SP Newsletter No.240
Last weekend, the world’s political leaders gathered at the G20 summit in Washington - hosted by the soon to depart US president George Bush - in a bid to rescue the world economy from financial instability and deepening recession.

A conspicuous absentee from the meeting was US president elect Barack Obama - perhaps not wanting to be tied to the policy of a failed president.

But will this 24-hour conference solve the underlying crisis in world capitalism? Despite Kevin Rudd calling the event “a point of historical significance”, it’s clear that little of substance was agreed. Bush, for example, wouldn’t accept more regulation over speculative hedge finds - despite the US financial system generating the lions’ share of toxic debt, some $1.4 trillion.

Bush also wasn’t enthusiastic about Gordon Brown’s much vaunted ’stimulus package’ policy, involving putting more resources from the richest countries at the disposal of the International Monetary Fund. Within the European Union countries there also wasn’t a ‘united front’ on the way out of the current crisis.

And despite welcoming China’s recently announced $600 billion stimulus package, the G7 countries are not keen on allowing China’s rulers a bigger place at the table of the world capitalist institutions such as the IMF and World Bank.

Moreover, the hope that China’s still expanding economy can save world capitalism is misplaced.

China, like Japan and Germany, is dependent upon high levels of exports to maintain growth but with consumer confidence slumping in the US - the world’s biggest market - China’s meteoric economic growth is slowing and Japan and Germany have moved into recession.

Likewise, oil rich countries such as Saudi Arabia and Russia have seen their stock markets collapse and their revenues from oil and gas exports hit by sharp falls - with oil down from a July high of $147 a barrel to $50 last week.

Of course, many of the world’s poorest and heavily indebted countries may well ask: since when has the IMF been the provider of financial stimulus to economies? On the contrary, the previous application of IMF financial prescriptions to qualify for loans has been the ‘kiss of death’ in many countries throughout Africa, Asia and Latin America.

Often the IMF ‘medicine’ (privatisation, deregulation of markets, lowering of tariffs, cutting public services, etc) has been worse than the disease - pushing many countries into recession.

Typically the G20 summit was all about rescuing the global elites from the gigantic hole they have dug for themselves and ignoring the plight of billions of poor people throughout the world.

However, one thing the IMF has got right is predicting global recession, with outright contraction for the rich economies of North America, Europe and Japan for the first time since world war two.

Socialist Party election campaign in Yarra

All Victorian Councils will go to the polls on November 29. The Socialist Party 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 Nicholls ward.

We need help door knocking, letter boxing, staffing the pre polling booths and on election day. We also need to raise money to pay for the campaign. 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

Also check out our Youtube videos related to the campaign visit.
http://au.youtube.com/watch?v=hPbvuxxWrd8
http://au.youtube.com/watch?v=DAi4f5xlXGY

News links

Poland: Trade unionists occupy Polish Premier’s office
http://www.socialistworld.net/eng/2008/11/18polana.html

Italy: Mass movement against education attacks continues
http://www.socialistworld.net/eng/2008/11/18italya.html

Israel: Museum workers of Weitzman Institute attacked
http://www.socialistworld.net/eng/2008/11/18israea.html

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.

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