Their failure, their system: make the bosses pay!
SP Newsletter No.233
Fat-cat bankers across the world are reeling from the white-knuckle ride of the recent financial crisis. Capitalism has taken an almighty battering. In order to calm global markets, governments and financiers tried bail-outs, shotgun takeovers, and even letting a bank fail.
Trying to answer the question “Is the panic over?” one capitalist economist said: “For now, yes, if only because we’re running out of banks to trash.” Alan Greenspan, the former chair of the US Federal Reserve, commented that the demise of an institution such as Lehman Brothers was “probably a once-in-a-century type of event”.
However, in one volatile week alongside the Lehman crash, we saw the US Government being forced into nationalising AIG. Merrill Lynch was hastily taken over by the Bank of America and there was a take-over of HBOS, Britain’s largest mortgage lender. As a result millions of dollars were wiped off Australian superannuation funds.
All this followed hard on the heels of the bail-out of mortgage giants Freddie Mac and Fannie Mae - the US federal Government was forced to nationalise them to rescue the US mortgage system and to try to stop further domino-effect banking failures.
These events are a huge ideological blow for fans of neo-liberalism. One journalist said that the chair of the US federal reserve and the US treasury secretary, “have done more for socialism in the past seven days than anybody since Marx and Engels”!
It will be ordinary people who will suffer the most from this crisis through cuts and job losses. But as workers struggle to keep their heads above water, city bankers strut around, their wallets bulging with huge bonuses, still thinking themselves ‘masters of the universe’.
These odious individuals used to whinge that the welfare state is too costly and should be totally dismantled. Suddenly they have had a change of heart and want us to bail out their failing enterprises. This about-turn has been dubbed “socialism for the rich”.
Socialists want the nationalisation of all major banks and financial institutions, not just those which are floundering. However, we don’t just want short-term nationalisation that pumps workers’ taxes into failing banks, only to privatise them when the economy looks healthier again.
We want these institutions permanently taken into democratically run public ownership. This move could guarantee affordable mortgages, and ensure workers’ homes are not repossessed because of free market failings.
Across the world thousands of jobs will be lost in the financial sector, not to mention the many other sectors who have survived in recent years on the lifeline of cheap credit. Australia will not be immune from job losses. Already we have seen thousands of jobs go in the manufacturing and retail sectors. There will be no golden goodbyes for the ordinary workers, only unemployment, a mountain of debt and the fear of losing their homes.
Capitalism’s boom has come to an abrupt end. More and more workers and young people are already looking towards socialist ideas. If you want to be part of the fight back join the Socialist Party and help us build an alternative to the madness of the capitalist system.
UNITE action against 7-Eleven in Melbourne
Stop the 7-Eleven rip-off
Protest 4.30pm – 6.00pm Thursday October 2nd outside the 7-Eleven store at 37 Swanston Street City. (Corner of Swanston & Flinders Lane in the CBD).
For more information visit:
http://www.unite.org.au/2008/10/01/7-eleven-actions-back-in-full-swing/
SP National Conference - The crisis facing world capitalism
SP will be holding our 2008 National Conference in Melbourne on Friday October 10 & Saturday October 11. On the opening night of the Conference we will host a public meeting featuring Kevin McLoughlin, the General Secretary of the Socialist Party in Ireland. The meeting will discuss the international situation and the crisis facing world capitalism.
The conference will continue on Saturday with members discussing the situation in Australia, New Zealand, party building and business. On the Saturday night we will close the Conference with a social event that will also double as the launch of our Yarra Council election campaign. All supporters of SP are invited to both of these public events.
The details are: Public meeting - The crisis facing world capitalism
7pm Friday October 10th, 2008 @ Trades Hall, Corner of Lygon & Victoria Streets Carlton South.
SP election campaign in Yarra
All Victorian Councils will go to the polls on November 29. SP will be running a strong campaign in the City of Yarra. We will be defending Stephen Jolly’s seat in the Langridge ward and we will also be standing Denise Dudley in the Melba ward and Anthony Main in the Nichols ward.
We will need help letterboxing, staffing the pre polling booths and on election day. We also need to raise money to pay for the campaign. We will also be launching our campaign with a big social event that will coincide with our National Conference. The details are: Yarra Council election launch - 7pm Saturday October 11th 2008 @ The Old Colonial Hotel, 125 Brunswick Street Fitzroy.
If you can help our campaign in any way, contact our National Office on 0396399111. For more information about our work in Yarra visit:
http://www.socialistpartyaustralia.org/council
SP financial appeal
SP needs $20,000 to pay for our election campaign and National Conference. Please read this important appeal letter and donate now! Thanks to all those who have already donated.
http://www.socialistpartyaustralia.org/archives/1446
News links
Russia: Beware falling BRICs
http://www.socialistworld.net/eng/2008/09/29russia.html
Britain: New Labour - Losing its hold on power
http://www.socialistworld.net/eng/2008/09/26britab.html
Malaysia: Multinational Hualon taken into receivership
http://www.chinaworker.info/en/content/news/525/
Join the Socialist Party
If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.
We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system, the system that is at the root of all of these problems. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. To join SP contact our National Office on 03 9639 9111 and we will send you a membership application form.
Subscribe to ‘The Socialist’ newspaper!
Support the Socialist Party by subscribing to our monthly newspaper ‘The Socialist’. Subscription rates are only $10 per year or $20 solidarity price. You will receive 11 copies per year delivered to your door every month. You will also receive our email newsletter every week and you will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe to ‘The Socialist’ contact our National Office on 03 9639 9111 and we will send you a subscription form.
Socialist Party contact details
Melbourne: Phone Anthony on 0396399111.
Sydney: Phone Gary on 0297287727.
Newcastle: Phone Samantha on 0249681545.
Perth: Phone John on 0894020728.
Rest of Australia: Phone our National Office on 0396399111.
Rest of the world: Phone our International Office on ++ 44 20 8988 8760.
The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). The CWI is organised in over 40 countries across the world.
http://www.sp.org.au
http://www.socialistworld.net
http://www.myspace.com/socialistpartyaustralia
http://www.facebook.com/group.php?gid=20461960776
