crisis of capitalism

Planet Watch

Ukraine war portends new oil shock

Long-depressed oil prices are suddenly soaring in response to the Russian invasion of Ukraine, with impacts already being felt globally. Exports from Kazakhstan and the Caspian Basin are virtually paralyzed, as the Black Sea pipeline terminal delivering the crude to Western markets is incurring a prohibitive “war risk insurance premium.” Berlin has suspended the Nord Stream 2 pipeline, which is to carry Russian gas under the Baltic Sea to Germany—and Russia has retaliated by threatening to cut gas supplies to Europe via the Nord Stream 1 line. In his executive order barring Russian oil and gas imports to the US, President Biden issued a warning to the oil companies, urging that the war should not serve as an excuse for price-gouging. But it is actually the oil futures market that plays a determinant role in fixing the international price. There’s a big psychological element involved, which is why every escalation in the Middle East (without fail) jacks up oil prices. A war in Europe will almost certainly mean another oil shock, with grim implications for the world economy and Biden’s political chances. (Photo of Kazakh oil-field via Wikimedia Commons)

Planet Watch

Ukraine war’s fallout on global wheat supplies

One knock-on effect of the war in Ukraine has been a jump in the global price of wheat—to its highest level since 2008. Russia and Ukraine account for a third of the world wheat supply, and Ukraine’s most productive regions lie in the path of the conflict. If Ukrainian wheat is taken off the market, or ports are badly damaged, prices could possibly double. That would especially hurt the Middle East and North Africa—but also places as far afield as Bangladesh and Nigeria, which are major importers of Russian and Ukrainian wheat. The real test for the world supply will be the next harvest in four months’ time. If Western sanctions target Russian production—or Moscow responds to pressure by squeezing supplies—then shortages could really bite, potentially worsening global huger. (Image: Wikimedia Commons)

Planet Watch

Podcast: against ‘normalcy’ III

In Episode 107 of the CounterVortex podcast, Bill Weinberg continues his rant against the ubiquitous propaganda that normalizes the oppressive and dystopian pre-pandemic normality—or, as it is now incorrectly rendered, “normalcy” (sic). The opportunity for a crash conversion from fossil fuels that was posed by 2020’s pandemic-induced economic paralysis is now being squandered. The fashionable COVID denialism of the anti-vaxxers is ironically complicit in the actual crimes of the pharmaceutical industry, such as the instating of a “vaccine apartheid“—failing to make the vaccine available to Africa and the much of the Global South. Just at the moment that socialist ideas are being legitimized in mainstream discourse again, the drum-beat for “normalcy” (sic) means less pressure for an urgently mandated public expropriation of corporate cyber-overlords such as Verizon, as well as Big Pharma and Big Oil. Meanwhile, consumerist and technocratic pseudo-solutions, such as the bogus notion of reducing one’s personal “carbon footprint,” obscure the systemic nature of the problem. Listen on SoundCloud or via Patreon. (Photo: IBEW)

Central Asia

Kazakhstan president asks Russia to help quash uprising

Kazakhstan’s President Kasym-Jomart Tokayev called participants in the protests that have swept the Central Asian nation “terrorists,” accusing them of attempting to undermine his government at the behest of foreign powers. After concessions such as a cabinet purge and instating fuel-price controls failed to quell the uprising, Tokayev quickly unleashed harsh repression. Declaring a state of emergency, he flooded the streets with riot police and pledged to “conduct counter-terrorist operations.” He also called on Russia and the other members of the Collective Security Treaty Organization (CSTO) to come to the defense of his regime. The CSTO has agreed to send “peacekeepers” to Kazakhstan. (Photo via Wikipedia)

Planet Watch

Podcast: the countervortex of global resistance II

In Episode 100 of the CounterVortex podcast, Bill Weinberg discusses recent uprisings in two disparate parts of the world—the South Pacific archipelago nation of the Solomon Islands and two of the states that have emerged from the former Yugoslavia. In both cases, people who were pissed off for damn good reason took to the streets to oppose foreign capital, and corrupt authoritarian leaders who do its bidding. But in the Solomon Islands, popular rage was deflected into campism and ethnic scapegoating, while in Serbia and Kosova the people on the ground actually overcame entrenched and bitter ethnic divisions to make common cause against common oppressors. The contrast holds lessons for global protest movements from Hong Kong to New York City. Listen on SoundCloud or via Patreon.

Oceania

Solomon Islands uprising in the New Cold War

Australia has dispatched some 100 police and military troops to the Solomon Islands following days of rioting and looting in the capital Honiara. Calling for Prime Minister Manasseh Sogavare to resign, protesters set the parliament building ablaze, and torched and looted shops, causing millions of dollars in damages. The looting centered on the city’s Chinatown, where three charred bodies have been found amid the ruins. Tensions between Guadalcanal and Malaita islanders have been enflamed by massive Chinese capital flows into the former island, while the latter remains comparatively impoverished. The two provincial governments are bitterly at odds over Sogavare’s recent decision to switch diplomatic recognition from Taiwan to the People’s Republic. (Map: University of Texas Libraries)

Africa

South Sudan: fighting, flooding, aid suspension

Close to 80,000 people have been displaced in South Sudan’s Western Equatoria, as a result of fighting between government forces and the opposition SPLA-IO–even though both sides are supposed to be forming a new unified army. A delay to security sector reform continues to set back implementation of a 2018 peace agreement. Faction fighting within SPLA-IO has added to the insecurity. Meanwhile, the World Food Programme is suspending aid to more than 100,000 displaced people—part of a “prioritization exercise” driven by a finance crunch. The fall in funding is despite the country experiencing the highest rate of food insecurity since independence in 2011, with more than 60% of South Sudanese going hungry. Months of flooding has added to that toll. (Photo: Phillip Mbugo/UNMISS via ReliefWeb)

Watching the Shadows

Podcast: rage against the technocracy

In Episode 89 of the CounterVortex podcast, Bill Weinberg takes heart at the national uprising in El Salvador against the imposition of Bitcoin as legal tender, and draws the connection his own incessant struggles against corporate cyber-overlords Verizon—as well as the to the automated drone terror in Afghanistan. As we are distracted (or, at any rate, should be distracted) by the more obviously pressing issues such as police brutality and climate destabilization, the digitization of every sphere of human activity lurches forward at a terrifying pace—with zero resistance. Until now. The heroic protesters in El Salvador have launched the long overdue revolution of everyday life. Listen on SoundCloud or via Patreon. (Photo via Twitter)

Central America

Anti-Bitcoin protests shake El Salvador

Protests repeatedly erupted in El Salvador as the country became the first to make Bitcoin legal tender. The US dollar also remains official currency, but the law pushed through by President Nayib Bukele mandates that all vendors also accept Bitcoin. Small merchants and especially those in the informal sector complain of problems in trying to download the official phone app needed to use the currency. Protesters say the new law will deepen poverty by further excluding the already marginalized from the economy. They also assert that it will further enable corruption. “This is a currency that’s not going to work for pupusa vendors, bus drivers or shopkeepers,” one protester told Reuters. “This is a currency that’s ideal for big investors who want to speculate with their economic resources.” (Photo via Twitter)

Southeast Asia

Malaysia: black flag protests challenge government

Hundreds of activists have repeatedly filled the streets of Malaysia’s capital Kuala Lumpur to demand the resignation of Prime Minister Muhyiddin Yassin over his government’s handling of the COVID-19 pandemic. Themed #Lawan (Fight), the movement is also demanding the resumption of parliamentary sessions and a moratorium on the repayment of all loans. Protesters accuse the Muhyiddin government of using the pandemic to suspend parliament in order to consolidate power, and relying on harsh emergency regulations to silence and intimidate critics. Protesters chant hidup rakyat (long live the people), and carry black flags and effigies of dead bodies wrapped in white cloth to signify the high daily COVID-19 death tally in the county. (Photo: Misi:Solidariti via Twitter)

The Andes

Peru: populist president prevails amid polarization

Proclaiming that “change is coming,” Pedro Castillo, a left-populist former school teacher, was sworn in as Peru’s new president on the bicentennial of the country’s independence. He pledged to redraft the constitution, raise taxes on mines, and form a “Binational Cabinet” with neighboring left-led Bolivia. But Castillo assumes office amid a profound political crisis and growing polarization—as well as the highest COVID-19 death rate in the world. His far-right opponent Keiko Fujimori, who challenged his victory with baseless claims of voter-fraud, has a formidable bloc in Congress and promises to obstruct his agenda. (Photo: Diario Uno)

North Africa

Tunisia: president accused of ‘coup’

Tunisian President Kais Saied was accused by opposition parties of launching a “coup” with the help of the country’s military after firing the prime minister and freezing parliament. The move comes after anti-government protesters took over the streets of the capital Tunis, expressing dismay over ongoing economic turmoil and a demonstrably poor response to the COVID-19 pandemic. Recent loan negotiations with the International Monetary Fund aimed at controlling mass inflation further raised the ire of Tunisians; terms require Tunisia to raise taxes, set higher prices on goods, and implement austerity policies reducing public-sector employment and programs. (Image: Pixabay)