Financial Collapse or Revolution

Only a Revolution will stop Imperialism

Anybody who has the slightest understanding of political economy, who has read Naomi Klein's book, Shock Doctrine: The Rise of Disaster Capitalism can recognize this phase in history. This is a period marked by massive looting of working class resources in the form of everything from taxpayer dollars to mortgage payments and retirement funds.

Anybody who has an inkling about history itself, and can put words together into logical sentences, can see how this is part of the capitalist economic cycle. And this cycle cannot be permitted to dominate our consciousness. We must gain control of Imperialism's demise. Without the self-led African proletariat becoming the Revolutionary spark that will end Imperialism, we are just caught up in the madness.

From 1929, the saying "Behind every boom follows a bust" has been the primary theory behind capitalist macro-economics. And the housing market went from boom in the mid 90s to bubble in the late 90s and up thru 2006. Then the bubble busted when interest rates jumped from 5.5% to what 11.5%, 12%?

How and why did these rates change, who manipulated them and on whose directions, are questions which must be answered to the satisfaction of the people whose money is going to bail out a bloodsucking financial system.

Some folks blame it on credit, that the US economy operates on credit, yet that is about true as the black middle class saying, that black folks don't produce anything. We produce plenty, we just do not own what we produce.

And in reply to the conception that American economics operate on credit is to assume that someone other than those who generate the wealth are entitled to it.

Working people create wealth, workers create surplus, which the capitalist system CONVERTS into abstract issues such as stocks, bonds and paper money. This wealth also allows the capitalists to create legal fictions called laws, which defend private property, yet once we break thru the psychological and political concepts which are like the imaginary boundaries in a sport, the system of private ownership will be broken.

Now whereas the rise in rates affected people with Adjustable Rate Mortgages (ARMs), the pundits proclaimed -- puppet-mouth drivel reiterated a million times like Hitler's infamous lie -- "those people bought more house than they could afford." It placed the blame on homeowners for sophisticated articles of legal fraud held in the hands of banks. ARMs, IRAs, Keoghs, CDs, pension plans and other asset-backed paper are formulated by the legal departments of financial institutions, and legalized by a legislative system bent on deregulating an already rotten system.

Yet other forces declared an opposite truth, that these people were legally swindled by predatory lending agencies. Said agencies, such as Countrywide and Credit Suisse, have either foundered under the weight of anti-discriminatory lawsuits and/or have been looted by their shareholders as in the case of Freddie Mac and Fannie Mae. In any case, the Fed bailed out the rotten finance instutions rather than the people who generate the wealth which was looted by both banks and government.

The housing market began the slide which started in July 2007 when the stock market climbed to over 14,000 points. It had nowhere to go except down, and within three weeks it fell 297 points. This shook the European Common Bank -- which controls the EU Common Market the way the Fed controls US currency and other issues -- and the US was left responsible for stabilizing THAT economy. At that time, the term "MASSIVE LIQUIDITY INJECTION" became the code words for using taxpayer money for corporate welfare. Banks, the highest level of business organization, needed bailed out by a government which has a difficult time featuring how to help poor people, people hit by floods and storms, and those who have lost their jobs due to export of capital resources by US businesses and financial institutions.

However, that is not all what happened. It was because of the conniving POLITICAL MANIPULATION of interest rates, from the Clinton era on thru Bush 43, which instigated this problem. Yet the problem is more complex than just interest rate manipulation. Today, the same forces which caused the rise in fuel prices (not COSTS), cause the cascade effect going on in the banking industry.

If America's financial crisis results in an economic meltdown across the board, that will not be good. It will not portend any favorable news for Africa or Africans. What we must understand is that Imperialism cannot be permitted to collapse on its own. It must be brought down thru violent revolution. Imperialism cannot just fall apart, otherwise, all the reactionary forces of white power will be unleashed. That is why we have to understand our role as revolutionaries and how to organize all forces thru out society to bring about the demise of Imperialism and to bring in the era of Socialist revolution.

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