‘THE US is staring at a possible hard landing while Europe is struggling and China is sinking!’
This is the message from the Daily Telegraph’s Ambrose Evans Pritchard in Friday’s issue of that paper.
Clearly the developing capitalist crisis is creating an even bigger crisis in the ranks of the panic stricken world bourgeoisie.
Evans Pritchard spells it out that a series of rate cuts is on the cards ‘as the US Federal Reserve is forced into a screeching hand brake turn’.
He adds: ‘Markets have been caught off guard by a drastic revision of non-farm pay rolls, the worst miss since the Lehman crisis.’
He continues that: ‘Labour economists can justly say I told you so. They have been warning all year that instant headline figures do not catch early signs of trouble in the US jobs market, when the economic cycle rolls over.’
Ambrose-Pritchard continues: ‘The Institution has been misled once again by unreliable data.
‘The gain in non-farm payrolls in the 12 months to March was 818,000 less than previously stated’.
He adds: ‘The enormous error flattered Bidenomics and overstated the US boom.’
He continues: ‘No other part of the world looks ready to take the baton as the US slows. The eurozone is still in a deep manufacturing recession.’
He adds on China: ‘The authorities are dabbling with a resolution mechanism, but the scale is not up to the problem …
‘Xi Jinping is too alarmed by rising debt to let rip with demand stimulus.
‘The People’s Bank is too worried by the exchange rate and mismatches in the Chinese Bond Market to let rip with serious money.
‘The result is a death spiral in the monetary aggregates.’
He concludes: ‘Rather than grasping the nettle at this year’s Third Plenum, the Communist party has opted to double down on its strategy, aiming to export its way out of trouble and dump its excess capacity on the rest of us!’
He concludes: ‘China rescued the world economy when the West came off the rails in 2008 and 2009. Fifteen years later it is more likely to compound a global recession.’
He concludes: ‘Markets are betting that the Powell Fed will pull off an immaculate soft landing and keep the world afloat. Let us pray that they are right.’
However neither prayers nor the Chinese Stalinist bureaucracy can rescue capitalism from its crisis which is in fact its death agony.
There is only one way forward and that is to complete the worldwide socialist revolution that began in 1917, to get rid of capitalism and replace it with a worldwide socialist economy based on common ownership of the means of production, and planning the economy to provide what the working class and its youth require.
Capitalism is a dying system, and not even the Chinese Stalinists, and their Russian comrades can rescue capitalism from this crisis.
In fact, as the world crisis deepens, the imperialist powers will look at war with China and Russia as the only way out of the crisis, by smashing the deformed workers’ states and restoring China and Russia as sources of cheap labour and much needed minerals of all kinds from oil to gold.
Today, the imperialist powers are rehearsing their planned invasion of the USSR, with their intervention to support the Ukrainian fascists’ armed intervention inside Russia.
This is just the dress-rehearsal for a major invasion of Russia by the imperialist powers, who are now fighting for their lives and planning regime changes in both Russia and China.
The working class of the world has its own programme to fight for.
This is to continue the Russian and Chinese revolutions with socialist revolutions in the major capitalist states such as the USA, the UK and the EU, to put an end to capitalism and to bring in the world socialist republic, using the gigantic productive forces in a planned way, to construct the new worldwide socialist society, concluding the work that was begun by the Russian and Chinese revolutions.
Build sections of the International Committee of the Fourth International worldwide – Go forward to the victory of the World Socialist Revolution!