Boeing looks to raise additional $25 billion as company, government and union bureaucrats aim to end strike
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Boeing seeks to raise $25 billion to outlast 33,000 striking machinists; strike began on September 13, 2024; Boeing has lost nearly $5 billion due to the strike; Emirates airline president Tim Clark warns of potential bankruptcy; workers demand a 40% pay increase and restoration of pensions; Boeing offered a 30% raise before withdrawing; Acting Labor Secretary Julie Su met with IAM and Boeing leaders to urge negotiations; IAM leadership's rally on October 15, 2024, showed worker militancy; IAM President Jon Holden earned $225,000 last year; Senator Maria Cantwell received $200,000 from Boeing's PAC; workers need independent strategies to fight against Boeing and union bureaucracy.

#Boeing #Strike #Labor #Union #Iam #Finance #Government #Workers #Pensions #PayIncrease

https://www.wsws.org/en/articles/2024/10/16/skze-o16.html 

 On brink of war with Iran, US Labor Secretary heads to Seattle in effort to shut down Boeing strike
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Acting Labor Secretary Julie Su flew to Seattle on October 14, 2024, to negotiate with union and company officials to end a four-week strike by 33,000 Boeing workers; Su's involvement indicates a government effort to impose a contract favorable to management; Boeing announced plans to lay off 10% of its global workforce, equating to 17,000 employees; The Biden administration's intervention follows a recent three-day strike shutdown on the East Coast and Gulf Coast docks; Jerry White, vice presidential candidate for the Socialist Equality Party, criticized the administration's actions, linking them to corporate safety issues and the escalation of war in the Middle East; Boeing's lawyers argued in court that the company should not face severe penalties due to its role in national defense; Workers express concern over layoffs and inadequate strike pay, with some seeking other employment; The strike is seen as part of a broader struggle against corporate power and U.S. imperialism.

#Boeing #LaborStrike #JulieSu #UsPolitics #Iran #War #Union #CorporatePower #WorkingClass #Socialism

https://www.wsws.org/en/articles/2024/10/15/boei-o15.html 

 US “debt bomb” ticking louder
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The US budget deficit for fiscal year 2024 has risen to $1.8 trillion, the highest in three years; government debt is approaching $36 trillion, deemed 'unsustainable' by Federal Reserve Chairman Jerome Powell; interest payments on debt reached $950 billion, surpassing military and Medicare budgets; CBO projects debt could exceed $50 trillion by 2030; economic growth is stagnant at around 2%; Trump warns loss of dollar's status equals losing a war; JP Morgan's Jamie Dimon and hedge fund mogul Ray Dalio express concerns over rising deficits; Mitch Daniels suggests planning for potential economic collapse and social unrest; calls for a political fight against capitalism's failures.

#UsEconomy #DebtCrisis #BudgetDeficit #FederalReserve #FinancialSystem #PoliticalResponse #WorkingClass #EconomicCollapse #SocialServices #Capitalism

https://www.wsws.org/en/articles/2024/10/11/wkvp-o11.html 

 Sheinbaum continues AMLO’s legacy: subordinating Mexico to US clash with China
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Claudia Sheinbaum inaugurated as President of Mexico on October 3, 2024; Sheinbaum aims to build on AMLO's policies, focusing on US-Mexico relations and reducing reliance on China; Economy Secretary Marcelo Ebrard emphasizes the need for trust with US CEOs; Deputy Trade Secretary Luis Rosendo Gutiérrez discusses replacing Chinese imports; Raquel Buenrostro Sanchez highlights tax incentives to attract investments; Sheinbaum plans a summit on October 15 with US and Mexican business leaders; AMLO's administration saw a rise in poverty despite some social programs; 36 million voted for Sheinbaum, reflecting high expectations for social improvements; The article critiques the ruling Morena party's populism and warns of intensified class struggle under Sheinbaum's leadership.

#Mexico #Sheinbaum #Amlo #UschinaRelations #Politics #Economy #ClassStruggle #Trade #SocialPolicy #Imperialism

https://www.wsws.org/en/articles/2024/10/10/wqtf-o10.html 

 Kamala Harris courts the billionaires
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Kamala Harris declared herself a capitalist in a 40-minute speech to the Economic Club of Pittsburgh; she aims to appeal to pro-business Republican voters; billionaire Mark Cuban and Warren Buffett were present; her agenda promotes corporate profits and U.S. dominance over China; she criticized Trump's tax cuts, warning of economic instability; Harris has frequent private contacts with corporate leaders like Jamie Dimon and Ryan McInerney; she backed a less drastic increase in capital-gains tax; her campaign received a surge in CEO donations after Biden's exit; Laurene Powell Jobs has been a significant supporter; Obama raised $4 million for her campaign; Harris has a financial advantage over Trump, spending nearly three times as much in August; major capitalists prefer Harris over Trump due to concerns about Trump's destabilizing potential.

#KamalaHarris #2024Elections #Billionaires #EconomicPolicy #CorporateAmerica #Trump #WallStreet #SiliconValley #PoliticalCampaign #Capitalism

https://www.wsws.org/en/articles/2024/09/26/orjc-s26.html 

 East Coast dockworkers demand higher pay, protection from automation
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Dockworkers at the Port of New York and New Jersey are demanding higher pay and protection from automation as their contract for 45,000 workers expires at the end of September 2024; Workers report grueling conditions, with many working up to 100 hours a week; President Harold Daggett and Executive VP Dennis Daggett of the ILA issued a statement on September 7, avoiding the mention of a strike; Workers seek fair raises, improved retirement benefits, and express concerns over automation reducing jobs; Dockworkers highlight the dangerous nature of their work, with a higher accident rate than police or firefighters; The Biden administration's potential intervention in their struggle is noted, as well as the need for dockworkers to form independent rank-and-file committees to avoid union betrayals.

#Dockworkers #Automation #LaborRights #Union #EastCoast #Contract #PayRaise #Safety #BidenAdministration #Ila

https://www.wsws.org/en/articles/2024/09/16/gain-s16.html 

 Israel’s permanent war on the Palestinians means permanent war on the working class at home
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Israel's war against Palestinians in Gaza and the West Bank is ongoing; Prime Minister Benjamin Netanyahu and IDF chiefs indicate a long-term conflict; Bank of Israel estimates war costs at NIS 250 billion ($68 billion) over two years; Israel's military budget is 4.51% of GDP, the highest globally; credit rating downgraded from A+ to A due to fiscal deficit increase; military spending demands an NIS 55 billion increase, totaling NIS 125 billion ($34 billion); public services face cuts, impacting education and social care; unemployment among young Arab citizens is significantly higher than Jewish counterparts; over 60,000 Israeli businesses expected to go bankrupt by year-end; war exacerbates poverty and economic instability.

#Israel #Palestine #War #Economy #Military #Budget #Unemployment #Poverty #SocialIssues #Politics

https://www.wsws.org/en/articles/2024/09/15/gjmi-s15.html 

 Canada joins US in imposing 100 percent tariff on Chinese-made EVs
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Prime Minister Justin Trudeau announced a 100 percent tariff on all electric vehicles manufactured in China, effective October 1, 2024; this move will double the cost of Chinese EVs and is accompanied by a 25 percent tariff on Chinese aluminum and steel; Trudeau claims this is to protect Canadian workers, but critics argue it serves imperialist interests; the tariffs align with US policies, as National Security Advisor Jake Sullivan urged coordinated action against Chinese EV sales; Beijing has responded with an investigation into potential tariffs on Canadian canola; Canada has invested C$53 billion in EV incentives; major automakers like Stellantis and Volkswagen are receiving substantial government funding for battery plants; Unifor President Lana Payne supports the tariffs, framing them as necessary for protecting Canadian jobs; the article critiques the collaboration between Canadian unions and the government in the context of rising tensions with China.

#Canada #China #Evs #Tariffs #Trudeau #Imperialism #Unions #Nato #AutoIndustry #Geopolitics

https://www.wsws.org/en/articles/2024/09/05/hlbs-s05.html 

 Canada joins US in imposing 100 percent tariff on Chinese-made EVs
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Prime Minister Justin Trudeau announced a 100 percent tariff on all electric vehicles manufactured in China, effective October 1, 2024; this move will double the cost of Chinese EVs and is accompanied by a 25 percent tariff on Chinese aluminum and steel; Trudeau claims this is to protect Canadian workers, but critics argue it serves imperialist interests; the tariffs align with US policies, as National Security Advisor Jake Sullivan urged coordinated action against Chinese EV sales; Beijing has responded with an investigation into potential tariffs on Canadian canola; Canada has invested C$53 billion in EV incentives; major automakers like Stellantis and Volkswagen are receiving substantial government funding for battery plants; Unifor President Lana Payne supports the tariffs, framing them as necessary for protecting Canadian jobs; the article critiques the collaboration between Canadian unions and the government in the context of rising tensions with China.

#Canada #China #Evs #Tariffs #Trudeau #Imperialism #Unions #Nato #AutoIndustry #Geopolitics

https://www.wsws.org/en/articles/2024/09/05/hlbs-s05.html 

 Chicago Mayor Brandon Johnson demands “sacrifices” to pay for $1.2 billion school budget gap
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Chicago Mayor Brandon Johnson announced a $982 million budget deficit for 2025 and a $222.9 million shortfall for 2024 in the public school system; he stated that sacrifices would be necessary to address the budget gap, which may lead to mass layoffs and school closures; Illinois Governor J.B. Pritzker indicated that the state would not bail out the district; the Chicago Teachers Union (CTU) is facing contract negotiations after their agreement expired on June 30; CTU President Stacy Davis Gates expressed confusion over the district's finances while acknowledging potential cuts; the Biden administration's end of federal pandemic relief is contributing to a nationwide fiscal crisis in schools; educators are urged to form rank-and-file committees to resist budget cuts and advocate for public education; the school year began with overcrowded classrooms and inadequate COVID-19 safety measures.

#Chicago #Education #BudgetCuts #PublicSchools #Covid19 #Teachers #Union #Austerity #BrandonJohnson #JbPritzker

https://www.wsws.org/en/articles/2024/09/02/ceej-s02.html 

 CN and CPKC set to lock out 9,300 workers at Canada’s two main railroads as 12:01am Thursday strike deadline looms
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9,300 engineers, conductors, yard workers, and rail controllers at Canadian National (CN) and Canadian Pacific Kansas City (CPKC) are set to strike at 12:01am on August 22, 2024; workers demand an end to dangerous working conditions and oppose concessions from railroads; Teamsters Canada Rail Conference (TCRC) issued a 72-hour strike notice but has not provided a strategy to resist concessions; corporate Canada calls for government intervention to criminalize the strike; Trudeau government has a history of suppressing workers' rights; CN and CPKC's demands include extending workdays and changing pay structures; TCRC president Paul Boucher criticizes CN's demands as regressive; the Biden administration is monitoring the situation due to potential economic impacts; workers are urged to form rank-and-file committees to organize resistance.

#RailWorkers #Strike #Canada #LaborRights #Teamsters #Trudeau #Cpkc #Cn #CorporateIntervention #WorkingConditions

https://www.wsws.org/en/articles/2024/08/22/ohpg-a22.html 

 Strengthening recessionary trends in global economy
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Last week's turmoil on global stock markets has drawn attention to the strengthening recessionary trends in the world economy. The top four economies, including the US, China, Japan, and Germany, are all experiencing signs of economic decline. Investor confidence has collapsed in Germany and the eurozone, with the ZEW Indicator of Economic Sentiment falling significantly. China's GDP growth for the second quarter was 4.7%, a significant drop from the first quarter. The country's banks have been investing in the bond market, causing yields to fall. The People's Bank of China (PBoC) has been discouraging this behavior and named and shamed rural banks for manipulating bond prices. The Japanese economy is also experiencing low growth, with a decline in consumption spending and exports. The recent market turmoil highlights the fragility of the financial system, particularly in the US. The sell-off was triggered by a lower-than-expected US jobs report and the Bank of Japan's decision to raise interest rates. The Federal Reserve is under pressure to cut rates to sustain the debt mountain. Overall, there are growing indications of a global recession and financial instability.

#GlobalEconomy #Recession #StockMarkets #InvestorConfidence #GdpGrowth #BondMarket #FinancialSystem #InterestRates

https://www.wsws.org/en/articles/2024/08/15/dybv-a15.html 

 Fears of US recession and financial turbulence grow
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The sell-off on Wall Street after a lower-than-expected jobs report indicated a possible recession; The Federal Reserve criticized for leaving expected interest rate cuts too little and too late; Market sentiment turned negative after jobs report showed only 114,000 jobs added in July compared to expectations of 175,000; Tech-based NASDAQ index down 10% from its high on July 11; Chipmaker Intel's share price plunged 26% after announcing plans to cut 15,000 jobs; $3 trillion wiped off market value of major tech companies last month; Unemployment rate rose by 0.2% to 4.3%, triggering recession indicator; Yield on 10-year Treasury bonds fell to 3.8%; Vix volatility index rose to highest level since March 2023 banking crisis; Clamor for major interest rate cuts and denunciations of the Fed for "falling behind the curve"; Futures markets now pricing in a 70% chance of a 0.5% point cut in September; Analysts at JP Morgan and Citi raised expectations for rate cuts this year to total 1.25 percentage points; Working class urged to establish independent committees to fight for their own interests against corporations and the Biden-Harris administration.

#UsRecession #FinancialTurbulence #FederalReserve #InterestRates #JobsReport #Nasdaq #Intel #UnemploymentRate #TreasuryBonds #VixVolatilityIndex

https://www.wsws.org/en/articles/2024/08/05/ffyn-a05.html 

 Venezuela’s Maduro appeals to Wall Street and warns of “civil war” ahead of Sunday’s elections
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Venezuelan President Nicolas Maduro appeals to Wall Street for stability and profits; US sanctions, mismanagement, and corruption have devastated the economy; Maduro tightens economic and military ties with Russia and China; US imperialism continues to starve the population into submission with sanctions; Sunday's elections will not resolve the political crises in Venezuela; warnings of "civil war" and threats to reject unfavorable results; US-backed opposition leaders refuse to recognize a victory of the PSUV; Maduro fears sections of the military will support regime change; Maduro warns of a bloodbath and civil war if opposition wins; US government negotiates the organization of presidential elections and backs right-wing candidate Edmundo Gonzalez; Maduro blocks participation of left-wing candidates; Maduro's policies have destroyed Venezuela's anti-imperialist and socialist credentials; Venezuelan working class at a crossroads; Trotsky's Theory of Permanent Revolution; workers and youth must fight for socialist revolution.

#Venezuela #Elections #UsSanctions #Maduro #UsbackedOpposition

https://www.wsws.org/en/articles/2024/07/27/ohkv-j27.html 

 Chinese leadership meeting points to social tensions amid economic problems
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The Chinese Communist Party (CCP) leadership is concerned about economic problems leading to social tensions and political opposition; The Third Plenum of the central committee discussed future economic development and acknowledged the problems caused by the ending of the previous growth model based on real estate and infrastructure development; The official growth target is around 5 percent, the lowest in three decades; The meeting highlighted the need for tighter social and political controls by the state to safeguard social stability; The regime fears opposition in the working class and cracks within the leadership of Xi Jinping's regime; The Chinese economy is facing mounting problems, including falling growth rates and the threat of an economic war with the US; The plenum statement has been criticized for lacking a strategy to manage the economy's problems; The period of relative social peace in China may be coming to an end.

#ChineseCommunistParty #EconomicProblems #SocialTensions #ThirdPlenum #GrowthRate #RealEstate #InfrastructureDevelopment #SocialStability #XiJinping #WorkingClass #EconomicWar #Us #Strategy

https://www.wsws.org/en/articles/2024/07/20/wozf-j20.html 

 US Fed chair takes a step towards interest rate cut
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Jerome Powell, chairman of the US Federal Reserve, indicated that the central bank is likely to lower interest rates in the near future. Powell stated that the Fed has made progress in reducing inflation but would need more data to confirm sustainable movement towards the target rate of 2 percent. He highlighted a 'cooling' labor market as a reason for potential rate cuts. Concerns have been raised about the increase in the unemployment rate, which could accelerate in the coming months. Powell emphasized that the labor market is not a source of broad inflationary pressures. The suppression of wage rises has been attributed to the role of trade union bureaucracy. Democratic senators expressed the need for rate cuts, while Powell did not provide a specific timeline. The rise in US debt and potential risks to the financial system were not addressed in the hearing. The Basel III Endgame, a new system of bank regulation, has faced opposition from major banks. The campaign against the regulations has gained some success. The US financial regulatory authorities have differing views on the implementation of the Basel III Endgame. Political considerations may be involved in the further review of the regulations. Private equity firms, which are largely unregulated, have been identified as a potential source of major financial turbulence.

#UsFederalReserve #InterestRateCut #JeromePowell #Inflation #LaborMarket #WageRises #TradeUnionBureaucracy #UsDebt #FinancialSystem #BaselIiiEndgame #PrivateEquityFirms

https://www.wsws.org/en/articles/2024/07/11/zyla-j11.html 

 A fourth US dairy farm worker infected with the bird flu virus
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A fourth US dairy farm worker has been infected with the H5N1 bird flu virus, raising the total number of confirmed spillover cases from cows to workers to four. The most recent case occurred in Colorado, and the worker's only symptom was inflammation of the eyes. Health officials have not provided the exact date of diagnosis or information on genetic testing of the virus. The Centers for Disease Control and Prevention (CDC) has confirmed the fourth case and warned of the possibility of an expansion of the H5N1 outbreak in humans. The US government is securing future stocks of bird flu vaccines, including from CureVac, and the Biomedical Advanced Research and Development Authority (BARDA) is accelerating the development of a bird flu vaccine using mRNA technology. The European Union has signed a deal for pre-pandemic vaccine doses, and Finland has purchased vaccines for workers at risk of avian influenza. Concerns have been raised about the lack of testing and surveillance of infected individuals and farm workers. The economic impact of bird flu on dairy farms is significant, with estimated losses of $100,000 to $200,000 for a 1,000-cow dairy. Immigrant labor, many of whom are undocumented, plays a crucial role in the dairy industry, and their working conditions and fear of retaliation are not adequately addressed. The US dairy farm sector is in crisis, with declining wages, revenues, and the number of employees and businesses. The well-being of workers is connected to the public health threat posed by the bird flu virus, but agricultural business interests often take precedence over worker and public health concerns.

#BirdFlu #H5n1 #DairyFarm #Infection #Vaccine #Cdc #Barda #ImmigrantLabor

https://www.wsws.org/en/articles/2024/07/08/frrz-j08.html 

 Bank for International Settlements annual review points to mounting economic and financial instability
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The annual report of the Bank for International Settlements (BIS) presents an upbeat assessment of the world economy and financial system on the surface, but warns of risks on the economic and financial front. The BIS cautions against premature easing of interest rates, as it could reignite inflationary pressures and force costly policy reversals. It emphasizes the need to maintain and strengthen the dictatorship of central banks over the economy, shielding them from political pressures. While the immediate situation is upbeat, the longer-term outlook is not optimistic, with financial vulnerabilities, fiscal positions, and subdued productivity growth casting a shadow. The BIS warns of tougher tests ahead and indicates that financial cycles have started to turn, savings buffers are dwindling, and debts will have to be refinanced. Commercial real estate poses a greater risk to financial stability, with falling demand for office space and higher interest rates leading to downward pressure on prices and losses for lenders. The BIS also points to the dangers of the growth of government debt, which could raise the risk of bond market dysfunction. The report highlights the growth of private credit funds and the difficulty in assessing the risks involved. The BIS identifies two targets for policy prescriptions: the wages of the working class and government spending. It suggests that real wages must be maintained at lower levels through high interest rates and warns of persistent wage demands. It also calls for fiscal consolidation, which would involve major cuts in social spending. Overall, the report points to mounting economic and financial instability.

#BankForInternationalSettlements #Economy #FinancialSystem #InterestRates #Inflation #CentralBanks #CommercialRealEstate #GovernmentDebt #PrivateCreditFunds #Wages #FiscalConsolidation

https://www.wsws.org/en/articles/2024/07/02/tlsm-j02.html 

 Chinese Premier Li Qiang visits Malaysia
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Chinese Premier Li Qiang visited Malaysia between June 18 and 20, meeting with Malaysian Prime Minister Anwar Ibrahim and other senior political figures. Malaysian and Chinese firms signed 11 memorandums of understanding in relation to potential Chinese investment of RM13.2 billion ($US 2.8 billion). Key discussions took place on June 19, with Anwar and Li signing a five-year agreement to continue developing economic relations and breaking ground at the East Coast Rail Link. Li's visit aims to cultivate Malaysia's political support as a counterweight to US pressure and encirclement. Anwar expressed the desire for Malaysia to join the BRICS economic group and emphasized the importance of independent handling of the South China Sea issue. The US is pressuring Malaysia to align with its economic war against Russia. China is Malaysia's largest import source and export destination, accounting for 17 percent of Malaysia's global trade. Li's visit also aims to secure investment and maintain trade with China, which is crucial for servicing Malaysia's debt. Li's visit takes place in the context of heightening US government pressure on Malaysia to join its war drive against Russia and China.

#China #Malaysia #LiQiang #AnwarIbrahim #Investment #Trade #SouthChinaSea #Brics #UsPressure

https://www.wsws.org/en/articles/2024/06/26/keut-j26.html 

 “His arrest is part of a process to silence all left-wing and socialist opposition”: Workers in Canada demand freedom for Ukrainian socialist Bogdan Syrotiuk
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Workers in Canada are demanding the freedom of Ukrainian socialist Bogdan Syrotiuk, who was arrested on April 25 by the Ukrainian secret police (SBU) for his opposition to the US-NATO war on Russia. The far-right Ukrainian government has accused Syrotiuk of being a stooge of the Russian nationalist regime led by Vladimir Putin, but he is actually a fighter for the program of socialist internationalism represented by the International Committee of the Fourth International (ICFI). The campaign to free Bogdan has gained support from workers, young people, artists, and intellectuals around the world. Several workers in Canada have expressed their solidarity and called for his release, condemning his arrest as a sham and a threat to workers who oppose the war. They argue that his imprisonment is an attack on the international working class and tear apart the justifications for the war against Russia. They demand the immediate release of Bogdan Syrotiuk.

#Ukraine #Socialism #Opposition #Arrest #Freedom #Campaign

https://www.wsws.org/en/articles/2024/06/13/mlki-j13.html 

 Morena’s presidential candidate Claudia Sheinbaum maintains commanding lead after first Mexican presidential debate
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Claudia Sheinbaum, the presidential candidate for Mexico's ruling MORENA party, maintains a commanding lead over her opponent Bertha Xóchitl Gálvez after the first presidential debate. Gálvez performed poorly in the debate and failed to attack Sheinbaum on key issues such as the metro collapses and water shortage crisis in Mexico City. Sheinbaum, a scientist with a Ph.D. in energy engineering, was previously the Secretary of the Environment in Mexico City. Sheinbaum currently has 58-60 percent support in the polls, while Gálvez has 34-36 percent. Two more debates are scheduled before the June 2 election, but Sheinbaum's lead appears insurmountable at this point. The third candidate, Jorge Álvarez Máynez, polled at 5-6 percent after the debate. The PAN and PRI parties have lost support since President AMLO's victory in 2018, and his prior party, the PRD, is politically moribund. Sheinbaum and Gálvez are the two right-wing candidates dominating the June presidential race in Mexico. Sheinbaum has vowed not to increase or create new taxes on the rich and corporate profits, which may result in cuts to social programs. AMLO's cooperation with the US on migration and favorable climate for US investment in Mexico has been appreciated by the American oligarchy. The US sees Mexico as a junior partner in economic war against China and a platform for nearshoring production. AMLO has not challenged the Mexican oligarchy and has maintained friendly relations with Carlos Slim Helú, the wealthiest person in Latin America. Sheinbaum, as AMLO's hand-picked successor, is expected to continue his policies. The pseudo-left, such as the Democratic Socialists of America, has praised AMLO, but the Mexican working class can only end their suffering through a world socialist revolution.

#Mexico #PresidentialElection #Debate #ClaudiaSheinbaum #BerthaXóchitlGálvez #Polls #Amlo #SocialPrograms #UsmexicoRelations #EconomicWar #CarlosSlimHelú #DemocraticSocialistsOfAmerica #WorkingClass #SocialistRevolution

https://www.wsws.org/en/articles/2024/04/21/kaig-a21.html 

 IMF says US debt creating “significant risks” for the global economy
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The International Monetary Fund (IMF) has warned that the rising US debt is creating "significant risks" for the global economy. Reports delivered at the IMF's annual spring meeting indicate that a major crisis is building up in the global economy and financial system. The crisis is centered in the United States, with the IMF's chief economist expressing particular concern about the fiscal position of the US. The IMF report also highlighted the worsening debt situation in other major economies, including Italy, the UK, and China. The report emphasized the need for policy action to address fundamental imbalances between spending and revenues. It also warned that delaying efforts to strengthen public finances could limit fiscal space to deal with future crises. The IMF analysis also highlighted the growth of private credit as a source of finance for corporations and finance houses, with the sector estimated to be worth $2 trillion. The IMF warned that vulnerabilities in this sector could generate large, unexpected losses in a downturn, posing risks to financial stability. The IMF's reports indicate that the global capitalist system is heading into a systemic crisis and breakdown, and the ruling classes will respond with an onslaught against the working class. The IMF's response is to call for an all-out assault on the social position of workers and their families, emphasizing the need for a revolutionary program aimed at the conquest of political power and the establishment of a socialist economy.

#Imf #UsDebt #GlobalEconomy #FinancialCrisis #FiscalDeficit

https://www.wsws.org/en/articles/2024/04/18/mgtq-a18.html 

 Australian government announces war-related economic policy
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Australian Labor Prime Minister Anthony Albanese has announced a nationalist and protectionist economic program called the "Future Made in Australia Act" to subsidize investment in strategic, war-related industries. The program aims to restructure the economy in preparation for war and includes subsidies, tax breaks, loans, profit guarantees, and direct handouts to develop manufacturing facilities in designated strategic industries. Albanese cited a fundamental shift in the way nations are structuring their economies and the need to match other countries, such as the US, in providing massive investment incentives for critical industries. The government has already provided billion-dollar corporate handouts for lithium mining, hydrogen power facilities, and the manufacture of batteries and solar energy panels. The program is criticized by some sections of the corporate elite who demand tax cuts, the slashing of business regulations, and industrial relations changes. The Australian Council of Trade Unions (ACTU) supports the program, hailing it as a historic step forward for workers. The alignment of union leaders behind war policies is happening internationally. Workers and young people are called to build new organizations of struggle, rank-and-file committees, to fight against the capitalist profit system and the source of war.

#AustralianGovernment #EconomicPolicy #War #Investment #StrategicIndustries #Subsidies #TaxBreaks #Manufacturing #CorporateHandouts #Labor #Unions #Criticism #Actu #InternationalAlignment #Capitalism #WarPreparation

https://www.wsws.org/en/articles/2024/04/15/fzed-a15.html 

 UAW President Fain at the White House dinner: The corporatist alliance for World War III
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United Auto Workers President Shawn Fain attended a state dinner for Japanese Prime Minister Fumio Kishida, signaling an escalation of economic and military conflict with China. Fain's participation exposes the social function of the UAW bureaucracy and its collaboration with mass layoffs. The union bureaucracy plays a critical role in disciplining the working class on the 'home front' and ensuring the production and deployment of military equipment. The visit highlights the growing militarization and military alliances aimed at countering China's economic growth. The US is seeking to develop a corporatist alliance between the union bureaucracy, capitalist state, and major corporations to mobilize American society for war. The UAW is helping carry out a modern-day version of the 'no-strike pledge' by representing workers in munitions factories producing weapons for Ukraine and Israel. The union bureaucracy's collaboration with the state and corporations is a fundamental tendency in the era of imperialism. The presence of Fain at the reception for the Japanese prime minister is ironic given the UAW's past racist campaign against Japanese vehicles. The American trade unions also serve as mercenaries for US imperialism in Mexico and Latin America. Pseudo-left forces like the Democratic Socialists of America and Jacobin provide legitimacy to the union bureaucracy. The corporatist alliance aims to suppress the growth of socialism in the working class. Only through a mass working class movement and socialist internationalism can World War III be halted.

#Uaw #CorporatistAlliance #WorldWarIii #Militarization #UnionBureaucracy #China #Us #Japan #Socialism

https://www.wsws.org/en/articles/2024/04/13/pers-a13.html 

 Biden-Xi phone call underscores US confrontation, not cooperation, with China
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US President Joseph Biden held a phone call with Chinese President Xi Jinping, restating Washington's economic and strategic confrontation with Beijing. The call addressed tensions over Taiwan, with Biden reassuring Xi that the US does not support Taiwan independence, but China does not believe this. The US has strengthened military alliances and encouraged a greater NATO presence in the Indo-Pacific, all aimed against China. Biden also raised concerns over alleged Chinese support for Russia's defense industrial base. The call highlighted the US's condemnation of China's trade policies and non-market economic practices, while maintaining protectionist tariffs and imposing bans on the export of key hi-tech items to China. The call was described as largely performative and an attempt to show commitment to managing the relationship, despite the negative dynamics remaining unchanged. The call follows a summit between Biden and Xi in November, which resulted in few tangible measures to mend relations. The US is determined to crush the threat to its global hegemony posed by China's economic expansion.

#UschinaRelations #Taiwan #MilitaryAlliances #TradePolicies

https://www.wsws.org/en/articles/2024/04/04/mzzr-a04.html 

 Rank-and-file forum to discuss Australian Labor government’s pro-business and war restructuring of universities
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The Rank-and-File Committee at Sydney’s Macquarie University is hosting an online forum on April 10 to discuss the serious implications of the Labor government’s Universities Accord final report, released last month. The Accord report insisted on a further corporate restructuring of tertiary education, including funding, teaching and research, to satisfy the employment and research demands of big business and the plans for war. The government’s review panel, which featured Australia’s highest-paid CEO, Macquarie banking group’s Shemara Wikramanayake ($32.82 million in 2022–23), declared that the education system, including universities, had to focus on “areas of national priority like clean energy, critical technology, minerals and defence.” These “will need more skilled professionals.” The report demanded “skills coalitions” of tertiary education providers, industry and trade union “partners” to “create a basis for scaling skills delivery on a sector basis.” The Accord report actually proposed tying funding to universities negotiating “mission-based compacts” with a new Australian Tertiary Education Commission. These compacts would, first and foremost, require universities to “deliver Australia’s future skills needs.” Business groups hailed the report. The Business Council of Australia (BCA), representing the largest companies in the country, said the document “offers a unique opportunity to reshape the higher education sector into one that is agile and responsive to industry.” Universities have already become increasingly enmeshed in serving the research needs of the Australian and US militaries. In recent years, some universities have signed multi-million-dollar research and development deals with the world’s largest arms manufacturers, including Lockheed Martin (US) and BAE Systems (UK). University-linked research institutions are performing military research in fields such as quantum technologies, hypersonics, autonomous vehicles, cyber warfare, robotics, artificial intelligence and space warfare. To fight this union-backed agenda, university workers and students need to form rank-and-file committees, completely independent of the unions. These can link up with workers in Australia and worldwide through the International Workers’ Alliance of Rank-and-File Committees. This needs to be part of a broader struggle against capitalism itself and its program of ever-greater corporate wealth and plunge into war.

#AustralianLaborGovernment #Universities #Restructuring #Education #Business #War #RankandfileCommittee

https://www.wsws.org/en/articles/2024/03/30/pjvx-m30.html 

 Yanis Varoufakis tours Australia: A pseudo-left representative of European capitalism in search of political allies
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Yanis Varoufakis, former finance minister of Greece, concluded his tour of Australia with a call for the Australian and European ruling elites to adopt a more "independent" foreign policy. Varoufakis, who toured as the secretary-general of the "Democracy in Europe Movement 2025" (Diem25), is seen as a pseudo-left representative of European capitalism. He was responsible for the betrayal of the working class during his tenure as finance minister, implementing austerity measures and imposing deep cuts. Varoufakis's tour was organized by the Australia Institute, a liberal think tank, and he received a warm reception from the upper-middle class. His remarks at the National Press Club focused on the need for Europe and Australia to invest in "cloud capital" and compete with the US and China. However, his analysis ignores the deeper crisis of global capitalism and the intractable contradictions between capitalist nation-states. Varoufakis's call for European "power" is seen as a militarist one, aligning with the military build-up in Europe. His tour and promotion by bourgeois organizations like the Australia Institute are seen as attempts to give a pseudo-left facelift to reactionary policies. Varoufakis's role in the betrayal of the Greek working class during his time in government is highlighted, and his current rhetoric is seen as hypocritical. The article concludes by emphasizing the need for the working class to reject the pseudo-left and fight for a socialist and internationalist perspective.

#YanisVaroufakis #EuropeanCapitalism #AustralianPolitics #AusterityMeasures #Pseudoleft

https://www.wsws.org/en/articles/2024/03/30/xbdn-m30.html 

 The Baltimore bridge disaster: A product of profit-driven cost-cutting
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The collapse of the Francis Scott Key Bridge in Baltimore resulted from a collision between a container ship and a support column, causing the bridge to crash into the Chesapeake Bay. Six maintenance workers on the bridge at the time are presumed dead. The collision exposed the collision between private profit and the needs of a modern society. The bridge was not upgraded to deal with the danger despite regularly encountering ships of similar size. The issue is not a lack of technical ability but a lack of resources allocated to ensure the safety of infrastructure. America faces a backlog of $125 billion in needed bridge repairs. President Biden recently signed a $1.2 trillion spending bill, with two-thirds of the funds allocated to the military. Cost-cutting and corporate criminality likely played a role in the collision. The ship involved had previously been involved in a collision and had propulsion issues. The global shipping company contracted the ship, Maersk, was cited for an illegal policy aimed at silencing whistleblowers. Corporate profiteering and neglect of infrastructure have led to disasters in the US, such as Hurricane Katrina, the BP oil spill, the Flint water crisis, and the ongoing scandal at Boeing. The ruling class prioritizes investments in new technologies and supply chains aimed at cutting jobs through automation. The closure of the Port of Baltimore has economic and military implications. The union bureaucracy is working with the Biden administration to impose a sellout deal. The working class must fight against the domination of banks and major corporations and struggle for the socialist reorganization of society. The fight for socialism is an international struggle.

#BaltimoreBridgeCollapse #ProfitdrivenCostcutting #InfrastructureNeglect #ShippingIndustry #WorkingClass #Socialism

https://www.wsws.org/en/articles/2024/03/28/pers-m28.html 

 Julian Assange and the fight against imperialist war
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Julian Assange, founder of WikiLeaks, is awaiting the UK High Court's decision on whether he can appeal his extradition to the US. Assange's organization has released explosive revelations of imperialist war crimes and human rights abuses, including the 'Collateral Murder' video, the Afghanistan and Iraq War Logs, US State Department Diplomatic Cables, and the Guantánamo Files. Assange has faced persecution, including a sexual assault scandal, character assassination, and political isolation. The Socialist Equality Party criticizes the liberal media, pseudo-left groups, and Jeremy Corbyn for their betrayal of Assange. The fight to free Assange is seen as a fight against war and for democratic rights. The Socialist Equality Party calls for a mass movement to demand Assange's freedom and to oppose war and imperialism.

#JulianAssange #Wikileaks #ImperialistWar #SocialistEqualityParty #FreedomOfThePress #DemocraticRights

https://www.wsws.org/en/articles/2024/03/25/ymiy-m25.html 

 Amid Ukraine war, EU Commission adopts plan for European war economy
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On March 5, the European Union (EU) Commission adopted a plan to put the EU economy on a war footing, diverting massive resources to the arms industry. The plan calls for EU countries to raise military spending to 2 percent of GDP and spend approximately an additional €1.1 trillion for defense over a decade. It establishes a €1.5 billion emergency fund, to be increased to €100 billion over the next five years. The plan proposes to turn the EU Commission into a coordinating body, overseeing supply chains and production of EU arms manufacturers. It grants the European Commission and Council vast emergency powers to control and reorient European economic production towards war, suspending civilian production in the event of international crises. The plan aims to prioritize military over civilian production, boost military spending, impose speed-up and intensified exploitation on workers, and hand control of the economy to the officer corps. The plan cynically justifies these policies by invoking the NATO-Russia war in Ukraine. It applauds Ukraine as a crucial partner in the defense industrial sector and calls for closer cooperation between the EU and Ukrainian defense industries. The plan aims to ensure that EU armies buy a majority of their equipment from EU companies, cutting out US and British arms manufacturers. The EU military plan reflects conflicts between US and European imperialism and the desire for Europe to have a more independent military policy from Washington. The plan is seen as utterly reactionary and plays a key role in pressing humanity to the brink of nuclear war.

#EuCommission #MilitarySpending #ArmsIndustry #UkraineWar #Nato-russiaWar

https://www.wsws.org/en/articles/2024/03/07/zmem-m07.html 

 Mounting economic problems for Chinese government
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The Chinese government is facing mounting economic problems, including deflation, a fall in the stock markets, and worsening issues in the housing and real estate sector. The Biden administration's economic offensive and the threat of a 60% tariff on Chinese goods by Donald Trump further compound the situation. Consumer prices have fallen at their fastest rate in 15 years, and deflationary forces are undermining consumer and business confidence. The upcoming National People's Congress will be closely watched for the government's growth target and deficit projections. The crisis in the real estate and property development sector, with over 50 Chinese property firms defaulting on their debts, is a major concern. The government is pressuring financial institutions to provide loans to property developers, but this contradicts their previous decision to tighten credit. The stock market is also experiencing a decline, with the benchmark MSCI down by over 60% from its peak in early 2021. Without major government initiatives, the economic downturn is expected to continue.

#ChineseGovernment #Economy #Deflation #StockMarkets #Housing #RealEstate #BidenAdministration #Tariffs #NationalPeople'sCongress #GrowthTarget #DeficitProjections #PropertyDevelopment #FinancialInstitutions #StockMarket

https://www.wsws.org/en/articles/2024/02/16/pfpd-f16.html 

 Chinese regime announces “support” for Russia in war with NATO in Ukraine
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Chinese Defense Minister Dong Jun pledged to support Russia in its war with NATO in Ukraine. Dong stated that the US is always targeting Russia and China, seeking to retain its hegemony around the globe. He also linked Beijing’s backing for Moscow in Ukraine to Moscow’s support for Beijing on Taiwan. Dong's remarks involve war between the world’s main nuclear-armed powers. Inside the ruling elites of the NATO imperialist powers, there was surprise at Dong’s statement. Dong's statement was confirmed by news outlets in America and Europe. The Chinese Communist Party (CCP) bureaucracy is contemplating a shift in its foreign policy. Further escalations of the global war are being prepared. China is ever more in the sights of the NATO powers. The US Treasury slapped further sanctions on 150 companies and individuals for aiding Russia. The NATO powers recently decided to spend over $100 billion on military escalation against Russia, the Middle East, and China. The decisive question is mobilizing the working class internationally in a socialist anti-war movement.

#China #Russia #Nato #Ukraine #War #Support #GlobalWar #ForeignPolicy #Sanctions #MilitaryEscalation #Anti-warMovement

https://www.wsws.org/en/articles/2024/02/13/fpsx-f13.html 

 In a sign of growing instability, loans to US shadow banks pass $1 trillion
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Loans to US shadow banks have surpassed $1 trillion, with lending up 12% in the past year. The rapid rise in lending by banks to shadow banks is causing concern among financial regulators, as little is known about the connections between them. The European Union regulators are also seeking to probe the connections between banks and non-bank financial institutions (NBFIs). The worry is that if operations by a shadow bank go sour, it can pass into the broader banking and financial system. The lack of knowledge about these connections is concerning given that NBFIs hold almost half of the world's financial assets. Attempts at control and regulation of the financial system have historically floundered due to the anarchy of the market and the drive for private profit. The Dodd-Frank Act, implemented after the 2008 financial crisis, has been circumvented by finance capital, leading to the rise of NBFIs. The potential problems in the NBFI sector are not just a question of the quantum of debt but also the increasingly complicated nature of modern-day leverage. The economy has become reliant on speculation to generate activity and paper wealth, backstopped by governments and central banks. It is difficult to limit leverage in a world where everyone is incentivized to get rich quickly using other people's money.

#UsShadowBanks #Loans #FinancialInstability #FinancialRegulation #Non-bankFinancialInstitutions #Nbfis #EuropeanUnion #Dodd-frankAct #Leverage #Speculation

https://www.wsws.org/en/articles/2024/02/13/yhge-f13.html 

 School districts across US announce massive cuts in response to fiscal cliff, as teachers fight to defend education
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School districts across the US are facing a dire fiscal cliff for the 2024-2025 fiscal year, with plans for school closures, staff layoffs, and termination of critical supports for students. The Biden administration's decision to end Federal Elementary and Secondary School Emergency Relief (ESSER) funds is one of the causes of the fiscal crisis. The loss of funds means the ending of tutoring programs across districts and trade-offs at the expense of children. The pandemic has exacerbated social inequality in education, leading to disproportionate attacks on the most vulnerable. Teachers and students are beginning to fight back, with strikes, walkouts, and rallies taking place in various districts. Major struggles are expected in New York City, Texas, and California. The fight against these attacks necessitates a strategy based on uniting educators nationwide and across the globe in a common struggle. The American Federation of Teachers and National Education Association are criticized for their role in forcing through concessionary contracts and stifling opposition to COVID. The defense of public education is connected to the fight against war and the capitalist profit system. Educators are urged to join or build rank-and-file committees to fight for their rights and the integrity of public education.

#Education #FiscalCliff #SchoolClosures #TeacherLayoffs #EsserFunds #Pandemic #Inequality #TeacherStrikes

https://www.wsws.org/en/articles/2024/02/03/upkg-f03.html