Reds Told to Expand, Launch More Attacks

The celebration of the US as the engine of growth and as the market of last resort for the world economy is practically over. The US national debt of US$9.4 trillion is proving to be unsustainable. It is the result of higher trade deficits due to outsourcing of manufactured and semi-manufactured goods as well as budgetary deficits due to the tax cuts for the monopoly bourgeoisie and the ever growing payments to the military industrial complex, overseas military development and the wars of aggression in Iraq and Afghanistan. It is understandable why the US dollar is in rapid decline by looking at the US national debt and industrial decline.

But the financial crisis of the US involves not only the massive national debt. US monopoly corporations have also engaged in excessive borrowing through bank credit and sale of corporate bonds. The US investment houses and banks are facing the prospect of bankruptcies under the combined weight of corporate bad debts and the bankruptcies of most US households due to the current subprime mortgage meltdown on top of failed stock purchases during the high-tech bubble.

In recent years the growth of the global economy has been conjured by the fluctuating growth rates of around 2-4% in capitalist countries (except Japan) and by the high growth rates in so-called emerging markets like China and India and in major oil-producing countries. But in the current and prospective years, the global growth rate is bound to go down drastically because of the tightening international credit and the consequent decline of production.

The financial crisis of the US has spread like an epidemic to the other imperialist countries. These countries also expect their exports to suffer as a result of the decline of the US dollar. China, India and the Southeast Asian countries that are dependent on US orders for the manufacturing or semi-manufacturing of consumer goods are bound to suffer from reduced production and closure of shops. At the same time, the rising costs of fuel and food imports will adversely affect most countries of the world.

The current socio-economic crisis in the world capitalist system is expected to be prolonged because it is extremely grave and deep-going. It is the result of so many decades of abusing domestic and foreign credit for the benefit of the imperialist powers and at the expense of the oppressed peoples and nations of the world. Even before the current severity of the crisis, the underdeveloped countries of Asia, Africa and Latin America have been in a constant state of depression since the overproduction of raw materials in the late seventies. The life of extreme oppression and exploitation for the broad masses of the people, especially the workers and peasants, is becoming far more intolerable than ever before.

We can expect that there will be more frequent and bigger outbursts of mass protests against the deterioration of socio-economic and political conditions in the US and other imperialist countries as well as in the so-called emerging market countries like China and India. Wherever life is most impoverished and miserable and the level of exploitation and oppression is escalating, the broad masses of the people are launching various forms of struggle, including militant mass protests and revolutionary armed struggle. The imperialists and their reactionary puppets do not heed grievances but unleash state terrorism against the people and pretend to be the ones conducting a “war on terror.”

Under the auspices of US imperialism all the imperialists and reactionary puppets in the world continue to use the slogan of anti-terrorism in order to repress the people who fight for national liberation and democracy, to engage in wars of aggression against countries that assert national independence, and to persecute and destroy leaders and forces that take an anti-imperialist position.