On June 17, a Memorandum of Understanding (MOU) was signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian. It contained 14 points that the U.S. media have considered favorable to Iran. These included reopening the Strait of Hormuz with no tolls for the next sixty days, with Iran retaining military control of the strait; extending the ongoing ceasefire for sixty days; ending the U.S. naval blockade of Iranian ports; and releasing Iran’s funds that had been frozen (stolen) by the U.S. The Zionist entity was also supposed to end its latest war against Lebanon, among other things. An MOU is far from a peace treaty, and though it did not end the war, together with the ceasefire it seemed to put the attacks on ice for the time being, at least as far as the military side of things was concerned.
Category: Monopoly
Why Trump retreated from all-out war with Iran
On June 17, a Memorandum of Understanding (MOU) was signed by Iranian President Masoud Pezeshkian and Donald Trump. It extends the April ceasefire for at least sixty days — with the possibility of extension — and provides a framework for negotiations to end the U.S.-Israel war on Iran. Though this is not a peace treaty, it represents a big retreat from Trump’s demand that Iran surrender unconditionally when he began the war on February 28. He started the war with the murder of Iran’s supreme leader, Seyyed Ali Khamenei, and other leaders. If Iran had knuckled under, it would have fallen under U.S. government control.
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.
Unraveling of the Post-1945 Order
As May winds down, the Gaza genocide continues, as do negotiations to end the Russo-Ukraine war, with no clear end in sight as of this writing. The Republican House of Representatives passed a bill now being considered by the Senate aimed at big cuts in government-supported Medicaid and possible cuts in Medicare and Social Security. The bill also features making earlier Trump-Republican tax cuts permanent, as well as adding more.
Liberals and progressives claim Republicans want to cut Medicaid to finance the tax cuts (capitalists don’t like to pay taxes) — but this is not their main motive.
Cutting Medicaid forces more of the poor onto the labor market by making them financially desperate to find a job or go without medical insurance. Nothing is being done to make more jobs available, nor are there plans to force bosses to provide medical insurance or wages sufficient to afford private insurance. They are intended to force people to work for wages that do not even pay the value of their labor power.
The Decline of Imperialist Democracy
As explained last month, Donald Trump kept his promise to end the genocidal military assault by the Zionist entity against Gaza. I will not call this a war. He then unveiled his own plan for “post-war” Gaza. Trump plans the permanent removal of 100% of the Palestinians from Gaza.
Who will replace them? Trump indicates that the U.S. itself would own Gaza, not Israel. Trump did not explain what this ownership means. Does it mean that U.S. businesses (including Trump’s family businesses) would build hotels and casinos to take advantage of Gaza’s beautiful Mediterranean climate? Or would Gaza become some sort of U.S. territory? He also implied that U.S. forces would replace Israeli forces, though he later walked that back claiming U.S. forces wouldn’t be needed in a Palestinian-free Gaza. (1)
Trump claimed Gaza Palestinians would be resettled at some beautiful place nearby, such as in Jordan or Egypt, though there were some stories it might be distant Indonesia. The governments of Jordan and Egypt expressed strong opposition to any forcible resettlement in their countries. His plan also raises questions about the future of West Bank Palestinians. Many of them, as in Gaza, are refugees from other parts of Palestine. Even before Israel began its genocide in October 2023, the Zionist entity was putting pressure on the West Bank — will the next step be to drive Palestinians out of there as well? Will the U.S. own the West Bank as well as Gaza?
Gang Warfare
For weeks following Israel’s murder of Hamas leader Ismail Haniyeh in Tehran on July 31, the world wondered if (and when) Iran would retaliate. Haniyeh was heavily involved in diplomatic activity to end Israel’s genocidal bombing in Gaza. He had been in Tehran for the inauguration of Iran’s new president, Masoud Pezehkian.
Iran was widely expected to react by launching a drone and missile counterattack on Israel as in April, but this time to causing greater damage. Much to the surprise of most observers, Iran took no military action. It seems that the Iranian leaders were engaged in intense diplomatic activity to arrange a ceasefire to end, or at least suspend, Israel’s genocidal bombing campaign on Gaza.
Hezbollah, the Lebanese political-religious resistance organization, was also negotiating for a ceasefire. Its leader, Hassan Nasrallah, was one of the most popular and respected political leaders in Lebanon.
The Political Crisis of U.S. Capitalism
On September 7, ABC News online edition reported, “More than a dozen presidential centers got together to warn about the fragile state of American democracy heading into 2024.” The phrase “fragile state of democracy” means that the traditional form of class rule by the U.S. capitalist class is in real trouble.
The center of this developing political crisis is the upcoming presidential election in November 2024. As the election approaches, for the first time in U.S. history, a former president faces felony charges in four venues. In New York and Georgia, involving election fraud; in South Florida, involving classified documents allegedly stolen and held illegally after leaving the White House; and in the District of Columbia, where he’s charged with attempting to defraud the United States by stealing the 2020 election.
Trump is not just a former President. He’s also the current leading candidate for the Republican presidential nomination in the 2024 election. Attempts by the “Party of Order” to build up a rival Republican candidate have so far not gone anywhere. Polls show that as the downpour of felony indictments descends, his lead in the polls for the nomination over the other declared candidates has widened.
Written and Unwritten Laws
On August 1, 2023, a Washington, D.C., grand jury, at the urging of special prosecutor Jack Smith, indicted Donald Trump on four felony counts. The counts center on Trump’s illegal attempts to remain in office after he’d clearly lost the 2020 presidential election in both the popular vote and, what legally counts, the electoral college. On August 15, a Georgia grand jury indicted Trump and 18 supporters on racketeering charges. The charges involve the alleged attempt by Trump and his supporters to steal Georgia’s electoral vote and, in effect, suppress the African American vote. More on this in coming posts as the situation unfolds.
As I explained last month, in the U.S., the transfer of power from one president to the next involves both written and unwritten laws. One unwritten law is that the defeated presidential candidate, either Democrat or Republican, concedes the election after The New York Times declares their opponent the winner in the electoral college. The defeated candidate then offers their support to the new president-elect. Trump defied this law. Instead of congratulating Joseph Biden, the electoral college winner — and the popular vote winner — Trump claimed he had won the election by a “landslide” and that the official vote tallies were false. Many of Trump’s Republican supporters, as well as some non-supporters who needed the votes of his base to win their reelection — claim that Trump’s latest federal indictment, as well as the latest indictment in the State of Georgia, is an attack against the right of free speech.
Now it’s true that the U.S. Constitution’s First Amendment guarantees the right to free speech. U.S. residents and citizens have the right to lie, except to police officers, federal agents, or under oath. They do have the right to refuse to talk to police officers and federal agents under the Fifth Amendment, which protects persons from having to provide testimony against themselves. Police officers and federal agents, though, have the right to lie to suspects, though not the right to lie to jurors — which, of course, doesn’t mean they never do. This is one reason why defense attorneys are almost unanimous in advising people to never talk to a police officer or federal agent in the absence of an attorney.
Whip of Hunger, part 2
As May drew toward its end, the media was full of reports that the world economy was teetering on the edge of catastrophe. If the media is to be believed, the threat came not from the unsold commodities that accumulated due to the COVID aftermath boom. Rather, they said that unless the Democrats and Republicans reached a last-minute agreement to raise the debt limit, the government will be forced into default as the Treasury runs out of money.
In last month’s post, I declared that this crisis was fake. Sure enough, “at the last minute,” the crisis was averted. On Saturday, June 3, President Biden signed the compromise agreement allowing the government to keep borrowing into 2025. The compromise bill sailed through the House of Representatives with 314 voting yes and 117 voting no. In the Senate, the vote was 63-to-36. No small portion of that borrowed money will go to servicing federal government debt, the bulk of which is owned by wealthy capitalists.
Karl Marx on the national debt
Karl Marx wrote:
“The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.” (Capital, Volume 1, Chapter 31, Genesis of the Industrial Capitalist)
The Phony Crisis, the Real Crisis, and the Whip of Hunger
U.S. law prevents the federal government from allowing its debt to rise beyond a specific limit. As of May 2023, the limit is $31.4 trillion though this will be raised in the coming weeks. If either or both houses of Congress don’t, the federal government will be forced to reduce expenditures and forced into default. Finance capital won’t allow that.
On January 19, 2023, the day the legal limit was reached, the debt ceiling was not raised because of various technical loopholes in the law, but they are not unlimited. This is not the first time for this kind of artificial government debt crisis, which has become a regular feature of U.S. politics since the Obama administration. Treasury Secretary Janet Yellen estimates that the legal wiggle room (technical loopholes) will be exhausted by June 1, 2023. So while an over-the-weekend theatrical default is possible, the chance of an extended default is less likely than the Vatican announcing its conversion to Judaism or Islam.
Is the federal debt crisis just for show? Not at all. A bill will be passed within the next few weeks, raising the current $31.4 trillion debt limit. To become law, the bill must be passed by both houses of Congress and signed by the President. The Democrats narrowly control the Senate, but the House of Representatives has a slim Republican majority. The House already passed a bill to raise the debt limit, but it contains provisions cutting the budget. Of course, cutting the war budget is off the table — instead, the GOP wants to gut social programs. The most important provision is to attach work requirements to Medicaid and food stamps benefits, as well as measures to promote the production of more fossil fuels. They also want Biden’s limited student debt forgiveness canceled.