30 Jun 2022

Pilots protest across the US as flight cancellations mount ahead of Fourth of July weekend

Jerry White & Nick Barrickman



Thousands of Delta Airlines pilots are picketing at airports across the country today to protest exhausting work schedules and years of eroding pay and benefits. The protests take place just before the busy Fourth of July weekend, when 3.5 million Americans have booked flights, and amid another spike in cancellations, delays, misplaced baggage and other chaos at the airports. 

Airlines have sought to ramp up to full capacity for the summer travel season even though they face a chronic shortage of pilots, flight attendants, baggage handlers and other workers. The Federal Aviation Administration (FAA) has also admitted that it is understaffed, particularly at a key air traffic control center in Florida.

On top of the tens of thousands of forced buyouts and retirements the airlines carried out when the pandemic first hit, the shortages are being fueled by a large increase in COVID-related absenteeism, particularly after airlines lifted mask mandates in late April. 

On Wednesday, the official daily average of COVID cases—which is a far undercount of the real figures—reached 108,963, with 32,148 hospitalizations and 377 deaths. Fatalities have been up 17 percent over the last two weeks.

Earlier this week, Forbes wrote, “In effect, airlines face both indirect and direct staffing shortages from COVID. Indirectly, a hangover from the lockdown periods has left staffing thin. More directly—and an issue few are talking about—COVID is making many workers sick so they can’t show up for work.” The magazine also noted, “just two weeks after the end of mask mandates, the number of TSA (federal Transportation Security Administration) employees contracting COVID increased by 50%.”

In addition, large numbers of pilots are taking time off due to fatigue, rather than risk the safety of their passengers and flight crews. 

“They are working us to death,” James, a Southwest Airlines flight attendant told the World Socialist Web Site. “There will always be delays and waits. Customer service, ground crews, everyone is overworked like you wouldn’t believe.”

Due to these intolerable conditions and poor pay, James said, there was a high turnover rate for new workers. “There are new people who witness how us more senior employees get treated. Once they see it, they’re gone,” he said.

James described a recent situation when a pilot asked for leave due to fatigue. “We were all lobbied at 5 a.m., ready to get on the plane, when the captain had to re-route us,” he said. “He had just worked a 12-14-hour shift and was still fatigued.” While safety regulation requires such a pilot to be pulled from the flight to get an additional four hours of rest, he said, the flight attendants were left on-call. “There were three of us. We were left without food, no hotel room, being paid $2 an hour per diem.”

When flight attendants are “mando’ed,” James said, referring to mandatory overtime, they are paid less than the minimum wage no matter how long the delay. Under the terms of the union contract, he explained flight attendants will only get paid the typical $135 a trip if they are on the plane with “doors closed.” 

“The customers were all compensated for the delay, we didn’t even get a room,” he said, adding, “I have to work three jobs to make ends meet.” 

With the global airline industry facing a breakdown, airlines have begun to cut back on flights. As of early Wednesday, more than 520 US flights had been canceled and nearly 1,300 more were delayed, according to airline tracker FlightAware, with American Airlines and United Airlines flights most affected. More than half of all flights in and out of Toronto Pearson, Montreal Trudeau International and Canada's other major airports are being cancelled or delayed, according to DataWazo.

In 2020, the Democrats and Republicans handed the airlines billions in COVID relief funds, allegedly to prevent permanent layoffs when air travel plummeted during the onset of the pandemic. Instead, Delta, United and other airlines forced tens of thousands of workers to take buyouts and early retirements to trim their payrolls. Although air traffic has returned to near pre-pandemic levels, the airlines have not hired back tens of thousands of workers. Instead, they are pushing their current workforces to the brink. 

As for the pilot, flight attendant and other airline unions, they joined the airline bosses in lobbying Congress for the bailout money and then acceded to the companies’ demands for job cuts and wage and benefit concessions. 

With the airlines beating profit forecasts and raising their revenue outlooks, workers, who have borne all the health risks and sacrifices of the pandemic, are demanding substantial improvements in wages, working conditions, and health care and pension benefits.  

Non-scheduled Delta pilots are picketing today at airports in Atlanta, Detroit, Los Angeles, Minneapolis, New York, Seattle and Salt Lake City. Delta’s 13,900 pilots, who are members of the Air Lines Pilots Association (ALPA), have been working under pay rates and work rules last negotiated in 2016. ALPA agreed to an extension of the contract during the first two years of the pandemic and pilots have suffered a pay freeze over the last three-and-a-half years. 

“Delta pilots were front-line leaders during COVID and the recovery,” stated Captain Jason Ambrosi, Chairman of ALPA’s Delta Master Executive Council (MEC). “We helped our airline recover by flying record amounts of overtime and spending more time away from our families than ever before to get our customers safely to their destinations. It’s time for management to recognize our contributions.”

Ambrosi continued, “We’re now going into the Independence Day Holiday weekend and are concerned that our customers’ plans will be disrupted once again. The perfect storm is occurring. Demand is back and pilots are flying record amounts of overtime but are still seeing our customers being stranded and their holiday plans ruined. Unfortunately, these problems have not led to any greater urgency from management to resolve our issues at the negotiating table.”

On Tuesday, 500 FedEx cargo plane pilots held an informational picket outside the FedEx Air Operations Center in Memphis, Tennessee to demand a new contract. ALPA has been negotiating for a new contract since May 2021. “Throughout the pandemic, while many were shutting down and working virtually, FedEx pilots were flying across the globe keeping the world economy intact. We have earned an industry-leading contract through these remarkable efforts and now is the time for FedEx to deliver,” said Capt. Chris Norman, chair of the FedEx ALPA Master Executive Council.

Last week, ALPA signed agreed to a new two-year contract covering 14,000 pilots at United Airlines. The deal, which pilots will vote on through July 15, provides three pay raises totaling 14.5 percent, retroactive to January 2022 and ending in January 2024. The union says it also contains better overtime and premium pay, pension improvements, better scheduling provisions and a new eight-week paid maternity leave benefit. 

With the annual inflation rate currently at 8.6 percent, the two-year increase amounts to an actual cut in real wages. In Phoenix, one of United’s major hubs, inflation is running at over 10 percent. 

Nevertheless, the Wall Street Journal denounced the deal in an editorial board statement, titled, “United Airlines’ inflation warning.” The mouthpiece for corporate America complained, “Workers throughout the economy are demanding bigger raises to compensate for soaring prices,” and warned of the danger of a 1970s style “wage-price spiral.” 

The growing resistance of US airline workers is part of a global struggle, with Ryanair cabin crews striking over pay and working conditions last week in Spain, Portugal, Belgium, Italy; and strikes by Air France pilots and air traffic controllers at the Marseille Area Control Center this week.

Turkey retracts veto on Sweden, Finland joining NATO amid war summit in Madrid

Ulaş Ateşçi


On the eve of the NATO summit focusing on war against Russia in Ukraine as well as confronting China, top officials from Turkey, Sweden and Finland agreed on Tuesday in Madrid to a trilateral memorandum of understanding allowing Stockholm’s and Helsinki’s entry into the military alliance.

After a meeting attended by NATO Secretary General Jens Stoltenberg, Turkish President Recep Tayyip Erdoğan, Finland’s President Sauli Niinistö and Sweden’s Prime Minister Magdalena Andersson, a memorandum was signed by the foreign ministers of these countries.

(Left to right, back row) NATO Secretary General Jens Stoltenberg, Turkish President Recep Tayyip Erdogan, Finnish President Sauli Niinisto, Swedish Prime Minister Magdalena Andersson. (Front row) Turkish Foreign Minister Mevlut Cavusoglu, Finnish Foreign Minister Pekka Haavisto and Swedish Foreign Minister Ann Linde sign a memorandum in which Turkey agrees to Finland’s and Sweden’s membership in the defense alliance in Madrid, Spain, on June 28, 2022. (AP Photo/Bernat Armangue)

Stoltenberg declared: “The door is open—the joining of Finland and Sweden into NATO will take place.” Seeking to present this decades-long imperialist alliance of war and destruction—from the Balkans to the Middle East and Central Asia—as a so-called tool for security, he claimed that “Finnish and Swedish membership in NATO is good for Finland and Sweden, it is good for NATO, and it is good for European security.”

In his doorstep remarks yesterday at the ongoing Madrid summit he announced that the accession of Finland and Sweden to NATO would be “unprecedentedly quick, within few weeks.”

In exchange for the Swedish and Finnish commitments over Ankara’s demands, the Turkish government withdrew its veto on their NATO membership. Turkey was demanding that Sweden and Finland stop supporting the Kurdish nationalist People’s Protection Units (YPG) in Syria, as well as the Kurdistan Workers’ Party (PKK), which Turkish government bans as terrorist groups.

The Turkish ruling class considers it of strategic importance to prevent the emergence of any Kurdish state led by the YPG on its borders, and has been preparing a new military operation against Kurdish militias since late May.

The US-backed agreement sharply exposes the hypocrisy of the imperialist powers on justifying the war offensive against Russia in the name of defending “human rights” and the Ukraine’s right of national self-determination. Coming at a time of escalating state repression against Kurdish media and politicians in Turkey, this agreement gives the green light to a new offensive against the YPG in Syria, which, as before, will lead to hundreds of thousands of displaced people and thousands of deaths.

According to the memorandum, “Finland and Sweden will not provide support to YPG/PYD [Democratic Union Party in Syria], and the organization described as FETO [Fethullahist Terrorist Organization] in Turkey”. Fethullah Gülen is the US-based preacher Ankara blames for the NATO-backed 2016 coup attempt against the Erdoğan government.

The memorandum also states that “Finland and Sweden commit to prevent activities of the PKK and all other terrorist organizations and their extensions, as well as activities by individuals in affiliated and inspired groups or networks linked to these terrorist organizations.”

Sweden has committed to end its arms embargo to Turkey, which it launched against Ankara’s military invasion in Syria targeting the YPG militias in 2019. Both countries also promised to “address Turkey’s pending deportation or extradition requests of terror suspects expeditiously.” Yesterday, Ankara announced that it would seek to extradite 33 alleged members of the PKK or FETO from Finland and Sweden.

In exchange to these commitments, Turkey “confirmed its long-standing support for NATO’s Open Door policy, and agrees to support at the 2022 Madrid Summit the invitation of Finland and Sweden to become members of NATO, ” effectively removing the only obstacle to the opening of a northern front against Russia. Any new membership of the alliance needs a confirmation by all members.

With this provocative move, essentially planned in Washington, Berlin and London, the entire Scandinavian region is to be transformed into a potential war zone in a conflict with Russia. In May, the Finnish and Swedish governments seized Russia’s reactionary invasion of Ukraine to justify their application to join NATO, abandoning their long-standing policies of official neutrality.

Finland shares a 1,300 km border with Russia as Sweden has a significant position in the Baltic Sea, and both countries have been increasingly rearmed by NATO powers against Russia in the last period.

“One of the most important messages from [Russian] President Putin ... was that he was against any further NATO enlargement. He wanted less NATO. Now, President Putin is getting more NATO on his borders”, Stoltenberg said on Tuesday evening. With this statement, the NATO chief more or less admitted that NATO’s decades-long eastward expansion targeting Russia consciously sought to provoke the Kremlin to invade Ukraine so as the US-led alliance could further escalate its confrontation with Russia.

The agreement on NATO enlargement comes just days after it was acknowledged that NATO forces, including the United States, the United Kingdom, Canada, France and Lithuania, are directly involved in the war against Russia in Ukraine. As the NATO powers continue to massively arm Ukraine, Stoltenberg said the military alliance would increase its “high readiness forces” sevenfold, from 40,000 to 300,000, deploying tens of thousands of additional troops, as well as countless tanks and aircraft, directly to Russia’s border.

Moreover, in line with Washington’s “great power conflict” national strategy, NATO is adopting a new strategy taking concrete steps towards targeting not only Russia, but also China – both vast nuclear-armed countries with massive resources of raw materials critical to the imperialist re-division of the world.

While the leaders of four Asia-Pacific countries – Australia, New Zealand, Japan and South Korea – are attending a NATO summit, Stoltenberg declared that the summit would directly address China for the first time, and “the challenges that Beijing poses to our security, interests, and values.”

As Erdoğan’s office declared on Tuesday that “Turkey has made significant gains in the fight against terrorist organisations,” and “Turkey got what it wanted,” Swedish Prime Minister Andersson said it was a “very good agreement.” She added that “We will continue our fight against terrorism and as NATO members also do so with closer cooperation with Turkey.”

In a statement, Finnish President Sauli Niinistö said “Our joint memorandum underscores the commitment of Finland, Sweden and Turkey to extend their full support against threats to each other’s security.”

Leaders of the major imperialist powers expressed their satisfaction with the deal. “Congratulations to Finland, Sweden, and Turkey on signing a trilateral memorandum – a crucial step towards a NATO invite to Finland and Sweden, which will strengthen our Alliance and bolster our collective security – and a great way to begin the Summit,” US President Joseph Biden wrote on Twitter.

Although there was no public US involvement in negations between Turkey, Sweden and Finland, “The final push to resolve the dispute started early Tuesday morning, when President Biden called Mr. Erdogan to urge him to ‘seize the moment’ on the eve of the summit,” according to the New York Times .

British Prime Minister Boris Johnson hailed the deal on Twitter stating that “Fantastic news as we kick off the NATO Summit. Sweden and Finland’s membership will make our brilliant alliance stronger and safer”. German Foreign Minister Annalena Baerbock expressed her government’s “relief” that Turkey had ended its opposition to Sweden and Finland joining NATO.

The main bourgeois opposition Republican People’s Party (CHP) also welcomed the agreement. Yurter Özcan, the CHP representative to the US, tweeted that “The AKP government took the right decision by abandoning its token veto.” Earlier, CHP spokesperson Faik Öztrak said, “As CHP, we would of course be pleased to see NATO strengthened, but Turkey’s interests come first.”

While this agreement confirms the Turkish bourgeoisie’s deep-rooted commitment to imperialism and the NATO alliance, it also underlines the bankruptcy of Kurdish nationalism’s orientation towards the United States and the European powers.

In late May, Meral Danış Beştaş, a leading deputy of the Kurdish nationalist Peoples’ Democratic Party (HDP), declared that “The Kurdish issue can be solved inside Turkey. You cannot solve this issue by blackmailing NATO and vetoing Sweden and Finland. Of course, we do not think that these countries will enter into narrow negotiations. Because both Sweden and Finland have a democratic system, a fair judicial system, and freedom of thought and expression.”

29 Jun 2022

Government of Mexico Scholarships of Excellence 2022

Application Deadline: 24th July 2022

Eligible Countries: See list below

To be taken at (country): Mexico

About Scholarship: For decades, the Mexican cultural diplomacy has worked in different successful programs, such as the human capital training through scholarships for academic degrees awarding and research work performing in different areas of knowledge.

The Directorate-General for Educational and Cultural Cooperation, through the Academic Exchange Department, designs and manages the Ministry of Foreign Affairs´ Scholarship Program for Foreigners. The scholarships of the Mexican Government present two programs: the scholarship for academic studies and the scholarship for special programs.

The scholarships for academic studies are offered to take complete programs for Specialization, Master´s or PhD Degrees, and Postgraduate Researches. Likewise, the offer includes academic mobility for Bachelor´s and Postgraduate Degree. On the other hand, the scholarships for special programs are offered to take short-term fellowships addressed to Visiting Professors, Researchers in Mexico´s issues, Media Contributors, Art Production Fellowships, etc.

Type: Specialization, Bachelor’s, Master’s or PhD Degrees, and Postgraduate Researches including short-term fellowships

Selection Criteria and Eligibility: The scholarships will be awarded on academic excellence.

  • Applicants must hold a Bachelor’s, Master’s or Ph.D. Degree, as required by the program for which the scholarship is requested. Technical and / or commercial degree titles are not accepted. For the cases of mobility at the Bachelor’s level, it will not be necessary to submit a diploma, only proof of studies of the last academic period completed, issued by the institution of origin.
  • Candidates cannot be living in Mexico at the time of application.
  • Applicants must have achieved a minimum grade point average of
    eighty (80), on a scale of 0 to 100, or the equivalent, for the last academic degree received. Applications with a lower grade point average will not be considered
  • The scholarships are not transferable and cannot be deferred to future years.

Number of Scholarships: Several

Value of Scholarship:

-Enrollment fees  and tuition
-Health Insurance
-Transportation from Mexico city to the Host Institution
-Monthly Stipend

Duration of Scholarship:

  • -Undergraduate and graduate academic mobility programs- one academic term (quarter, trimester or semester)
  • Undergraduate: 4 years
  • -Graduate research and postdoctoral fellowships-12 months (1 month minimum)
  • -Specialization – 1 year
  • -Master’s degree – 2 Years
  • -Doctorate- 3 or 4 years
  • -Medical specialties and subspecialties- 3 Years

Eligible Countries

  • Africa: Algeria ,Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Malawi, Mauritania, Mauritius, Morocco, Mozambique, Nambia, Niger, Nigeria, Republic of Congo, Rwanda, Saharawi, Arab Rep., Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe
  • North America: United States, Canada and Canada / Province of Quebec
  • Latin America: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela)
  • Caribbean: Antigua and Barbuda, Bahamas, Barbados, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Puerto Rico (Commonwealth), Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago
  • Europe: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Finland, France, Germany, Great Britain, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey and Ukraine)
  • Asia: Afghanistan, Azerbaijan, Bangladesh, Bhutan, Brunei, Cambodia, Kingdom of China, People’s Rep., India, Indonesia, Japan, Kazakhstan, Korea, Kyrgyzstan, Laos, Democratic Rep., Malaysia, Mongolia, Myanmar, Nepal, North Korea, Pakistan, Islamic Rep. of Philippines, Singapore, Sri Lanka, Tajikistan, Thailand, Kingdom of Timor – Leste, Turkmenistan, Uzbekistan, Vietnam and Socialist Rep. of
  • Pacific: Australia, Cook Islands, Fiji Islands, Kiribati, Marshall Islands, Micronesia, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Independent State, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu
  • Middle East: Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestinian National Authority, Qatar, Saudi Arabia, United Arab Emirates and Yemen, and
  • Non-self Governing Territories: American Samoa, Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guam, Montserrat, New Caledonia, Pitcairn, Saint Helena, Tokelau, Turks and Caicos Islands and United States Virgin Islands

How to Apply: Only applicants from Cuba, Saint Lucia, the Dominican Republic, Antigua and Barbuda, Trinidad and Tobago, Dominica, Barbados, Suriname, Guyana, Jamaica, Haiti, Nicaragua, Slovakia, Slovenia, Lithuania, Latvia, Turkey, Venezuela, New Zealand, the Palestine and the countries of the African continent may submit paper or online applications.

    • ELIGIBLE PROGRAMS ANNEX 1 )
    • ELIGIBLE INSTITUTIONS ANNEX 2 )
    • INTERNATIONAL AIR TRANSPORTATION  ANNEX 3 )
    • ELIGIBLE COUNTRIES ANNEX 4 )
    • FORM ANNEX 5 )
    • LETTER OF RETURN TO THE COUNTRY ANNEX 6 )
    • LETTER OF ACCEPTANCE OF THE TERMS OF THE CALL  ANNEX 7 )
    • TRUTH LETTER ANNEX 8 )
    • HEALTH INSURANCE COVERAGE ANNEX 9 ) 
    • APPLICANT’S MANUAL (ANNEX 10)

    ⓘ  LIST OF PARTICIPATING HOSPITALS 

  1. Applications must be submitted online through the Academic Cooperation Management System (SIGCA (https://sigca.sre.gob.mx), during the duration of the Call.
  • It is important to go through ALL application requirements in the Award Webpages (see Links below) before applying.

Visit Award Webpage for details

Sponsors: Mexican Government

Important Notes: Candidates will be informed of the results by the corresponding Mexican embassy or designated Mexican institution.

G7 and the Desperation Stage of Russian Sanctions

Jack Rasmus


Biden and the other G7 leaders are meeting in the Bavarian Alps this week. Apart from proclaiming they’ll never give up supporting Zelensky and Ukraine, G7 leaders announced they were planning two new sanctions on Russia.

Like most of the previous six phases of sanctions the purpose of the latest is to deprive Russia of revenues from exports. So far sanctions haven’t been all that successful in that regard, at least in the shorter term. While the USA has banned Russian oil and gas imports to the USA, those amounts and their respective revenue impact on total Russian export revenue is insignificant. Moreover, the ban on Russian oil exports to Europe do not begin until December 2022, while there’s no ban on Russian natural gas imports whatsoever. So little net impact on Russian energy export revenues from Europe either.

The sanctions on oil & gas Russian exports to Europe have been quite minimal to date. Meanwhile, Russia’s exports to China, India and rest of the world have been rising. As have global energy prices in general.  With accelerating global prices for oil and gas, and an increase in Russian energy exports to India, China and elsewhere, Russia’s revenues have been actually rising.

This rising revenue despite sanctions has presented something of a conundrum for Biden and the G7. The whole idea of sanctions is to dramatically reduce Russian revenues, not simply volume of exports! Sanctions thus far have had the opposite effect of what was intended—Russian energy revenues have risen not fallen.

So the G7 in Bavaria have come up with two more schemes to try to reduce Russian export revenues. But the thin mountain air must be affecting their thinking. The two new schemes are among the most desperate and economically absurd sanction ideas spawned thus far.

  1. Ban Russian Gold Exports to Europe

The first absurd proposal being bandied about in Bavaria is to get Europe to agree to ban Russian gold exports to Europe.

The thinking is Russian revenues from gold constitute Russia’s second largest export revenue source, but at $20 billion a year gold sales revenue is still well below Russia’s oil export revenue of around $90 billion (before sanctions). Most of the Russian gold exports goes to the gold exchange in London where it’s ‘sold’ by Russia in exchange for other currencies. The G7 thinks denying Russia access to the London gold exchange will result in a big dent in its total export revenues and ability to obtain other currencies with which to purchase other needed imports for its economy. But there are problems with the G7’s proposed ban on Russia gold exports.

First, Russia could just as well sell its gold elsewhere in the world. It doesn’t have to sell it to the Europeans at the London exchange. Other major global buyers of Russian gold are Turkey, Qatar, India and other middle eastern markets. Gold prices have been rising globally, as inflation has driven up oil, gas, and other industrial and agricultural commodities. Gold is an asset that tends to rise in price with rising general price levels, which are now accelerating worldwide. With inflation, other countries will more than gladly buy up the Europeans’ share of Russian gold. Some may even then sell the gold back to the Europeans—at a marked up higher price of course.

The Demand for Russian gold will simply shift, from Europe to elsewhere. Russian gold export revenues will thus not fall on net; in fact, may possibly even rise as gold prices continue to rise with inflation–ironically in large part due to other sanctions in general.

Second, gold is an asset that provides a hedge against inflation. It may be that Biden can get the G7 leaders and their governments (and central banks) to boycott buying Russian gold. But what’s to stop individual investors in Europe from buying Russian gold in offshore markets, when it’s presently such an attractive asset? Will Biden extend sanctions on all the individual Europeans who simply shift their purchases of Russian gold from the London Gold Exchange to the gold exchanges in Turkey, Qatar and elsewhere?

  1. Price Cap Russian Oil Exports to Europe

This is an even sillier proposal. Here’s the logic of how the price cap is supposed to work. Theoretically, Europe would all agree to buy Russian oil exports over the next six months but only at a deeply discounted price that all of Europe would agree on. In other words, set a ‘price cap’ at a level well below world market prices that are currently determined by supply in global oil spot markets. The lower price is supposed to cut Russian revenues from the oil exports to Europe—i.e. reduce revenues, the prime goal of all sanctions. The idea was first suggested by Janet Yellen, the US Secretary of the Treasury. That’s the Janet Yellen who told the world in February 2022 that inflation was temporary, remember!

Getting all of the G7 to agree to a price cap still requires getting the rest of Europe as well as Japan, So. Korea and others to agree to that price cap as well.   But isn’t Europe supposed to stop buying all Russian oil imports by end of 2022 per previous sanctions they’ve agreed to? Who believes the Europeans can agree to a price cap on Russian oil and implement that cap in three months (July-September)–and then for just three months more (October-December)? Europe can’t do anything in three months, or even six. Maybe the US and EU aren’t all that confident they can implement a full ban on Russian oil exports by December?

But even this isn’t the most absurd aspect of the ‘price cap’ proposal.

Assuming Biden could get all the G7 to convince all of Europe’s 27 nations on a super discounted price, there’s still the ‘small problem’ of what Russia’s response might be to all that. The G7’s faulty logic is the deep discounted price Europe is only willing to pay for the oil would be at a price much lower than even the 30% discount that Russia is now selling oil to India, China and elsewhere. The G7 presumably would offer to buy Russian oil only at a 50% discount off current world prices maybe? That would put pressure, as the G7 argument goes, on Russian oil sales to India etc. The Indians would then demand Russia oil prices at the G7 lower 50% discount price. Russia would realize further reduced revenues from oil lower prices to India, China, the rest of the world as well as to G7 and Europe.

This is a proposal so ridiculous it’s almost embarrassing. The problem with the G7 ‘price cap’ idea is there’s no reason why Russia would want to sell any oil whatsoever to Europe at the G7’s deeply discounted price cap level.

First, why should it when Europe says it plans to phase out all Russian oil by December anyway? Second, Russia has shown it is not concerned with reducing natural gas export revenues to Europe. It’s already cut cubic gas exports to Europe by one-third as part of its own economic response to Europe’s agreement with US sanctions on Russia and it’s warned Europe of another third soon.  Economic warfare cuts both ways. So what’s to stop Russia from just cutting off all oil exports to Europe—and well before December? Third, Russia would have to be pretty dumb to agree to sell oil to Europe at the latter’s ‘price cap’ level which would be well below Russia’s already 30% discount oil price sales to India? It knows the likely knock on effect that would follow. India as a long term oil customer is far more important to Russia than Europe which says it’s ending as a customer in just six months.  Finally, Russia knows if it cuts off all oil exports to Europe, it would just change the market flow of global oil, not reduce it. Russia would sell more to other countries, which might then just re-export it back to Europe in turn.

In short, the error with the G7 price cap idea is it assumes that buyers (Europe) can set the price for oil in what is a global sellers market! G7 may think they can stand market fundamentals on their head and make it work, but they are wrong.  No amount of G7 wishful thinking can make Demand determine Supply in today’s global energy markets, where broken and restructuring supply chains, sanctions, and war are the main determinants of price.

Both the proposal to ban Russian gold exports to Europe and the proposal to manipulate oil demand to reduce its global market price—and thereby deprive Russia of revenues—are ideas that reflect more the desperation of the US and G7 to find some way to make sanctions on Russia work in the short run when thus far they aren’t working very well, if at all.

The short run objective of sanctions–i.e. to reduce Russian export revenues–has not been working but the two latest desperate ideas won’t work any better.

Historians will wonder years from now why the US and its most dependent allies in tow—the G7 countries—embarked upon a scope of sanctions on Russia so soon after Covid’s deep negative impacts on global supply chains and domestic product and labor markets. Global markets, trade and financial flows were seriously disrupted by the Covid experience of 2020-21. And they had not recovered by January 2022 when US sanctions on Russia were escalated. Before global supply chains could heal, the US and its G7 allies embarked on sanctions that further disrupted and restructured those same supply chains while simultaneously setting off chronic global inflation that ravaged their domestic economies as well. History will show, it was all not well thought out.

Even less thought out, however, are the more recent G7 proposals to ban Russian gold and engineer a price cap on global oil—the latter in effect a fantasy that by somehow manipulating a region’s (Europe) oil Demand it could set global oil prices in general and thus over-ride Supply as the driver of oil price and revenues.

It makes one wonder about the qualifications of the current generation of world leaders (led by Biden and the US) playing with the geopolitical world order. And wonder even more about their even less understanding of the consequences of their economic actions on the world economy.

US, Israel and Gulf States discuss anti-Iran alliance as nuclear talks set to restart in Qatar

Jean Shaoul


Top military leaders from the US, Israel, Saudi Arabia, Qatar, the United Arab Emirates (UAE), Bahrain, Jordan and Egypt met in the Egyptian resort of Sharm el-Sheikh last March to discuss defence coordination against Iran.

The Wall Street Journal reported the meeting. It was the first time Israel, which has no formal relations with either Saudi Arabia or Qatar, took part in such a meeting and signifies the ever-closer relations between Washington’s two key regional allies: Tel Aviv and Riyadh.

The hitherto secret summit is part of Washington’s efforts to bolster its reactionary allies in the region, all of whom sit atop social and political power kegs. While Egypt and Jordan face threats from Sunni extremist groups linked to Al-Qaeda and Islamic State, the Gulf States with sizeable Shia minorities fear Iran’s growing political influence at home and in the region, including in Lebanon, Syria, Iraq, Yemen and Gaza.

At the same time, the Biden administration is determined to counter China’s economic presence and political influence in the energy-rich Middle East as part of its broader preparations for war with Russia and China, with whom Tehran has forged increasingly close relations.

The WSJ wrote “At the high-level Sharm El Sheikh talks, the participants reached agreement in principle on procedures for rapid notification when aerial threats are detected… Officials also discussed how decisions might be made on which nation’s forces would intercept aerial threats.”

This would involve sharing intelligence, anti-aircraft and anti-drone capabilities, advanced radar deployment and both offensive and defensive cyberwarfare technology to be supplied by Washington, and to a minor degree Tel Aviv. Saudi Arabia has already bought 22 US Patriot antimissile batteries and is about to acquire the THAAD antimissile system, which the UAE has already purchased and used to shoot down a missile fired at Abu Dhabi by Yemen’s Houthi rebels last January.

Blinken (third right) at the Negev Summit (Source: Secretary Antony Blinken Twitter)

The talks in Sharm el-Sheikh were preceded by a hastily arranged meeting of Arab foreign ministers from Bahrain, UAE, Morocco and Egypt March 28 at Sde Boker in Israel’s Negev desert, billed by Israeli officials as a “get to know you better” meeting. Israel’s Foreign Minister and Prime Minister designate Yair Lapid had arranged the meeting after US Secretary of State Antony Blinken confirmed his visit to Israel as part of a wider tour of the Middle East and North Africa at the end of March.

The meeting focused on Iran, with discussions on “a regional security architecture” against aerial and naval threats, a reference to Israel’s covert war on Iran, centering on aerial attacks on the facilities of Iran and its allies in Syria and the covert maritime war mostly in the Red Sea and eastern Mediterranean that has seen Israel carry out at least a dozen attacks on Iranian vessels between 2019 and 2021. It followed the visit by Israel’s Prime Minister Naftali Bennett to Sharm el-Sheikh where he met the leaders of Egypt and the UAE.

Israel’s Defence Minister Benny Gantz described the emerging arrangements as the “Middle East Air Defence Alliance.” He claimed the air defence initiative had already enabled “the successful interception of Iranian attempts to attack Israel and other countries” in the region. Israeli officials declined to provide details, saying, “It’s still a work in progress.”

These talks took place in the run up to the announcement that US President Joe Biden will visit the Middle East July 13-16, where he will meet Lapid and President Isaac Herzog in Israel and the Palestinian Authority President Mahmoud Abbas in Ramallah before going on to Jeddah for talks with Saudi Arabia, Kuwait, Oman, UAE, Bahrain, Qatar, Jordan, Egypt and Iraq.

Biden’s visit is aimed at patching up relations with Saudi Crown Prince Mohammed bin Salman, who was initially treated as a persona non grata because of his role in the murder of dissident journalist Jamal Ahmad Khashoggi and other gross violations of human rights. He will discuss “national security” issues with Bin Salman, along with climate change, increasing Saudi energy exports to ease global oil prices, Iran’s nuclear program and the war in Yemen.

The timing of the WSJ’s report of a meeting held three months ago suggests that factions in the US opposed to any deal with Iran are trying to scupper the talks, or at least bully Iran into making further concessions that will curb its influence in the region.

Negotiations will restart this week, beginning with indirect talks between Tehran and Washington, on a US return to the Joint Comprehensive Plan of Action (JCPOA), unilaterally abandoned in 2018 by President Donald Trump. The Trump administration reimposed the sanctions lifted under the 2015 agreement and introduced even more draconian sanctions targeting Iran’s economy, including its key oil and gas exports and banking system.

Biden hopes to use a revived agreement to bring about a thaw in US-Iranian relations and prise Iran away from Russia and China’s orbit. But this has not stopped his administration from carrying out numerous provocations against Iran, directly or indirectly via its regional attack dog Israel, including the imposition just two weeks ago of new sanctions aimed at hurting a network of Iranian petrochemical producers.

On June 25, European Union foreign policy chief Josep Borell flew to Tehran to meet Iran’s foreign minister Hossein Amirabdollahian. The EU is anxious to restore the deal to access Iran’s oil. The two ministers announced their agreement to resume nuclear negotiations in “the coming days” in Qatar, which maintains ties with both Washington and Tehran. Qatar’s foreign minister had made several visits to Tehran since the talks in Vienna stalled in March, mainly over Iran’s demand that the US remove the Islamic Revolutionary Guard Corps (IRGC) from its list of Foreign Terrorist Organizations—a demand Tehran now says is not central to the talks. If successful, all sides would go back to Vienna for a ministerial meeting and final discussions.

Borell’s visit follows that of Russia’s foreign minister Sergei Lavrov, who said that Moscow supported the revival of the deal. According to a report on Israeli website Ynet, several Israeli generals, including the chief of Military Intelligence, as well as Defence Minister Gantz, support a return to the JCPOA, believing a bad deal preferable to no deal as it gives Israel time to prepare militarily.

Iran’s clergy-led bourgeois nationalist regime is desperate to escape the strictures of Washington’s ever tighter economic blockade that has limited oil exports, decimated the value of its currency against the dollar—now worth one tenth of its value at the time of the 2015 nuclear deal—and deepened the poverty of the Iranian masses.

In the last months, there have been almost weekly anti-government protests over poverty, rents that have risen by more than a third, low and unpaid wages, the soaring cost of living as inflation reaches 40 per cent, with food prices jumping by more than 82 percent, and high unemployment—nearly 21 percent of all 15–24-year-olds were out of work in March according to official figures.

As revenues collapsed—the budget deficit is believed to be about 50 percent amid widespread corruption and mismanagement—the government cut subsidies and ended the subsidised lower exchange rate used for the import of basic food staples in May, fueling sharp rises in the price of vegetable oil, eggs, chicken and dairy products. While the government also announced higher monthly cash payments to most Iranians, this will not take effect till the autumn. Further stoking mass outrage was the May 23 collapse of a high-rise building in Abadan that killed more than 30 people.

Teachers have held protests demanding the release of 18 educators arrested during protests in recent months, while public sector workers have rallied to demand unpaid wages. They have been joined by truckers and bus drivers in Tehran and bazaar merchants in several cities. Bazaar strikes played a major role in the 1979 revolution against the monarchy.

Pensioners have taken to the streets in more than a dozen cities over now worthless pensions, chanting “Death to Raisi” (the president) and “Death to the inefficient government.”

The government has responded to the recent demonstrations with tightened security, the deployment of riot police to attack and teargas protesters, mass arrests and intimidation and accommodation with imperialist foes abroad.

German government abolishes free coronavirus testing

Tamino Dreisam


While both the number of infections and hospitalizations in Germany are rising rapidly again, the government is giving the virus free rein and dismantling the last remaining coronavirus measures.

On Friday, Health Minister Karl Lauterbach (Social Democratic Party, SPD) announced the end of free public testing. A few days earlier, he had presented a vague 7-point plan to combat the impending autumn wave, focusing on vaccinations and testing. Now, it is clear that even these areas will not be expanded, but cut back further.

Coronavirus testing centre in Frankfurt (AP Photo/Michael Probst)

Starting July 1, a test at a public testing station will cost three euros. Only vulnerable groups, such as children up to five years old, women in early pregnancy and visitors to hospitals and nursing homes, will still be tested free of charge.

The consequences of the decision are broad. For many who must test regularly, it means a considerable financial burden that workers and the socially disadvantaged in particular can hardly afford.

With the abolition of free testing, the already inadequate data on the actual level of infections will be even less robust. Lauterbach himself revealed that only about half of coronavirus infections were being recorded. Without free testing, the number of unreported cases will rise even further.

'I will make no secret of it, I would have liked to continue the free tests for all,' Lauterbach explained cynically. The decision is in line with the policies the “traffic light” coalition of the SPD, Liberal Democrats (FDP) and Greens has followed since taking office. It has ended all remaining protections, essentially putting into practice the demands of the far-right Alternative for Germany (AfD).

Lauterbach justifies the abolition of free tests with “the tight budget situation that awaits us in the autumn.” The “truth” is that the tests “unfortunately cannot be afforded,” he said.

Who is Lauterbach trying to fool? The federal government has just launched a “special fund for the Bundeswehr” of €100 billion to spend on rearmament. It is simply not willing to spend the money on coronavirus tests and other health and protection measures. Instead, these costs will be passed on to the working class, which is already struggling with rising heating, rent and food costs.

The decision makes clear the government will take no further action, even under conditions of a massive new wave of infections. Ending free testing not only eliminates the basis for reintroducing limited measures such as requiring a negative test result for entry into some public venues, the entire “Autumn Coronavirus Strategy” does not include a single mandatory protective measure.

Its seven points focus largely on a vaccination campaign and the procurement of vaccines adapted to the Omicron variant. However, Lauterbach has already ruled out a renewed push for mandatory vaccination, even though the majority of the population would support it. One looks in vain for terms such as “lockdown” or even “mandatory masking.” Instead, the document explicitly states, “Nurseries and schools must remain open.”

The seventh point refers to an “amendment to the Infection Protection Act,” which expires on September 23. New measures would thus not come into force until the end of September at the earliest, if at all. Lauterbach said he was in talks about this with Federal Justice Minister Marco Buschmann (FDP). Buschmann is notorious for regularly campaigning in AfD style against the least protective measures.

As recently as June 15, he stated on the Maischberger talk show, “We must not underestimate what excessive, misapplied measures do to society. Our goal must be to combine health protection with our identity as a free society.” By “freedom,” the FDP representative means the unrestricted accumulation of profits, even if it costs millions of lives.

In essence, Lauterbach stands for the same “profits before lives” policy that has been followed since the start of the pandemic. A few days ago, in an interview with Deutschlandfunk radio, he said, “I believe that we all have the same goal here: to be able to react quickly with as few restrictions on freedom as possible—adapted to the situation.”

At the same time, the government is aware that its policies are conjuring up another autumn with very high death rates. At the press conference following the state health ministers' conference, Lauterbach declared, “Unfortunately, we must reckon with a severe coronavirus wave. The summer wave has already started now, but it will be more difficult in the autumn.”

The federal government’s strategy paper lists three possible scenarios elaborated by its Coronavirus Expert Council. The second scenario is considered the most likely: “The disease burden caused by SARS-CoV-2 remains similar to the recent increases in Omicron variants BA.4, BA.5, and BA.2.12.1, with a clustered occurrence of infections and work absences throughout the colder season.” In fact, this scenario has already become a reality.

According to the Robert Koch Institute, the more infectious BA.4 and BA.5 variants already account for 56 percent of infections, with a massive increase in those affected—despite the present warm temperatures. At 618 infections per 100,000 inhabitants, the 7-day incidence rate is about 23 percent higher than a week ago. The virus is spreading particularly rapidly among the elderly. Last week, there were 119 outbreaks in nursing homes and homes for the elderly—25 more than a week ago. A total of 50 people have died.

The number of severe outcomes is also increasing in the general population. The adjusted incidence of hospitalizations rose to seven (per 100,000) last week, or about 5,500 hospitalizations per week. The number of patients receiving intensive care rose to 780 from 670 the previous week.

To date, more than 140,000 people have died from COVID-19 in Germany due to the government’s refusal to eliminate the virus through implementing the necessary scientific and public health measures. Many more deaths will follow if the ruling class has its way. According to the government’s strategy paper, the “most likely autumn coronavirus scenario” could “extend over a long period of time.” Thus, “without taking further measures, about 1,500 coronavirus deaths per week are to be assumed.”

Jeffrey Epstein’s sex abuse collaborator Ghislaine Maxwell sentenced to 20 years in prison

Kevin Reed


Ghislaine Maxwell, the confidante of deceased sex trafficker Jeffrey Epstein, was sentenced to 20 years in prison in a Manhattan court on Tuesday.

Ghislaine Maxwell with Jeffrey Epstein in 2005 (Photo: US Justice Department)

In handing down the sentence, which was far less than the 30 to 55 years requested by prosecutors, New York Federal District Judge Alison J. Nathan said that Maxwell had “direct and repeated participation in a horrific scheme” with Epstein to sexually abuse and traffic underage girls. “The damage done to these young girls was incalculable,” Judge Nathan said.

Maxwell, 60, spoke in the courtroom for the first time since she was arrested and charged in July 2020 with six offenses, including sex trafficking a minor, and then convicted in December 2021 after a monthlong jury trial. She refused to accept responsibility for her crimes or apologize for the abuse endured by her victims over decades.

She merely acknowledged “the pain and anguish” suffered by the women who were as young as 14 years old when they were groomed for sex acts with the billionaire financier Epstein and his wealthy entourage of associates in various locations around the world. Maxwell deflected blame for the abuse of dozens of working class teenage girls, many of whom were from West Palm Beach, Florida.

Appearing in court in blue prison scrubs and shackled at the ankles, Maxwell said, “It is the greatest regret of my life that I ever met Jeffrey Epstein.” She continued, “Jeffrey Epstein should have been here before all of you.”

Judge Nathan calculated the sentence at 15½ to 19½ years in prison based on guidelines and said that her decision was above the upper limit because of the victims’ disturbing testimony and the fact that Maxwell failed to show any remorse. “Miss Maxwell is not punished in place of Epstein. Miss Maxwell is being punished for the role that she played,” Judge Nathan said.

In addition to the 20-year prison term, Maxwell was also sentenced to five years of supervised release and a $750,000 fine. Judge Nathan said Maxwell will be sent to the Federal Corrections Institution in Danbury, Connecticut. Speaking to the media after the sentencing, Maxwell’s attorney Bobbi Sternheim said the verdict would be appealed and that her client had been “vilified” and “pilloried” and left “holding the whole bag” for Epstein. She also said that Maxwell could not afford to pay the fine.

Epstein, who was known to have been engaged in sex trafficking going back to the 1990s, avoided prosecution for his sex crimes due to relationships he had with people in powerful places. Among those who are known to have traveled with Epstein in his private Boeing 727 called the “Lolita Express” were Bill Clinton, Donald Trump, Prince Andrew, Bill Gates and former Senate majority leader George Mitchell.

In 2008, Epstein avoided federal sex abuse charges by agreeing to a plea deal—negotiated by his attorney Alan Dershowitz and then U.S. Attorney for the Southern District of Florida Alex Acosta—that granted him immunity along with four named and any unnamed “potential co-conspirators.”

In July 2019 Epstein was arrested on sex trafficking charges when he stepped off his private airliner at Teterboro Airport in New Jersey. He was jailed awaiting trial at the Metropolitan Correctional Center in New York City. On August 10, Epstein was found dead in his prison cell. His death was declared a suicide by hanging by the New York City medical examiner despite evidence indicating he was murdered.

While the corporate media has been quick to characterize the sentencing of Maxwell as a “pivotal moment” and a “measure of resolution” to the criminal enterprise of Epstein and his ultra-wealthy and elite friends, the trial produced very little new information about who was involved in the sexual abuse of underage girls or why and how Epstein was protected from prosecution for so many years.

There is no doubt that stopping this information from finding its way into the public has been a primary concern of powerful individuals and organizations within ruling circles since the suspicious death of Epstein and throughout the arrest, trial and sentencing of Maxwell.

Detailed revelations about leading individuals within the American and international bourgeois establishment that were participating in Epstein’s degenerate social gatherings and then helping with a cover up of the criminality would severely undermine the authority of the ruling class.

As pointed out by Michelle Licata, one of Epstein’s victims who made statements to the Miami Herald, further details on the participants in the sex trafficking scheme need to be brought out. “By Maxwell not giving up the names of the people that participated in these crimes against underage girls she is telling the world that she doesn’t think she did anything wrong,” Licata said.

Licata also said that Epstein’s victims, who were betrayed by federal prosecutors in South Florida during Epstein’s 2008 plea deal, are still owed an explanation from the government. “There has never been a ‘real apology’ and ‘true justice’ for any of us,” she said. “It would be nice to hear from our own government that they failed to protect us and didn’t punish the people that did it when we needed them the most.”