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bevin's avatar

There is a very simple, almost banal, lesson here. And it applies to north America and Europe just as much as the rest of the world. Reformism does not work if it leaves the economy in the hands of the capitalist ruling class.

Where, as in Latin America, the ruling class is also the direct descendant of the colonising race and class divisions are founded on exploitation seen as part of the natural, God given, order which is defended and nourished by imperialism popular power and democracy can only be established by crushing the exploiting class not just at the ballot box and in debate but in material terms.

Almost every country in the continent is now ruled by insanely violent pro imperialist regimes bent on eradicating all potential resistance.

Just to add to the mix- Israel, now the world leader in repressing populations, is deeply involved in all of these counter revolutions.

In Colombia, as in all of these countries, the process begins with the hobbling of governments elected on reform programmes. Unless they recognise, on election day, that the real work of dismantling the anti-democratic institutions, built up over centuries by the ruling class and its gringo sponsors, remains to be begun. And that before the police and army, the judiciary, the Academy and the state Establishment the commanding heights of the economy, the banks, the land, the ports, the power stations, the media and the means of distribution, including the wholsalers who dominate retail, must be taken over and these sources of power removed from the enemies of the people.

In Venezuela we have seen the most complete demonstration of the limits of reformism in the collapse of Chavez's brilliant, inspiring but always doomed attempt to build socialism without unduly inconveniencing the capitalist class. Sad that Allende died for nothing.

Frank Revelo's avatar

>The US oligarchy does not want strong domestic industrial sectors competing for the domestic resources that it wants to be able to buy cheaply, or competing with its own industrial corporations in the domestic markets

Once again I have to disagree about what group in the USA is driving USA policy in South America (and other vassals/colonies). If the USA elites were truly concerned about industrial competition, then why did USA elites allow USA to deindustrialize while shipping USA industry to China? Why did USA allow Japan, South Korea and EU to industrialize? Maybe you can argue that USA allowed these allies to industrialization during the cold war so they could assist the USA war machine, though that's a weak argument if you think carefully. Much safer to put all the heavy industry in North America and let the east Asians and Europeans focus on lightweight R&D, based on highly mobile human capital that could be quickly transported to USA in event of war.

A better explanation is that the real elite in the USA is not rich individuals (your "oligarchs") but rather the institutions of finance capital ("Wall Street") and foreign policy (including military and defense industries). Cheap bananas and cheap coffee beans and other primary resources are not going to move the needle in an economy the size of the USA, though obviously individual Fruit and Coffee corporations might benefit some (however rentier restriction of competition within USA is probably far more important to profits than costs of commodity imports).

What can move the needle is loss of US dollar privilege. How that privilege arose is too long a story for this comment, but at this point, maintaining USD privilege is largely a matter of military intervention to stop possible defectors from the USD system (and other USA controlled infrastructure related to USD privilege like SWIFT and undersea internet cables). Both Wall Street and USA foreign policy institutions favor maintenance of USD privilege as focus of USA foreign policy, because without USD privilege, USA would somehow have to run a balanced current account, which would cause asset prices to collapse, which in turn would force massive downsizing of Wall Street and the foreign policy institutions (including , military and defense industries), and institutions almost always bitterly resist dowmsizing. This is the real reason USA is concerned about who runs South America: preventive against possible defection from USA financial system that might threaten the USD privilege. It doesn't matter that a socialist government in South America promises to support USD system. The very fact such a government does not embrace Wall Street convention wisdom as to economic policy is by itself threat to USD system. (Drug trade kickbacks, of course, is bonus unaccounted for money for CIA, and possibly juicy bonuses for individuals in the government as USA gradually converts into a true kleptocracy, but access to drug money does not guide USA policy. As long as USA has USD privilege, Congress can simply authorize as much money as CIA wants and Fed will handle "printing" this money.)

Implication of the above theory is that South America will remain under the USA boot until such time as USA loses its USD privilege for reasons unrelated to South America. This is because value of continued USD privilege justifies massive military intervention in South America to maintain the privilege, far more intervention than is occurring currently.

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