The Reichsbank in 1939 and the Federal Reserve in 2026

In January 2026, the Trump administration launched additional attacks on the Federal Reserve System’s independence. This caused the gold market to go into a frenzy, with the dollar gold price spiking to over $5,500 an ounce. The price then plunged back below $5,000 after Trump announced the nomination of veteran central banker and Wall Street favorite Kevin Warsh to head the Fed after chair Jay Powell’s term ends in May. As of early February, the price has fluctuated around $5,000. While this may seem obscure to laypeople, it points to the economic roots of crises that have erupted on many fronts.

We’ll begin with Iran, then turn to the general strike in Minnesota on January 23.

From Surplus Value Producers to Associated Producers of the World

Many books on Marxist economic theory end with the author describing what a future socialist – or communist – society will look like. Inevitably, these portraits of the future society reflect the author’s personal views and often contain bourgeois prejudices. We are all, Marxists included, products of the society we were born in and live in. This means that our ability to transcend the bourgeois society we were born and raised in, and our imagination, is not unlimited. The present author does not claim to be an exception.

From Caracas to Minneapolis

The Donald Trump administration celebrated the birthday of what those in the Christian faith call the Prince of Peace, Jesus Christ, on December 25 by bombing two African countries, Nigeria and Somalia. That Christmas day horror was only the beginning of its crimes as 2025 ended. As 2026 began, on January 3, the U.S. bombed Caracas, the first time in history a South American country was subjected to air bombardment, and kidnapped Venezuelan president, Nicholas Maduro, and his wife Cilia Adela Flores. In a world of nation-states, the government of one country has no right to seize the citizens (let alone the head of state) of any other nation-state.

On January 7 in Minneapolis, an ICE agent shot and killed 37-year-old Renee Nicole Good, a native-born U.S. citizen who was a poet, a Christian, white, and a mother of three now-orphaned children. While the administration attempted to frame Ms. Good as a “domestic terrorist” who was attempting to run over the agent, Jonathan Ross, bystander videos show she was actually trying to avoid him while he circled her car with a cell phone in one hand and his service weapon in the other.

This horror followed weeks of a coordinated racist drive against the Somali community, which serves as a textbook example of economic scapegoating. Reactionary demagogues first claimed Somali immigrants had been capturing and eating domestic pets; more recently, they have weaponized allegations of “daycare fraud” to charge that Somali businesspeople are funneling federal dollars to international terrorist groups. By criminalizing the Somali community’s economic activity, the federal government has created the pretext for a permanent federal occupation of the city.

More than 2,000 ICE agents have flooded Minneapolis, and Trump wants to send more. This massive deployment represents a domestic application of the “Department of War” philosophy, turning a major U.S. city into a garrisoned territory.

Can the World Market Ever Become Exhausted?

Around the turn of the 20th century, the belief that the world market was headed for eventual exhaustion was widely accepted among the left wing of the Social Democracy, especially in the German-speaking world. But the refutations of Rosa Luxemburg’s “Accumulation of Capital” and her “Anti-Critique,” based on Marx’s Volume II models of capitalist reproduction, pretty much discredited the idea that the world market could ever face a situation of permanent exhaustion.

The Historical Limits of Capital: From Stagflation to Artificial Intelligence

Recent media speculation has focused on whether 79-year-old President Donald Trump is experiencing cognitive decline, echoing similar coverage of his predecessor, Joseph Biden.

They’re the oldest men to have held the office. As people age, they become more vulnerable to the group of brain changes we call dementia. I’m not qualified to assess anyone’s health; what matters here is what these stories signal politically — confusion, factionalism, and instability at the top of the state.

At times, it seems that Trump has no coherent foreign policy. There are stories he’s pressuring Euromaidan Ukraine to settle the war with Russia on Russian terms. Then it seems that settlement talks go nowhere.

Otto Bauer’s Critique of Rosa Luxemburg’s ‘Accumulation of Capital’

Of all the Social Democrats who criticized Rosa Luxemburg’s “Accumulation of Capital,” the most important contribution was Otto Bauer’s. Bauer was a leader of the Austrian Social Democratic Party and became the party’s top leader in 1918.

The Struggle Against Revisionism in the German Social Democracy

At the time of the death of Engels in August 1895, the German Social Democratic Party (SPD) represented the highest expression of the class-conscious working class organized as a political party achieved up to that time. Not only did the SPD enjoy the support of a large and growing sector of the German working class, it was a party avowedly based on Marxist ideas. As a result, it was the leading party of the Socialist International, also known as the Second International.

Breakdown Theories

In the preface to his “Contribution to a Critique of Political Economy,” the only major economic work of his mature period other than Volume I of “Capital” that Marx published during his lifetime, Marx explained that the underlying cause of the replacement of one mode of production by another is to be found in the changes in the forces of production.

Gold, Overproduction, and the Emerging Monetary Crisis

On November 8, Senate Democrats made a deal with Republicans to end the government shutdown. The deal was attacked by many podcasters allied with the Democratic Party’s progressive wing.

Led by President Trump, Republicans threatened to cut or end funding for the SNAP (food stamps) program. In 2024, some 41 million people depended on the program.

In the face of court orders, they backed down, but the Supreme Court allowed them to go ahead with the cutoff. Hours before eight Democrats caved to Republican demands and announced they’d vote to end the government shutdown on Republican-Trump terms.

The Long Cycle — Summary and Conclusions

In the preceding chapters, we examined whether the capitalist economy experiences cycles considerably longer than the industrial cycles of approximately ten years. As we saw, it has been proposed by various economists — both bourgeois and Marxists — over the last 100 years that, in addition to the 10-year industrial cycles and shorter inventory cycles, there also exists a long cycle of approximately 50 years’ duration.