Why we need to re-organize the Communist Party here in the United States with a Marxist-Leninist leadership and membership

[Note: This is a guest blog written by an unemployed Ford worker who feels his efforts to gain employment might be hindered should he provide his name. I thought he was entitled to express his views anonymously under these circumstances. Alan L. Maki]

The present liquidationist "leadership" of the Communist Party USA intended to "phase out" the organization and establish in its place a social democratic type organization as a support group for the Democrats. Most of this has been accomplished although the remaining 184 members of the organization, mostly high-paid staff, have been reluctant to abandon the Party's name fearing working class revolutionaries will re-establish the Party as a class conscious revolutionary anti-imperialist Marxist-Leninist working class organization.

This article tells us all we need to know about what is wrong with the CPUSA today (see full article at the very bottom):

http://www.peoplesworld.org/locked-out-workers-and-supporters-converge-on-minnesota-town/

Mark Froemke who is on the National Committee of the CPUSA is a "leader" of this union and a Vice-president of the Minnesota AFL-CIO and big-shot in the Democratic Party.

Being a Communist, one would think Mark Froemke would understand how to handle a situation when the employer announces months in advance that it would be locking out workers should they not agree to managements "final offer."

Instead of bringing forward the idea of occupying the plants, Froemke and this bunch of union "leaders" threatened and intimidated rank-and-file workers who began discussing the need to occupy American Crystal Sugar's plants instead of leaving the plants as ordered and instructed by management.

Mark Froemke, along with the rest of what remains as a "leadership" in the CPUSA, has spent their time trying to get workers engaged in supporting Barack Obama and the rest of these Dumb Donkeys instead of preparing the working class for these battles.

Even at this late date as can be seen in the article below, there is no suggestion as to what needs to be done when employers use the lockout as the weapon of choice in busting unions.




Mark Froemke sporting his Obama cap.

When employers notify workers they will be locked out and replaced by scabs any union leader worth his/her salt would respond by asking workers if they want to occupy the plants. This is the class struggle approach.

Instead, Froemke and his fellow union leaders ordered workers to leave the plants as instructed by management. What did Froemke and these union leaders expect; that Barack Obama and Minnesota Governor Mark Dayton would join them in holding up signs as the scabs pass them by going to work?

No attempt has even been made by the labor movement to organize massive protests which would be required to stop the scabs.

Labor "leaders" come and make nice tough sounding speeches about the "united strength of organized labor" but do nothing of any consequence to stop the scabs. All talk; no action.

American Crystal Sugar workers have now lost more than they can ever hope to win in the next thirty years--- if they can even save their jobs after management secures replacement workers they will train who will have no union that management will have to contend with.

Why does this article not explain the terms and conditions under which Leo Gerard and the USW "leadership" will force workers back to work at Cooper Tire?

If the "pattern" continues for American Crystal Workers they will go back to work looking down at their feet accepting a contract providing them with substantially less than management's initial "final offer." All because these union "leaders" like Mark Froemke convinced workers to put their trust in worthless Democratic Party politicians instead of teaching working people that their strength comes from militant, united action which in this case required occupying and taking over the American Crystal Sugar's plants, and now requires stopping the scabs.

After failing to take the appropriate action the first time around by occupying the plants, one would expect union leaders to at least recognize after seven months this is a struggle which can't be resolved (there is nothing any longer to win) without stopping the scabs.

I find it interesting that Mark Froemke and his gang have no problem physically attacking progressives at Minnesota Democratic Farmer-Labor Party conventions where they are used to prevent progressive alternatives from reaching the convention floors; but, when it comes to stopping these dirty scabs Froemke and his ilk cower before the company security and state and local police guarding the safe passage of these scabs depriving workers of their jobs and livelihoods. 

Everything that is wrong in the CPUSA and in the U.S. labor movement can be seen in these 1,300 American Crystal Sugar workers being locked-out of their jobs left without any incomes or livelihoods.

This "Journey for Justice" should have begun long before the contract expired with workers and union leaders knowing they were facing a lockout with scabs being brought in.

Mark Froemke still wears his Obama cap even though Obama has ignored the plight these 1,300 workers living in the Red River Valley find themselves in.

The rank-and-file will have to develop a new union leadership quickly lest they wind up without a union contract and without jobs.

Another thing complicating this situation is that for years Mark Froemke has been doing the dirty work for the well-heeled Summit Hill Club in the Minnesota Democratic Farmer-Labor Party by attacking those seeking real reforms and standing aloof of auto workers trying to save their jobs as the St. Paul Ford Twin Cities Assembly Plant closed. Fromeke and this joke called the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union (BCTGM) which passes itself off as a union has never demonstrated let alone shown any sympathy or support for other working people and their struggles for justice. Had they, workers would have turned out to stop these scabs many months ago.

The working class needs a strong Communist Party now more than ever so these mis-leaders of organized laborcan't continue to sell out the working class.

We didn't learn that our union leaders in the UAW had sold us out until it was too late. We believed all their tough sounding talk about how they would never allow our plant, the St. Paul Ford Twin Cities Assembly Plant to close. The CPUSA and the Democrats sold us out. So did the Trotskyists like they usually do. American Crystal Sugar workers still have their union. If they don't take a stand and stop the scabs they will be no better off than us Ford workers.

Locked-out workers and supporters converge on Minnesota town

by: John Wojcik

February 24 2012

tags: Minnesota, worker rights, lockouts

CHASKA, Minn. - Locked out workers and their supporters from all over the Midwest were on the move yesterday.

The workers  locked out from American Crystal Sugar's plant in Mason City, Iowa, traveled north to join the Journey for Justice entourage as it pulled into this Twin Cities suburb.

The rally they held here and a picket line brought together in one big crowd locked-out workers form five Crystal Sugar plants -  Mason City, and four Minnesota plants: Chaska, Moorhead, Hillsboro and Drayton - as well as locked-out workers from Cooper Tire in Findlay, Ohio.

Later in the day the Steelworkers announced a tentative agreement had been reached with Cooper Tire to end that lockout. The agreement will be outlined for 1,000 members Saturday and they will vote on it in Findlay on Monday.

Michael Moore, press director for the Journey for Justice, told the People's World today that the Cooper Tire workers would continue on the 1,000-mile Journey for Justice in solidarity with the locked-out American Crystal Sugar workers.

He said that while the locked-out Cooper Tire workers "haven't yet broken out the bottles of champagne, they are guardedly optimistic." Cooper Tire workers had rejected the last contract offer in November. Terms of the new agreement won't be disclosed by the union until members have had their chance to see those terms.

Before rallying and throwing up a picket line here the eight Journey for Justice riders entered CoBank, the primary lender for Crystal Sugar.

They delivered a letter telling the institution's officers that CoBank is incurring increased risk by doing business with Crystal Sugar during the lockout. The letter explained that it is costing the company more money to transport scabs in and out of the facility, in addition to having to feed and house them. The scabs, the letter points out, are also less productive than Crystal Sugar's union workers.

Workers note that the proof is in American Crystal's profits which, according to the letter, fell 39 percent in the first quarter after the lockout began August 1.

A representative of the bank accepted the letter, promising to get it to the bank's executives.

The eight locked-out workers gave CoBank 24 hours to respond to the letter or be faced with a demonstration outside its corporate headquarters later today.

Robert Greer, one of the eight making the 1,000-mile Journey for Justice through six states,  was locked out from Cooper Tire after working for the company as an electrician for 22 years. Greer, the Rapid Response Political Action Coordinator for Steelworkers Local 207L, which represents Cooper workers,  says companies have what they consider good reasons for paying the high costs of lockouts.

"You have lockouts going on all over for the same reason you have right-to-work-for-less laws being pushed in the states. They want to take advantage of the economic climate and use it to cut pay and benefits and to destroy unions," Greer said.

Greer said it is important that all workers, union and non-union, see the importance of stopping lockouts and other corporate attacks on collective bargaining rights.

"We've lost 58,000 manufacturing plants during this recession," Greer said. "The attacks on unions have created a situation that in a town like mine jobs now start at $8 or $10 an hour. This hurts everyone, including the people not in unions. You can't raise a family on the kind of money they are paying. Everyone needs to see this as their fight."

Photo: Workers from five American Crystal Sugar facilities across the Midwest converge on the plant in Chaska, Minn. Photo courtesy of Bakery Workers union.

Muddle-headed middle class "Liberalism" or Marxism?

Robert Reich, like Paul Krugman and the rest of these over-paid pundits posing as liberals, continues to evade two major issues:

1. The cost of these wars.

2. Racism and the failure to enforce Affirmative Action.

I find it interesting how Robert Reich doesn't apply the same analysis to Obama as he does towards Romney as Reich is building towards supporting Obama because the Republicans are so bad when in fact Obama and Romney both have the exact same Wall Street agenda couched in different terminology but result in the same thing: wars abroad financed through austerity measures here at home.

No president has ever attacked the living standards as viciously and perniciously as Barack Obama has done yet Reich has the unmitigated gall and audacity--- not to mention total and complete dishonesty--- to pretend Obama is somehow better than Romney:

http://robertreich.org/post/17162027435

Shame on the left for not providing the American people with a clear and understandable working class Marxist analysis instead of all of this muddle-headed middle class apology for Barack Obama we are now getting from the well-heeled pundits like Robert Reich and Paul Krugman who build their fantasies supporting Obama around some kernels of truth that end up so distorted all we get is confusion.

Mitt Romney says he is not concerned about the poor while Obama pretends that he is concerned about the poor but really isn't concerned about the poor to the degree he takes the needed steps towards eliminating poverty--- which can be done with the massive redistribution of wealth to fund real living wage jobs and universal social programs like a National Public Health Care System (12-million new jobs if we just begin with primary health care) and a National Public Child Care System (at least three-million new jobs) combined with bringing back C.E.T.A., WPA and CCC we can put everyone in this country back to work if we end these dirty wars and cash in the peace dividends while taxing the hell out of the rich to pay for the rest of the bill.

Robert Reich writes and speaks from an upper-middle class perspective and then he has the nerve to talk about "us" when he has nothing in common with working people who he keeps inserting into his "middle class."

I like reading Robert Reich's "analysis" because he does provide some important facts as kernels of truth; but, one needs to carefully read between the lines and sort fact from fiction.

Working people need to establish their own Marxist think-tanks and action centers in the communities where they live and where they work because this kind of muddled nonsense will never get us beyond Wall Street's control.

Pick up a cheap used copy on-line of "Dynamics of Social Change: A Reader in Marxist Social Science, from the Writings of Marx, Engels and Lenin" by David Goldway, Harry Martel, Howard Selsam. Here are some selections from this book:

http://www.questia.com/PM.qst?a=o&d=6859916

In Darwins shadow, a socialist pioneer of evolution

A free e-book by Alfred Wallace, "The Wonderful Century Reader:

http://books.google.com/books?id=2KUzAAAAMAAJ&pg=PA369&lpg=PA369&dq=Alfred+Wallace+and+The+Plunder+of+the+Earth&source=bl&ots=MJ0KVDTnw4&sig=WyD3HqamttfuxH7cDfYA54TwoC8&hl=en&sa=X&ei=ID0KT4L-BtCRgQeXl42NAg&ved=0CEMQ6AEwAw#v=onepage&q&f=false

The man was writhing in the grips of Malaria. A torrent of tropical rain beat on the roof of his Indonesian hut. In the calm interludes between the sweats and chills, he wrote about ideas — big ones. It was 1856, and naturalist Alfred Russel Wallace was writing about how species evolve.

 Little known today, Wallace went on to become the co-discoverer, with Charles Darwin, of the theory of natural selection, the engine behind evolution. And he became a socialist.

 Who was this overshadowed scientific pioneer?

 Wallace left school early to work as a surveyor. He loved to read, and England’s public libraries, not pubs, were his university. He was fascinated when he heard a presentation by socialist Robert Owen in a workingmen’s Hall of Science. While working in Wales, he found himself in the midst of the insurrectionary Rebecca Riots of 1842-43. These experiences left their political mark.

 In 1848, Wallace’s interest in natural history led him to Manaus, deep in Brazil’s Amazon River Basin. While he contemplated the origins of species, he needed to earn a living, and it was dangerous. He collected insects, birds and other specimens along the Amazon and Black Rivers and sold them to interested parties. One of his customers was Charles Darwin.

 After four years in the Amazon contemplating the variety among animals of the same species, he decided to return to England. He made his way to the port city of Pará with parrots, other birds and detailed notes of his experiences and observations. Disaster struck when his ship, the Helen, caught fire. A combustible balsam cargo had ignited. While he escaped in a lifeboat, his precious specimens and notes were lost.

 Undaunted, Wallace journeyed to the tiny island of Ternate, among the Spice Islands of Indonesia in 1854. More collecting and observing wildlife led to his 1858 paper, “On the Tendency of Varieties to Depart Indefinitely from the Original Type.” He mailed it to someone he felt would be most interested — Charles Darwin.

 Darwin was astonished that this young collector had independently thought through, as he had, how species evolve. Darwin had kept his thoughts on this mostly to himself, knowing the explosiveness in Victorian England of a materialist explanation of species’ origins. Now there was a chance he could be “scooped.” Some friends of Darwin’s, botanist Joseph Hooker and geologist Charles Lyell, moved to protect their friend.

 Both Darwin’s and Wallace’s papers were read on July 1, 1858, at the Linnean Society in London. They were among six other papers read that night. Not many took notice. It was a yawner. Meanwhile, Wallace was still collecting insects in New Guinea to make a living. Darwin, due to family fortune and some timely investments, was not burdened as Wallace was by the need to earn money. So he set to work. His famous “Origin of Species” (1859) was the result.

 Charles Darwin is correctly referred to as the father of modern biology. He collected mounds of evidence for evolution and its associated theories. He experimented on worms and barnacles. He wrote prolifically. But he also tipped his hat to Wallace in “The Origin of Species.” He quoted from an 1855 paper of Wallace’s: “Every species has come into existence coincident both in space and time with a pre-existing closely allied species.” Darwin wrote that Wallace and he agreed that this was “descent with modification” in action.

 Wallace was respectful of Darwin and his work. In 1882, he was a pallbearer at Darwin’s funeral. But he also differed from the famous biologist in some important ways. While both saw the importance of the environment, it was Wallace who developed this more in his later writing. And he did it from a working-class perspective. Note this sentence from his 1909 paper “The Plunder of the Earth”: “The struggle for wealth, and its deplorable results … have been accompanied by a reckless destruction of the storied-up products of nature, which is even more deplorable because more irretrievable.”

 Wallace was the first president of the Land Nationalization Society of England. His advanced political ideas helped him avoid the pitfalls that trapped other 19th century evolutionists. Edward Bellamy’s utopian “Looking Backward” convinced Wallace of the socialist alternative. He opposed social Darwinism and eugenics. He understood that class-driven economics and politics, not biology, had much to do with the corruption and injustices of society.

 While we give Darwin his due, is it Alfred Russel Wallace’s socialist views that keep his 21 books out of print? The political left, and especially those in the environmental movement, should read more of this far-seeing worker naturalist.

Taking apart the Wall Street web to create a beautiful tapestry

I kind of like the comparison of the tapestry and the threads to our society that I read in a posting here on FaceBook but there is a lot left out.

It isn't so much that "we didn't see how the threads are connected;" most of the problem is that we didn't see that the threads now are put together to create a web rather than a tapestry.

There has been so much governmental repression against a way needed to examine what was, and is, going on in this country and around the world that people have feared articulating the problem/s. 

Marxism has been the best and most effective critic of capitalism. This is the only country in the world where socialism has been successfully "purged" from the body politic, and as a consequence there is no socialist alternative political party critiquing the consequences of first capitalism, and then state monopoly capitalism in its imperialist stage.

Following on this government repression as mass opposition is arising to Obama's Wall Street policies and agenda resulting in the emergence of a left that has being resuscitated because of the vicious attack on the standard of living of the working class required to pay for imperialist wars; now, again, the FBI, the New York Times, the New Republic along with all the MainStreamMedia and Public Radio and Television is once again on the attack against "the left."

The attack on the left was first initiated by Obama, his campaign staff and his Administration, then picked up by the Tea Baggers and now we get this massive effort under the guise of "what the left doesn't understand about Obama." Like in the late 1930's, into the 1940's and then throughout the 1950's, this attack is broad and sweeping in scope branding everyone including liberals and progressives together with the Marxists as "leftists."

It was interesting to see how Naomi Klein's "soft" socialist analysis was welcomed enthusiastically in Canada and all over the world but here in the United States her "soft" socialist critique of capitalism was downplayed with most liberals, progressives and the left refusing to use the opening she created to open up a full-scale attack on capitalism.

We saw how the phony liberals, progressives and the left who used their "credibility" to create and provide Obama a false image of being something he was not--- liberal, progressive and left--- latched on to Naomi Klein in order to marginalize her in this country within a small circle rather than use her popularity to bring socialist ideas out into the public square.

Marxism not only provides the "magnifying glass" to closely examine the tiny threads of the tapestry or what holds the system together and how it works; but it enables people to articulate alternatives to the reactionary Wall Street agenda--- which has created not so much a beautiful rug, but a strong web trapping us all--- to free ourselves from this trap.

The "new" attack on "the left" (liberals, progressives and the left) is taking on the creation of this straw-man of what the left is and what the left believes in order to knock down this straw-man without having to debate--- or acknowledge--- the real left.

It goes like this: The left doesn't understand Obama. The left says Obama should have focused on the economy and instead he focused on solving the health care problems and then the left tries to toss these wars into the mix even though the wars have nothing to do with health care or the economy--- this left just has a moral objection to wars and tries to work the wars into everything else. This attack then goes on to say, "Yes, alright; the left has a point that Obama should have been more vigorous in pushing more taxes on the wealthy but the left doesn't understand that the presidency is just one branch of government and Obama has all these Republicans he has to work with because, after all, the Republicans represent an important segment of society, too."

What is ignored in this straw-man argument now making its rounds through the MainStreamMedia is that the real left said what we needed to do is create a National Public Health Care Program which would have create over ten-million new jobs providing the American people with free primary health care through a vast network of over 30,000 neighborhood health care centers--- in other words, health care would be publicly funded, publicly administered and publicly delivered just like public education or the United States Postal Service--- which, perhaps not coincidentally, has over 30,000 local post offices across the country now under attack by the very forces that refused to use the creation of a public health care system to create jobs and solve the problems of unemployment all at the same time; all financed by ending these dirty imperialist wars and taxing the rich... the only thing we need is our own socialist working class people's party made up of those of us under attack--- liberals, progressives and the left--- to explain all of this to the American people and advocate such a progressive alternative agenda to Obama's reactionary Wall Street's agenda of wars paid through austerity measures intended to decimate the standard of living of the U.S. working class.

In the past liberals, progressives and the left retreated when under attack--- this time we need to mount an attack of our own.

Together, we can take the fine threads that have been spun to create this "web" that now serves as a trap for the parasitical Wall Street coupon clippers to suck the life-blood from the working class, and turn these fine threads into a beautiful tapestry.

Some people object to my using Marxist terms like "imperialism" to describe these dirty wars. But, Mark Twain who was well on his way to developing a Marxist analysis declared--- "Before the Spanish American War I was not an anti-imperialist but after seeing what we have done to the Philippines and Puerto Rico after the war I am now an anti-imperialist." (the quote is not exact but it conveys accurately what Mark Twain thought and said)

Well, before the Spanish American War the United States was not a full-fledged imperialist Nation even though the campaign of genocide in the way the land and wealth of this country was stolen from Native Americans and how slavery was imposed reflected the embryonic stage of imperialism--- the highest and most barbaric and cannibalistic stage of capitalism.

Today Mark Twain is on a new "Forever Stamp;" the government would like Twain to be remembered as a teller of tales not a person of great political and economic understanding and vision.

Just like these same people would like us to remember Albert Einstein for his work with the atom and not his involvement in the struggles against racism and war and his socialist politics and vision.

Just like the people in power would like us to remember Abe Lincoln as the president who saved the union and not as the liberal who was strongly influenced by Marxist thought when it comes to the struggle between labor and capital.

It sounds to me like there are a lot of people who are really fed up; this might be a good time for people to read a little essay by Albert Einstein, "Why Socialism?," in which Einstein explained why he was a socialist:

http://socialismtheoryandpractice.blogspot.com/2009/04/why-socialism.html 

Another good read is a new book by socialist Howard Pawley who had been the Premier of Manitoba, Canada--- elected on the socialist New Democratic Party ticket. His book is, "Keep True, A Life In Politics."

Here is an interesting recent interview of Pawley:

http://www.channels.com/episodes/show/14571014/Howard-Pawley-Pawley-on-Politics?page=38

Pawley and his NDP government started to tear apart the "web" using the threads to begin weaving together a beautiful tapestry for the people of Manitoba.

Of course, the history books have totally eliminated any mention of the socialist governments here in Minnesota led by Floyd Olson--- if you want to learn about Floyd Olson and the socialist Minnesota Farmer-Labor Party you have to go dig through the archives of the Minnesota Historical Society:

A most interesting perspective

Dear Colleagues,  

   

I would like to share an interesting project with you.  I had gotten a letter from the China Daily, which ran the story on me back in January, to comment on a few questions they plan to deal with as a result of the S&P decision to demote the credit line of Washington.  In answering the questions, some of which they may use, it occurred to me to share the ideas with you.  Attached is a copy of their note to me and my response.  As usual, your comments are always welcome.  I have been working on a thesis generally titled “The 21st Century As An Epochal World Change In Economic Structure”.  

   

Sincerely,  

Sidney Gluck  

-----Original Message-----

From: Kelly Chung Dawson

To: Sidney J. Gluck

Sent: Tue, Aug 9, 2011 7:50 am

Subject: China Daily request for comment on how stock market crisis might affect China

Mr. Gluck

China Daily is preparing a story on how the current stock market crisis might affect the Chinese economy, and I was hoping you might be willing to comment. If you are, below are some questions (feel free to answer as many/few as you have the time for). 

Thanks! 

Questions:

1. Is the slump of the world's stock markets following the S&P's downgrade a true reflection of where the world's economy is going?

2. How will the US debt crisis affect the Chinese economy? Will China's exports slow down due to weaker global demand? If the world's economy turns worse, will China's imports from the rest of the world be affected?

3. What should China do if the world's economy goes to another recession? Another stimulus package?

4. Do you have any predictions for what will happen with the RMB? Will it appreciate faster to help tame China's inflation or slower to help the ailing exports sector in case of a world recession?

Best,

Kelly Chung Dawson

Reporter

China Daily USA

-----Original Message-----

From: Sidney J. Gluck

To: Kelly Dawson at China Daily

Sent: Wed, Aug 10, 2011 1:37 pm

Subject: Re: China Daily request for comment on how stock market crisis might affect China

Dear Ms. Dawson,

I appreciate your request for comments.  Here goes from the top of my head and my heart.

As an overall introduction, I believe the 21st century is an epoch of world change that is in some ways similar to the change from feudalism to capitalism. Capitalism has done a great job in building industry based upon wage labor and the free movement of former landlocked peasants.  China is going through some of that process now with the development of an industrialized society and will no doubt be the first nation to develop a high tech industrialized society with the use of both private capital and government social capital while also developing socio-economic supports for its population which in some ways resemble the welfare state that sustained capitalism but is basically a part of a socialist program which seeks to develop harmony among the collective economic levels. 

My answers to your questions follow:

Question 1:

Standard & Poor must be commended for being the first important institution in the capitalist system to take an objective view of the conditions among the varied countries.  For truth, the dominance of US finance capital is a bulwark to the system on a worldwide scale.  We have witnessed a shift in the past twenty years that had begun with the Reagan administration to the investment pattern, especially in the USA, from building new industry and high tech, which would continue job creation or pick up shifts in particular industries that would utilize the existing labor force.  Fact is that the industrial structure of the USA in particular has decreased with the export of capital to cheap labor countries where US companies invested in China are now looking to move to countries like India and other former colonial countries for cheap labor. 

As a result, when our country was driven into an economic crisis in 2008 China bearing the shock brought its country to a relative equilibrium but then has been affected by inflation generated by higher costs of imports.  Wall Street recovered from the economic crisis but left behind what is now 14 million unemployed and no prospects of industrial growth to re-absorb them in productive and life supporting activities.  Beyond that, inflation has been magnified, affecting China’s imports and creating serious price increases which it is now dealing with by increasing minimum wage laws, increasing the amount of workers non-taxable base in their income and hence their tax to the government and consideration is now being given to increasing one of the relatively low levels of taxation among the wealthy group growing in China whether personal or corporate and insisting upon corporate negotiation with a growing labor movement.

S&P’s alarm was inevitable because the distorted personal accumulation in all western countries and the USA has generated government debts for lack of taxation of high incomes and failure of governments to become involved in industrial development with one exception, Germany does not find itself in the same straits.  Having first created a welfare state in the 19th century, they are maintaining it because of the multiplicity of political parties representing various economic sectors and the decision to trade and exchange with China that is a bridge supporting its own continuation. 

We hear now suggestions of solutions that German banks pull Western European countries out of their financial tangles and failure of growth.  Germany’s welfare state will not include these countries and will continue on its own independent economic direction.  I do believe also that they will learn much from China because the two economic poles of the 21st century are a reality, especially with the development of BRICS, which is now planning a 2012 massive conference of developing countries and industrial development, job creation, and the end of colonial exploitation.  So thanks to Standard & Poor’s for opening the eyes of the world a signal that change is necessary.

Question 2:

The world economy is changing.  This century is making new history by creating economic relations around the world that aid in the industrialization of countries that have been exploited for hundreds of years by foreign powers.  This is the major change that is taking place with China as an example of the possibilities. Once the privatization impulse in the growing economies among former colonial countries will be diminished in combinations of private and social support of economic development.  This will be the new epochal impetus. 

There will be an effect on China with exports to countries whose economic growth has been stalled.  However, on the contrary, there will be an increase in exports to developing countries that are, in the last analysis, the world’s majority.  Furthermore, the planned economy in China has the capability of capital formations both for industrial development and growing social necessities.  There may be some problem with foreign investment; but then again, I suspect that finance capital from the West will invest in the development of China because they need it for their own survival. 

The great danger is not economic failure because countries will be developing along with China, which now has a substantial base. The great danger is the possibility of war generated by the Pentagon.  What is not fully known by the public is that President Obama’s position on dealing with international relations with China is based upon dealing with objective differences by using diplomacy rather than the military. (Note to the Editor: I say this because I had some hand in shaping his ideas.  A copy of a letter received from the President in June of this year attests to his diplomatic approach in relations with China and enunciates his position, which differs from the Pentagon, State Department, and the military budget.  This is for your information and may be used in a helpful manner. You will note from the copy of the attached letter received from the President only last June.  You may use any of this any way you like, but you should know it.) 

In sum, the world’s economy that had been dominated by private capital will probably turn worse; but the world as a whole will be on the upturn/ and create the possibility for economic stability as changes take place in the flow of private capital.  China’s position as the second highest producer in the world, though it must produce three times as much to reach their per capita production which it will accomplish with its own as well as foreign capital and stimulate intensive growth as the effect of colonialism ends.

Question 3:

The question must be answered from two distinct competing conditions.  The dominant one, at this time, is the failure of private capital investments and industrial growth.  On the other hand, industrialization, on a wider scale than ever, is now emerging.  BRICS is in the process of developing economic relationships among nations devoid of military structuring and expense.  This newly developing organization represents the growing majority of the world’s peoples and countries even encompassing a controlled participation by foreign capital within its confines.  But then again, in a changing world, that too can be augmented, nation by nation, adding overall national planning to their development as a change from planning by individual corporations based purely on their profitability rather than national growth. 

Ultimately, we may be witnessing the worst and the last as planned economies are adopted by the developing former colonial countries, some of which are already on that track.  Another stimulus package that might evolve will be strictly within the existing Western countries that will have to find ways in taxing private accumulations and inducing private and government investment to re-establish industrial development and job creation for their people.  It might even be some form of redistribution of wealth in the form of legitimate and affordable taxes or eliminating concessions on tax rates that have been a gift to the wealthy and which, in many ways, has led to their present crisis.

Question 4:

As for your last question, the effect on the RMB is sadly a tough one.  No doubt the action of S&P might affect the value of the RMB but not necessarily. Nonetheless, the truth it revealed on the direction of not only the US economy but that of the European capitalist nations could affect the RMB.  However, the developing part of the world will accelerate despite the crises in capitalist countries, and private capital will still be investing in the growth economies, as we know from the experience with China.  Furthermore, I do anticipate that accumulated private capital will still invest in China and in other large developing countries and some among the smaller countries.  China’s holdings of US bonds may suffer in the process, but the RMB is not immediately affected by the movement of foreign capital and depends a good deal upon the planned banking system in China.  While it is true that the currencies of many countries will be affected, I do not consider the RMB to be in the same category as the dollar, the pound, the franc, etc. in the West. 

Why?  The RMB’s control is in the hands of the government in China.  This is not true of the Western countries.  What China must carefully consider is the indebtedness of internal regional government and economic enterprises and its relation to the central planning functions and decisions.  In other words, there are more possibilities for the RMB to protect itself than we are witnessing in other parts of the world.  The specifics in many ways will depend on the rapidity with which industrialization grows in the developing part of the world and the role that China will no doubt be able to play in stimulating positive economic and social growth and avoiding negative expenditures for the military. 

As for the export sector, it might be the necessity to reduce the profitability and accumulation by the government and private capital, domestic and foreign.

The one strength that China has, nonexistent in the West, is its national economic planning as well as the reduction private capital influence though it must be sensitive to maintaining conditions that attract investments needed for further growth.  However, economic growth in China is a central part of the national plan and the federalization of the political scene together with development of democratic forms are inevitable and will also be helpful.  With such experiences and possibilities, the RMB is not in danger as major Western currencies. 

After all, China has inherited more contradictions of its own than the rest of the world living through eco-social relations of feudalism and wage labor and the combination of private and social capital in a high tech wage labor system. It is the most complex society and economy that has ever existed.  But its economic and social structure embodies a philosophical approach based upon creating the well-being of a productive population which will become the first nation to succeed in building a high tech industrialized society despite the multiple contradictions and improve the conditions of all of its people.  That is the new society that will show its strength in the 21stcentury.

I have answered all the questions from my distinctive point of view which is based on belief that China, with all its problems, is developing a Harmonious Society and ultimately will flower into socialism when the human nature of all its people on all economic levels achieve collectivity in their desire to have China succeed and create conditions for an ultimate growth into communism where the level of production and consumption are enough to take care of all of their people and fulfill Marx’s prediction “from each according to their ability, to each according to their need”; an ultimate return to the human relations in the beginning of tribal communal society before the development of classes.

Sincerely,

Sidney Gluck