THE CRISIS OF CAPITALISM, in reality its death agony, is now being played out all over the capitalist world with headlines screaming out that the ‘Bond Market rout shows that markets are losing confidence in countries ability to repay their debts’.
Jeremy Warner writes in the Daily Telegraph that: ‘Theoretically, this should have been brought to an end by the global financial crisis of 2008-10, but desperate to avoid a repeat of the mass liquidation of the Great Depression, politicians doubled down on the low interest rate environment by cutting official interest rates all the way to zero, and in some cases, lower still into negative territory.
‘Central Banks also flooded the markets with liquidity by hugely expanding their balance sheets, storing up problems for the future that only now are coming home to roost.
‘It was fun while it lasted, but the tables were reversed by the post pandemic surge in inflation, and nominal rates have been rising ever since.
‘Hopes that we might soon return to the old normal of cheap money have been repeatedly dashed.
‘Never mind the productivity miracle promised by AI, it’s clear that for the moment, at least, we have entered another inflationary age.’
He continued: ‘The upshot is a bond market rout of epic and global proportions made all the worse in recent weeks by the inflationary pressures resulting from an inability to resolve the Gulf conflict and reopen the Strait of Hormuz.’
The ruling class has begun to realise that their system is bankrupt.
Terrified of a complete collapse in 2008, after the banking collapse, they have continued to borrow to survive, amounting to massive debts of hundreds of billions of dollars, pounds, and euros.
These debts are now drowning them and creating a desperation to survive. The only plans the ruling class have are to firstly make the working class pay for the capitalist crisis.
This has led to years of austerity, producing mass joblessness, poverty, and great hardship. There are over a million youth unemployed in Britain alone.
In the United States, Trump is feverishly trying to stop the economy collapsing beneath him. He has carried out wars to recolonise Iran, Palestine, Cuba and many other countries to try and save the US economy.
All this has failed, and now he is driven to intervening in the bond market to try and stave off the crisis in the US economy.
In this struggle the issue of revolutionary leadership is absolutely decisive.
In the face of this continued onslaught, the ruling class has met the resistance of the working class. It has no intention of having its living standards destroyed in order to rescue the bankers and big business.
Similarly in Palestine and Iran, the imperialists have been thwarted and unable to grab the land and its very rich resources.
Today the Labour Party is completely unable to resolve the capitalist crisis, and Burnham and Co. are ready to do anything and everything to bale out British capitalism.
What is needed is the revolutionary leadership to take the struggles of the working class forward to defeat this bankrupt capitalist system and establish instead a new socialist economy.
Now is the time to build the Workers Revolutionary Party and the Young Socialists and to build sections of the International Committee of the Fourth International worldwide.
Bringing down bankrupt capitalism is the continuation of the struggle that Lenin and Trotsky began with the victory of the 1917 Russian revolution. This was seen as, and still is, the start of the world socialist revolution.
Today we must carry forward this struggle to complete the world socialist revolution, bringing an end to bankrupt brutal world capitalism and imperialism once and for all.
Forward to the victory of the World Socialist Republic and an end to the misery, hardship, massacres and poverty of capitalism!
