Political aspects of the economic crisis
WW in 1979: The Iranian crisis: the core of the problem
By
Sam Marcy
Published Jul 24, 2008 12:06 AM
Workers World is in its 50th year of publication. We reprint this
article from the Nov. 16, 1979, issue of the paper as part of our special
archival series.
By Sam Marcy
Nov. 14, 1979—The involvement of Secretary-Treasurer Miller into the top
councils of the Carter administration has far wider significance than the fact
that his authority as the Secretary-Treasurer was necessary to freeze
Iran’s assets and issue the so-called national emergency proclamation. It
signifies a merging of two divergent factions of the Carter administration
based on military “solutions.”
In our previous installments we pointed out how the two principal factions in
the governing group of the Carter administration were slowly moving toward
merging their conflicting and contradictory approaches on fundamental questions
regarding U.S. world economic and foreign policy.
We stated that the Volcker-Miller-Carter financial and economic measures which
they effectuated last Oct. 6 and which were supposed to stabilize the U.S.
financial and monetary position and begin slowing down the galloping rate of
inflation were proving to be bankrupt.
A demonstrator murdered by U.S.-armed shah’s troops on Sept. 8, 1978.
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Economic crisis not yielding to financial jugglery
We cited the sharp drop in auto sales by the three principal auto makers GM,
Ford and Chrysler and the layoff of almost 100,000 auto workers, which was
reinforced this week by even sharper drops in this key industry. There were
other smaller but significant indications that the developing economic crisis
was not yielding to the financial economic jugglery by this trio in charge of
reshaping the crumbling structure of U.S. finance capital.
We called attention to the fact that the Carter-Brzezinski-Vance trio, which is
shaping U.S. foreign policy at the behest of the Pentagon, was moving closer to
the Volcker-Miller-Carter grouping, which is handling the economic and
financial problems. In both of these groups Carter as the middle man vacillates
and is pushed further to the right along with all the others toward finding the
common ground between the groupings to solve the economic crisis.
Now that the Brzezinski conspiratorial mission to Algiers where he met the
former prime minister of Iran, Bazargan, in secret proved to be a disaster for
the U.S. because the Khomeini leadership promptly ousted Bazargan and denounced
him for conspiring against the Iranian government with Brzezinski. Those
groupings have proven most eager to convert the diplomatic and economic crisis
into a political one, into the channel of another military venture against the
Iranian people.
1978 anti-shah rally in Iran.
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Bani-Sadr’s indictment of U.S. goes to core of problem
In his letter to the United Nations Security Council requesting a meeting of
that body, the new foreign affairs director of Iran, Abolhassan Bani-Sadr, made
a scathing indictment of U.S. policy toward Iran and pointedly attacked the
U.S. government for attempting to create a war psychosis against Iran and
pushing the world to the brink of war.
The imperialists tried to picture the complaint against U.S. war preparations
as a mere diversionary tactic from domestic problems in Iran. While few if any
of the capitalist press published the entire text of this important letter,
which details all the criminal activities not only of the Shah but of the U.S.
itself in relation to the Iranian people, none referred to what is truly the
core of the broad problem facing American finance capital, which Bani-Sadr
pointedly made reference to.
“Mr. Secretary General,” said Mr. Bani-Sadr, “I am well
equipped because of my scientific knowledge to know that the weakness of the
American economy (at the present) and the weak position of the dollar has
forced on America a grave economic and political crisis.
“Is America trying to reestablish the position of its money by putting
world peace in peril?”
U.S. diverts economic crisis into military channels
The way the imperialist press would like to interpret this statement is to
present it as a distortion of the current U.S. economic and political situation
to suit Islamic economic doctrine. This, however, is a clear attempt at a
cover-up of the deepening economic crisis.
Bani-Sadr is a competent, experienced economist with many years of practical
experience in his profession behind him. Regardless of how one may view his
economic methodology, he–like other economists who have to deal with the
situation in a practical way–knows the facts of the contemporary economic
world situation. He sees an attempt by the U.S., which as he says is faced with
a “grave economic and political crisis,” to divert this crisis into
military channels and bring about an imperialist war.
This is precisely the point we have been attempting to make in our previous
installments. It signifies the merging of the two policies respectively held by
Volcker and Miller and Brzezinski and Vance in which Carter plays the middle
role of finding common ground in diverting their bankrupt economic and
political policies into imperialist war channels.
This is not a new departure of recent contemporary U.S. history. The 1949
economic crisis was “solved” by the U.S. plunge into the Korean war
of aggression. The 1957-58 economic crisis was also solved in the same manner.
It took a little more time, but the U.S. war machine was already cranking up
and the Pentagon was gearing itself toward Southeast Asia. The economic upswing
came in reality almost simultaneously with the beginning of U.S. aggression
against Viet Nam.
Lenin’s conception of imperialist war validated
Not even the ten years of military aggression against Viet Nam that followed,
with more than half a million U.S. men and women under arms and hundreds of
billions of dollars in military equipment, was adequate enough to fully divert
another impending economic crisis. The collapse of the Penn Central Railroad
and the Lockheed Corporation, the latter a principal U.S. war contractor,
clearly demonstrated that the capitalist malaise could be driven underground
for a while, but it could not in reality be solved.
The economic crisis which began again in 1974 and so sharply deepened for
almost the next two years has not in reality been very much ameliorated. The
upswing which followed has been of such an unstable and erratic character that
almost none of the bourgeois economists have any hope that another economic
crisis is not under way or has not already been in progress for some time.
From all this one can only deduce that the Leninist conception of the
inevitability of imperialist war remains in full force, notwithstanding the
existence of the most horrendous weapons. Only the broad intervention of the
masses on a truly great historical scale can prevent it–and prevent it
they will–by taking, in the course of the struggle, a revolutionary
socialist road in the struggle against monopoly capitalism.
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