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Editorial
Regular Columns
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Voice From The Back
Latest post from the SPGB blog, Socialism Or Your Money Back
Burma (or Myanmar as the present rulers want it to be called) is, and has been since 1962, a military dictatorship, one which even has had the cheek to claim to be socialist. Now, once again, sections of the population are demonstrating for there to be more elbow room for people to organise politically and to express critical political views.
Naturally as socialists we would welcome this as freedom of movement and expression, the freedom to organise in trade unions, to organise politically and to participate in elections are of great importance to all workers and are vital to the success of the socialist movement.
We must, however, warn workers in Burma against becoming the pawns of capitalist interests, both home-grown and external.
Burma is the largest country in South East Asia and is of strategic importance, especially for its north-eastern neighbour, China (which also has the cheek to claim to be socialist), as it provides Chinese capitalism with an outlet to the Indian Ocean. In April this year the Chinese authorities approved the construction of an oil pipeline from the Burmese port of Sitwe to China (see here). According to an article in Asia Times (27 September), other economic interests are involved too (see here).
The current regime in Burma is pro-China. The US, anticipating that its main rival for world hegemony this century is likely to be China, has been pursuing a policy of trying to encircle China with a ring of military bases. They are anxious for "regime-change" in Burma, to one favourable to them, so as to further hem in China. And to this end are encouraging, and no doubt financing, the Burmese opposition.
China, on the other hand, is anxious to maintain the present regime and is likely to use its position as one of the five permanent members of the UN Security Council, with the power of veto, to prevent Burma being given anything more than a slap on the wrist for shooting down demonstrators.
Neither the US nor China care a fig about "democracy" in Burma. They are both concerned merely with their own strategic interests. So, workers in Burma should not be taken in by Bush when he says he wants to see Burma become a "democracy". What he means is that he wants to see a regime installed in Rangoon that will be pro-US and pro-market capitalism. And there is no reason whatsoever why workers should help him do this.
Nevertheless, workers should still try, independently of pro-capitalist groups, to take advantage of this rivalry between China and the US to gain a little more elbow room to pursue their own class interests.
ALB
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Weekly Bulletin of The Socialist Party of Great Britain (13)
Dear Friends,
Welcome to the 13th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.
We now have 791 friends!
Recent blogs:
- FAQ on the World Socialist Movement
- Never a follower be
- Can capitalism ever be green?
This week's top quote:
"Under Capitalism you sell your piss to the urinal." Attributed to Bertholt Brecht (1898-1956)
Continuing luck with your MySpace adventures!
Robert and Piers
Dear Friends,
Welcome to the 12th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain @ MySpace.
We now have 773 friends!
Recent blogs:
- How did we get here?
- FAQ about Socialism
- Message for filesharers
This week's top quote:
"Fear and Hope those are the names of the two great passions which rule the race of man, and with which revolutionists have to deal; to give hope to the many oppressed and fear to the few oppressors, that is our business; if we do the first and give hope to the many, the few must be frightened by their hope; otherwise we do not want to frighten them; it is not revenge we want for poor people, but happiness; indeed, what revenge can be taken for all the thousands of years of the sufferings of the poor?" William Morris. How We Live And How We Might Live, 1884.
Continuing luck with your MySpace adventures!
Robert and Piers
This summer has seen a moral panic grip the UK media. The death in Liverpool of Rhys Jones, the 11-year old boy killed by a bullet from a teenage gang was preceded by a number of gang-related murders, and resulted in much circulation-driven hyperbole about “what sort of society we live in”.
This is nothing new. In the 60s it was Glasgow’s razor gangs that made the headlines. The technology has advanced a little now, that’s all. There have in fact been countless episodes of social panic because of a perceived rise in violent crime. A recent Home Office study (National Crime Survey) found that when polled, people always over-estimate the crime rate in their locality. (Unsurprisingly the greatest disconnect from reality was for tabloid readers).
Nevertheless, law and order is back at the top of media and voters’ concerns. The media debate – and politicians’ response – has focussed on the problems of youth, their schools and their parents. One suggestion amongst the various boot camps being proposed, is to lower the age of criminal responsibility from 10 to 8 years old. The Prime Minister himself has commissioned a study into the effect of violent videos on children. The last ten years has seen an unprecedented 2700 new laws introduced. We can expect that trend to continue.
Why people behave the way they do is of course a hugely complex and multi-faceted subject. World socialists don’t lay claim to any specialist understanding in this respect, suffice to say that how people behave is usually down to what they have learnt, be that formally or informally. This learning may be psychological (e.g. secure emotional attachment and nurturing with a parent in the first few years of life), or it may be material, in terms of (for example) the physical environment, or nutrition during childhood.
Much has been made of the fact that gang-members dripping with “bling” (an average teenager on the street may wear close to one thousand pounds-worth of digital accessories) don’t appear to fit the traditional image of impoverished and desperate members of the working class such as the Glasgow razor gangs. It is likely however that the foot soldiers of the gangs do not make that much money, and this certainly applies to the very young members who are the focus of so much media concern.
However, in a world that increasingly only looks at the price tag, the outward display of some sort of wealth masks perhaps a desperate cry for some sort of recognition. For the market system a pair of training shoes accords status and belonging. This skewed perspective is a measure of just how warped capitalism is. But in any case, world socialists have never just viewed poverty as being about the absence of things, such as cars or money. Increasingly in the older capitalist nations at least, poverty may owe more to an absence of less concrete – but no less critical – human needs such as self-esteem, a sense of belonging or a purposeful, creative and productive life. (There is plenty of evidence that above a certain level, as a society becomes economically better off, it simply becomes a less healthy place for humans in terms of mental wellbeing).
It is likely then, that membership of a gang provides its members with some of the things that this society denies them outright. However warped or misplaced, a gang may provide some sort of shared experience and common purpose, a little excitement and a lot of status. After all, the apparent cause of most of these gang murders is not usually down to drug-related battles, but appears to be summed up in one word: respect.
Certainly it would be churlish to ignore that a lot of the gangs are commercially-focussed, profit-driven drugs operations. According to Assistant Commissioner Tarique Ghaffur, head of the specialist crime directorate, this is an expanding economy. “It is a huge growth industry and it has not peaked. The challenge is when you do a big operation there are people, gangs, ready to replace and replace and replace". Take away the market system by abolishing money and wages and commodities, and you end at a stroke most of the “drugs” problem.
The market system allows us only limited access to wealth. At the same time it bombards us with images and messages of what we could be having. It pressures us into valuing ourselves against everyone else, then offers an arbitrary set of rules to be followed.
Predictably, less media attention was given to the death – only a few weeks after the killing of Rhys Jones – of 18-year old Ben Ford, who was the youngest soldier to die in Afghanistan. Perhaps if we want to genuinely try and understand what sort of society we are bringing our children into we could start by asking why a youth with a gun in his hand defending “his” turf in Moss Side or Brixton is viewed so very differently from the uniformed youth in Afghanistan or Iraq with an Army issue rifle.
BG
Latest post from the SPGB blog, Socialism Or Your Money Back:
Currency cranks claim -- echoed in some badly edited economics textbooks -- that banks have the power to "create credit" by a mere "stroke of a pen": that if someone deposits, say, £100 in a bank, then the bank can lend out many times this amount. This is not the case. Banks are essentially financial intermediaries making a profit from borrowing money and lending it at a higher rate of interest to others. They have no power to "create credit" as they cannot lend more than has been deposited from them, than what they have in effect borrowed from depositors.
This is obvious in the case of other financial institutions such as a building society or a credit union. A building society accepts deposits from savers, which is lends out to others to buy a house (originally it was only to its members, the savers, a principle still maintained in credit unions). Everybody, even currency cranks, accepts that building societies can only lend what has been deposited with them. They seek deposits by offering savers an attractive rate of interest. Without these deposits they cannot function, and the amount of the deposits they have determines how much they can lend to home buyers. Building societies make a surplus (which in theory belongs to their members) by charging house-buyers a higher rate of interest than they pay their depositors. Which is why when interest rates go up and they have to pay more to depositors, they also have to charge house-buyers more and mortgage rates go up too.
Northern Rock used to be a building society, but in 1997 they "demutualised" and became a bank. From then on the surplus it made from charging borrowers more than it paid depositors became "profit" which belonged to its shareholders and the explicit aim became to maximise this. This essentially legal change did not change its economic function as a financial intermediary nor free it from the limitation of only being able to lend what it had borrowed. It didn't suddenly acquire any right to create credit by the stroke of a pen. But it did allow it access to a wider range of sources from which to obtain money to lend. Instead of being restricted to savers it could now borrow money on the "money market" where short term debts that can easily be converted into cash are traded. It was still a financial intermediary borrowing at one rate and lending at a higher one, only it now had a wider range of who to borrow from.
In recent years Northern Rock seems to have based its whole strategy on taking advantage of the relatively low rates of interest on the money market. The papers are reporting that while its loans and assets are worth £113 billion, only £24 billion of this was covered by depositors. The rest -- well over three-quarters -- coming from money borrowed on the money market.
The trouble has been that since the beginning of August the money market, like other financial markets, has been in turmoil. Banks and other financial institutions have been reluctant to lend money on it, so institutions such as Northern Rock who have been relying on it to borrow cheaply have been in trouble. So much trouble in the case of Northern Rock that it has had to go cap in hand to the Bank of England which as the "lender of last resort" to banks has loaned them the money -- or rather opened a credit line for them -- but at 6.75 percent, one percentage point above the bank rate.
Northern Rock is probably not so worried about its depositors withdrawing their money as it is about its inability to continue borrowing money from the money market at a lowish rate of interest --since it is from the difference between this rate and the rate it charges house-buyers that it makes a profit. Already it is forecasting lower profits. And because its share price has fallen -- due to some of its shareholders bailing out too -- is liable to be taken over by some rival. In fact, this is what the papers are predicting.
One thing that won't happen -- because it can't -- is that Northern Rock's beleaguered chief executive, Adam Applegarth, will not be taking out his pen and simply creating the missing credit.
DAP
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Weekly Bulletin of The Socialist Party of Great Britain (10)
Dear Friends,
Welcome to the 10th of our weekly bulletins to keep you informed of changes at Socialist Party of Great Britain@MySpace.
We now have 706 friends!
Recent blogs:
- Maximising Consumers
- The end of pre-history
- The Utopists
This week's top quote:
"I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and 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 benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested."Major General Smedley Darlington Butler (1881-1940)
Continuing luck with your MySpace adventures!
Robert and Piers