1. The upcoming class struggle in the United States of America will take an increasingly colored appearance.
Old and rich white people, the owners of most private wealth in the country, will face off an increasingly brown, young, working population in a momentous struggle to determine the direction of the country in the coming decades.
The current debate over economic policy — pitting the right wingers’ scaremongering about the public debt (with the brutal increase in military expenditures and the tax cuts for the rich belying their sincerity) to the urgent need for jobs and vital public spending (education, health care, and other basic services) that regular people demand — is only the first round.
2. Martin Wolf (FT) exposes here the ideological role that supply-side economics serves — namely that of providing a fig leaf to cover the brutality of the anti-working people’s agenda of those sponsoring the GOP and the so-called Tea Party movement. Martin Wolf argues that a Republican victory in the midterm election is likely to lead to a default in the U.S. debt, which would usher the mother of all global financial crises, which to many will only feel like a deepening of the current crisis. The Hooverian mentality of the right wingers ceases to be a mystery (or evidence of sheer stupidity) when we look at it from the perspective of the class struggle. It’s not that they cannot understand Keynes. It’s simply that they don’t want to, because Keynesian macro policies strengthen (or at least give a break to) working people (who are increasingly looking less and less white anyway).
3. Of course, the crisis would be global, but the effects on different regions of the world would differ. South East Asia (and hopefully South America) are demonstrating a disposition to respond to the crisis with aggressive fiscal policies. If they persist in their approach — prioritizing domestic market expansion, green development, and social services — the deepening of the crisis, will only speed up the shift in global economic power away from the U.S.
4. Unfortunately, given the U.S. military lead, the chance of catastrophic international conflicts increases. Here’s a graph I made with data from the SIPRI. Look at the upward trend since the late 1990s. (That’s what Fidel referred to at the Mesa Redonda.)
5. Venezuela is warning the world that the U.S. is using its regional pawn, Colombia, under the excuse of FARC and ELN alleged presence in Venezuela, to prepare a military aggression against Venezuela. Eva Golinger collects the information here: