The tumultuous events of today augur in the complete meltdown of the
world economy, markets will continue to spiral out of control as they
open across the world following another Wall St collapse.

The 2008 US presidential election has already been rendered
meaningless before it has even been held, because any prospect of
social programs is now to be shelved. Rather, an amount equivalent to
$2,300 for every man, woman and child in the US is to be transferred
to the wealthy. One of the first questions asked by the moderator in
the first presidential debate was: which government programs are you
advocating be cut back in view of the bailout plan? All were agreed
there would have to be cuts—that was accepted, a given.

The American ruling class cannot carry out its program democratically,
and therefore we see, in the measures proposed by Treasury Secretary
Paulson, the sinews of a dictatorship.

The initial text sent to the Congress, supposedly the legislative body
with oversight over expenditures, was barely three pages long—less
paperwork, one commentator noted in the New York Times, than was
required for a subprime mortgage!

According to the initial text, among the powers available to the
Treasury secretary, “without limitation,” will be “designating
financial institutions as financial agents of the government” able to
perform “all such reasonable duties related to this Act.” This means
that the same financial institutions that engaged in the speculative
and, in some cases, outright criminal activities that led to the
crisis, are to be called on to help the Treasury organise the bailout.
As a recent article on the WSWS noted, the term “conflict of interest”
does not even begin to cover what is taking place.

Moreover, the plan provides for legal immunity for the Treasury.
“Decisions by the secretary pursuant to the authority are non-
reviewable ... and may not be reviewed by any court of law or any
administrative agency.”

As an article in the New York Times of September 23 pointed out, with
these words “the Treasury secretary—whoever that may be in a few months
—would be vested with the most incredible powers ever bestowed on one
person over the economic and financial life of the United States. It
is the financial equivalent of the Patriot Act, after 9/11.” The Times
described Paulson’s proposed legislation as “the most amazing power
grab in the history of the American economy.”

A long established axiom of economics and politics holds that in a
crisis, real relations are laid bare, as the accidental and the
inessential are stripped away. And this is the case in this crisis.
Not government of the people, by the people and for the people; not
the “free market” in which the decisions of millions of people
determine economic outcomes; but government of, by, and for the
wealthy. Not democracy and a land of laws, but a dictatorship of
finance capital.

The wars of plunder launched by American imperialism in Afghanistan
and Iraq, the aim of which is to control oil and other resources in
the interests of US finance capital, are now being openly fought on
the home front. They will be accompanied by a deepening of the assault
on democratic rights, initiated in the so-called “war on terror.”

This is where the American working class and the working class
throughout the world will come forward and perform their historical
destiny and clear away the old order auguring in a new and wondrous
future for all mankind


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