crisis of capitalism

Oil prices surge: vindication is tedious

Well, we hate to say "We told you so," but... We told you so. We've been told for the past several years now that the depressed oil prices were permanent, that thanks to fracking and the surge in US domestic production, the price was now immune to Middle East instability, dramatic spikes and "oil shocks" forever banished. Well, futures for Brent crude just hit $63.37 per barrel, with the spot price for West Texas Intermediate at $57.34. (Panorama.am, Investing.com) Creeping toward the $100 per barrel we were so recently assured was a thing of the past. OilPrice.com blames Trump's announcement that the US will move its embassy in Israel to Jerusalem, which has of course unleashed unrest in the Palestinian territories and instability fears across the Middle East. But the jump really began almost exactly a month ago, seemingly prompted by the leadership purge in Saudi Arabia. That brought the Brent crude price up to $62, its highest level since July 2015. (The Guardian, Nov. 6)

Venezuela drops petro-dollar: how meaningful?

The government of Venezuela, under growing pressure from US sanctions, is telling oil traders that it will no longer receive or send payments in dollars, Dow Jones reported Sept. 13. Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros. The state oil company Petróleos de Venezuela SA (PdVSA), has instructed its private joint venture partners to convert existing cash holdings into euros. Plugging the switch, Venezuela-based state media outlet TeleSur writes: "The petrodollar is more important for US global domination than either arms exports or Hollywood culture, because it allows the US to be the biggest exporter of the dollar bills the rest of the world needs to be able to buy oil. Venezuela has decided to start de-dollarizing its economy."

Venezuela: is the problem really 'socialism'?

There is an unseemly tone of gloating to conservative commentary on the crisis in Venezuela, with pundits calling out their opposite numbers on the left for their cheerleading for the regime and pointing to the current chaos as evidence that "socialism" doesn't work. Indeed, many left-wing commentators deserve to be called out for their uncritical attitude toward the late Hugo Chávez and his mediocre successor Nicolás Maduro. But a case can be made that, contrary to conservative and mainstream assumptions, the problem is precisely that the Bolivarian Revolution has been insufficiently revolutionary and socialist.

Trump risking war with Mexico for useless wall?

The planned meeting in Washington between President Trump and his Mexican counterpart, Enrique Peña Nieto, was called off after Trump signed his Jan. 25 executive order decreeing construction of a wall on the border—accompanied with more bluster about how Mexico will pay for it. Since the cancelation, Trump and Peña Nieto have engaged in an unseemly Twitter war, each taking responsibility for calling off the meeting. Things got worse when the White House raised the option of making Mexico pay for the wall with a 20% tariff on all goods coming in from our southern neighbor. The threat portends a trade war with the United States' third biggest trading partner.

Trump's Red-Brown alliance: don't take the bait!

Rep. Tulsi Gabbard was in the news last week, as she traveled to Syria to meet with genocidal dictator Bashar Assad, part of an entourage that included unsavory figures from the fascistic Syrian Social Nationalist Party. The right-wing Liberty Conservative defends the trip, writing: "Why Tulsi Gabbard’s Visit To Syria Was The Right Thing To Do." The Observer, owned by Trump's top advisor and son-in-law Jared Kushner, also cheers on the Gabbard-Assad meet, under a headline that could be lifted from just about any lefty anti-war website: "War Hawks Jump on Progressives to Push for Intervention in Syria." Likewise providing gushy coverage of Tulsi's lovefest with the accused war criminal are Russian state propaganda organ RT, which hails her for sparking "outrage" in the DC "establishment," and the borderline fake news sites popular on the "left," MintPress and Global Research

Puerto Rico governor approves statehood poll

Puerto Rico Governor Ricardo Rosselló on Feb. 3 approved a law (PDF) calling for a non-binding referendum on statehood for the US territory. The referendum, to be held in June, will allow the voters to choose between statehood, independence or "free association." Those in support of statehood believe it could help Puerto Rico restructure its $70 billion in public debt and stave off further federal austerity measures. If approved, statehood would allow Puerto Rico to receive $10 billion in federal funds per year, as well as allowing government agencies and municipalities to file for bankruptcy. Rosselló called the vote "a civil rights issue" and said the US will have to "respond to the demands of 3.5 million citizens seeking an absolute democracy." Puerto Rico's citizenry is currently denied many of the benefits of citizens of US states, including equal access to Social Security and Medicare, despite paying taxes for these services. In addition, Puerto Rico's representative in Congress, Jenniffer González, is only allowed to vote in House committees in which she is a member.

Iran bank drops dollar amid new sanctions

At the order of President Trump, US Treasury Department on Feb. 3 placed sanctions on 25 individuals and companies connected to Iran's ballistic missile program or providing support to Iran's Islamic Revolutionary Guard Corps' elite Qods Force. The sanctions came two days after after Tehran conflrmed the Jan. 29 test launch of a Khorramshahr medium-range ballistic missile from its base at Semnan. The IRGC statement said that the test did not violate the nuclear deal that took effect last year. The missile apprently flew 600 miles before exploding, in a failed test of a re-entry vehicle. "As of today, we are officially putting Iran on notice," National Security Advisor Michael Flynn said in response to the test. (Jurist, Tehran Times, NCRI, 38North, The Naitonal Interest, NYT, Fox News)

'Gasolinazo' protests rock Mexico

Several states across Mexico have been shaken by days of angry protests in response to a jump in the price of gasoline sparked by a new deregulation policy. Protests, road blockades and civil strikes are reported from 12 states since the new policy was instated Jan. 1. Looting was reported in Hidalgo, Veracruz and México states, with over 350 stores sacked. Several federal police agents were briefly taken hostage by protesters when they tried to break up a roadblock in Ixmiquilpan, Hidalgo. Two protesters were killed in the Ixmiquilpan clash, while one Federal District police officer is reported dead in rioting on the outskirts of Mexico City. Police also fired in the air to scatter protesters in Ecatepec, México. Nearly 900 have been detained nationwide. (Sol de Mexico, Jan. 6; Animal Politico, Jan. 5; Apro, Jan. 4)