18 Dec 2015

Volvo truck plant lays off 734 workers ahead of contract deadline

Ed Hightower

Volvo Trucks North America announced plans earlier this month to lay off 734 production workers, about one quarter of the workforce, at its New River Valley assembly plant in Dublin, Virginia. The announcement came just one day before workers at the plant voted by 96.3 percent to authorize strike action as part of negotiations between United Auto Workers (UAW) Local 2069 and Volvo. The current five-year labor agreement is set to expire in March 2016. Layoffs are set to begin in February 2016.
The New River Valley assembly plant is the largest employer in Pulaski County, with more than 2,800 workers at its 1.6 million-square-foot facility. It is also Volvo’s largest truck manufacturing plant in the world, producing every Volvo truck and tractor-trailer in North America.
Just two months before the layoff announcement, Volvo unleashed plans to invest $38.1 million for the building of a 36,000-square-foot “customer experience center” that would house a movie theater, training rooms and a one-mile track where prospective customers could watch the trucks be test driven. Governor Terry McAuliffe made a well-publicized visit to the plant for the unveiling of the customer experience center. Volvo workers were required to leave their workstations and attend the event.
Volvo spokesman John Mies told the Roanoke Times that the layoffs were purely due to weakening market demand and poor economic conditions in the US. He denied that the layoffs had anything to do with other issues at the plant.
In reality, the layoffs are a deliberate effort to intimidate workers and force them to accept a sellout contract in March. (Recently laid-off workers are still permitted to vote on the upcoming contract.) Volvo used this same approach to force through the current contract, which was ratified in 2011. Shortly after that agreement, Volvo rehired about 700 workers who had been laid off as the contract deadline loomed.
UAW Local 2069 has taken no action in defense of the 734 workers it nominally represents. These workers are part of the second tier at the Volvo plant and make $18.77 per hour (first-tier or “core” workers earn $25.54 and represent roughly one third of the plant’s workforce).
According to a UAW-conducted survey, the primary concern of all workers at the plant is the elimination of the two-tier wage system, a demand that the union has no intention of raising. Instead, UAW officials announced that their negotiating platform consists largely of minor changes to health care coverage and other issues that pertain only to first-tier workers.
Like Volvo, the UAW uses divide-and-conquer tactics to split the first- and second-tier workers. In this effort, UAW Local 2069 tries to schedule its informational meetings at times that are inconvenient to second-tier workers.
Against the interest of all of the workers, UAW Local 2069 gave Volvo 90 days of notice in advance of any strike, allowing the company time to stockpile inventory. The response of the union to the announced layoff of a quarter of its members is silent acceptance. No demonstrations have been called in support of laid-off workers, nor have any calls been made to mobilize workers at other Volvo plants or auto manufacturers outside of Dublin, even though such workers are ostensibly organized under the same union.
UAW Local 2069’s Facebook page currently directs readers to “buy American” campaigns for Christmas gifts.
In the event that the UAW does call a strike, it will only be of the “Hollywood” variety, serving only as a safety valve for workers’ anger before the union calls them back to work, with or without a contract. Any contract promoted by the union will be a sellout, with the preservation of Volvo’s profitability as the main priority.
As in countless instances in the past year alone, the UAW will prove that it does not work for autoworkers, but for management. Through isolating Volvo workers, the UAW has helped the company achieve an estimated 25 percent reduction in wages over the course of the last four contracts.

Cases of malnutrition surge in UK

Liz Smith & Harvey Thompson

A recent report titled “The cost of malnutrition in England and potential cost savings from nutritional interventions” highlights the consequences of poverty affecting large parts of the population of the world’s fifth-wealthiest country.
The report is authored by the Malnutrition Action Group of the British Association for Parenteral and Enteral Nutrition (BAPEN) and the National Institute for Health Research Southampton Biomedical Research Centre (NIHR Southampton BRC).
Malnutrition is a serious medical condition that occurs when a person’s diet does not contain the necessary nutrients. Last year, almost 3 million people in the UK at any one time were estimated either to be suffering or at risk from malnutrition. The BAPEN/NIHR report, the result of three years of collaboration, focuses on England, but its findings could be applied to the rest of the country.
“Malnutrition is a common clinical and public health problem in England, which is found in all care settings, all disease categories, and individuals of all ages,” it states.
Using the Malnutrition Universal Screening Tool (MUST) for adults in England, malnutrition is estimated to affect approximately:
  • 30 percent of adults on admission to hospital.
  • 35 percent of residents in care homes.
  • 15 percent or more of adults attending hospital outpatients.
  • 18 percent of adults on admission to mental health units.
  • 12–14 percent of adults in sheltered housing.
  • 10 percent of adults visiting their general practitioner (GP).
  • 5 percent of the adult population of England.
Its research, and that of others, have shown that malnutrition increases:
  • Hospital admissions, length of hospital stay, as well as hospital readmission following discharge from hospital.
  • Risk of becoming dependent on others and becoming a permanent resident in a care home, especially those with nursing care.
  • Visits to a GP.
The report is written from the standpoint of advising the state of “potential cost savings.” It evaluates the “clinical and economic burden of malnutrition” and employs arguments in this vein. Nonetheless, the findings reveal a growing social scourge in contemporary England.
The “cost of malnutrition” in England is estimated to be £19.6 billion per year, or “more than 15 percent of the total public expenditure on health and social care.” Around half of this total expenditure is spent on those over 65 years of age, and the other half on children and young adults.
In conclusion, the report calls for, “The burden of malnutrition” to be “tackled in an integrated and coordinated manner by multidisciplinary groups of health and social workers, including health planners, commissioners, clinicians, nurses, dieticians and pharmacists.”
The “multidisciplinary” collaboration recommended by the report blatantly ignores the social reality of austerity in Britain, where the National Health Service (NHS) is being dismantled as the effects of the economic crisis are pushed onto the backs of the poorest and most vulnerable.
According to recent figures obtained through a freedom of information (FOI) request by Birmingham City University student Eiryo Saeki to NHS foundation trusts (43 responded), there were 193 “episodes” of malnutrition in just 12 months at Salford Royal NHS Foundation Trust alone, in Greater Manchester. Birmingham Children’s Hospital reported 31 instances of malnutrition last year, almost double the number for 2013.
NHS managers in Salford have warned that thousands of people in the city may be struggling to get enough food to eat. Kirstine Farrer, head of innovation and research at Salford Clinical Commissioning Group, said BAPEN, in 2013, “suggested that of Salford’s population of 35,000 aged 65 years or older, 14 percent or almost 5,000 people may be at risk of malnutrition.”
While Salford Royal had the highest number of malnutrition cases in 2014, incidences are spread throughout the country. Yeovil District Hospital in Somerset had 161 cases, followed by the Heart of England, Birmingham, with 113. Sheffield Teaching Hospitals had 92, University Hospitals Birmingham, 89, Norfolk and Norwich University Hospitals, 87, Colchester Hospital University, 75, East Kent Hospitals University, 70, University Hospitals, 70, and Bristol and York Teaching Hospital, 60.
NHS statistics cited recently in the Independent show that 7,366 people were admitted to hospital with a primary or secondary diagnosis of malnutrition between August 2014 and July 2015, compared with 4,883 cases in the same period from 2010 to 2011. This is an increase of more than 50 percent in just four years.
The rise in malnutrition has coincided with the explosion in the use of food banks by millions of people. Nationally, between April and September 2015, the Trussell Trust, one of the UK’s main food bank providers, gave 506,369 emergency food supplies to people, compared to 492,641 in the same period last year.
The Trust reports that in the hours from March 31 to April 1, 2015, food banks in Greater Manchester fed 16,083 people, including 6,206 children. Chairman Chris Mould said, “We meet families across the UK who are struggling to put enough food on the table, and at the extreme end of that you get people who are malnourished. We often see parents who are going without food so that they can feed their children, and these parents often struggle to afford enough nutritious food for their children too.”
These figures were revealed as Tameside Hospital, also in Greater Manchester, became the first NHS hospital in the UK to set up a permanent food bank on site. Three food collection points have been set up, with donations delivered to a central warehouse. These were established as medical staff were reporting a significant increase in the number of malnourished patients turning up for treatment and care.
The hospital’s chief executive, Karen James, said staff had noticed patients are “often coming through malnourished,” and when talking to patients “we find out that they are suffering and there is a need.” She said people were making choices about whether to pay a bill or feed the family.
Natalie Welsh, a nutrition specialist nurse at Tameside, said, “It’s really important that these people are highlighted in our community because quite often by the time they come through our doors and need to be admitted, the damage is already done. It can take us a long time to get them to recover from illness and disability because of the malnutrition they have suffered.”
The vast increase in social inequality in the UK is leading to increased levels of malnutrition, alongside the growth of diseases such as scurvy, scarlet fever, cholera and whooping cough. According to a report by the London Assembly, tuberculosis rates in some London wards such as Brent, Ealing, Harrow, Hounslow and Newham, are higher than in Rwanda or Iraq.

Job losses mount throughout Australian mining sector

Terry Cook

Thousands of jobs are being destroyed in Australia’s mining and resources sector as major companies restructure operations to slash costs amid a stagnating global economy and ongoing plunge in world commodity prices.
Last week, mining giant Anglo American unveiled a plan to eliminate 85,000 jobs internationally—potentially including 4,800 workers employed in its Australian coal mines.
The company has not yet specified the job cuts in Australia, but it has already put four coal mines up for sale—the Dawson, Foxleigh and Callide mines in central Queensland and the underground Dartbrooke mine in the Hunter Valley of New South Wales (NSW), which was mothballed in January 2007.
At Dawson alone, more than 1,000 regular and contract workers could lose their jobs, and approximately 250 at Foxleigh.
In late November, Anglo American already announced it would axe 500 jobs at its Drayton coal mine in NSW, which produces export thermal and pulverised coal injection (PCI) coal, after the state government rejected the company’s application for an extension of the operation.
Given the ongoing collapse in coal prices, there is increasing speculation no buyers will be found willing to pay the prices sought by Anglo American to offload the mines. Prices for thermal coal, which is used for power generation, stand at around $US52 a tonne, well down from the $150 a tonne reached in 2011.
Earlier this year, IHS Coal’s Australia senior manager Marian Hookham warned that potential buyers for struggling coal assets “appeared to be holding back,” believing that if they waited another few months “the prices for these assets could be cheaper.”
Anglo American could well opt to mothball the mines, as it did with its Dartbrooke operation, and lay off their entire workforces to save on labour and other operating costs.
Around mid-year, Anglo American Australia CEO Seamus French declared: “While we are exploring a sale, we will be disciplined in our approach and if offers we receive are below what we consider fair value, we will not sell these assets; these are good assets.”
Even if sell-offs are achieved, there is no doubt the new owners will implement deep cuts to jobs and working conditions in a bid to offset falling revenues and bolster profits.
Anglo said it was not considering any further sale of coal mines, including the four it owns on the country’s east coast that produce metallurgical coal used in steelmaking. However, falling steel production in Asia and China could lead to restructuring these operations as the company tries to lower costs and compete for market share against rivals.
Some steel producers in China have either reduced output or shut completely as consumption continued to shrink this year, after falling in 2014 for the first time in more than three decades due to the slowing economy.
The drop in global coal prices will spark further job cuts by other companies in Australia, such as Anglo-Swiss mining giant Glencore, and the Anglo-Australian firms BHP Billiton and Rio Tinto, which have each already slashed hundreds of positions. This month, Glencore announced it would cut 180 of the 230 jobs at its Collinsville mine in central Queensland, on top of the 80 positions it axed in May.
In October, Glencore announced it would halve zinc production across its Australian operations and eliminate over 530 jobs, or about one third of the company’s Australian zinc division workforce. The move came after the price of zinc plummeted 28 percent in a year, reaching a five-year low of $1,662 a tonne.
Further job cuts are sure to occur in Australia’s iron ore mining sector, also driven by falling prices. The price of iron ore for immediate delivery to China’s Tianjin port fell 1.3 percent to $38.30 a tonne last week according to The Steel Index. This was the lowest price since 2005 according to data compiled by Goldman Sachs. During 2010, the price peaked at around $180 per tonne.
Perth-based BC Iron has announced it will suspend production at its Nullagine iron ore operations, a joint venture with the Fortescue Metals Group in Western Australia (WA). The company employs around 30 regular workers and 200 contractors, together with 30 employees at its head office in West Perth.
Similar shocks are affecting Australia’s liquefied natural gas (LNG) sector. Chicago Bridge and Iron, the lead construction contractor on Chevron’s $54 billion Gorgon LNG project off northern WA, last week announced 1,000 layoffs effective immediately. The redundancies were originally expected next March. The company allegedly brought them forward to avoid paying a 2 percent pay rise due from January 1.
Chevron is desperate to reduce costs as the project nears the end of the construction stage. The cost of construction blew out from the original budget of $37 billion, set in 2009, to $77 billion; and the project is running two years behind schedule, so the company missed out on peak gas prices.
Chevron announced a global restructure in November to axe 6,000 to 7,000 jobs across its international operations over the next year. An estimated 2,000 jobs were expected to be shed from Gorgon and its other large LNG project in WA, Wheatstone, as the construction phase on the projects moved toward completion.
Under conditions of falling oil prices, to which gas prices are linked, these job cuts are a stark warning of what is to come throughout Australia’s LNG sector.
In January this year, an estimated 35,000 people were directly employed on the seven major onshore LNG projects under construction, including Gorgon and Wheatstone. The Australian Bureau of Resources and Energy Economics estimates that when all seven projects reach the operational stage, the numbers employed will be cut to just 7,000.
Amid escalating oversupply, and with major LNG producers already making multi-billion dollar write-downs, there is little incentive for investment in the construction of new gas platforms.
Brent crude oil closed at $44.61 a barrel at the end of last month, down from more than $115 in June 2014. In September, the International Energy Agency (IEA) warned that even if oil prices rose and averaged $60 a barrel for the next few years, “Australia’s LNG industry would struggle to be profitable.”
In a media interview, IEA’s senior gas expert Costanza Jacazio declared: “In a $60 oil environment the Australian projects will continue, but you are probably not breaking even,” adding: “Will anything else in Australia proceed beyond this next portion of projects? I think in this environment it is very unlikely.”
Among gas projects that the IEA predicts will not go ahead are Woodside Petroleum’s Browse floating project, located approximately 425 kilometres north of Broome in WA, together with the company’s Sunrise venture in the Timor Sea and the joint ExxonMobil-BHP Billiton Scarborough project off WA.

Saudi Arabia and the “war on terror”

Bill Van Auken

Speaking to the media during a visit to the giant Incirlik Air Base in Turkey Tuesday, US Defense Secretary Ashton Carter praised the Saudi monarchy for proclaiming a new “Islamic alliance” against terrorism.
“We are happy with the alliance formed by Saudi Arabia and looking forward for the steps being taken by them against terrorism,” Carter declared.
No sooner was the Saudi announcement made, however, than a number of countries raised questions about their inclusion, without their knowledge, in the so-called alliance. Three predominantly Muslim countries—Iraq, Syria and Iran—were excluded, leading to charges that the Saudi monarchy is really only patching together a Sunni Muslim alliance to prosecute its sectarian crusade against the region’s Shia population.
A more fundamental question is what does the Saudi regime mean by “terrorism”? Clearly, it is not referring to the various Al Qaeda-linked groups fighting in Syria, all of which get substantial funding as well as large numbers of fighters and their religious-ideological inspiration from the Wahhabist Saudi kingdom.
This fact was confirmed by then-US Secretary of State Hillary Clinton in a classified 2009 cable declaring that “donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide.”
This was further acknowledged by Vice President Joe Biden in a speech delivered at Harvard last year. He admitted that the Saudi regime, along with other US client despots in the Middle East, had “poured hundreds of millions of dollars and tens, thousands of tons of weapons into anyone who would fight against Assad. Except that the people who were being supplied were al-Nusra and Al Qaeda and the extremist elements of jihadis coming from other parts of the world.”
Of course what both Clinton and Biden sought to conceal was that this operation was fully coordinated by the CIA out of a station in southern Turkey. Washington had armed and funded similar groups in the US-NATO war for regime change in Libya, and well before that had worked closely with the Saudis in fomenting the Islamist war against the Soviet-backed regime in Afghanistan, which gave rise to Al Qaeda.
So what does the Saudi monarchy view as terrorism? The answer can be found in its prison cells, where three young men, all arrested when they were minors, are awaiting death by beheading for the “crime” of participating in peaceful protests against the relentless repression of the US-backed regime in Riyadh.
They are among 52 similar “terrorists” whose mass execution is expected at any time. Two of them—Ali Mohammed al-Nimr, who was 17 at the time of his arrest, and Abdullah al-Zaher, who was 15—in addition to being sentenced to die by decapitation with a sword, are to be crucified, their headless bodies mounted on crosses in a public space as an example to anyone thinking of defying the House of Saud.
What the Saudi monarchy considers “terrorism,” moreover, was codified into a new law last year. It establishes that terrorism includes “any act” intended to, among other things, “insult the reputation of the state,” “harm public order,” or “shake the security of society.”
Other acts defined as “terrorism” include: “Calling for atheist thought in any form, or calling into question the fundamentals of the Islamic religion on which this country is based,” as well as “Contact or correspondence with any groups, currents [of thought], or individuals hostile to the kingdom.”
The parents of Abdullah al-Zaher, now 19, have come forward to plead for his life. They describe how he was tortured and beaten with iron rods after his arrest until he signed a false confession that he was not even allowed to read.
The Saudi regime has already executed at least 151 people this year, the highest per capita rate of capital punishment of any country in the world.
Within the Obama administration and the corporate media, appeals for the lives of Ali Mohammed al-Nimr, Abdullah al-Zaher and the dozens of others who face imminent beheading have fallen on deaf ears.
Washington continues to count Saudi Arabia as its closest ally in the Arab world, selling it more US weaponry than any other country on the planet. Last year alone, the oil kingdom purchased $1.2 billion in US armaments. A new $1 billion deal was recently announced, as the Pentagon continues to resupply the Saudi military in its vicious war in Yemen that has already claimed more than 7,000 lives, while reducing tens of millions to the brink of starvation.
The media in the US has largely ignored the plight of the youth sentenced to beheading and crucifixion. Instead, it has lavished praise on recent elections to municipal councils on the grounds that women were for the first time allowed to vote and run for office, though they remain deprived of virtually every other right.
Most of the coverage dutifully ignored the fact that less than 10 percent of the population—and barely 1 percent of Saudi women—bothered to vote for the municipal bodies, which are utterly powerless advisory panels in a country where the royal family appoints all those who wield any real power.
Nor in the media’s celebration of a handful of rich Saudi women running for meaningless posts was any attention paid to a Sri Lankan woman, one of the many thousands of foreign domestic workers treated like slaves, who is awaiting death by stoning after being charged with adultery. Two Indonesian maids were executed by beheading earlier this year.
That US imperialism counts the Saudi regime as its closest ally in the Arab world debunks all the pretexts it has used to justify its continuous wars in the region. The alliance with a state that finances, arms and provides religious-ideological inspiration to Al Qaeda-linked groups gives the lie to the supposed “war on terror,” just as US support for an absolute monarchy that beheads and crucifies youth exposes the fraud of Washington’s promotion of “democracy” and “human rights.”
Washington’s real objectives are purely predatory, directed at utilizing military might to offset the economic decline of American capitalism by asserting hegemony over the world’s markets and resources.
That it relies on the ultra-reactionary and bankrupt Saudi regime as a key pillar of this policy only demonstrates that US imperialism is headed for a catastrophe. It is destined to reap all that it has sown in the massive crimes carried out against the peoples of the region, even as the immense contradictions building up within US society create the conditions for a revolutionary explosion.

12 Dec 2015

The Rise Of The American-Muslim Totalitarian State

Garikai Chengu

Muslim-Americans are living in a totalitarian police state with worsening harassment, profiling, and surveillance. The United States’ government may claim liberty and justice for all; however, in practice, towards Muslims, it exhibits all four major characteristics of a totalitarian state: a war on terror that targets Muslims abroad, a totalitarian police state at home, public executions by drones and gulags outside the rule of law, and a strong reliance on propaganda and political demagoguery.
The hallmark of fascism was state oppression of certain targeted non-privileged groups. Today, Muslims are bearing the brunt of America's totalitarian police state.
Despite FBI records showing that since 9/11, Muslims have committed far less domestic terror attacks than white supremacists, it is the American-Muslim community that is under unprecedented levels of surveillance and government intrusion. Muslims in America are unquestionably experiencing a fascist system of surveillance, operating at the same level that East Germans faced under the Stasi spy agency. Researcher, Arun Kundnani, has shown how the FBI has one counterterrorism spy for every 94 Muslims in the U.S., which approaches Stasi's ratio of one spy for every 66 citizens.
Clearly racism, as much as oil, fuels the War on Terror. White Christians rarely have to worry that an undercover agent or informant has infiltrated their churches, student organizations or neighborhoods. The simple fact that U.S. law enforcement has not infiltrated and spied on conservative Christian communities to disrupt violent rightwing extremism, which is the biggest terrorism threat in America, confirms what Muslims in American know in their bones: to worship Allah is to be suspect.
Federal judges recently ruled that suspicion-less surveillance of Muslims is permissible under the U.S. Constitution. The NYPD has admitted that Mosques, student groups, restaurants, even grade schools, have all been under surveillance. By rapidly increasing both government policies of secrecy and surveillance, Mr. Obama’s government is increasing its power to watch its citizens, while diminishing its citizens’ power to watch their government.
The threat of homegrown Islamic terrorism has been largely manufactured, so that the so-called War on Terror can promote multi-billion dollar, corporate-sponsored militarism abroad and the erosion of two hundred-year-old civil liberties at home.
Muslim-Americans are not only facing increasing oppression from the state, but they are also facing growing prejudice from their fellow countrymen, as hate crimes and civil liberty violations against Muslims continue to precipitously rise.
A recent Pew Forum Poll established that Muslims are by far the most disliked minority in America. According to FBI statistics, anti-Muslim hate crimes soared by an astounding 50 percent last year. Muslims constitute 1 percent of the U.S. population, but they are 13 percent of the victims of religious-based hate crimes. Islamophobia and xenophobia now seem as American as apple pie. Intolerance of Muslims is often inverted, depicting Muslim customs as an insult to Western customs.
One major aspect of American totalitarianism, shared by fascist regimes, is the nation's enormous military budget. In 1933, Nazi Germany’s military spending was 2 percent of their national income; by 1940, it was 44 percent.
Today, America spends more on her military than the rest of the world combined. America has expanded its military into having 662 foreign military bases, according to the Department of Defense’s 2010 Base Structure Report. The War on Terror has cost $6 trillion, the equivalent of $75,000 for every American household, calculates Harvard University’s Kennedy School of Government.
Another hallmark of totalitarianism is the creation of a prison system outside the rule of law that is largely designed to imprison and torture one minority group. The Guantanamo Bay gulag is unquestionably a crime against humanity. There is unlimited cruelty in a system that seems to be unable to free the innocent and unable to punish the guilty.
In April 24, 1934, a People's Court, just like Guantanamo was established, which also bypassed the judicial system: prisoners were held indefinitely in isolation and were tortured and subjected to show trials. The People's Court was signed into law by Adolf Hitler.
In 2007, a politician who was vehemently against the human rights abuses at Guantanamo Bay, explained what he would do about the torture camp if he ever became President:

"When I am President, I will close Guantanamo. It is a moral outrage, a blight upon America's conscience. It is the location of so many of the worst constitutional abuses in recent years. From inception, Guantanamo was a laboratory for unlawful military interrogation, detention, and trials."
The politician who uttered these words was Senator Barack Obama. Ironically, under President Obama's tenure, conditions for Guantanamo detainees, from both a physical and legal standpoint, have become markedly worse.
Public executions are perhaps one of the most overt and odious symbols of totalitarianism. In totalitarian Spain, under General Franco, mass public executions were the norm, and were often carried out in bullrings or with band music and onlookers dancing in the victims’ blood. With Hitler and Mussolini supplying arms to Franco, some 200,000 men and women were publically executed during the war and bombed from overhead.
Nowadays, drones are the ultimate totalitarian technology. Washington both uses drones for what amount to public extra-judicial executions of Muslims abroad, and for spying on American Muslims at home.
Most Americans believe that drones are targeted and therefore humane. Nothing could be further from the truth. By all accounts, drones have killed more children than terrorists. According to a new report from The Intercept, nearly 90 percent of people killed in drone strikes in Afghanistan are civilians.
By 2018, some privacy experts believe law enforcement will likely control over 35,000 drones that the government will use to monitor Americans from the skies.
Integral to the rise of the America Muslim Totalitarian State is propaganda. Sheldon Wolin has poignantly pointed out that, whereas the production of propaganda was crudely centralized in Nazi Germany, in the United States, it is left to highly concentrated media corporations, thus maintaining the illusion of a "free press".
The American propaganda machine is highly sophisticated. It does not rely upon the radio addresses, speeches, and leaflets disseminated by the Nazi Ministry of Propaganda and Public Enlightenment, nor does it rely on the crude censorship or harassment of free press ordered by a Politburo. The propaganda of America’s “one percent” is subtle yet pervasive; it relies not only on government diktats but also on the mass media, art, pop culture and Hollywood.
American cinema and music have always been a remarkably effective means of whipping up xenophobic wartime sentiment. For example, the highest grossing war film in history, American Sniper, and President Obama’s favorite television show, Homeland, both engage in an overly broad generalization of Islam, and depict Muslims and terrorists in a way that is indicative of widespread Islamophobia in American culture.
The American-Arab Anti-Discrimination Committee reported a spike in Islamophobia and hate crimes after the release of American Sniper, which culminated in the recent slaying of three young Muslims in North Carolina, who were shot in the head sniper execution style. American Islamophobia operates in the service of American militarism and American militarism abroad, and in turn, ratchets up Islamophobia against minorities at home.
The media determines our language, our language shapes our thoughts, and our thoughts determine our actions. Language is the fulcrum of a society's perception. Whosoever controls the public’s language, controls the public’s perception.
The corporate elites who sit on media editorial boards control said language. In 1983, fifty companies owned ninety percent of U.S. media. Today, only six media giants control a staggering ninety percent of what the American public listens to, reads, and watches. “Think of the press as a great keyboard on which the government can play,” once remarked Joseph Goebbels, Nazi Germany's Minister of Propaganda.
For Muslim-Americans the media's Orwellian totalitarian language is clear: Drones are Unmanned Aerial Vehicles. Torture is Enhanced Interrogation. Occupation is Liberation.
Donald Trump's recent call to ban Muslims from entry into the U.S. is not without precedent. The Chinese Exclusion Act of 1882 effectively banned all Chinese immigration to the US. This racist law remained in place for five decades and required all Chinese to carry identification certificates or face deportation. When Trump endorsed identification cards to be worn at all times by American Muslims, his popularity jumped almost 3 percentage points. If Donald Trump's policies are viewed by Americans as odious and un-American, then why has he consistently gained popularity after every anti-Muslim outburst?
America's history is stock full of totalitarianism and popularized, irrational fear of "the other". It began when the settler pioneers feared Native Americans and united against them by slaughtering millions in order to quell that fear. As settlers began to unite around a common identity they feared the British Monarchy and rebelled against it. Americans then fought against Mexico, France and various other countries for vast land control. Five hundred documented revolts on slave ships and the fact that plantation owners were greatly outnumbered by slaves, cemented the role of fear that perpetuated slavery for centuries. With greater fear comes greater violence, and with greater violence comes a greater need to justify that violence by ratcheting up the fear.
After the attacks on Pearl Harbor, Japanese Americans were forced into interment camps on American soil. Vietnamese Americans were then targets of xenophobia in America during the Vietnam War, and then there was the “Red Scare”, which targeted Russian-Americans throughout the Cold War.
From the ashes of the Soviet Union arose the terrorists from the oil-rich Middle East, who became America’s new number one enemy and so the legacy of American xenophobia continues. Today, as the deliberately unending war on terror rumbles on abroad, Muslim, Arab, and Sikh Americans fear that they are living in a totalitarian state.

A new tipping point in the global economic crisis

Nick Beams

The announcement by the global mining giant Anglo American that it will sack 85,000 workers world-wide, put 60 percent of its assets up for sale, and reduce its mining sites from 55 to just 20 signifies that the crisis of the world capitalist economy is heading toward a new tipping point. The world economy is threatened by a plunge into deep slump, coupled with a financial crisis even more devastating than that which erupted in 2007–2008.
The immediate cause of the Anglo American decision is the plunge in prices for all major industrial commodities—iron ore, coal, copper, nickel and manganese—to name but a few. Having reached their lowest levels since 2009, they are continuing to fall, signifying that, despite the trillions of dollars poured into financial markets over the past seven years by the world’s central banks, the over-riding tendency in the world economy is towards recession.
Nowhere is this more sharply expressed that in China, the centre of global manufacturing. Earlier this week, official data showed that Chinese exports slowed markedly in November due to falling global demand, while the currency, the renminbi, hit its lowest level in four years. The expectation is that if Chinese financial authorities withdraw support, the renminbi will rapidly fall still lower, sending another deflationary wave through the global economy.
The lack of confidence in the country’s growth prospects in the upper echelons of the financial and economic elites is exemplified by the flight of capital, with foreign exchange reserves recording their third-largest monthly fall in November.
In the years immediately following the 2008 financial crisis, the conventional wisdom was that the so-called BRICS countries together with emerging markets would provide a new base of stability for world capitalism. That rose-tinted scenario has been shattered.
The downturn in China is now ripping through world markets. The Brazilian economy is experiencing a contraction on a scale not seen since the Great Depression of the 1930s, Russia is in recession, India faces mounting corporate debt problems, and South Africa, together with economies across the continent, is being hit by falling commodity prices. The future for emerging markets is exemplified in Venezuela, the site of some of the largest oil reserves in the world, where the economy is set to shrink by 10 percent this year.
In its quarterly review of the world economy issued earlier this week, the Bank for International Settlements warned that the “uneasy calm” that had characterised global financial markets could soon be disrupted by the motion of “deeper economic forces that really matter.”
Over the past period, financial markets, sustained by the flood of cheap money from central banks, have seemingly been able to continue ever upwards in defiance of deepening global recessionary trends. However, the conditions have been created for this house of cards to collapse as the “deeper forces” assert themselves.
One of the most significant areas to which cheap money has flowed is the financing of high-yielding “junk” bonds, often issued by energy companies. With the price of oil reaching over $100 per barrel as recently as the early months of 2014, it seemed to be a viable strategy. But with oil now trading at below $40 and threatening to plunge even further, possibly down to $30, it is rapidly unravelling.
The rise of energy-related debt defaults is only a symptom of a more general process.
Last Friday, the Financial Times reported that more than $1 trillion in US corporate debt had been downgraded so far this year, as defaults climbed to their highest levels since the 2008 financial crisis. Analysts with the three major credit rating agencies—Standard & Poor’s, Moody’s and Fitch—expect the default rates to increase over the next 12 months, a process that could be accelerated if the Federal Reserve decides to lift is base interest rate next week.
An analysis by Deutsche Bank, portions of which were published on the Financial Times ’ web site this week, pointed to the potential for a rapid shift in financial markets.
“Late stages of every credit cycle,” it noted, “… are built on the theory as to why this time is different. This type of attitude was prevalent going into 2015, when credit markets largely dismissed the oil sector distress, choosing to believe this was an isolated issue and will stay that way.”
But, as the assessment went on to elaborate, this has proven not to be the case, as the percentage of corporate bonds designated as being “in distress” has steadily risen.
“From its starting point in energy a year ago, it has now reached other commodity-sensitive areas such as transportation, materials, capital goods and commercial services. But it did not stop here and is also visible in places like retail, gaming, media, consumer staples and technology—all areas that were widely expected to be insulated from low oil prices, if not even benefiting from them.”
The growing potential for a renewed financial crisis was also highlighted in a report issued by the US investment bank Goldman Sachs last month. It noted that corporate leverage in the US was now at its highest level in a decade.
Low interest rates and the incessant profit demands of speculators had encouraged corporate America to go on a spending spree, financing share buybacks, dividend hikes and a series of merger and acquisition deals, funded through the issuing of bonds. But the flow of cash has not kept pace with bond issuing, with the result that the total amount of debt on balance sheets is “more than double pre-crisis levels.”
Goldman reported that even after the energy sector was stripped out, the net debt to earnings ratio was at its highest point since the financial crisis. “The spectre of rising rates, potential global disinflation (dare we say ‘deflation’?), declining operating profits and wider credit spreads continues to create near-term consternation for weak balance sheet stocks,” the report concluded.
The Bank of England has added its voice to those expressing concern over the stability of financial markets, warning of the consequences of the divergence between the policies of central banks, as the Fed moves towards tightening while the European Central Bank and the Bank of England maintain a loose monetary policy.
The bank’s Financial Policy Committee said it was difficult to predict how markets would react to any increase in the Fed rate. The minutes of a meeting held at the end of last month and released on Wednesday state, “Capital flows had been sensitive to diverging prospects for monetary policy around the world and there was a risk of further volatility as that policy divergence progresses.”
The deepening global economic crisis is one of the driving forces for the eruption of militarism, especially over the past month. At the same time, the escalation of the war drive can only exacerbate the economic and financial situation. This underscores the fact that the mounting world economic and political disorder is not the result some kind of temporary or passing disequilibrium, but the expression of an ongoing and deepening breakdown of the global capitalist system.

Report highlights gap between executive and workers’ pay in UK

Barry Mason

The trade union-backed Labour Research Department (LRD) has issued a report showing how the gap between highly paid executives and most of the workforce is widening exponentially in the UK.
The salaries of top-paid executives in 2014 were a staggering 183 times the wages of average workers.
The LRD research noted at least 535 executives were being paid at least £1 million a year in salaries, with other payments and expenses on top.
According to LRD the UK’s current top earner is Sir Martin Sorrell, who is the chief executive of the advertising and public relations group WPP. He reportedly receives remuneration of £43 million a year, which includes a quarter of a million pounds to enable his wife to be with him on business trips.
The top 10 earners according to LRD are:
1. Sir Martin Sorrell, WPP, £42,978 million per annum
2. Tony Pidgley, Berkeley, £23,296 million
3. Ben van Beurden, Shell, £19,510 million
4. Jeremy Darroch, Sky, £16,889 million
5. Erik Engstrom, RELX Group, £16,176 million
6. Peter Long, TUI Travel, £13,333 million
7. Rob Perrins, Berkeley, £12,357 million
8. Tidjane Thiam, Prudential, £11,834 million
9. Breon Corcoran, Betfair, £11,627 million
10. Antonio Horta-Osorio, Lloyds Banking Group, £11,544 million
In 2014 the average pay of chief executives at the UK’s top 100 companies was £4.964 million. In comparison, according to the Office of National Statistics an average worker earned £27,200, making the ratio of pay 183:1.
The gap between executive pay and that of an ordinary worker continues to accelerate. The ratio has risen from 160 times in 2010 to 183 times today. In 1988 the pay of an average FTSE 100 chief executive was 47 times that of an average worker.
Deborah Hargreaves, the director of the High Pay Centre, commented: “Pay packages of this size go far beyond what is sensible or necessary to reward and inspire top executives. It’s more likely that corporate governance structures in the UK are riddled with glaring weaknesses and conflicts of interest.”
The pay of executives in the public sector is also becoming increasingly divorced from that of most public sector workers. After enduring no pay rise for several years public sector workers’ pay is now capped at 1 percent for the life of the current government.
This has meant a big cut in real terms for the majority of public sector staff. According to the Daily Mail , over 500 top executives at council offices across the UK earned more than £150,000 last year. Some 50,000 executive level employees in the National Health Service (NHS) are on six figure salaries.
While not at the same level, the pay gap between senior managers and workers is also increasing, especially in the UK and the United States. A recent press release by the global management consultancy, Hay Group, stated the pay gap between senior managers and “lower-level” workers in the UK had widened by 5.3 percent, while in the United States it had widened by 7.2 percent since the recession began in 2008.
Adam Burden, a consultant at the Hay Group, said: “Globally, the job level pay gap increase has accelerated since the recession. However, it is not purely a post-recession issue. This is a complex trend that has been building for the past 30 years, through economic boom as well as bust.”
As well as pay levels for top executives soaring away from that of workers, their pensions are also rising steeply. The Trades Union Congress (TUC) produces a regular pension-watch report based on annual reports from FTSE 100 companies.
The average pension contribution (including cash alternatives) made to executives by a FTSE 100 company is 34.1 percent. Seventy percent of executives in the UK’s top companies receive cash lump sums for at least part of their retirement provision. Of these the vast majority pocket stand-alone cash payments. “These pay-outs alone are often multiples of the total pay package of a typical worker in the same company,” the TUC report notes.
The report highlighted some of those in receipt of enormous pension pay handouts, with Richard Solomons, chief executive of InterContinental Hotels Group, receiving £3.2 million and Douglas Flint, an executive at HSBC, getting three quarters of a million in cash contributions.
The ongoing rise in wealth and income inequality continues to impact adversely on the health and social conditions of the vast majority of workers. The recently released annual report produced by Sir Michael Marmot, chair of the Commission on Social Determinants of Health, showed that around a quarter of households in England do not have sufficient income to be able to live healthy lives, up from 20 percent in 2008.
The report plots the number of years a person can live without suffering a disability. In Blackpool, a neighbourhood suffering multiple deprivations, the number of years a man is likely to live free of disability is 55, while in the affluent neighbourhood of Wokingham in southeast England it is 71, a difference of 16 years.

UK and Ireland devastated by floods

Joan Smith & Robert Stevens

The human cost of the severe flooding in large parts of northern England, Wales, Scotland and Ireland over the last week is emerging. The flooding resulted from Storm Desmond, which struck on December 4, bringing 30cm of rainfall in 24 hours.
Three people are known to have died, two drowning in the floodwaters. One of the fatalities, a 70-year-old man from County Tyrone, Northern Ireland, was found on a cross-border road in County Monaghan. According to reports, his car was stuck in flooding and he was swept away when he got out of the vehicle. Another man died when he fell into the River Kent in Cumbria.
An estimated £500 million of damage was caused by the flooding. More than 5,000 homes were affected by floodwater, with many people still without power.
The county of Cumbria in the north west of England was the worst hit, with the population in major urban centres, including Carlisle and Lancaster, deluged in water and thousands losing power to their homes. The waters rose to the first floor [i.e., second floor in US English] of some houses and 40 schools were closed across the county.
Roads and houses throughout the region, which includes remote areas of the Lake District National Park, were almost completely submerged and mobile homes swept away. Thousands of tonnes of debris fell onto roads, carriageways and bridges in landslides. Railway lines were submerged under up to eight feet of water.
In Cumbria, the historic Pooley Bridge, built in 1764, collapsed under the pressure of floodwater from the River Eamont. Many of the region’s 1,500 bridges are under threat of collapse.
Heavy rain has continued all week, worsening the crisis and affecting rescue and cleanup operations. On Thursday evening, soldiers and fire brigades were sent into the Cumbrian town of Glenridding in the Lake District, which had already been deluged, with reports of boulders weighing up to a tonne being washed into the area.
As with recent floods in the region and other parts of the UK, entire communities were initially left to fend for themselves. It was not until two days after the flooding began that the government even convened a meeting to discuss the crisis. By that stage, at least 60,000 homes were already without power, with many lacking clean water.
Following Prime Minister David Cameron convening the emergency Cobra committee Monday, the army was mobilised in Carlisle and other locations to help evacuate the many residents trapped by floodwaters. By Wednesday, 1,000 homes remained flooded.
The Royal Lancaster infirmary was forced to run on generator power after an electricity substation flooded. This cut the electricity to 55,000 homes and businesses in Lancaster, Morecambe, Carnforth and surrounding areas. The universities of Lancaster and Cumbria were forced to evacuate students after losing power, with Lancaster shutting down for the rest of the term.
Businesses, both small and large, were forced to close due to storm damage, putting hundreds of jobs at risk. Water treatment centres have also been out of action across the affected counties.
The response from the government has been predictable. Prime Minister David Cameron toured the flood-affected area, declaring that the defences were adequate but the storm had been too fierce. Chancellor George Osborne proposed a paltry £50 million flood damage relief, just 10 percent of the estimated damage costs. Virtually no relief is being granted towards the present crisis, with each family affected only able to claim up to £5,000 to protect their homes in future, by, for example raising electricity sockets to safer levels or installing barriers. As a result, many people are turning to charities for any relief from their grim situation.
The fact that only 15 percent of those affected by last winter’s floods received promised financial help points to a situation whereby those flooded this week face ongoing hardship, on top of the ever-present threat of more floods.
Storms such as Desmond have become more frequent over the last decade as global temperatures rise causing milder, wetter weather. Three such major storms have hit Britain since 2005. Some areas in Cumbria are now being submerged on an annual basis. This disproves that such occurrences are “once in 100 years” events, which is how successive governments in Britain continue to describe virtually every flooding crisis.
This “once in 100 years” myth has been used to justify brutal cuts in flood defence funding. In the years prior to 2010, there had been a relative increase in flood defence spending, as the result of a number of devastating floods over the previous decade, in which large parts of the UK, including areas of major urban centres such as Sheffield, England’s fourth largest city and the historic university city of Oxford, were submerged. What were modest increases in flood defence funding came to an abrupt end after the Conservative-Liberal Democrat coalition came to power in 2010, as more than £100 billion in spending cuts was imposed.
Although rainfall hit record levels, the latest floods highlight how in the age of austerity, the ruling elite are seizing what is left from the public purse and spending it on the military and war.
Following the devastating floods in Somerset and parts of the Thames valley in 2013-14, the government proposed a meagre £2.3 billion to be spent on flood defences nationally over a six-year period.
In contrast, earlier that year, two “super” aircraft carriers were ordered to be built, each costing £3.1 billion. Over 2015-16, a tiny £370 million will be spent on flood defence, just 0.8 percent of the £45 billion that will be have been spent on the military’s budget.
Decades of underfunding have resulted in totally inadequate flood defences. The defences built following floods in Cumbria in 2005 failed to keep the latest deluge out from people’s homes.
There is no longer even a national budget available for flood defence in the UK. In 2011, a new funding system was introduced that meant local authorities and businesses were encouraged to “match” flood defence costs with national government. This led to defences being prioritised by cost rather than effectiveness. Under this scheme, inadequate defensive walls were built in Cockermouth, west Cumbria, after severe flooding in 2009, with a substantial amount of funding raised from the local community. These proved ineffective against the floodwaters last weekend.
Tim Farron, the leader of the Liberal Democrat and an MP for some of the worst affected areas, who was trapped in his car during the flooding, commented this week, “It is heartbreaking to see the impact of flooding once more on local people….Lower priority schemes were shelved and should have been funded.”
However, in the 2010-15 Conservative-Liberal Democrat coalition, Farron supported the cuts to flood defences nationally. In 2013, Farron praised the dropping of the Vital Uplands project of Natural England, the government’s adviser for the natural environment in England. Vital Uplands proposed growing more vegetation on hills in local areas in order to absorb more rainwater and reduce “the risk of downstream flooding”.
Major flooding crises are now commonplace in the world’s major capitalist countries. Well into the 21st century, the populations of major urban areas are offered essentially no protection from what are entirely predictable weather events. As global temperatures rise, so do the chances of major devastating storms.
In Britain, as across Europe and the United States, governments routinely claims there is no money for basic infrastructure requirements. Commenting on the Chancellor’s Autumn Statement in which unprecedented public spending cuts were announced, the Financial Times noted that it revealed, “The nation’s physical infrastructure—roads, railways, housing, schools and hospitals, flood defences and the rest—suffered swingeing cuts during the last parliament.”
Yet billions in public money are being handed over to increase military spending. Last month, the Cameron government announced a further £12 billion in military spending.

Stocks plunge amid fears of global slump and credit meltdown

Barry Grey

Global stock markets plunged Friday as oil prices hit new lows, threatening to crash the junk bond market and trigger a new financial meltdown. Investor nervousness was heightened by the prospect of the US Federal Reserve Board raising interest rates for the first time in nearly a decade when it meets next week.
Fed officials have repeatedly signaled to the financial markets that any increase will be small and interest rates will remain well below normal levels for an indefinite period. However, any increase from the current near-zero level will likely intensify a selloff of junk bonds, a large percentage of which are energy-related, threatening to destabilize the entire credit system.
The Dow Jones Industrial Average fell 309 points (1.76 percent), the Standard & Poor’s 500 index dropped 39 points (1.94 percent), and the Nasdaq index fell 111 points (2.21 percent). For the week, the S&P 500 fell 3.8 percent, its worst week since late August, at the height of the global selloff that followed China’s surprise currency devaluation. The Dow dropped 3.3 percent for the week and the Nasdaq plunged 4.1 percent.
European markets also fell sharply, with the major indexes in Britain and Germany declining by more than 2 percent and the French CAC 40 sliding by more than 1.8 percent. The composite EURO STOXX 50 fell by 2.04 percent.
Most Asian markets were also down substantially, and the MSCI all-country index fell 1.44 percent.
The deepening global slowdown, reflected in collapsing prices for oil and other basic commodities, as demand falls and markets grow increasingly glutted, is now wreaking havoc on the corporate bond market. Energy and other commodity-producing companies are finding it increasingly difficult to finance debt loads that grew rapidly when oil was selling for $100 a barrel and central banks were flooding the financial markets with virtually free credit.
Now, write-downs and defaults on high-yield, high-risk “junk” bonds issued by these firms are rising, heightening the prospects of a new financial crisis even worse than the Wall Street crash of 2008.
Energy and other firms facing rising borrowing rates and declining prices for their stock are cutting costs by slashing jobs and selling assets. This week, the global mining giant Anglo American announced that it will eliminate 85,000 workers, 60 percent of its workforce; put 60 percent of its assets up for sale and close more than half of its mining sites.
US employment in mining, a category that includes oil extraction, fell by 123,000 jobs in November from a year earlier. This massive downsizing is, however, just the beginning. The new year promises to see a further decline in commodity prices and an acceleration of layoffs.
Crude oil prices fell to their lowest levels in seven years on Friday. Brent crude, the international benchmark, fell to $37.36 a barrel and West Texas Intermediate, the US oil benchmark, slid to $35.67 a barrel. These benchmarks declined 13 percent and 11 percent respectively just in the past week.
The new declines were largely triggered by two developments. Last week, the OPEC oil cartel removed formal limits on production, and on Friday, the International Energy Agency said Iran’s return to world markets next year, when sanctions are removed, would increase the glut in supply.
Crude oil is down 63 percent from 2014, but other basic commodities are also collapsing. Natural gas is down 52 percent and copper is down 40 percent. Prices for iron ore, aluminum and platinum have also plummeted. This week, the Bloomberg Commodity Index plummeted to its lowest level since June 1999.
The free-fall in commodity prices is a sharp expression of the global economic slowdown that was long underway even as stock and bond prices continued to soar, fueled by cheap credit and an ever more ruthless assault on the living standards of the working class. The slowdown in China as well as the so-called emerging market economies has sapped demand for goods.
In Europe, Japan and North America, growth was been negative or anemic, in large part because corporations have reduced their investments in production and diverted funds to speculative and parasitic operations such as stock buybacks, dividend increases and mergers. This has further enriched the financial aristocracy while driving the living standards of the broad masses of people even lower.
This week, it was reported that imports to China fell 8.7 percent in November compared with a year earlier, and Chinese exports fell 6.8 percent year on year. Productive activity in the world’s largest manufacturing center has been steadily declining. The slowdown was reflected in a fall in the Chinese currency Friday to its lowest level in four-and-a-half years, sparking concerns of a new devaluation.
As for the United States, the Institute for Supply Management reported last week that manufacturing in the US contracted in November, falling to its lowest level since June 2009.
Concerns over the impact on the bond market of the fall in oil prices and the general economic slowdown spiked Friday after a large mutual fund specializing in high-risk, high-yield corporate bonds linked to the oil industry suddenly announced it was liquidating and blocking investors from getting their money back.
Third Avenue Management closed its $788 million Focused Credit Fund in the face of a rush of redemption orders from clients that it could not meet. The firm failed even to notify the Securities and Exchange Commission in advance of its announcement, underscoring the desperate character of the move.
This could be just the tip of the iceberg. Standard & Poor’s Rating Service warned recently that 50 percent of energy junk bonds are “distressed,” meaning at risk of default. The situation is, if anything, worse for bonds in the metals, mining and steel industries, of which, according to S&P, 72 percent are distressed.
Overall, some $180 billion of debt is distressed, the highest level since the official end of the “Great Recession” in June of 2009. S&P reports that corporate defaults topped 100 this year, the first time that has occurred since 2009. Almost one-third of these were oil, gas or energy companies. There have been 40 Chapter 11 bankruptcy filings by North American oil and gas producers.
In all, more than $1 trillion in US corporate debt has been downgraded this year. Moody’s Investors Service predicts that corporate defaults will increase to 3.8 percent next year from 2.8 percent this year, under conditions where corporate debt is at is highest levels since the 2008 crash.
CNN Money on Friday cited an analyst who covers the metals and mining industry as saying, “Sentiment is horrendous. It’s the worst since the financial crisis—and it’s getting worse every day.”
The Financial Times quoted John Roe, a fund manager at Legad & General Investment Management, harking back to the lead-up to the 2008 crash by noting, “We saw this kind of thing before in 2008-09 in the property market, when a number of funds had to be closed because of liquidity problems.”
Billionaire speculator Carl Icahn, who is heavily invested in one of the distressed oil companies, Chesapeake Energy, wrote on his Twitter account Friday, “Unfortunately, I believe the meltdown in high yield is just beginning.”
More than seven years after the 2008 financial meltdown, not only is there no genuine economic recovery, the measures taken to rescue the banks and the financial elite have compounded the underlying contradictions of the world capitalist system, bringing it to the brink of an even more catastrophic breakdown.