Germany at a turning point
By M K Bhadrakumar | Indian Punchline | September 25, 2017
The elections to the German Bundestag on Sunday throw up big surprises. Chancellor Angela Merkel will lead the next coalition government, too – her fourth successive win – but in all other respects, the results signify that Germany’s post-World War II politics is at a turning point.
First and foremost, the two mainstream parties that have dominated German politics have now come to represent only 53% of the electorate. The level of fragmentation is stunning for a country that is synonymous with the ‘middle path’. Second, Merkel’s CDU (Christian democrats) has lost support and her coalition partner SPD (social democrats) suffered a humiliating defeat. Third, the right-wing nationalist AfP – reviled as ‘neo-Nazis’ – won over 13% votes and secured 94 seats in the 709-member Bundestag, the first time such a thing is happening in Germany’s post-World War II political history.
Then, there are the sub-plots. The SPD has vowed to sit in the opposition, which means Merkel may have to form the next government with the rightist CSU (Christian socialists) and leftist Green Party as coalition partners, which makes an improbable alliance of convenience. The CDU-led government’s economic policies are likely to be subjected to pulls and counter-pulls from the two coalition partners CSU and Green Party, which are at loggerheads ideologically.
Interestingly, AfP’s main support base happens to be the former communist East Germany and, thus, an ‘East-West’ divide is surfacing after the German unification a quarter century ago.
Again, CDU lost popular support for the wrong reasons. Under the CDU-led government, the German economy did remarkably well. What cost Merkel heavily has been her refugee policies, which have been perceived as appeasement of Muslims opening the door to an influx of Islam in Germany. Merkel eventually took a tougher line on deportations but it was too little, too late. The issues of asylum, integration and deportation and the perceived ‘Islamisation’ of Germany dogged Merkel’s entire election campaign.
The ultra-nationalist AfD framed its campaign on the provocative platform, “Islam does not belong to Germany.” The party’s program calls for a ban on minarets and considers Islam to be incompatible with German culture.
The AfD leader Alexander Gauland has openly called for Germans to reclaim their history: “We have the right to be proud of the achievements of the German soldiers in two world wars.” The outgoing foreign Minister and SPD leader Sigmar Gabriel warned voters ahead of the poll against having “real Nazis in the German Reichstag for the first time since the end of World War Two”. Germany’s Central Council of Jews said its worst fears had come true in Sunday’s election.
The German policies are almost certain to be affected. Merkel will be under pressure to step up deportation of refugees. The AfD has tasted blood and sensing the national mood, it will surely intensify the ultra-nationalist campaign. Surely, the German discourse is poised to become much more homophobic, much more anti-migrant, much more-anti-Muslim. This will cast shadows on Germany’s relations with Turkey.
Again, Merkel’s approach to Russia will be keenly watched. The AfD – like most ultra-nationalists in Europe, is, ironically, “pro-Russia”. If the Russian strategy has been to discredit western democracies and break them into shambles, there ought to be quiet satisfaction in Moscow over what is unfolding in Germany.
At any rate, a weakened Merkel is not a bad thing for Moscow. (President Vladimir Putin and Merkel had an uneasy personal relationship.) Merkel will now be more susceptible from pressures from the German industry, where Russia has influential lobbyists, for normalization of business ties with Moscow.
The biggest impact of the German election will be felt on European integration processes. Merkel has been out on the back foot and she was a flag-carrier EU integration. Germany’s influence within the EU weakens in the period ahead. And, without a strong axis with Germany, France alone cannot lead European integration. In sum, coming on top of Brexit, EU will be rudderless without Germany’s leadership under an assertive Merkel.
How the Democratic Party Has Incurred Major Electoral Losses by Its Mistaken Support for Climate Alarmism

Photo by Paul Morigi/Getty Images for Paramount Pictures
By Alan Carlin | Carlin Economics and Science | September 20, 2017
For inexplicable reasons the Democratic Party has in many ways made itself the “Green Party,” and thereby has incurred major electoral losses. Each time it loses as a result of its increasingly green ideology, it has responded by doubling down on its green bet. The underlying miscalculation they have made is a result of the fact that the presidency is decided by electoral votes, not popular votes. Most of the “environmentalists” live in strongly blue states and the red state “environmentalists” are widely scattered in the few large towns, particularly college towns. This was very evident in the 2016 election when Clinton won the popular vote but lost the electoral vote, with much of her surplus of popular votes coming from California. Hillary Clinton has now confirmed this view by writing that her statement on the loss of coal mining jobs was the single greatest mistake of her campaign.
In 2016 the Party went whole hog for climate alarmism by writing it into their party platform and even promising to end all use of fossil fuels by a date certain. Clinton also hurt her prospects in 2016 as a result of her remarks about the loss of coal mining jobs and her last minute endorsement of Al Gore and his strident climate alarmism. Yes, Clinton probably picked up some “environmentalist” votes, but most of them were in states that she was going to win anyway. And she probably lost votes in the states that Trump most needed to win for an electoral vote majority.
But a very good case can be made that the climate issue played a decisive role in the 2000 presidential election, the 2010 congressional election, as well as in the 2016 presidential election. Somehow the Party overlooked or misinterpreted what happened in 2000 and in 2010.
2000
Most people who remember the 2000 presidential election immediately think of the controversial outcome in Florida, which ultimately decided the election. But it would have had no influence if Al Gore had not lost West Virginia for the Democrats for one of the few times from 1932 to then. The deciding issue appears to have been climate and coal mining. In the end, Gore lost the presidential election by 3 electoral votes. West Virginia had 5 electoral votes that year. But all of them went to Bush primarily because of concerns about Gore’s views on climate and the likely effects of climate alarmism on coal mining, an important source of income in the State. West Virginia voted Republican in only three presidential elections from 1932 until 1996 but has become increasingly Republican in presidential voting since 2000. I believe most of that increase can be attributed to the Democratic Party’s increasing support for climate alarmism. If Gore had not pursued climate alarmism or had not been the nominee I believe that the Democrats would have won in 2000.
2010
The 2010 Congressional Election resulted in the Democratic Party’s loss of a majority in the House of Representatives. It appears that this loss was due to the loss of Democratic seats where Democratic incumbents had voted for the American Energy and Security Act of 2010 (the Waxman-Markey cap and trade bill). A number of Democrats who voted for the bill lost their seats in 2010 and the Democrats lost control of the House of Representatives and have not regained it as of 2017. This played an important role in their success or rather lack of it during the remainder of the Obama Presidency in passing legislation to implement the party’s platforms.
Conclusions
From a purely Democratic Party viewpoint, their unequivocal adoption of climate alarmism has been a very bad bet. And this week a number of prominent alarmist climate modelers have finally admitted (see here and here) that the alleged “consensus” has been wrong by exaggerating the global warming that would occur if carbon dioxide emissions are not reduced, just as many climate realists have long been saying. This leaves the Democratic Party with a greatly reduced basis for their extremist views on climate. So major electoral losses over an issue that has little, or more likely, no effect on anyone.
I even wonder if the modelers withheld their long needed revisions until after the Paris treaty was agreed to, but wanted to avoid the increasing criticism of the differences between their models and actual temperatures.
As readers of this blog know, I believe that the situation is even worse for climate alarmists and thereby for their Democratic Party supporters since carbon dioxide emissions and atmospheric levels have been shown to have no significant effects on global temperatures and because higher CO2 levels are good, not bad. So the Democratic Party has been backing the wrong horse and has paid dearly for it. They are not saving the world; they are pushing bad policy that hurts the Party’s electoral chances as well as the economy, green plants, and poor people.
US, Iran break ice at UN
By M K Bhadrakumar | Indian Punchline | September 21, 2017
The US President Donald Trump’s speech at the UN General Assembly on Tuesday has drawn attention to the Iran nuclear deal of July 2015. Will the deal survive? Or, will it perish in a sudden death? Trump said,
- The Iran deal was one of the worst and most one-sided transactions the US has ever entered into. Frankly, that deal is an embarrassment to the United States, and I don’t think you’ve heard the last of it. Believe me.
Harsh words, indeed. Meanwhile, the P5+1 and Iran met at foreign minister level in New York on Tuesday. According to European sources, “the meeting included a long discussion” between Tillerson and his Iranian counterpart Mohammed Javad Zarif – although Tillerson publicly maintained that they merely shook hands. In a subsequent interview with Fox News, Tillerson narrowed down the US demand at this point to the so-called “sunset provision” in the Iran deal under which time limits (of varying lengths, such as 10 or 15 years) apply to some of the restrictions put on Iran’s nuclear program.
Evidently, there is much sophistry in the arguments being proferred, (as explained lucidly by Paul Pillar, Nonresident Senior Fellow at the Center for Security Studies at Georgetown University and in Foreign Policy at the Brookings Institution in a blog in the National Interest magazine.) Tillerson indeed hinted that the issue goes beyond Iran’s nuclear programme. As he put it,
- Our (US’) relationship with Iran from a security standpoint and a threat standpoint is much broader than that, as is the entire region. And we’ve really got to begin to deal with Iran’s destabilizing activities in Yemen, in Syria. The President (Trump) highlighted that today, that under the agreement – the spirit of the agreement, if you want to use that word – but even the words of the preamble of the agreement, there was clearly an expectation, I think on the part of all the parties to that agreement, that by signing this nuclear agreement Iran would begin to move to a place where it wanted to integrate – reintegrate itself with its neighbors. And that clearly did not happen. In fact, Iran has stepped up its destabilizing activities in the region, and we have to deal with that, and so whether we deal with it through a renegotiation on nuclear or we deal with it in other ways.
Simply put, the US feels agitated about Iran’s cascading influence in the Middle East and its emergence as the foremost regional power – even surpassing Israel. In turn, Israel, which has lost its military pre-eminence in the Middle East, is counting on the Trump administration (which also has a big contingent of “hawks” on Iran) to push back at Iran’s lengthening shadows, especially in Syria, Lebanon and Gaza.
One hitch here is that the European Union disfavours a re-opening of the Iran nuclear deal (for whatever reasons.) The EU foreign policy chief Federica Mogherini made this point quite clear after the FM-level meeting in New York. The EU position is also shared by Russia and China. The point is, the Iran nuclear deal is working splendidly well and Tehran is fulfilling to the last word its obligations (which is something even Tillerson admits.)
Unsurprisingly, Iran is furious about Trump’s threatening speech. The chief of the Islamic Revolutionary Guard Corps Gen. Mohammad Ali Jafari (who reports directly to Supreme Leader Ali Khamenei) hit back strongly:
- Time is now ripe for correcting the US miscalculations. Now that the US has fully displayed its nature, the government should use all its options to defend the Iranian nation’s interests. Taking a decisive position against Trump is just the start and what is strategically important is that the US should witness more painful responses in the actions, behavior and decisions that Iran will take in the next few months.
However, it cannot be lost on Tehran what perturbs the Trump administration most could be the need to re-engage Iran in negotiations relating to regional politics. Significantly, while making an impassioned plea for the raison d’etre of the nuclear deal in his speech at the UNGA on Tuesday, President Hassan Rouhani desisted from touching on options available to Iran:
- The deal is the outcome of two years of intensive multilateral negotiations, overwhelmingly applauded by the international community and endorsed by the Security Council as a part of Resolution 2231. As such, it belongs to the international community in its entirety, and not to only one or two countries.
- The JCPOA can become a new model for global interactions; interactions based on mutual constructive engagement between all of us. We have opened our doors to engagement and cooperation. We have concluded scores of development agreements with advanced countries of both East and West. Unfortunately, some have deprived themselves of this unique opportunity. They have imposed sanctions really against themselves, and now they feel betrayed. We were not deceived, nor did we cheat or deceive anyone. We have ourselves determined the extent of our nuclear program. We never sought to achieve deterrence through nuclear weapons; we have immunized ourselves through our knowledge and – more importantly — the resilience of our people. This is our talent and our approach. Some have claimed to have wanted to deprive Iran of nuclear weapons; weapons that we have continuously and vociferously rejected. And, of course, we were not and are not distressed for forgoing an option that we in fact never sought. It is reprehensible that the rogue Zionist regime that threatens regional and global security with its nuclear arsenal and is not committed to any international instrument or safeguard, has the audacity to preach peaceful nations.
- Just imagine for a minute how the Middle East would look had the JCPOA not been concluded. Imagine that along with civil wars, Takfiri terror, humanitarian nightmares, and complex socio-political crises in West Asia, that there was a manufactured nuclear crisis. How would we all fare?
Rouhani remarked later in New York, “We don’t think Trump will walk out of the deal despite (his) rhetoric and propaganda.” Tehran has all along estimated that Trump is a bluff master and a bazaari at heart. Of course, Iran is unlikely to re-negotiate the terms of the 2015 nuclear deal. But below that threshold comes the tantalizing prospect of a (re)-engagement between the top diplomats of the two countries. To be sure, the ice was broken on Tuesday. Notably, Zarif is keeping his thoughts to himself.
The US and Israel have suffered a strategic defeat in Syria from which they will never quite recover, and would, therefore, want to safeguard at least their irreducible core interests in the post-conflict situation in the New Middle East. The question is, what is it that the US can offer Iran in return? The US is only hurting its self-interests by preventing American companies from doing business in the Iranian market. Trump isn’t Barack Obama and he simply lacks the persuasiveness or the moral authority to get the rest of the world to fall in line with the US’ sanctions regime against Iran so long as Tehran scrupulously observes the terms of the nuclear deal. Having said that, from the Iranian perspective, a full-bodied integration with the international community has always been the strategic objective of its foreign policies.
Parliamentary lobby in Mexico to support Israeli settlement activities

Mexican MPs with leaders of settlers in the Occupied West Bank
Palestine Information Center – September 15, 2107
NAZARETH – A lobby group advocating Israel’s settlement activities has been formed in the Mexican parliament, according to Israel’s Channel 7.
The Palestinian Information Center (PIC) quoted the channel as saying that this lobby group would work on promoting the trade relations between Mexico and Israel’s industrial settlements and outposts [in the West Bank].
According to the channel, head of the West Bank regional council Yossi Dagan said the lobby was officially announced during the current week in the Mexican parliament, describing it as “very important for Israel.”
The channel affirmed that this lobby would also influence Mexico’s positions at the UN and its institutions in favor of Israel.
House blocks aircraft sales to Iran
Mehr News Agency | September 14, 2017
TEHRAN – The House adopted measures on Wednesday to prevent sales of commercial aircraft to Iran, despite warnings from some Democrats that it would undermine the JCPOA.
Rep. Peter Roskam (R-Ill.) offered two amendments to a 2018 government spending package that would specifically prohibit the use of funds to authorize financial transactions for the sales and prevent the Office of Foreign Assets Control from clearing licenses to allow aircraft sales, The Hill reported.
The House additionally passed separate legislation last November to block the licenses to finance aircraft sales with Iran, but it never got a vote in the Senate.
Airbus, a European aircraft manufacturer, and Boeing, an American company, have struck multibillion-dollar deals with Iran in the last year to sell planes.
President Trump has railed against the Iran deal, but his administration has not taken steps to block the aircraft sales. Forcing a stop to the transactions could be at odds with Trump’s promotion of manufacturing jobs in the US, despite his vow to be tougher on Iran.
Roskam and Sen. Marco Rubio (R-Fla.) urged President Trump in April to suspend aircraft sales to Iran.
Iran nuclear deal becomes an atomic cocktail
By M K Bhadrakumar | Indian Punchline | September 14, 2017
The unscheduled trip to Russia by Iranian Foreign Minister Mohammad Javad Zarif as the special envoy of President Hassan Rouhani and his meeting with President Vladimir Putin on Wednesday can be seen as indicative of an inflection point arising in regional and international security. There is growing concern that the Trump administration could be moving in the direction of reopening the US-Iran nuclear deal of July 2015.
During the campaign for the November election, candidate Trump disdainfully threatened to tear up the Iran accord. But as president, he has twice already certified to the US Congress that Iran is implementing its part of the deal. He is obliged to do it a third time by mid-October. Of course, Trump is not a stickler for consistency. He promised to wind up the Afghan war, but approved a strategy for open-ended war. Increasingly, he has exposed himself to be a man of straw.
All indications are that he doesn’t have the courage to upfront abandon the deal. So long as Tehran continues to observe the terms of the deal, Trump lacks an alibi to jettison it. Yet, he wants to resuscitate the sanctions regime of the past era so that Iran is deprived of the tangible benefits accruing to it legitimately under the nuclear deal, especially, as regards its integration with the world economy. This is one thing. Besides, the nuclear deal enjoys the overwhelming support of the world community. On the other hand, Trump is surrounded by “hawks” on Iran. The Israeli lobby also keeps him on a tight leash.
Hence Plan B. The White House recently deputed Nikki Haley, envoy to the UN, to Vienna to sound out the International Atomic Energy Agency about renegotiating the terms of the 2015 deal. Specifically, the White House would like to extend the scope of the IAEA inspection to also include, apart from Iran’s nuclear establishments, that country’s military bases.
Interestingly, the White House’ choice fell on Haley to undertake the mission to Vienna (rather than Secretary of State Rex Tillerson). It speaks of the backstage role of Jared Kushner, Trump’s son-in-law. Clearly, Israel is manipulating the Trump administration. Israel is paranoid that for the first time since the 1967 War, it has lost its pre-eminence militarily in the Middle East. The US and Israel’s defeat in the Syrian conflict brings about a historic shift in the military balance. Simply put, Israel lacks the capability to stop Iran’s inexorable surge as regional power. What is unfolding is a high-stakes game for Israel.
Tehran has made it clear that it is not open to renegotiation of the deal. Specifically, it rejects the notion that its military bases should be opened to allow foreigners to “inspect”. Simply put, Iran is unlikely to allow the US and Israeli spies masquerading as IAEA inspectors into its sensitive military installations.
Now, all indications are that the US is softening up the resistance of its European allies to the idea of reopening the 2015 nuclear deal. If past history is any evidence, it is a matter of time before the UK, France and Germany (who were part of the P5+1 negotiating with Iran) fall in line. Tillerson has called a meeting of his counterparts from the P5+1 and Iran for a meeting in New York on September 20 to broach the subject. A defining moment is approaching – least of all that Tillerson for the first time comes face to face with Zarif.
For Iran, the role of Russia and China will be of crucial importance. China may become wobbly when its self-interest is likely to be affected. The point is, all this ultimately would go into the alchemy of the ‘new type of relationship’ China hopes to work out with Trump. Also, Kushner happens to be Beijing’s point person in the White House. (China’s State Councilor Yang Jiechi met him Wednesday to discuss father-in-law’s state visit in November.)
After meeting Putin in Sochi, Zarif said that the discussion was “substantial and positive.” Zarif hinted that Russia also would agree that the 2015 nuclear deal is “non-negotiable and that all sides to the agreement must fulfil their obligations.” The situation developing around Iran will throw light on the ground realities as regards Iran’s integration into the Eurasian space. The Kremlin readout gave no details, but it stands to reason that given Russia’s quasi-alliance with Iran in regional politics, Zarif’s optimism is justified. Above all, Russia and Iran are working together as “guarantors” to stabilize the situation in Syria, as the latest development in regard of the de-escalation zone in Idlib in northern Syria highlights once again. To be sure, “multipolarity” in the world order is facing the litmus test.
The Fall Offensive: the US, France and Brazil
By James Petras | The People’s Voice | September 13, 2017
The fall of 2017 will witness the most brutal assault on working and middle class living standards since the end of World War II. Three presidents and their congressional allies will ‘revise’ labor legislation, progressive income tax laws and regulations and effectively end the mixed economy in France, the US and Brazil.
Throughout the summer, public opinion has been diverted by US threats to launch new overseas wars, France’s rhetoric about forming a post-Brexit, Berlin-Paris pact, which will remake the European Union, and Brazil’s President Michel Temer’s corruption and crime scandals. These superficial controversies will be overwhelmed by fundamental class conflicts, which promise to alter the present and future structural relations within Western capitalism.
President Trump’s Fall Offensive: Profits, Wars and Epidemics
President Trump proposes to enrich capitalists and intensify class inequalities via his radical transformation of the tax system. Corporate taxes will be cut in half; overseas corporate taxes will be abolished; and wage and salaried workers will pay more for fewer social benefits.
Trump can count on the support of the Republican leadership, business and banking elite and sectors of the Democratic Party in his plans to roll out a massive tax giveaway for the billionaires.
Trump’s cabinet, led by the Goldman Sachs trio and his troika of generals will ensure that the budget will include slashing the funds for education and health in order to increase military spending, expand wars and cut taxes for the rich.
Even more aggressive threats against North Korea, Russia, Iran, Venezuela and China, greater overseas war spending and troop levels in Afghanistan and the overt militarization of policing, immigration control and domestic intelligence will result in drastic cutbacks on federal programs for the poor and working classes. Declining access to quality health care for workers and deterioration in workplace safety conditions will fuel the opioid addiction epidemic leading to hundreds of thousands more premature worker deaths by overdose, injury and inadequate, incompetent care.
President Emmanuel Macron: The Capitalist Offensive in France
In France, the workers and middle class face the most comprehensive attack on their employment rights and progressive social legislation in modern history.
President Emmanuel Macron has declared his goal of completely transferring socio-economic power from French workers to capital by gutting all pro-labor laws and protections. Employees will have to negotiate with their bosses, one plant and one office at a time, thereby undermining the collective bargaining power of a united working class. Employers will be free to hire and fire workers with virtually no restrictions or consequences. Temporary and short-term ‘garbage’ contracts will proliferate, destroying long-term worker stability. Macron will eliminate the jobs of over 100,000 public employees while slashing corporate taxes by over $50 billion euros.
In contrast to massive tax cuts for the bourgeoisie, Macron proposes to increase taxes on French pensioners, hitting millions of retirees. Once in place, Macron’s legislative agenda will concentrate power, profits and wealth of capital while increasing inequalities and class polarization. Responding to the economic interests of the bankers, Macron promises to lower the deficit to 3% of GDP through massive cuts in health and education.
Under the pretext of ‘reducing unemployment’, Macron will promote part-time and temporary employment for French youth and immigrant workers, stripping all French workers of their hard-fought gains in job security and labor rights. Macron justifies his assault on labor by dismissing workers as ‘lazy’.
Brazil: The Great Fire Sale
Michel Temer, Brazil’s ‘unelected’ President plans to privatize 57 public enterprises – the crown jewels of Brazil’s economy. This will amount to the biggest capitalist asset grab in two centuries!
Included in the sell-off are: oil fields, energy transmission lines, highways, airports, as well as Brazil’s mint and lottery. Electrobas, Latin America’s biggest electricity generator, is up for grabs. In addition, Temer plans to raise interest rates charged by the state-owned development bank BNDES to increase the private bankers’ share of lending and profits.
This naked grab of profitable state enterprises by private domestic and foreign investors will lead to the loss of hundreds of thousands of jobs and the lowering of wages, salaries and pension payments. Temer started to slash state pension liabilities by increasing the age of retirement by several years. Wages and social benefits have been frozen for the foreseeable future. Presidential decrees, which dictate the terms of labor contracts, threaten collective bargaining.
The Capitalist Offensive: Results and Perspectives
These presidents have declared their intention to launch full-scale ‘class war from above’ – the consequences of which remain to be seen. The presidents, who rule by fiat, are treading fragile terrain. Each is facing major political, economic and social challenges.
All three presidents have lost public support since taking power, especially among their lower middle and working class-class voters.
Macron’s approval dropped from 65% to 40%; Trump from 49% to 35%; and Temer (who was not elected) barely retains 5% (and falling) public approval.
Brazil: Facing the Abyss
Despite uncertainties over the regime’s stability and future, foreign investors and the financial press supports Temer.
President Temer’s isolation from Brazil’s voting public has weakened his power in the Congress, and among the domestic banking elite and oil and power corporations. However, if the trade unions call for widespread militant strikes by manufacturing workers, public employees and the landless rural workers’ movement (MST) is effective and paralyzes the economy, Temer may be forced to resign before his program is implemented. Meanwhile, President Temer faces numerous judicial investigations for corruption.
Strategically, Temer can count on international support, especially from the US State Department, Treasury, Pentagon and the European Union. The neo-liberal regimes in Argentina, Uruguay, Chile, Paraguay, Peru, Colombia and Mexico have voiced strong support for Temer, especially since they have also received bribes from the same Brazilian corporate oligarchs! Under Temer, the Brazilian economy has declined by over 5% since he took power in a ‘legislative coup d’état’. His budget deficit exceeds 9% and unemployment has doubled to over 11%.
Despite support from foreign and domestic elite, Temer’s presidency will not survive. Under mass pressure and with looming elections, Brazil’s Congress may decide to allow the courts to prosecute Temer and block his proposed sellout of public assets.
Credit rating agencies are going to downgrade the Brazil’s economy to ‘junk’ status, undercutting new investments. With new elections on the horizon in 2018, it is clear that Temer will not even run for the presidency and his proposals to privatize Brazil’s major firms may not succeed. The economic recession has sharply reduced tax revenues and the possibility of receiving any significant boost from privatization is dubious. Even Temer’s initial regressive measure – the slashing of public pensions- has bogged down in bureaucratic infighting. However, the opposition to Temer’s capitalist offensive has yet to strike a decisive, organized blow.
The Congressional opposition, led by the center-left Workers Party (PT), is a distinct minority with many of its leaders facing their own corruption trials. The PT is incapable of blocking, let alone ousting, Temer. The rightwing opposition in Congress is divided between those who back Temer – based on party patronage – and those who want to replace Temer while pushing for his anti-labor agenda. The trade unions, led by the CUT, have mounted sporadic protests and made rhetorical gestures, while the MST (the landless rural workers) and associated ecological and homeless movements, which lack militant mass urban support, would be unable to topple Temer.
Ex-President Lula Da Silva has regained some degree of mass voter support but faces corruption charges, which may ban him from political office – unless there is a major mass mobilization.
In sum, the rightwing, pro-capitalist offensive in Brazil is comprehensive — offering public assets and private profits– but weak in institutional support and economic fundamentals.
A big-push from the Left could undermine the political base for Temer’s economic team, however, it is not clear which party or leaders would replace him.
France: Bonaparte in the Palace, Workers on the Streets
When President Emmanuel Macron was elected President of the Fifth Republic, he carried a mass electoral base as well as the support of France’s leading business and banking organizations. However, in the run-up to the launching of his capitalist offensive the mass base has evaporated. Voter disapproval is rising rapidly. The militant wing of the trade unions (CGT) prepares to launch general strike. His regressive tax agenda has alienated wide sectors of the petit bourgeois, especially public-sector employees.
Macron’s concentration of executive power (his Bonapartist complex) has turned his allies on the right against him.
The outcome of Macron’s offensive is both likely and uncertain.
For one thing Macron enjoys a majority in the French Congress. The economy is growing and investors are exuberant. Tax-conscious small business groups are happy. Labor is divided with the class collaborationist CFDT and FO refusing to join with the trade union opposition.
The European Union is united, up to a point, in its support for Macron. Equally important, Macron is determined to crush street protests and sporadic, partial strikes with demagogic appeals through the corporate mass media, coercion and outright state repression.
The political party opposition, led by the left socialists and the nationalists, is divided. The Socialist Party barely exists. Pensioners and students are opposed to Macron, but have not taken to the streets. Few among the professional class and liberal academia retain any illusions about the ‘new centrist President’ but few are willing to actively confront the ‘the new Bonaparte’.
Macron has fashioned a formidable alliance between the state apparatus and the business ruling class to crush worker opposition. But popular opposition is growing and is furious at his agenda and insults: ‘They (French workers) have had it too good…’ To defeat Macron, they must unite the opposition and build a strategy of prolonged class warfare.
Macron will not give in to transitory strikes. If Macron’s capitalist offensive succeeds, it will have enormous implications for the French working class, especially the rights of workers and salaried employees to organize and struggle. A victory for Macron will profoundly undermine the structure and membership of popular organizations, now and in the future. Moreover, a defeat for French workers will reverberate throughout the EU and beyond. Conversely, a victory for labor could trigger mass struggles across Europe.
The United States
A powerful opposition could confront President Trump’s capitalist offensive, but it will not be led by the highly bureaucratized trade unions representing less than 8% of the private sector labor force. Trump’s enemies among the Democratic and Republican Party elite have dismissed Trump’s ‘working class’ supporters as ‘white supremacist and neo-Nazis’. American workers’ concerns have been trivialized and marginalized by the divisive politics of ‘identity’, so blatantly used by both parties. Trump’s capitalist offensive in favor of a regressive pro-corporate tax cuts and the gutting of social welfare (health, education, housing, environment and worker safety) has failed to provoke sustained, unified social opposition. In the US, the pro-business elites dominate and dictate the agendas of both the incumbent Trump regime and the ‘elite opposition forces’.
The official ‘anti-Trump opposition’, which terms itself a ‘resistance’, promotes ‘identity’ interests linked to elite political representation. It works hard to undermine any possibility of working class unity based on common socio-economic interests by focusing on marginal and divisive issues. In the midst of mass poverty, declining life expectancy and an epidemic of suicide and drug overdose deaths, the ‘resistance’ forces of the elite opposition concentrate on manufactured foreign (‘Russia-gate’) conspiracies and life style issues (trans-genders in the US Special Forces) to overthrow the Trump regime. They have no intention to forge any class alliances that might threaten Trump’s regressive capitalist agenda.
The struggle this fall in the US will not be between labor and capital: It will spotlight the contradiction between what remains of Trump’s business protectionist agenda and the Democrats’ neo-liberal free trade policies. The capitalist offensive against labor in the USA was already determined by default. US trade union officials are marginal and inconsequential actors, incapable and unwilling to politicize, educate and mobilize workers.
Trump’s capitalist offensive appeals to investors and boosts the stock market. The majority of his economic team is tied to Wall Street bankers against so-called economic nationalists. Trump’s mindless chauvinist rhetoric to the populace is openly dismissed by the plutocrats within his own cabinet, who complain they have been targeted by ‘fascists and anti-Semites’ (meaning Trump’s deplorable and angry voter base).
The United States is the only country in the industrial world launching a massive, sustained capitalist offensive without an anti-capitalist opposition. The American working class is openly ‘deplored’ by the major elements of the elite opposition and blatantly manipulated by its fake ‘champion’, Trump.
The consequences are pre-determined. The capitalist offensive cannot lose; both capitalist sides ‘win’. Under the Businessman-President Trump, multi-national corporations will secure lower taxes and degrade working class living standards and social benefits. Bi-partisan agreements will ensure that banks are completely deregulated. The elite anti-Trump opposition will ensure that ‘their’ capitalists get favorable neo-liberal trade agreements, guaranteeing their access to cheap immigrant labor and a non-unionized workforce denied workplace safety and environmental regulations.
While France and Brazil face real class war, the ‘classless’ US slouches toward nuclear war. Macron confronts militant trade unions, Temer faces the fury of broad social alliances, and Donald Trump marches after ‘his Generals’ to nuclear conflagration. He invades Russian diplomatic properties; points nuclear weapons at Moscow and Beijing; holds massive offensive exercises and stations THAAD missiles on the border of North Korea; and escalates US air and ground force operations in a 16-year losing war in Afghanistan.
Workers in Europe and Latin America choose to fight capitalists in defense of their class interests, while US workers have become passive spectators to the looming possibility of nuclear war, when they are not in a prescription-induced opioid stupor. Defeating the capitalist offensive in France and Brazil can advance the cause of social justice and ensure concrete benefits for workers and masses of people; Trump’s unopposed capitalist military offensive will send clouds of nuclear ashes across the world.
Anti-Russian sanctions cost Europe $100bn – UN Special Rapporteur
RT | September 13, 2017
Over the last three years, the European Union has been losing at least $3.2 billion every month due to the anti-Russian penalties, according to a report by a UN Special Rapporteur Idriss Jazairy.
“The most credible approximation is of $3.2 billion a month,” says the report on the negative impact of the unilateral coercive measures, as quoted by Sputnik.
Jazairy stressed that Russia had sustained a direct loss of nearly $15 billion a year or a total of $55 billion so far.
“The resulting overall income loss of $155 billion is shared by source and target countries,” he added.
EU sanctions against Russia were introduced in 2014 over the country’s alleged involvement in the conflict in eastern Ukraine and Crimea. The penalties targeted Russia’s financial, energy, and defense sectors, along with some government officials, businessmen, and public figures.
Moscow responded by imposing an embargo on agricultural produce, food and raw materials on countries that joined the anti-Russian sanctions. Since then the sides have repeatedly broadened and extended the restrictive measures.
Russia is the EU’s fourth-largest trading partner after the US, China and Switzerland. The country is also Europe’s biggest natural gas supplier, as well as one of its biggest oil suppliers.
The penalties have been severely criticized by European politicians and businessmen as both politically ineffective and economically harmful for both Russia and Europe.
US Comes to Russia With ‘Absurd’ Request for More Sanctions Against North Korea
Sputnik | September 11, 2107
Given the US approach to its relations with Russia, it is “absurd” for Washington to expect Moscow’s support for its sanctions plan for North Korea, Georgiy Toloraya of the Russian Academy of Sciences told Sputnik.
On Monday, the UN Security Council is to vote on a US-drafted resolution that would strengthen sanctions against North Korea in the aftermath of a reported sixth nuclear test.
The original version of the text called for a trade embargo on oil and textiles and a financial and travel ban for leader Kim Jong-un. China and Russia oppose sanctions that could lead to a humanitarian catastrophe in the country, which was already put under more sanctions in August. With that in view, the US has watered down the text in order to win the approval of the Security Council, although it still proposes a ban on North Korean textiles.
Georgiy Toloraya, Director of the Center for Russian Strategy in Asia at the Russian Academy of Sciences’ Institute of Economics, told Sputnik that the US position, which expects Russia to support sanctions against North Korea while at the same time sanctioning Russia, is “absurd.”
“The Americans want to deprive the North Koreans of heat, to expel all their guest workers who are needed by Russia in the Far East, and also to stop the export of textiles from the DPRK. What does that have to do with the nuclear missile program?” Toloraya asked.
“In addition, the Russian president said correctly that it is quite absurd to include Russia along with the DPRK on the sanctions list, and then ask us to take joint actions on sanctions. Moreover, we consider this unnecessary because sanctions simply don’t work.”
In July, the US Congress approved a sanctions bill targeting Russia, Iran and North Korea. Speaking at the BRICS conference last week, Russian President Vladimir Putin said, “It’s ridiculous to put us on the same sanctions list as North Korea and then ask for our help in imposing sanctions on North Korea.”
Zhou Yongsheng of the Center for International Relations Studies at the Diplomatic Academy told Sputnik China that as far as sanctions are concerned, it’s either all or nothing.
“I think that if we really apply a full package of sanctions to the DPRK, then this will also help solve the nuclear problem. Since right now the supply of energy resources and grain to the DPRK has not been completely stopped, this means that the DPRK has the means for a confrontation with the international community. In the event that some kind of supply to the DPRK is interrupted completely, then the country won’t last too long and it is very possible that it will make some concessions,” Zhou declared.
At a meeting with South Korean President Moon Jae-in on the sidelines of the Eastern Economic Forum in Vladivostok on Wednesday, Putin remarked on the importance of deescalating the tense situation in the Korean peninsula.
“There is no point in giving in to emotions and driving North Korea into a corner. Now, more than ever, everybody needs to stay calm and avoid steps that lead to an escalation of tension,” Putin said.
Moon Jae-in and Putin signed a host of deals to boost bilateral cooperation in the areas of joint financial and investment platforms, healthcare and IT. Putin also reiterated Russia’s readiness to develop trilateral projects in the Far East with both North and South Korea, which would open the country up economically and politically.
“Development of the Far East will not only contribute to the prosperity of the two states but also to changes in North Korea, which will become a basis for trilateral relations,” the South Korean president said.

