BOTH Wall Street and the London stock markets made record advances yesterday.
The FTSE 100 index rocketed upwards on Friday morning adding £80billion to share prices.
This was after the record Wall Street advance of Thursday evening (+ 410 pts), achieved after a meeting between the Federal Reserve and Bush administration chiefs agreed that they would take measures that would see the $2-3 trillion of bankers debts nationalised, with all debts to be paid for by the US workers, of course.
It was this ‘Fools Gold’ that saw Wall Street’s Dow Jones index rise on Thursday night, while the FTSE 100 index rose by 387 points, to 5267 on Friday morning, adding £85bn to share prices.
Just to make sure, the Federal Reserve then announced that another $60bn more would be pumped into the financial markets. When Wall Street opened at 2.30pm, the Dow Jones index shot up by another 300 points, creating euphoria that the crisis was over.
However the crisis has really just begun to get underway. In fact, the Federal Reserve bank and the Bush administration have pledged to add an additional trillion plus dollars of debt onto the US National Debt.
This can be redeemed in the only way possible – by the fiercest attacks ever seen on the US working class.
Already, the USA is heading for a federal trade deficit of $550bn this year.
The US national debt has been leaping upwards, fuelled initially by the Iraq and Afghan war costs.
Added to it now will be the costs of the Bear Sterns, the Mae-Mac, and then the AIG rescue packages (believed to be costed at over $400bn).
On top of this will come the huge debts of the big banks and insurance companies that the Fed is going to take over.
This vast indebtedness will plunge the US into an industrial and commercial slump, with an ever present threat of state bankruptcy, and with a currency, the US dollar, that will have to be protected by sky high interest rates.
American capitalism will be under a full blown siege, facing an angry working class and a ruined middle class that will have little liking for bankers, capitalists or capitalism.
The US working class will experience the full cycle of life under the bourgeois order.
During the boom it was the most super-exploited working class in the world, creating a vast surplus value which provided riches for bankers, capitalists, landlords, churchmen and speculators of all types.
During the slump its duty is to hand back all that it has won during the boom, and more, to bale out the bankrupt bankers and capitalists by redeeming the billions of dollars of debt, through millions of workers going hungry, homeless and jobless.
The bourgeoisie, and its military staff, will plan to complete the process with some new imperialist war to reorder the world for the benefit of the imperialists, with such a vast destruction of workers’ lives and the productive forces that capitalism can lurch forward once again towards some new catastrophe.
The US working class and the workers of the world reject this future.
The US workers will not be willing to bail out the same crew of bankers and bosses whose practices caused the world crisis in the first place.
In the UK, workers are also receiving their class education at the hands of the Brown Labour government.
Brown puts the interests of the bankers first.
To save the banks he has spent more than £200bn so far. At the same time he OKs wage cuts for millions of workers and OKs that 40,000 HBOS and LloydsTSB workers will lose their jobs.
He supports the bosses and bankers and opposes the working class and socialism.
The only solution to the capitalist crisis for the working class of the world is to resolve it through the organisation of socialist revolutions.
These will put an end to capitalism and bring in a planned socialist economy, ending capitalism and its boom-to-bust cycle.
