Barack Obama is not Jesus Christ

Long lasting and entrenched deficit spending will have its own economic consequences. Stagflation is one possibility.

In any event the stimulus package doesn’t address the underlying problem - the crisis of US profitability. Profit rates in the US, despite almost 40 years of declining wages, are much lower now than a decade ago and much lower than in the 60s. Falling profit rates are the dagger in the heart of capitalism. They are a systemic consequence of competition and the increasing drive for increased capital investment at the expense of similar increases in investment in labour. Since only labour creates profit this logically means that over time profit rates fall.

That’s why George Bush spent eight years waging a war on workers. I can’t see Obama taking a different road. He might initially play to his audience in part of trade unionist and other social organisations, but like President Francois Mitterand in France in the early 80, the reality of managing capitalism for the capitalists could see him quickly reverse his pro-worker positions in substance if not in form.

Again I turn to our Rudd Government. Elected on a tide of enthusiasm for change and rejection of the old conservative ways, Rudd is now urging workers to postpone wage increases and consider reduced working hours with reduced pay to “save” jobs. Disgracefully the trade union movement (including a militant union) have accepted this trickle down theory of profits first. I can see Obama adopting the same course as the economic crisis worsens and the US spirals towards depression.

On the global war front, Barack will continue the wars in Iraq and Afghanistan. Here is a quote from his inauguration speech (workmanlike at best).

We will not apologise for our way of life, nor will we waver in its defence, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

Perhaps Obama might like to apply those words to Israel? No, didn't think so. Obama will be much like Bush when it comes to military adventures offshore in the name of fighting “terrorism”. Yet the new President has just become the Commander-in-Chief of Terror.

American exceptionalism - the so-called right to impose its views on the rest of the world - is not some expression of a mad president. US imperialism is the logical conclusion of US capitalism. The US dominates much of the world through its economic pre-eminence, but that may be under challenge in the medium term from China. It reinforces that dominance with military power.

As Thomas Friedman, a journalist with close connections to the US warmongers wrote:

The hidden hand of the market will never work without the hidden fist. McDonald’s cannot flourish without [giant arms company] McDonnell Douglas. The hidden fist that keeps the world safe for Silicon Valley’s technologies is called the US army, air force, navy and Marine Corps.

Obama is not challenging that logic; he is embracing it.

The defeat of the US in Iraq means that Obama’s focus has shifted to Afghanistan. This is his attempt to overcome the Iraq syndrome, and to send a message to China that the US, despite the debacle in Iraq, is still the top military power in the world and will use that power to ensure its continued economic dominance. Iraq and Afghanistan are also part of a strategy to control resources to China (Iraq) and encircle it (Afghanistan).