1 Aug 2022

Al-Sadr supporters storm parliament to prevent formation of Iraqi government

Jean Shaoul


Supporters of the nationalist Shiite cleric Muqtada al-Sadr stormed Baghdad’s Green Zone, the heavily fortified area that houses the US Embassy, military forces and contractors, and occupied the federal parliament Saturday. Al-Sadr’s spokesperson said, “The demonstrators announce a sit-in until further notice.”

About 125 people were injured in the protests, 100 protesters and 25 members of security forces, as demonstrators called for an end to corruption and the political system put in place after the US-led invasion and occupation of Iraq to unseat the regime of Saddam Hussein in 2003. It follows a similar storming of parliament Wednesday.

Iraqi protesters fill the parliament building in Baghdad, Iraq, Sunday, July 31, 2022. Thousands of followers of an influential Shiite cleric stormed into Iraq's parliament on Saturday, for the second time in a week, protesting government formation efforts led by his rivals, an alliance of Iran-backed groups. [AP Photo/Anmar Khalil]

The sit-in, a direct threat to al-Sadr’s rivals, is aimed at preventing legislators convening to form a government. Parliament Speaker Mohammed Halbousi has suspended future sessions.

The turmoil underscores the worsening political crisis in Washington’s puppet state that has become a proxy battle ground for regional and international political conflicts. Some 1.2 million people are still internally displaced due the many conflicts that have beset the country, which also hosts at least 250,000 Syrian refugees. Food insecurity is rife.

Iraq has seen numerous protests over endemic corruption, the terrible social and economic conditions reflected in unemployment and poverty rates of 40 percent and 32 percent, and water and power outages. This has been exacerbated by the pandemic, which has taken a terrible toll on people’s lives—around 25,000 deaths have been officially recorded—health and livelihoods.

Adding to the deep sense of crisis have been the sandstorms that have hit a country already suffering from soil degradation, intense droughts and low rainfall linked to climate change. At least 5,000 people have been hospitalised with breathing problems, while airports, schools and public offices across the country had to close.

Last October’s elections saw al-Sadr’s Sairoon movement win the most votes on a voter turnout of just 41 percent, even lower than in the 2018 elections, as hostility towards the sectarian-ethnic political regime and its rival backers in Washington and Tehran soared. Ten months later, Iraq’s venal political factions have still not agreed on a new government.

Muqtada al-Sadr in Tehran in 2019 [Photo / CC BY-NC 4.0]

Prime Minister Mustafa al-Kadhimi, a former intelligence officer seen as Washington’s man in Baghdad, has continued in a caretaker role, unable to set a budget for 2022, despite the increase in oil prices that could help alleviate the acute social crisis.

He came to power in May 2020 after months of mass protests, the largest since the 2003 US invasion, brought down the government of Adil Abdul-Mahdi. Mahdi’s government had sought to suppress the protests with lethal force, deploying the security forces and paramilitary groups to shoot down more than 600 protestors, further inflaming tensions until the pandemic and the accompanying restrictions emptied the streets.

Al-Kadhimi not only continued the economic and social policies of his predecessor, but also implemented new measures aimed at securing loans from the International Monetary Fund that have devastated workers’ incomes. He continued the intimidation and repression of oppositionists as militias affiliated to the various political parties assassinated political activists, local leaders and outspoken journalists and critics. He reneged on his pledges to investigate the killings by the security forces and to introduce legislation that would overturn Iraq’s sectarian political system, key demands of the protest movement, because the established parties refused any changes that would encroach on their privileges, patronage and wealth.

Iraqi Prime Minister Mustafa al-Kadhimi (Wikimedia Commons)

While al-Sadr and his Sairoon bloc won the most seats (73) in the 329-seat parliament, up from 54 in 2018, at the expense of his Iran-allied Shia opponents in the Coordination Framework, it was far short of a clear majority.

The former militia leader from a leading Shia clerical family, who led the main Shia resistance to the US occupation, has no progressive answers to the immense suffering of the Iraqi people. Posing as a nationalist opposed to foreign interference in Iraq, he has in the past been close to Iran and acted as kingmaker in forging ruling coalitions. He has put his men in most arms of the state, including in the cabinet, the state-owned oil company, powerful ministries and local authorities, where they take a cut on government contracts to pass on to his organisation that provides jobs and social welfare for its impoverished supporters in Baghdad’s slums and runs a militia.

Al-Sadr announced his intention of forming a government with the largest Sunni and Kurdish blocs, leaving the Iran-aligned Shia parties in opposition, an arrangement that breaks with the custom followed since 2003 whereby all parties are represented in government. Not wanting to be excluded from the patronage system, his Shia opponents maneuvered to block his coalition-building process via a series of procedural and legal interventions, including using the Federal Supreme Court to block the nomination of a president and launching missile attacks on his Kurdish allies.

In June, al-Sadr announced that his entire bloc would renounce their seats in parliament in a move aimed at forcing his rivals to agree to a new government and opening the door to street protests, counter-demonstrations and instability to force the dissolution of parliament and new elections.

In the event, new lawmakers were sworn in accordance with the constitution, making the pro-Iran bloc, the Coordination Framework, under former premier Nuri al-Maliki’s party, the State of Law Coalition, and the pro-Iran Fatah Alliance, the political arm of the Shia-led former paramilitary group Hashed al-Shaabi, the largest in parliament. There is little agreement between them on any of the major political issues confronting the country.

When the Coordination Framework nominated Mohammed al-Sudani for the premiership, al-Sadr objected and mobilized his supporters to storm the parliament, which was not in session, with the security forces standing by. Before al-Sudani can officially be nominated as premier-designate, parliament must first select a president from the Kurdish parties, a process that has been no less contentious.

The semi-autonomous Kurdistan Regional government (KRG) had originally backed al-Sadr’s bloc, but tensions between Erbil and Baghdad escalated after the Iraqi Federal Supreme Court ruled in February that the KRG’s oil and gas law was “unconstitutional,” meaning that the KRG’s oil and gas sector had no legal basis for keeping its revenues, largely derived from sales to Turkey. The KRG rejected the ruling, calling it “unjust” and “unconstitutional.” KRG Prime Minister Masrour Barzani began to push for a new constitutional arrangement that would cede more power to the Kurds and other ethnic constituencies.

US President Joe Biden has sought to distance Baghdad from Tehran, urging Washington’s regional allies, including Saudi Arabia, to restore diplomatic relations with Iraq as a means of containing Iranian influence and bolstering al-Kadhimi’s political legitimacy. He invited al-Kadhimi to talks with the Gulf States, Egypt and Jordan in Saudi Arabia’s port city of Jeddah in an effort to broker an anti-Iran alliance as part of Washington’s broader preparations for war with Russia and China—with whom Tehran has forged increasingly close relations.

Iraq has, however, passed a law in May making it a crime to normalise relations with Israel, visit the country, or promote normalisation, with violations of the law punishable with life in prison or the death penalty.

Further roiling the Iraqi state has been the bombing on July 20 of Barakh in the KRG’s Duhok province that killed nine Iraqi tourists. Iraqi and Kurdish officials blamed the attack on Turkey.

According to a Defense Ministry report, Turkey, a NATO member, has set up more than 100 military bases and outposts on Iraqi territory and has stationed more than 4,000 troops inside Iraq, along with tanks, armored vehicles, helicopters and heavy weapons as part of Ankara’s decades-long war with the separatist Kurdistan Workers’ Party (PKK). Turkey’s troops far outnumber even those of the US (2,500) and France (800).

Ahmed al-Sahaf, Iraq’s foreign ministry’s spokesperson, said Iraq had recorded 22,740 violations of Iraqi sovereignty by Turkish forces since 2018, with 296 official complaints submitted to Ankara. Al-Sahaf denied there was any “security or military” agreement with Turkey and accused Ankara of having “expansionist goals behind the attacks it is carrying out.” Al-Monitor cited Turkey’s Presidential adviser Ayhan Ogan warning on July 21 that “if Turkey’s security concerns are ignored and, moreover, provoked, Turkey would create a new security belt all the way from Aleppo to Mosul.” This would mirror Ankara’s plan for a 30-kilometer-deep safe zone in northern Syria.

Coronavirus in Germany: Infection and death rates explode during summer months

Tamino Dreisam


Although the number of coronavirus infections in Germany is exploding during the summer months, hospitals are filling up and an even bigger wave is looming for the fall, the Bundestag (federal parliament) has gone into summer recess until September without adopting any protective measures against the spread of the virus.

Currently there are about 1.8 million people in Germany infected with the disease and the 7-day incidence rate is 679 (infections per 100,000 people). In the state of Saarland and 59 counties, the incidence is over 1,000, meaning that 1 percent of the population there is freshly infected every week. In the district of Wittmund, the incidence is 2,290, and in the district of Wunsiedel it is as high as 2320, where the incidence tripled within a week’s time.

Medical staff wearing protective clothing on Ward 43 of the Charité hospital in Berlin (Image: DOCDAYS Production)

And even this is a suppressed incidence rate due to the summer vacation season. With the end of the summer holidays, there is a real threat of further increases due to the return of travelers and the start of school. Furthermore, those who have already suffered infection this year are at risk of reinfection.

Hajo Zeeb of the Leibnitz Institute for Prevention Research and Epidemiology in Bremen warned in the news magazine Der Spiegel: “We are dealing with variants with a high immune escape potential. So you can’t feel particularly safe regarding infections in the winter if you were infected during the summer, since there are clearly reinfections.”

The official figures themselves represent an inadequate reflection of the actual incidence of infection. First, mandatory testing in many areas as well as testing capacity have been restricted and free testing has been abolished. Second, many of those infected no longer have a PCR test conducted, yet only these tests count in the statistics. In recent weeks, the rate of positive test results exploded from a very high 28.4 percent in the 21st calendar week to 53.7 percent in the 27th week. A high rate of positive tests indicates a high number of unidentified infections.

Vulnerable groups have been increasingly affected by the massive rise in contagion. Outbreaks have been growing for weeks in both medical treatment facilities and nursing homes. In the former there were 157 outbreaks last week, up from 108 the previous week; 12 people died. In nursing homes and homes for the elderly, there were 300 outbreaks (235 the previous week), with 58 deaths.

Hospitals are again filling up. The adjusted hospitalization incidence is now 12.5, which corresponds to over 10,000 hospitalizations per week. Just a month ago, this figure was only half as high.

Likewise, the number of patients surviving on intensive care is on the rise. Currently, there are 1,330, compared to 1,238 a week ago. The number of COVID-19 patients treated in hospitals is currently twice as high as in the previous summers. The number of COVID-19 deaths is also rising. According to Johns Hopkins University data, the 7-day average doubled from 53 on June 17 to 104 on July 25. This means that more than 700 people are dying per week.

An additional burden is the high rate of sick leave among hospital workers and the high number of absences due to infection and quarantine. Gerald Gaß, chairman of the board of the German Hospital Association, told the Funke Mediengruppe newspapers, “In many hospitals, scheduled operations have had to be postponed and, at times, entire areas have had to be shut down.”

The situation is particularly dramatic at the Würzburg University Hospital. Currently, 59 COVID-19 patients are being treated there and six others are in intensive care, more than at any time since the beginning of the pandemic. A week ago, there were 47 infected patients and two weeks ago 39. Due to the high workload, the hospital management has already announced that scheduled treatments may be postponed in all areas.

If the situation at the clinics is already dire, it will become catastrophic in the fall. Gaß warned, “The numbers make it clear that the fall could again be an extreme stress test for the clinics.”

The chairman of the World Medical Association, Frank Ulrich Montgomery, told Funke Mediengruppe that he has called for the possibility of lockdowns to be included in the new Infection Protection Act: “Anyone who categorically rules out measures such as contact restrictions or lockdowns from the outset has neither understood the meaning of the law nor grasped the seriousness of the situation.”

The government is entirely aware of the consequences of its coronavirus policy. Federal Health Minister Karl Lauterbach (SPD) recently said, “If we went into the fall as we are now, that is, without further protective measures, without masks, without anything, it would mean that the number of cases would rise sharply, as well as that the intensive care units would be overloaded.”

He added, “It’s like a candle burning at both ends: staff burning away at the bottom and patients burning away at the top.” If appropriate measures were not put in place soon, he said, the population would face a “catastrophic” pandemic development.

As Minister of Health, Lauterbach is the individual responsible for taking appropriate action. In fact, he is doing just the opposite, dismantling nearly all the protective measures that still remain in place.

His tenure in office includes the government’s decision to end the epidemic state of emergency, the new Infection Protection Act that had been in effect since March and provides only “basic protection,” the rejection of general mandatory vaccination, the reduction of the quarantine period to five days and the end of free testing.

Health Minister Lauterbach explicitly did not adopt any safety measures for the current summer wave, rather only recommended wearing masks indoors and a fourth vaccination for people with many contacts. So far, the federal government’s planned “Coronavirus Autumn Strategy” does not include a single mandatory measure, instead focusing on a vaccination campaign and the procurement of updated vaccines.

In fact, the spread of the highly contagious and immune-resistant BA.5 Omicron variant, which already accounts for 87 percent of infection incidence, shows that it is impossible to combat the virus in the long term with vaccination alone. As the virus spreads unchecked, more and more dangerous variants are emerging.

The societal impact is extremely far-reaching. Tens of thousands are suffering long-term consequences from Long COVID and the mass deaths to date have also led to a significant decline in average life expectancy in Germany. Officially, more than 143,000 people have succumbed to the virus. The Federal Statistical Office calculated that life expectancy for girls born in 2021 has fallen by 0.4 years compared to those born in 2019, and by as much as 0.6 years for boys.

Biden tests positive again after completing Paxlovid course: The dangers of the “forever COVID” policy

Benjamin Mateus


Late Saturday morning, Dr. Kevin C. O’Connor, physician to the President, sent a memorandum to White House Press Secretary Karine Jean-Pierre informing her that President Joe Biden had tested positive for COVID again after his negative test on Tuesday evening after completing the Pfizer anti-viral medication Paxlovid.

He wrote, “After testing negative on Tuesday evening, Wednesday morning, Thursday morning, and Friday morning, the President tested positive late Saturday morning, by antigen testing. This, in fact, represents ‘rebound’ positivity.” He added, “The President has experienced no reemergence of symptoms and continues to feel quite well. This being the case, there is no reason to reinitiate treatment at this time, but we will obviously continue close observation. However, given his positive antigen test, he will reinitiate strict isolation procedures.”

Following the official announcement of Biden’s positive COVID test and the cancellation of his planned travel to Michigan and Delaware, Biden proceeded to minimize the significance of these developments by tweeting, “Folks, today I tested positive for COVID again. This happens with a small minority of folks. I’ve got no symptoms, but I’m going to isolate for the safety of everyone around me. I’m still at work and will be back on the road soon.”

Biden is not the only high-level figure in Washington laid low by COVID-19. West Virginia Senator Joe Manchin, the decisive 50th vote in the Senate on most issues, including Biden’s latest environment and energy legislation, and Senate Majority Whip Richard Durbin were also isolating with the infection. Others infected in July were Senate Majority Leader Chuck Schumer, along with Democratic senators Tina Smith, Richard Blumenthal and Tom Carper, Republican senators Lisa Murkowski and Ben Sasse, and eight members of the House of Representatives.

The turn of events is a setback for the White House, which had hoped to bank on the president’s illness and quick recovery to assure Americans that coronavirus was now a walk in the park, given the use of the current vaccines and anti-viral therapeutics. Biden’s testing positive for COVID again coincides with Dr. Anthony Fauci’s similar rebound in late June, which has many questioning the complication’s rarity.

There is a clear sense of damage control behind the administration’s health advisers efforts to downplay the “rebound.”  The corporate media cooperated, barely mentioning in the Sunday interview programs that the 79-year-old US president had come down with a second infection from a disease whose most lethal effects have been on his age group.

Nor was anyone so rude as to suggest that having the 81-year-old Nancy Pelosi, second in line of succession to the presidency, traveling to a potential war zone around Taiwan at this time was a reckless endeavor.

Biden left isolation on Wednesday and triumphantly removed his mask before the media and cameras at a staged Rose Garden rally to celebrate his negative test. He boastfully declared his symptoms had always been mild, and his quick recovery was evidence of his administration’s progress in bringing the pandemic to heel. After giving thanks to God for his swift recovery, he said, “The entire time I was in isolation, I was able to work, to carry out the duties of the office without any interruption. It’s a real statement on where we are in the fight against COVID-19.”

President Joe Biden coughs as he speaks about "The Inflation Reduction Act of 2022" in the State Dining Room of the White House in Washington, Thursday, July 28, 2022. (AP Photo/Susan Walsh, File)

Since declaring his personal victory against the coronavirus, Biden has been recklessly attending public events unmasked, contrary to even the dubious and reckless guidance from the Centers for Disease Control and Prevention (CDC) , which recommends that after five full days after testing positive and without any fevers for at least 24 hours, isolation can be ended, but that a “well-fitting mask must be worn for ten full days any time you are around others inside your home or in public. Do not go to places where you are unable to wear a mask.” The CDC specifically wrote, “If your test is negative, you can end isolation, but continue to wear a well-fitting mask around others at home and in public until day ten.”

Jean-Pierre, when asked why Biden had violated CDC guidelines, particularly when he addressed CEOs during a Thursday meeting at the White House complex, side-stepped the issue by saying, “They were socially distanced. They were far enough apart. So, we made it safe for them to be together, to be on that stage.” Clearly, she didn’t receive the memo that COVID is an airborne pathogen.

White House officials are, however, conducting extensive contact tracing, which has been essentially abandoned by all public health officials and directly conflicts with the precept being put forward by the White House that every American will get COVID and that the pandemic will be with humanity forever. Apparently, top US government officials deserve greater protection from an infected president than school teachers from children who bring COVID into the classroom.

As for workers in offices, factories, warehouses and other workplaces, Biden’s smug declaration that he was able to work throughout his infection is clearly aimed at setting an example. Stay on the job no matter how sick you are or how many people you may infect!

It is worth recalling that the CDC had halved its isolation guidance back in December 2021 not based on any science but at the behest of Delta Airlines CEO Ed Bastian to decrease the isolation period to five days “to address the potential impact of the current isolation policy” on their bottom dollar. CDC Director Rochelle Walensky noted at the time that her decision to change guidelines were made to “keep the critical functions of society open and operating.” She added, “We can’t take science in a vacuum. We have to put science in the context of how it can be implemented in a functional society.”

In a study published in a preprint in March 2022, Harvard and Massachusetts General Hospital found no difference in viral kinetics [length of time someone remains infective] between people infected with Delta or Omicron with non-severe symptoms regardless of vaccine status. The authors wrote, “Over 50 percent of individuals had a replication-competent, culturable virus at day five, and 25 percent had a culturable virus at day eight.”

Dr. Amy Barczak, an infectious disease specialist at Massachusetts General Hospital in Boston and co-author of the study, told Nature in May, “The facts of how long people are infectious for have not really changed. There is no data to support five days or anything shorter than ten days of isolation.” A recent study from the UK appears to corroborate the Harvard study’s concerns over reduced isolation times, meaning that current public health guidance is assisting in keeping the coronavirus around forever.

Others, like infectious disease specialist Dr. Yonatan Grad of Harvard’s T.H. Chan School of Public Health, cautioned that some might remain infectious beyond the 10-day window. He told Nature that the phenomenon might be linked with those taking the two-drug combination nirmatrelvir and ritonavir, known under the brand name Paxlovid.

He added, “There’s a rebound phenomenon where people will see that their symptoms seem to resolve, and they may even test negative on a rapid test, but then a few days later symptoms and the virus come back.” In such instances, such people may continue infecting and be unaware of it.

The CDC issued on May 24, 2022, a health advisory stating that “COVID-19 rebound has been reported to occur between two to eight days after initial recovery and is characterized by a recurrence of COVID-19 symptoms or a new positive viral test after having tested negative.” They advised that additional Paxlovid is not required but that such people should re-isolate for at least five days.

On Sunday, the New York Times, writing on the President’s rebound, referred to a study in a preprint published in June that reviewed the electronic health records of 13,644 people and found that rebound affected a little more than 5 to 6 percent within 30 days. However, the data set predates the much more contagious and immune-evading BA.5 subvariant that has recently become dominant, and rates of reinfection within 90 days are higher than ever. Dr. Eric Topol critiqued the study as being “way off the mark” and argued that the only valid study trial would require a prospective approach where participants are frequently tested.

Dr. Jonathan Reiner, professor of medicine and surgery at George Washington University School of Medicine and Health Sciences, tweeted on Saturday on the White House’s disclosure, “I think this was predictable. The prior data suggesting ‘rebound’ Paxlovid positivity in the low single digits is outdated and with BA.5 is likely 20 to 40 percent or even higher.”

Data from the US Department of Health and Human Services (HHS) indicates that more than 3 million courses of Paxlovid have been administered across the US, and nearly 5.7 million have been ordered at a current rate of 40,000 prescriptions per day. Placing this figure into scale, the Atlantic recently compared this to the rate of daily oxycodone usage.

Not being mentioned in the media is the financial bonanza the pandemic has been for the drug companies that managed to edge out their competitors in the burgeoning field of vaccine development. Pfizer recently reported its single largest quarterly sales in its history, bringing in $27.7 billion in revenues, of which $8.8 billion came from their COVID-19 vaccines and $8.1 billion from Paxlovid, beating Wall Street’s estimates. Meanwhile, it is competing with Moderna to ensure it gets its BA.4/BA.5-specific vaccines into US markets by the fall of this year.

The need to develop new generations of vaccines is a direct result of the policies that have allowed the coronavirus ample opportunities to mutate by having unimpeded access to the population. And what vaccine manufacturers have not been able to accomplish thus far is to develop products faster than the virus develops significant mutations. To say nothing of the inability of global capitalism to deliver vaccines of any kind to the world’s population more quickly than virus variants can reach vulnerable unvaccinated people in the poor countries.

Given the vast number of mutations permitted by the “COVID forever” policy, natural selection will produce not only more vaccine-evading variants of the coronavirus, but variants that can resist anti-virals like Paxlovid. Dr. Derek Lowe, a Ph.D. in organic chemistry from Duke with experience in the pharmaceutical industry on drug discovery projects, wrote in Science“Pfizer’s coronavirus protease inhibitor Paxlovid is being widely used now, and it’s been clear since the beginning that resistant strains of the virus could appear against it. After all, that’s what viruses do. With their vast numbers, fast generation time, and number of mutations, resistance to a given small molecule is generally just a matter of ‘when’, not ‘if.’”

And with millions of people becoming infected daily across the globe, the playing field is rigged in favor of the virus. A June 29, 2022, report in Science indicated that researchers conducting genomic sequencing had found mutations in variants circulating in infected people that can resist Paxlovid.

Conceivably, the idea of living with COVID forever also means that the vaccines and therapeutics that keep the virus at bay may soon run their course and exhaust themselves. Such a situation can be compounded by the development of multiple virulent forms of the Omicron subvariants that can co-exist and circulate simultaneously without competing with each other, as was seen early in the pandemic with Alpha, Beta and Gamma variants. This means people may find they are infected with two or more sub-variants at the same time.

The essential lesson of “forever COVID” and the façade that is unraveling in the White House should alert the working class to the immense dangers posed by the pandemic and the demands placed on them by Wall Street that it is safe to return to work and become infected. In yet unforeseen ways, the policy of forever COVID can make the last two years seem child’s play by comparison.

30 Jul 2022

Mest Africa Challenge 2022

Application Deadline: 30th August 2022

Eligible Countries: Ghana, Nigeria, Kenya, South Africa, Senegal.

About the Award: Calling all tech start-ups in Ghana, Nigeria, Kenya, South Africa, Senegal!

Pre-seed to seed stage technology startups in Ghana, Nigeria, Senegal, Kenya, and South Africa are invited to apply to participate in the regional competitions to be held in these countries in October this year. Two finalists will be selected from each country to participate in the final Demo Day Pitch event to be held in Accra, Ghana for the ultimate prize of $50,000 in equity.  

The competition has received thousands of applications from around the continent since its inception. It has spotlighted and impacted the growth of winning startups such as Tanzania’s Kilimo Fresh, Ghana’s OZE, South Africa’s Snode Technologies, Kenya’s Waya Waya, and Nigeria’s Accounteer.

Type: Entrepreneurship

Eligibility:

  1. Pre-seed or seed-stage (have raised $100k total or less cumulatively since inception)
  2. Currently generating revenue 
  3. Can demonstrate traction in one or more of the five MAC Markets (Ghana, Kenya, Nigeria, South Africa, Senegal)
  4. Has been in operation for 2 years or less
  5. Tech-enabled (software company)
  6. Industry agnostic
  7. Any business model (B2B, B2C, B2B2C, B2G etc…)

Number of Awards: 10

Value of Award:

  • Funding of up to $50,000
  • Perk prizes from MEST Strategic Partners
  • Global visibility
  • Build your networks
  • Professional coaching
  • Mentorship from experts
  • Join the global MEST Community for lifetime benefits

How to Apply: Entries will be accepted till 30th August 2022 through the competition’s online application portal.

  • It is important to go through all application requirements on the Programme Webpage see link below) before applying

Visit Programme Webpage for Details

The class dynamics of the Fed’s recession program

Nick Beams


On Thursday, the Commerce Department reported that the US economy shrank for the second quarter in a row, bringing it into a “technical recession.”

The economic contraction is being accompanied by a series of layoffs that threatens to become a torrent as the economy slows further. This month, more than 30,000 layoffs occurred in the technology sector alone. Last week, Ford announced 8,000 layoffs, heralding a further bloodbath in the auto industry.

Amid the swirl of economic data, it is always necessary to understand that these numbers are the abstract expression of underlying social and class forces, that “the economy” is not some kind of machine but is based on definite social relations and operates through them. This is particularly necessary when considering the latest economic data.

A debate has now broken out in the media and financial commentary circles as to whether this “technical recession”—defined as two consecutive quarters of economic contraction—is a real one or not.

The key issue here is not one of definitions but what are the essential class interests at work, particularly with regard to the policies of the U.S. Federal Reserve, the key financial institution of the capitalist state.

Fed policies are always couched in various forms of jargon that cover up the real agenda through a series of mystifications aimed at making it appear the central bank somehow stands above class interests, regulating economic life in the interests of the population.

Amid the flurry of words, the essence of the present situation is this: The central bank, the guardian of the interests of the corporations and finance capital, has set out to engineer a marked slowdown and, if necessary, a major economic contraction. The aim is to suppress the wage demands of the working class under conditions where inflation has risen to the highest level in four decades.

This assault is being waged through the mechanism of higher interest rates, which are being lifted at the fastest rate in decades under the banner of the fight against inflation. But interest hikes will not bring down gas prices or untangle supply chains. The objective is to bring about an economic contraction so that pay demands are suppressed.

The present policy agenda reprises that of Fed Chair Paul Volcker in the 1980s when interest rates were lifted to record heights inducing the deepest recession to that point since the Great Depression. Today’s Fed Chair Jerome Powell has expressed his admiration for Volcker on numerous occasions, making clear he is more than prepared to follow the same path.

Former US Treasury Secretary Lawrence Summers has insisted that containing inflation means inducing higher jobless levels for five years or a 10 percent unemployment rate for at least a year.

As with every other economic issue and statistic, inflation is embedded in the class structure of society, a historical examination of which reveals the origins of the present US and global spiral.

The global financial crisis of 2008, set off by the more than two decades of increasing financial speculation preceding it, led to the largest corporate and financial bailout in history. The government handed out hundreds of billions of dollars in rescue packages, and the Fed began the policy of “quantitative easing”—injecting money into the financial system so that the speculation on Wall Street that had precipitated the crisis could continue.

And continue it did. After reaching a nadir in March 2009, the stock market went on a spectacular bull run. But it was based on a continuous supply of cheap money by the Fed.

In March 2020, as the COVID-19 pandemic struck, Wall Street and financial markets went into a meltdown fearing that the imposition of necessary public health safety measures would impinge on the flow of profits extracted from the working class, and the stock market bubble would collapse.

Two key policies resulted.  Under the banner of the “cure cannot be worse than the disease,” the necessary policy of COVID-19 elimination was rejected in the US and by governments around the world. At the same time trillions more dollars were pumped into the financial system. In the US the Fed, doubled its holdings of financial assets from $4 trillion to $8 trillion, virtually overnight, at one point spending a million dollars a second.

Herein are the origins of the global inflationary spiral. The refusal to undertake a global policy of COVID-19 elimination because of its potential impact on the stock markets had major consequences in the real economy, as the spread of COVID-19 led to a supply chain crisis.

The monetary system was expanded by the central banks, leading to still further asset speculation in 2020 and 2021. Another factor is the endless increases in military spending as billions are funneled into the proxy war against Russia in Ukraine.

In their drive to increase interest rates, Fed Chair Jerome Powell, along with other central bankers, continually refer to what they call the “tight labour” market in which demand must be brought into balance with supply.

Under conditions where the deaths inflicted by COVID-19, ongoing infections and the growing impact of Long COVID have led to the withdrawal of millions from the workforce, the only way to lift the increase of the supply of labour above demand is through the imposition of unemployment.

And that process is already underway as a result of the interest rate hikes initiated by the Fed so far. The auto industry has indicated new hirings are at a standstill, and layoffs are set to follow. In the interest-rate sensitive sectors of high-tech, layoffs have already started with more to come.

In the face of the daily cuts in their standard of living resulting from the highest inflation in more than four decades, workers are compelled to undertake a struggle for necessary wage increases. But as they are driven into this fight, it necessary to understand what is at stake in order to better conduct the battle at hand.

Workers are not just in a conflict with individual employers but are engaged in a political struggle in which the union bureaucracy functions as the chief enforcer of the demands of the capitalist state and its agencies.

Moreover, the fight for wage increases, necessary as that is, is a struggle against the effects of much deeper going problems. A review of the economic history of the past period shows that every measure taken by the ruling class to deal with an economic crisis led inevitably to its eruption in a new and more malignant form.

Thus the “solution” to the financial crisis of 2008 set up the conditions where in 2020 rational scientific measures to deal with COVID-19 were rejected lest their implementation would lead to a financial market collapse. But the “let it rip policy” that ensued has now led to an inflationary spiral which the leading agencies of finance capital are determined “resolve” by making the working class pay, if necessary through mass unemployment.

Germany’s war offensive: Berlin approves delivery of 100 self-propelled howitzers to Ukraine

Johannes Stern


According to media reports, Germany’s federal government has approved the delivery of 100 self-propelled howitzer 2000s to Ukraine. Berlin will thereby increase its already massive weapons deployments many times over. A spokesman for the Ministry of Economic Affairs estimated the cost of the howitzers at €1.7 billion. So far, Berlin has supplied arms worth €600 million to Kiev.

A self-propelled howitzer

The massive deal was concluded behind the scenes two weeks ago. According to information provided by Der Spiegel, the Ministry of Economic Affairs, headed by Robert Habeck (Green Party), granted the German armaments group Krauss-Maffei Wegmann (KMW) a permit for the production of the howitzers on July 13. Only two days earlier, KMW submitted the relevant permit request. At KMW, “the production of the weapon systems should now be started immediately.”

The immediate aim of the delivery of howitzers is to escalate the NATO proxy war against Russia in Ukraine and to ensure it continues over a long period of time. “The production of the howitzers is expected to last for several years, so it is primarily a question of strengthening the Ukrainian army in the long term,” commented Der Spiegel. However, the units already delivered are now playing a role on the front.

A report on the official website of the German Armed Forces (Bundeswehr) praised the effectiveness of howitzers. “Where they are deployed regionally, they increase the combat worthiness of the Ukrainian armed forces by their range, by their combat power, by their tactical capabilities and also by modern ammunition,” stated Colonel Dietmar Felber, who trains Ukrainian soldiers in Idar-Oberstein on howitzers.

The entire report underscores the central and active role of the Bundeswehr in the war in Ukraine. The training of the Ukrainian soldiers has been “continuing at full throttle,” and the Ukrainian artillery soldiers trained by him are now on the front line, Felber boasted. “We have connections to this battalion. They were in combat from the beginning, and they are successful in combat,” he remarked. This creates “a feeling of satisfaction and above all of pride.”

Statements such as these make clear the militaristic and criminal tradition the ruling class is reconnecting with. Eighty-one years after the Wehrmacht’s war of annihilation against the Soviet Union, German soldiers and politicians rejoice in the deaths of Russian and Ukrainian soldiers. According to media reports, hundreds die every day in the artillery fire at the front. And yet the ruling class continues to expand its military support for the pro-Western regime in Kiev.

On Wednesday, the Ministry of Defense announced on Twitter that it would “support Ukraine with the delivery of more heavy weaponry, ammunition and training in Germany.” Ten self-propelled howitzer 2000s, three Mars II multiple rocket launchers and five Cheetah anti-aircraft guns have already arrived in Ukraine. “Further materiel will follow shortly,” the ministry wrote.

According to the ever-increasing overview of the federal government “on German lethal and non-lethal military support provided to Ukraine,” in recent days there has also been a delivery of “33 M113 armored troop transporters with munition.” In the section “Support services in preparation/implementation,” the following items have been added since the beginning of the week:

  • 21 M113 armored troop transporters with munition
  • 25 Cheetah anti-aircraft guns including approximately 6,000 rounds of anti-aircraft ammunition
  • 10 HMMWV vehicles (8x ground radar carriers, 2x Jammer/drone carriers)
  • 200 commercial trucks
  • 4 drone defense systems

The war aims associated with these arms shipments are clear. NATO and Berlin are pursuing the goal of continuing the war until Russia’s military defeat. “We support Ukraine—as long as it needs this support: economically, on the humanitarian front, financially and through the supply of weapons,” wrote Chancellor Olaf Scholz in a recent guest article for the Frankfurter Allgemeine Zeitung.

Already in the First and Second World Wars, the German ruling class pursued the goal of subjugating Russia and also controlling Ukraine, which was part of the Soviet Union during World War II. Now it wants to be at the forefront once again when it comes to the division and looting of the resource-rich and geostrategically critical regions of Eurasia.

To this end, Berlin is not only flooding Ukraine with weapons, but is systematically working to expand its military influence throughout Eastern Europe. Earlier this week, Foreign Minister Annalena Baerbock (Greens) visited the Czech Republic and Slovakia. In Bratislava, she promised her Slovak counterpart Ivan Korcok a long-term deployment of German soldiers and anti-aircraft missiles. “The Patriots will stay as long as you need them here,” she said. The presence of the German military in Eastern Europe is “not a flash in the pan.”

In the Czech capital Prague, Baerbock announced that the negotiations between Germany and the Czech Republic on a so-called tank circular swap to support Ukraine were about to be concluded. Berlin already agreed with Prague in May to provide the Czech army with 15 German “Leopard 2” tanks so that the Czech government can deliver 20 Soviet-produced tanks to Kiev. 

According to information from the Air Force, four Eurofighters from the Tactical Air Force Squadron 71 “Richthofen” from Wittmund and one Eurofighter from the Tactical Air Force Squadron 31 “Boelke” from Nörvenich transferred to the Estonian Aemari Air Force Base on Wednesday. From August 1, they will take over the so-called Baltic Air Policing, i.e., the surveillance of NATO airspace in the Baltic States, for nine months. For the Bundeswehr, it is the first such operation since the beginning of the war in Ukraine.

The German military presence in Eastern Europe—additional combat troops are stationed in Lithuania and Romania—increases the risk of a direct war with the nuclear-armed power Russia. At the same time, the Bundeswehr is primarily using arms deliveries to Kiev to boost Germany’s own arms industry. The same companies that were centrally involved in the war economy of the Nazis and upgraded the Wehrmacht within a very short time for the Second World War are once again rubbing their bloody hands.

KMW, which builds the howitzers, operated under the name Krauss-Maffei during the Nazi era. According to Wikipedia, during the Nazi dictatorship, prisoners of war and concentration camp prisoners from the more than 400 camps and shelters in the greater Munich area were committed to forced labor in addition to so-called “Eastern Workers.” In 1938, the 60-hectare Munich-Allach site was expanded. The company headquarters are still located there today.

The armament giant Rheinmetall, which is supposed to supply KMW with parts such as the chassis of the self-propelled howitzers, also exploited thousands of forced laborers during the Third Reich and played a key role in rearmament. Under the name Rheinmetall-Borsig, the company was part of the state-owned company Reichswerke Hermann Göring and thus directly integrated into the planned preparation for war.

The German government has used Putin’s reactionary invasion of Ukraine, provoked by NATO’s encirclement of Russia, to initiate the largest rearmament programme since Hitler. Only three days after the beginning of the war, Scholz announced in parliament (Bundestag) the “Bundeswehr Special Fund” in the amount of €100 billion. The fund is mainly being used to implement “major national projects.”

Since the announcement, the armaments companies have been massively strengthened with one armaments deal following on the heels of another. The decision to procure dozens of nuclear-weapon-ready F-35 stealth bombers—the purchase price of $8.4 billion was approved by the US government yesterday—was followed by the plan to set up a national missile defence system. Tanks and warships are also on their way.

In mid-July, Rheinmetall announced that the Ministry of Defense would order 111 Puma tanks. The contract, which is to be finalized in September, is part of the comprehensive rearmament of Germany’s ground forces. In the end, the number of Puma tanks could be even higher, said Defense Minister Christine Lambrecht (SPD). The final number of units will be decided “only when the structure of the army is finalised.”

Also in July, the German government acquired the insolvent shipyard MV Werft in Mecklenburg-Western Pomerania. “For the Ministry of Defence and the German Armed Forces, this is a major step towards improving the material readiness of the navy,” said the official press release of the Ministry of Defence on July 7. 

Lambrecht spoke of an “historic day.” With the purchase of the shipyard, the “Federal Republic is entering new territory,” the “challenges” of which are known. But she stressed that she had already said at the beginning of her term that there were “big barriers to overcome.” And one of them was “the poor material readiness of the Bundeswehr. Especially in the navy.” But now, “lack of capacity and long delays should be a thing of the past.”

Record second quarter profits for US oil corporations

Kevin Reed


Exxon Mobil and Chevron reported record profits in the second quarter of 2022, as the two largest US oil monopolies cashed in on unprecedented year-over-year increases in oil and gas prices during the months of April through June.

An Exxon sign [Photo by Brian Katt / CC BY-SA 4.0]

Exxon, based in Irving, Texas, earned $17.9 billion in the quarter, more than three times what it earned in 2021, while Chevron, based in San Ramon, California, tripled its profits to $11.6 billion. Both companies nearly doubled year-over-year quarterly sales, with Exxon going from $67.7 billion to $115.6 billion and Chevron from $36 billion to $65 billion.

When added to the earnings of UK-based Shell, which announced record profits of $11.4 billion on Thursday, the three largest Western oil corporations raked in a collective $46 billion in the quarter. Industry analysts expect that when British Petroleum and the French oil company Total report quarterly earnings in the coming days, the five largest Western oil companies will have chalked up a combined quarterly record of $60 billion in profits.

There is perhaps no better demonstration of the deliberate policy of the ruling elite to attack the economic position of the working class than the price gouging of the oil companies—a major factor in the four-decade record inflation rate of more than 9 percent—combined with the Federal Reserve’s raising of interest rates to bring on a recession, drive up unemployment and undermine growing wage demands.

As the Wall Street Journal freely admitted, the historic profits are the result of oil companies and their investors exploiting both the economic downturn at the beginning of the coronavirus pandemic in 2020 and the US-NATO proxy war against Russia in Ukraine that began last February.

The Journal reported on Friday following the Exxon and Chevron announcements: “Oil and gas demand has roared back as countries have lifted pandemic quarantine measures. Western sanctions against Russian energy have pushed commodity prices even higher. Now, as the US economy is contracting, the oil industry’s lofty earnings have become a rare bright spot for investors.”

The oil companies seized on the pandemic slowdown to cut more than 3 million barrels per day of oil refining capacity, while no new investment has been committed to update and expand the conversion of crude oil and other raw hydrocarbons into gasoline, diesel, jet fuel and other energy products.

The oil monopolies intend to ride this wave of massive profits derived from chiseling the public for as long as possible. As Exxon Chief Executive Darren Woods told the Journal, although refining margins have fallen off recently, it could take years to bring more capacity online. “Demand recovers, and we don’t have the capacity to meet that, which has led to record, record refining margins. This will be a few-year price environment,” Woods said.

It is the nexus of a tripling of the global price of oil—driven primarily by the US-NATO elimination of Russia as a supplier to the world market—and the return of demand for gasoline that has driven up prices at the pump to record levels.

Between April and June, the average American crude oil benchmark was about $109 a barrel, an increase of 64 percent over the same period a year ago, according to Bloomberg. Although the cost of a barrel of oil has fallen somewhat since then, the price as of Friday was still around $100.

Meanwhile, the price of a gallon of gas in the US reached a national average record of just over $5 on June 14. On Friday, the national average for gas was $4.26, which is more than 35 percent higher than it was at the beginning of August 2021.

Record industry profits have lifted the Wall Street performance of the oil giants during a period of downturn in the investment markets. The S&P 500 Energy index is up 35 percent since the beginning of the year, while the broader index has fallen by 15 percent since January. Shares of Exxon Mobil have shot up by 46 percent, while those of Chevron have risen by 26 percent.

Mark Stoeckle, chief executive and senior portfolio manager at Adams Funds, expressed energy investor euphoria to the Wall Street Journal, saying, “If you ignored energy for the last seven or eight years, you were paid handsomely for doing so. Now, the landscape has changed.”

The New York Times reported that shareholders are demanding that oil companies not spend money on expansion. Faisal A. Hersi, an energy analyst at Edward Jones, told the Times, “After years of overspending, these companies have found religion and are focused on capital spending discipline. They’re going to try to grow production at that 1 to 3 percent rate, which is an acceptable rate for investors as long as they’re able to increase cash returns.”

The Journal also said the oil companies have no plans to invest their record profits in new technologies in “the oil patch” but will stick with policies that “reward investors and strengthen their finances.” The five Western oil monopolies have spent a combined $20 billion in share buybacks since the beginning of the year, with plans to spend even more in the second half of 2022.

Chevron “lifted the upper end of its share-repurchase program this year to as much as $15 billion, up from $10 billion,” the Journal reported.

According to the New York Times, Exxon spent $6 billion on buybacks in the first half of the year and said on Friday it was “on track” with a plan for $30 billion in buybacks in 2022 and 2023, a target that it tripled once the present bonanza got going in the early months of the year.

Democrats in Washington D.C., such as Senator Elizabeth Warren of Massachusetts, have made noises about corporate “manipulation,” denouncing the handing over of billions of dollars to investors through share buyback programs instead of investing those funds in expansion or the hiring of more workers. Warren, who has repeatedly called herself a “capitalist to my bones,” has been working with the Biden administration on toothless legislation to tax share buybacks, which are expected to reach a record $1 trillion in 2022.