military action, and cutting these cables might affect Iran´s ability to defend itself.

Despite the lack of media coverage, the build-up for war in the Gulf has continued and the probability of a US-led attack on Iran is quite high. Bush is convinced that if he doesn’t confront Iran, then no one will. He also believes that if he doesn’t militarily defend the dollar, then America’s days as “the world’s only superpower” will soon be over. The question is whether Bush will realize that America is already bogged-down in two “unwinnable” conflicts or if he will “go with his gut” once again and lead us into a ruinous region-wide conflagration.

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TO BE GOVERNED...

"... is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be GOVERNED is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility, and in the name of the general interest, to be placed under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harrassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed, and to crown all, mocked, ridiculed, derided, outraged, dishonored. That is government; that is its justice; that is its morality!"
(Proudhon)

THE CASE FOR SOCIALISM

The world we live in at the beginning of the 21st century is one that is fraught with contradiction. Over one billion of our fellow humans are chronically malnourished and at least 1.5 billion will, on any one day, go without food. At the same time, the governments of the world order the destruction of vast mountains of food to keep prices high, stockpile food until it rots and pay farmers to take land out of production because the laws of supply and demand insist that overproduction is bad for the market.

Some 600 million of our fellow humans are homeless, many sleeping rough on the streets of the world’s cities, yet there is no shortage of vacant buildings – countless millions of acres of empty living space in the major cities of the world – and certainly no shortage of building materials or skilled builders and craftsmen presently out of work. Again, we find that the market not only dictates who does and does not eat, but who does and does not sleep comfortably.

Well over one billion of our fellow humans have no access to clean water, while its growing scarcity is calculated to spark many wars across the globe this coming century. Meanwhile, the technology exists to desalinate millions of gallons each day and to set up treatment plants capable of cleaning the dirtiest water. However, there is not much profit in selling something which covers five-sixth’s of the planet, so the investment never comes.

While millions of children die each year of curable diseases and while we still await breakthroughs in medical science that can cure the presently incurable, we find there are literally thousands of scientists around the world employed in weapons programmes – paid by their respective governments to devise new methods of murder, including germ warfare.

The list is as endless as it is insane. At every turn we find evidence of how capitalism destroys us physically and mentally, retarding real human development. At every turn we come smack up against the iron law of our age – “can’t pay, can’t have”. At every turn we find capitalism running wild like a rabid dog, infecting all it comes into contact with.

Credit where credit is due. Capitalism has enabled us to carry out some pretty fantastic technological and scientific feats. Advances in warfare sparked a race for rocket technology that has enabled us explore the furthest limits of the solar system. The search for oil and other resources has allowed us to plumb the deepest oceans and map out the ocean beds. We can split the atom, map the human genome, and perform the most amazing organ transplants. Nothing, it seems, is beyond us. Our productive powers are unprecedented. Our capabilities are awe-inspiring. Sadly, however, and in spite of the technology at our disposal, the never-ending battle for profits means that we have entered the 21st century dragging with us every social ill that plagued the previous century. War, hunger, poverty, disease, and homelessness are still making the headlines, and each of these problems is, to a lesser or greater degree, rooted in the way we continue to organise ourselves for production. The terrible irony is that we are already capable of solving the major problems that face us. Indeed, we have been capable of solving them for quite some time – though obviously never within the context of capitalism.

Over 20 years ago, the World Health Organisation revealed that the technology existed to feed a world population twelve times its (then) size. Five years ago the UN reported that Africa could easily feed a population six times its current size if western farming technology was introduced. Science and technology are in fact so advanced as to enable us to solve all these problems. However, the requirements of profit everywhere act as a stumbling block not only to the full use of the productive forces, but also to the full and unhindered use of science and technology in the service of humanity.

Socialists long ago realised that the problems we face are in fact social problems, not natural ones or the vengeance of gods – social problems because they have their roots in the way our world is organised for production, that is production for profit, not need. If you think seriously about it, you’ll be hard pressed to find any aspect of our lives that is not subordinated to the requirements of profit. This is the case the world over. We are all of us at the mercy of the anarchic laws of capitalism.

What is to be done?

If this is the case, then what can we do about it? Socialists believe the only way forward lies in abolishing the money/wages/profit system that we know as capitalism and establishing a world socialist society or, in other words, a world of free access to the benefits of civilisation. Only then can we gain real control over our world and reassert control over our own destiny. Only then can we produce without polluting our world and only then can we enjoy a world in which there is no waste or want or war.

Socialists advocate a world without borders or frontiers, social classes or leaders, states or governments or armies. A world devoid of money or wages, exchange, buying or selling. A world where production is freed from the artificial constraints of profit. A world in which people give freely of their abilities and take according to their own self-defined needs from the stockpile of communal wealth. A global system in which each person has a free and democratic say in how their world is run.

Human nature a barrier?

Of course, many will agree that such a world would be a beautiful place to live in, but that “human nature” will always be a barrier to its establishment, because humans are “by nature” greedy, selfish and aggressive. It quickly becomes apparent that what they are describing is not human nature as such, but various traits of human behaviour exhibited under particular circumstances. Socialists maintain that human behaviour is shaped by the kind of system people are brought up to live in – that it is not our consciousness that determines our social existence but our social existence which determines our consciousness. Nobody is born a racist or a patriot, a bigot or with a belief in gods. Nobody is born a murderer, a robber or a rapist, and our alleged greed for money is no more a function of the natural human thought process than were slavery or witch burning.

In general, the ideas the common people hold have been acquired second-hand, passed down from the ruling class above us. This is because the class which owns and controls the productive process also controls the intellectual life process in general. Any anti-social behaviour is likewise influenced by our social circumstances at any given time, i.e., when we are poor, depressed, lonely, angry and frustrated.

In most cases, those who produce the world’s wealth (some 95 percent of the world’s population) have had that second-rate education that makes free-thought difficult – an upbringing that conditions us to accept without question the ideas of our betters and superiors. Indeed, the education system is geared to perpetuate the rule of an elite, insofar as it never encourages children to question and take issue with the status quo. Children may well cite that 8 times 8 equals 64, but how many will ask about the cause of wars or query the destruction of food?

Socialists hold that because we can adapt our behaviour, the desire to cooperate should not be viewed as irrational. We hold that humans are, “by nature”, cooperative and that we work best when faced with the worst and that our humanity shines through when the odds are stacked against us. There are millions of cases of people donating their blood and organs to complete strangers, sacrificing their lives for others, of people giving countless hours of their free time to charitable work – all of this without financial incentive. There is even the case of a man throwing himself on top of a grenade to protect children in a school yard. He died to protect children, none of which were his own, and in the instant knowledge that his action was suicidal.

Today, world capitalism threatens the human race with extinction. The reason this obnoxious system survives is because we have been conditioned to accept it, not born to perpetuate it. Rest assured, no gene inclines us to defend the profit system.

Been tried?

Many believe that socialism has already been tried and has failed. They then point to the former Soviet Union, to China, Cuba and a dozen other states that claimed to have established “socialism”. What they fail to grasp is that socialism has existed nowhere, and that what existed – being passed off as socialism – was in fact state capitalism, not socialism or communism (which mean the same thing). A cursory glance at the affairs of these countries reveals they never abolished the wages system. The rulers exploited their workers and outlawed dissent. They produced when only viable to do so, maintained commodity production, traded according to the dictates of international capital and, like every other capitalist state, were prepared to go to war to defend their economic interests. Moreover, in all of these countries, it was believed that socialism could be established by force, that socialism could exist in one country. The Leninists who carried out the Bolshevik Revolution maintained that the revolution could only be carried out by a minority vanguard party, that the masses were too ignorant to understand the case for change.

Socialism, like capitalism, can only exist on a global scale, and that it will only come about when a majority of the world’s people want it and are prepared to organise for it peacefully and democratically, in their own interests and without leaders. No vanguard can establish socialism – “the emancipation of the working class must be the work of the working class itself”.

We can do it

But who are the “working class”? Agreeing with Marx, we believe that there are two classes in society – the working class and the capitalist class, each one determined by its relationship to the means of living. The capitalist class own and control the means and instruments for producing and distributing wealth, living as parasites off profits, rent and interest. The working class, other than possessions we have purchased with our own sweat, own little more than our ability to sell our physical and mental abilities to the highest bidder. There is no “middle class” as the working class includes land workers, doctors, lawyers and teachers – anyone, indeed, who must sell their mental and physical energies to survive.

This class, the working class, runs the world and it is important to grasp this fact. It is we who fish the oceans and tend the forests and till the land and plantations. It is we who build the cities and railroads, the bridges and roads, the docks and airports. It is we who staff the hospitals and schools, who empty the bins and go down the sewers. It is we, the working class, who produce everything society needs from a pin to an oil-rig, who provide all of its services. If we can do all of this off our own bats, then surely we can continue to do so without a profit-greedy minority watching over us and, more, in our own interests.

The ruling class, of capitalists and their executive, the governments of the world, have no monopoly on our skills and abilities. These belong to us. Moreover, it is we who are responsible for the inventions that have benefited humanity and the improvements in productive techniques. Most inventions and improvements are the result of those who do the actual work thinking up easier and faster ways of completing a task, the result of ideas being passed down from generation to generation, each one improving the techniques of the previous. If those who work have given the world so much, in the past say 2000 years, then how much more are we capable of providing in a world devoid of the artificial constraints of profit?

Capitalism must go

It is easy to cite the advantages of capitalism over previous economic systems. Many people believe that capitalism, though not perfect, is the only system possible. One thing is certain, though – if we follow the capitalist trajectory, we’re in for some pretty troublesome times. Capitalism has undoubtedly raised the productive potential of humanity. It is now quite possible to provide a comfortable standard of living for every human on the planet. But, to reiterate, capitalism now stands as a barrier to the full and improved use of the world’s productive and distributive forces. In a world of potential abundance, the unceasing quest for profit imposes on our global society widespread artificial scarcity. Hundreds of millions of humans are consigned to a life of abject poverty, whilst the majority live lives filled with uncertainty.

Our ability to imagine has brought us so very far, from the days when our ancestors chipped away at flint to produce the first tools, to the landing of someone on the moon, the setting up of the world wide web, and the mapping out of the human genome. Is it really such a huge leap of the imagination to now envisage a social system that can take over from the present capitalist order of things? Is it just too daring to imagine humans consigning poverty, disease, hunger and war to some pre-historic age?

Do we really need leaders deciding our lives for us? Do we really need governments administering our lives when what is really needed is the administration of the things we need to live in peace and security? Must every decision made by our elites be first of all weighed on the scales of profit, tilted always in their favour? A growing number think not and have mobilised to confront what they perceive to be the major problems of contemporary capitalism.

In recent years there has been a world-wide backlash against neoliberal globalisation, corporate power and the iniquities of modern-day capitalism. Everywhere where the world’s ruling elite have assembled to decide their next step they have been met with protests and demonstrations that have attracted hundreds of thousands. Demonstrations at Seattle, Gothenburg, Prague, Genoa and Gleneagles, for instance, have fuelled the ongoing debate on the nature of modern day capitalism. Thousands of articles have been written on the subject and hundreds of books have been published that explore the alternatives offered by the anti-globalisation movement.

What is now clear is that the anti-globalisation movement, however well-meaning, does not seek to replace capitalism with any real alternative social system. At best it attracts a myriad of groups, all pursuing their own agenda. Some call for greater corporate responsibility. Some demand the reform of international institutions. Others call for the expansion of democracy and fairer trading conditions. All, however, fail to address the root cause of the problems of capitalism.

One thing is certain: capitalism cannot be reformed in the interests of the world’s suffering billions, because reform does not address the basic contradiction between profit and need. The world’s leaders cannot be depended upon because they can only ever act as the executive of corporate capitalism. The expansion of democracy, while welcome, serves little function if all candidates at election time can only offer variations on the same basic set of policies that keep capitalism in the ascendancy.

Capitalism must be abolished if we as a species are to thrive, if the planet is to survive. No amount of reform, however great, will work. Change must be global and irreversible. It must involve all of us. We need to erase borders and frontiers; to abolish states and governments and false concepts of nationalism. We need to abolish our money systems, and with it buying, selling and exchange. And in place of this we need to establish a different global social system – a society in which there is common ownership and true democratic control of the Earth’s natural and industrial resources. A society where the everyday things we need to live in comfort are produced and distributed freely and for no other reason than that they are needed – Socialism.

It is now no utopian fantasy to suggest we can live in a world without waste or want or war, in which each person has free access to the benefits of civilisation. That much is assured. We certainly have the science, the technology and the know-how. All that is missing is the will – the global desire for change that can make that next great historical advance possible; a belief in ourselves as masters of our own destiny; a belief that it is possible to free production from the artificial constraints of profit and to fashion a world in our own interests. And how soon this happens depends upon us all – each and every one of us. (JB)

If you have found the above interesting and would like to find out more, why not visit, as a first step: http://www.worldsocialism.org/spgb/

Marx on the Materialist Conception of History

I post the following as I think it is one of the most succinct and important paragraphs ever penned:

“In the social production of their life, men enter into definite relations that are indispensable and independent of their will; relations of production which correspond to a definite stage of the development of their material productive forces. The sum total of these relations of production constitutes the economic structure of society, the real basis, on which rises a legal and political superstructure, and to which correspond definite forms of social consciousness. The mode of production of material life conditions the social, political and intellectual life process in general. It is not the consciousness of men that determines their being but, on the contrary, their social being that determines their consciousness. At a certain stage of their development, the material productive forces of society come into conflict with the existing relations of production or, what is but a legal expression of the same thing, with the property relations within which they have been at work hitherto. From forms of development of the productive forces these relations turn into their fetters. Then begins an epoch of social revolution. With the change of the economic foundation, the entire immense superstructure is more or less rapidly transformed. In considering such transformations, a distinction should always be made between the material transformation of the economic conditions of production, which can be determined with the precision of natural science, and the legal, political, religious, aesthetic and philosophic - in short ideological forms in which men become conscious of this conflict and fight it out. Just as our opinion of an individual is not based upon what he thinks of himself, so we can not judge of such a period of transformation by its own consciousness; on the contrary, this consciousness must be explained rather from contradictions of material life, from the existing conflict between the social productive forces and the relations of production. No social formation ever perishes before all the productive forces for which there is room in it have developed; and new, higher relations of production never appear before the material conditions of their existence have matured in the womb of the old society itself. Therefore, mankind sets itself only such tasks as it can solve; since , looking at the matter more closely, it will always be found that the task itself arises only when the material conditions for its solution already exist or are at least in the process of formation. In broad outlines, Asiatic, ancient feudal and modern bourgeois modes of production can be designated as progressive epochs in the economic formation of society. The bourgeois relations of production are the last antagonistic form of the social process of production – antagonistic not in the sense of individual of individual antagonism, but of one arising from the social conditions of life of the individuals; at the same time the productive forces developing in the womb of bourgeois society create the material conditions for the solution of that antagonism. This social formation brings, therefore, the prehistory of human society to a close.” (from the introduction to the Critique of Political Economy of 1859)

WAR IS A RACKET

The following is an excerpt from a speech delivered in 1933 by Major General Smedley Butler, USMC. General Butler was one of the few Americans to be twice awarded the Congressional Medal of Honor:

"War is just a racket. A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses.

There isn’t a trick in the racketeering bag that the military gang is blind to. It has its "finger men" to point out enemies, its "muscle men" to destroy enemies, its "brain men" to plan war preparations, and a "Big Boss" Super-Nationalistic-Capitalism.

It may seem odd for me, a military man to adopt such a comparison. Truthfulness compels me to. I spent thirty-three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups. This is typical with everyone in the military service.

I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international
banking house of Brown Brothers in 1909-1912 (where have I heard that name before?). I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.

During those years, I had, as the boys in the back room would say, a swell racket. Looking back on it, I feel that I could have given Al Capone a few hints.The best he could do was to operate his racket in three city districts. I operated on three continents."

CLASS WARFARE

06/02/2008

A war with Iran to save the US Dollar?

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