Donald Trump, Once Again the Chief of World Imperialism

We can’t help it! Donald John Trump is again the chief of world imperialism. Is Trump a good representative of the U.S. capitalist ruling class? He is not only a capitalist but also a large landowner.

Given that the primary focus of this blog is economics, it is essential to address both of Trump’s roles.

The Trump Organization, his main enterprise, appropriates surplus value by buying land in Manhattan (New York City) and other large urban areas. It hires construction companies to erect skyscrapers that increase in height in alignment with the continually escalating urban ground rents. As these rents climb, the Trump family gets richer.

Presidential Election Goes From Bad to Worse

Note

Since this was written, the U.S. presidential election has gone from worse to far worse due to Joseph Biden’s disastrous performance in the June 27 debate with Donald Trump. Though I am no expert on these matters, Biden seemed to show signs of dementia. Dementia is not at all unusual for a man of his age.

All types of dementia are progressive, which means they get steadily worse over time. It’s hard to see how Biden will be able to serve as president until January 20, 2029.

The Democrats are discussing whether they should dump Biden—which would seem to be a no–brainer—and how to do that. As things stand, there appears to be almost nothing between Donald Trump and the White House. The truth is that the U.S. political system is ill-designed to handle this type of situation. I will have more to say on this next month.

Student Protests Against U.S.-Supported Israeli Genocide Spread Globally

Building since October 2023, the final weeks of April 2024 saw an explosion of student protests against U.S.-supported Israeli genocide in Gaza on campuses across the U.S. and the world. The latest, at Columbia University in New York City, was the site of a previous protest in 1968. That one was against Columbia’s ties to the U.S. military during the Vietnam War and was part of a wave of student protests around the country. It spread to France and helped trigger the great workers’ General Strike of May-June 1968.

The 2024 Columbia students demand:

Divest all finances, including the endowment, from corporations that profit from Israeli apartheid, genocide, and occupation in Palestine.
Complete transparency for all of Columbia’s financial investments.
Amnesty for all students and faculty disciplined or fired in the movement for Palestinian Liberation.

As of April 29, protests have swept across so many campuses that we don’t have the room to list them. We can safely say nothing of this scale has been seen since the May 1970 student strikes against Nixon’s extension of the Vietnam War to Cambodia.

How Vietnam Won, Part 1

On January 14, 2024, 400,000 pro-Palestinian anti-genocide demonstrators marched in Washington, D.C., to the White House (occupied by the Democrat President “Genocide Joseph Biden”). Tens of thousands more marched in support of Gaza in San Francisco, California, the following day.

The stakes could not be higher. Those of us living in the United States have a special responsibility to do all we can to force the government to halt its support to Israel. Though it is the Israeli government carrying out the genocide on the ground, it could not commit these nightmarish crimes without the financial, political, military, and moral support provided by the government headed by Genocide Joe.

The genocide — there is no other word for it — has continued without let-up in Gaza. Israel aims to kill people directly or through hunger and disease, then drive out the rest of the population as far away as possible from Palestine. The January 3 edition of the Middle East Monitor reports, “According to the Times of Israel, Prime Minister Benjamin Netanyahu’s coalition is discreetly exploring the acceptance of thousands of migrants from Gaza, with the Democratic Republic of Congo being one of the countries under consideration. ‘Congo will be willing to take in migrants,’ said a senior source in the security cabinet, ‘and we’re in talks with others.’”

Can the Palestinians Win?

The year 2023 was dominated by Israel’s genocidal campaign in Gaza beginning in October. It was supposedly in response to the Operation Al-Aqsa Flood attack on Israel by Hamas [Islamic Resistance Organization] and other Palestinian resistance organizations on October 7, 2023. Many so-called liberals, progressives, socialists, and even some Marxists have attacked the alleged excesses Palestinian fighters committed, such as beheading Israeli babies, raping Israeli women, kidnapping children, etc. Many of these claims of excesses have since been discredited. These “progressives” claim they sympathize with the Palestine people in their struggle against Israeli apartheid. But they then lecture that the Palestinians must conduct their struggle without violence or harm to “innocent Israeli civilians.”

It’s now clear that many of the civilian deaths were the result of the Israeli army itself firing into areas that were allegedly occupied by Palestinian fighters and their Israeli captives. Our “liberal” friends insist there is still a residue of Palestinian excess. But how could it be otherwise, considering how Zionists have treated the Palestinian people for the last 75+ years? Before October 7, there was the day before. Yet the so-called friends of the Palestinians insist we in the West must equally condemn Palestinian excesses, real or alleged, and Israel’s crimes. They want to support only a “pure” national liberation struggle without any “excesses.” In other words, they do not support any national liberation struggles at all!

They argue that today’s Palestinian liberation movement is dominated not by secular democrats like the Palestinian Liberation Organization of the past that fought for a secular democratic state for all of Palestine’s residents. The PLO’s program included the separation of church and state with equal rights for Christians, Muslims, and Jews to practice their respective religions. This is what these “friends” support as an alternative to Zionist apartheid with Judaism as the state religion.

Corporate Joe on the Picket Line

Over the last month, the news in the U.S. (the world’s leading imperialist power) was dominated by three main stories. The first is the strikes against the Big Three automakers by the United Auto Workers (UAW). The second is the continued struggle of the Party of Order against the presidential candidacy of Donald Trump. As of early October 2023, Trump appears to have built a sizeable lead in the Republican primary, with all the other candidates fading fast. The third story was confined mainly to the financial pages but is of particular interest to the readers of this blog. That story is the crash of the U.S. government bond market.

A government bond crash gets much less attention than a stock market crash, though it’s really more important. A stock market crash lowers interest rates. Unless a recession is already underway — like the famous 1929 stock market crash — a crash that relaxes the money market and lowers interest can postpone a recession. This happened in the crash of October 1987, when it lowered interest rates and prolonged the ongoing economic expansion by several years.

While a government bond crash doesn’t prevent the federal government from continuing to borrow money (increasing the cost to the taxpayer), it does increase the interest rate that both businesses and consumers have to pay. For example, housing construction had been slumping but began to recover last summer as mortgage rates began to decline. This raised hopes for a “soft landing” of the U.S. and the world economy. But now mortgage interest rates are rising to their highest levels since before the 2007-09 crisis, and housing starts renewed their decline.

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.

Law and Bonapartism in U.S. Politics

I’m pausing my critical review of Anwar Shaikh this month. Instead, I’ll devote this post to examining the current economic and political situation as it appears from the belly of the beast.

The economic contradictions of the capitalist system are coming to a head. This happens just before a universal crisis of general commodity overproduction. It’s particularly marked this time due to the frenzied character of the COVID aftermath boom. We’re seeing the contradiction between the capitalist system’s drive to continuously expand production and the limits on production imposed by the market’s ability to absorb commodities at a profit.

The Federal Reserve System is trying to slow the U.S. economy to a sustainable pace without sending it into a politically damaging recession. It says it wants less hiring and a slower expansion of production to fight inflation. Inflation is seen to be the result of too little commodity production relative to demand. How does reducing the number of people employed and slowing the production rate reduce inflation? Shouldn’t the answer be to produce more and employ more?

The Economic Outlook for 2023

As the new year begins, there is cautious optimism on Wall Street that the Federal Reserve will continue to moderate or perhaps reverse its moves to raise the federal funds rate. The Fed’s policies of increasing the rate target have led to expectations that a recession with rising unemployment will develop. What is the federal funds rate, and what is its relationship to the chances of a 2023 recession?

Federal law requires that commercial banks keep a certain amount of ready cash on hand either in the form of legal tender currency — paper money and coins — or deposits in one of twelve district Federal Reserve Banks making up the Federal Reserve System. The federal funds rate is the interest rate on loans commercial banks make to other commercial banks overnight.

When a bank is short of legally required cash reserves, it borrows from other banks that have a surplus over the legally required minimum. The money market is said to be tightening when the rate is rising. When the rate is declining, the money market is said to be easing. A tightening market precedes a recession, while an easing market points to an economic recovery. The Open Market Committee of the Federal Reserve System (today headed by Chairman Jerome Powell) — through the Federal Reserve Bank of New York — sets a target range for this interest rate, called “fed funds.” The fed funds target is currently between 4.25% and 4.50%.

The Dollar System Shows its Fangs

On October 5, an article by Shawgi Tell appeared in the online publication “Dissident Voice” titled “The Rich and their Media Offer No Solutions to Economic Problems.”

Tell writes: “False choices, bad options, and mixed messages abound. Week after week, one news source claims that everything is great while another says that the economic forecast looks gloomy for the next decade. Economic concepts like inflation, interest rates, costs, prices, and unemployment are rendered in the most tortured manner over and over again, with different representatives of the rich constantly making unscientific and confusing claims about what is ‘the real problem’ and how to ‘get us back on track.’”

Anybody trying to make sense of what is happening in the economy by reading the analysis in the media will be hopelessly confused. For example, we are told the Labor Department reported that 263,000 jobs were created in September. While reported as fact, this figure is only an estimate. The media indicates that job creation slowed last month from the month before but not enough to prevent the stock market from falling sharply on the day the unemployment figures came out. Wall Street knows that under current circumstances, as long as employment continues to rise, so will interest rates.