Under Lock & Key

On 7 March 2023, China’s new foreign minister Qin Gang, in his first public appearance, delivered denouncements and warnings that “conflict and confrontation” with the United $tates is inevitable if the U.$. imperialists do not change their course.(1) Before becoming China’s new foreign minister, Qin Gang was an ambassador to the United $tates known for eir non-confrontational and diplomatic approaches to eir job.(2) This new public statement marks a clear shift in tone from the diplomatic and cautious reputation that Qin has built as eir time as ambassador. On the National People’s Congress in Beijing, Qin has said the following:

“If the United States does not hit the brakes, but continues to speed down the wrong path, no amount of guardrails can prevent derailing, and there will surely be conflict and confrontation.”(3)

Alongside these comments, Qin has condemned the “Indo-Pacific Strategy” of the United $tates which ey claims is sparking discourse and a new cold war in Asia and seeks the containment of China as a country.

One day after, on 8 March 2023, U.$. ambassador to Japan Rahm Emanuel made a response to Qin’s claims that China should not be surprised at all that Washington and its allies are deepening military ties in reaction to China’s aggression:

“You look at India, you look at the Philippines, you look at Australia, you look at the United States, Canada or Japan. They [China] have had in just the last three months a military or some type of confrontation with every country. And then they’re shocked that countries are taking their own steps for deterrence to protect themselves. What did they think they were going to do?”(4)

Emanuel responded to Qin’s claims that the Amerikans’ Indo-Pacific strategy is not in fact containment of China but a “deterrence” of China’s aggression in the previous months. In the past three months, Chinese ships harassed the Filipino navy;(5) conducted military drills near Taiwan and fired missiles (those missiles landed on Japan’s territorial waters);(6) and have had border skirmishes in the Himalayas with India.(7)

The Indo-Pacific Strategy of the U.$. imperialists

The Indo-Pacific strategy of the United $tates was a particular target of Foreign Minister Qin’s condemnations. The Indo-Pacific strategy is a political-economic program launched by the Biden administration which has highlighted the economic importance of the region of Northeast Asia, Southeast Asia, South Asia, and the Pacific. In the program, the U.$. imperialists also highlight the “aggressive forces” of the Indo-Pacific region – namely China and the DPRK – which the program claims furthers destabilization.(8)

“The United States is an Indo-Pacific power. The region, stretching from our Pacific coastline to the Indian Ocean, is home to more than half of the world’s people, nearly two-thirds of the world’s economy, and seven of the world’s largest militaries. More members of the U.S. military are based in the region than in any other outside the United States. It supports more than three million American jobs and is the source of nearly $900 billion in foreign direct investment in the United States. In the years ahead, as the region drives as much as two-thirds of global economic growth, its influence will only grow—as will its importance to the United States.” - The Indo-Pacific’s Promise (The Indo-Pacific Strategy of the United States, February 2022). (9)

This pamphlet of the U.$. imperialists lays a clear plan for the shape of things to come. The question is whether the U.$. imperialism can defeat rising new star Chinese social-imperialism who is also looking to pierce their fangs into the region.

Qin Gang has made the claim that this strategy of the United $tates is the Southeast Asian version of the NATO; asserting China’s position parallel to that of the USSR and the countries of India, Japan, South Korea, and Australia as the NATO alliance which plays the part of Western Europe.

We see these particular trends among today’s big imperialist powers as incredibly worrying due to the similarities to the political-economic contradictions among the imperialist forces of the early twentieth century, which resulted in the first World War.

One difference/advantage that Amerikkka always will have over China or Russia is battle hardened experience. The Amerikkkan empire have been at war (against other imperialist powers during the two world wars and against colonies fighting for self-determination alike) for nearly all of the 20th century. While China and Russia have had some military conflicts with other nations during their post-socialist capitalist restoration era (namely in Southeast Asia and Eastern Europe respectively) these little post-capitalist restoration wars are nowhere near the level of experience the United $tates have had against Nazi Germany, Korea, Vietnam, Iraq, Syria, and Afghanistan. Cracking down on Chechnyan “terrorist” cells in Eastern Europe by the Russian Armed Forces, or beating up revolting farmers/ethnic minorities on the countryside by the so-called “People’s Liberation Army” is a cakewalk compared to the genocidal wars Amerika waged throughout the 20th century.

Saber Rattlings in Taiwan

After Taiwan’s president Tsai Ing-Wen met with U.$. house of representative speaker Kevin McCarthy, the so-called “People’s Liberation Army” of China began conducting military drills in Taiwan waters.

Taiwan’s modern history began with the losers of the civil war in China. The Kuomintang (the nationalist party - KMT) of China fled from the people’s wrath and the Communist Party of China (CPC), which had overthrown the KMT’s bourgeois dictatorship, replacing it with a proletarian one. The KMT fugitives have massacred the indigenous people of Taiwan, and began the nation building project sponsored by U.$. imperialism. For many years Taiwan actually held the legitimate position recognized by the international community as “real” China. With the restoration of capitalism in China, the KMT of Taiwan actually seeks to cozy up to the social-imperialist CCP and takes a “moderate” stance on Taiwan independence affirming that Taiwan is still Chinese while the Taiwanese nationalists of the pan-green alliance and the Democratic Progressive Party take a more harder stance on Taiwanese national identity.

After president Tsai Ing-Wen’s meeting with the U.$. imperialists in Los Angeles, China began a 3 day long military exercises on the doorsteps of Taiwan. With precision air strikes designed to intimidate the Taiwanese government, and a naval blockade, the so-called PLA have certainly flexed their muscles on the front. (10)

The official statement from the Chinese military reads as follows:

“The theater’s troops are ready to fight at all times and can fight at any time to resolutely smash any form of ‘Taiwan independence’ and foreign interference attempts.” (11)

On 10 April 2022, Taiwan detected 91 flights by Chinese bombers as well as multiple fighter jets. (12)

Capitalism-Imperialism Makes Inter-Imperialist Conflicts Inevitable

The Indo-Pacific strategy recognizes the economic importance that the region of Southeast Asia and the Pacific holds not only for the United $tates but also for the imperial core overall. China also recognizes this. Under capitalism, where labor in itself is a commodity, the cheap labor and the immense surplus value that the world imperialist system plunders from Southeast Asia is invaluable to China as a new rising imperialist power.

Qin Gang proclaimed warnings that the actions of the U.$. imperialists will cause a new cold war. We at MIM(Prisons) say that the social-imperialist forces of China and the United $tates are creating the precedence for a new world war as the nature of capitalism-imperialism makes it inevitable for the great imperialist powers to eventually battle over and reorganize their respective neo-colonial turfs/territories.(13)

If fascism arrives in the United $tates, then the communists and the revolutionaries will have their duties and work to do just like always. If inter-imperialist conflict breaks out and a new world war enters in our world, then we will have our duties and work to do to as well. The nihilism of impending crisis is common here in the belly of the beast. But Marxists recognize these developments as the inevitable playing out of the inherent contradictions of the capitalist system. Periods of great conflict are when qualitative transformations happen, and this is a good thing. It is our role to understand these changes so that we can move things in the interests of the world’s majority.

<sup>NOTES: 1. Nectar Gan, 8 March 2023, China’s new foreign minister warns of conflict with US, defends Russia ties, CNN.
2. Ibid.
3. Ibid.
4. Brad Lendon, Marc Stewart, 8 March 2023, Exclusive: China’s ‘attacks’ unite region against Beijing, US ambassador to Japan says, CNN.
5. Brad Lendon, 13 February 2023 2022, Philippine Coast Guard says Chinese ship aimed laser at one of its vessels, CNN.
6. Brad Lendon, 4 August 2022, China fires missiles near Taiwan in live-fire drills as PLA encircles island, CNN.
7. Ibid.
8. The White House Washington, 24 September 2021, Indo-Pacific Strategy of the United States.
9. Ibid.
10. Ben Blanchard Yimou Lee, 10 April 2023, China ends Taiwan drills after practicing blockades, precision strikes, Reuters.
11. Ibid.
12. Huizhong Wu, 10 April 2023, China military ‘ready to fight’ after drills near Taiwan, ABC.
13. Wiawimawo, February 2018, China’s Role in Increasing Inter-Imperialist Rivalries, Under Lock & Key No. 60.</sup>

For many months we’ve been hearing some grumblings from our readers about sky-rocketing commissary prices. Last issue we put out a call for more reports on this price inflation. But this inflation is not unique to prisons, and in recent weeks we’ve seen its impacts on the imperialists with a number of banks in the United $tates and Switzerland failing.

The cycles of boom and bust, which lead to instability, are inherent to capitalism and how it works. While the imperialists have adapted in many ways to keep things going, they can never solve these problems or prevent these cycles.

Commissary prices

One comrade wrote in to report on the different pay rates in Pennsylvania prisons ranging from 19 cents to 51 cents per hour. Ey wrote to say,

“since the prices of commissary has gone up due to inflation I think that all prisoners with jobs should be given pay rate raises to help with the new higher costs of living in the prison population. It is much harder to keep up with the financial strain. …I know that out in society whenever the cost of living goes up due to inflation so does our income and of course I am referring to low-income people – people on Social Security Income (SSI) or Social Security(SS) or struggling on Welfare. Well in prisons we don’t make anywhere near what is made on SSI or SS or even Welfare for that matter.”

A comrade from Utah wrote:

"At the beginning of the Covid-19 crisis President Trump warned us against price gouging but that never stopped the jail system. The criminal injustice system put people in jail for stealing but then they turn around and steal from the same people they accuse of stealing. County jails are full of homeless people, drug addicts and indigent people who have limited means or no family or friend to help provide those means, yet the canteen prices for commissary are outrageous. These same products can be bought at the Dollar store.

"For example, items such as V05 shampoo, which you can purchase at the dollar store for $1.25, commissary price is $3.99. One ramen noodle can be purchased for $0.25 at the store, will cost you $1.19 in commissary. Also a 10 pack of SweetNLow costs $0.99. For generic denture glue it’s $7 in commissary compared to $1.25 at the Dollar store. The list goes on and on. Is that not price gouging?

“Prisoners are forced to accept it. They have no choice. They have to pay it or go without. Hygiene and medications they desperately need. My question to you – how do we change this and stop jails from stealing from prisoners?”

Price gouging or extortion is common in U.$. prisons where the state allows private companies to come in and prey on prisoners and their families with legally enforce monopoly pricing systems.

A comrade in New York responded to our call with some of the price increases seen there since July 2022.

Most price increases in New York seemed to be in the 10 to 20% range. As a member of the Incarcerated Individual Liaison Committee, this comrade wrote the Deputy Superintendent about the troubles they were having with getting items on the commissary list. They responded in September 2022,

“The commissary contract allows the vendor to bid items and the price is allowed to rise (or fall) based on the real world. They are not required to lose money. Our stocking situation reflects the real world supply chain issues and inflation.”

The comrade told us,

“the New York Department of Corrections and Community Supervision has raised the commissary buy limit from $75.00 to $90.00 to compensate for the inflation and changes to the package from home/vendor program that was implemented last year (2022).”

Unlike in the free world, not only do prisoners face limits on how much they can earn but also on how much they can spend.

Inflation is Real

Above, the NYSDOCS refers to the “real world” as being the cause of the rising prices in commissary. The fact of the matter is that inflation rates in the United $tates have been higher than we’ve seen in many decades for everyone. The Consumer Price Index (CPI) in December 2021 had increased 7% year-over-year, and in December 2022 it was 6.5%. That means over two years the inflation rate is around 15% for all consumer goods. In this context, the price increases in New York commissaries look pretty typical for the economy overall. That does not mean that this is inevitable, it is only inevitable in the type of economy we live in.

And it is only if we are slaves to the capitalist market forces that we must accept these price increases on necessities for some of the poorest people in this country. Even capitalist countries use subsidies to alter the market.

Socialist China had no inflation

The Communist Party of China seized state power in 1949 after over two decades of people’s war waged against the imperialists and their Chinese lackies among the comprador bourgeoisie and landlord classes. Immediately following liberation there were speculators

“still trying to manipulate prices and stirring up waves in the economy… who ignored the repeated warnings of the People’s Government, gold and silver prices kept soaring, pushing up all other prices. So on 10 June 1949 the Stock Exchange – that centre of crime located in downtown Shanghai – was ordered to close down and 238 leading speculators were arrested and indicted. The 1,800 gold and silver coin peddlers were released on the spot after being enjoined to lead a more honest life. At one stroke, the headquarters of speculation vanished forever from Shanghai.”(1)

Unfortunately that last statement proved untrue, as the Shanghai Stock Exchange was re-established on 26 November 1990, following over a decade of capitalist restoration in China.(2) This is why China has it’s own economic woes today. But for a quarter century, China had no inflation.

During the socialist period of 1949-1976, the Communist Party never resorted to bank-note issue as a solution for fiscal problems, relying on raising production and practicing economy instead.(3) This remained true through the Korean War and periods of famine in the 1950s.(4) During the Covid-19 lockdown period the capitalist economy suffered greatly because it cannot adapt to decreases in production. The solution in the imperialist countries was for central banks to print a lot of money and give it to the capitalists as well as their labor aristocracy, to keep consumption up and prevent economic collapse. The solution to the bank collapses in recent weeks has been similar, providing more liquidity from the U.$. Federal Reserve on loan to banks that can’t cover their balance sheets.

The communist approach in China was the opposite. Rather than putting as much money out into the world as needed, and encouraging banks to loan more than they have, the Communist Party forced banks to hold most of their currency, forced agencies to keep most of their money in the banks and prohibited securities, bonds, precious metal trade and foreign currency. Remember, mortgage-backed securities were at the center of the last recession in 2008. Today we are seeing a similar crisis in high-risk loans for automobiles in the United $tates that happened for home loans in 2008.

Bond prices are at the heart of the collapse of Silicon Valley Bank and others. Socialist China didn’t issue bonds, because they didn’t take on federal debt.

Prior to liberation, in 1935-37, the Chinese currency was pegged to the USD. As a result, when inflation spiked in the United $tates, that inflation was amplified in China. In ULK 79 we discussed the current inflation crisis in Ghana. Because Ghana does not control its currency and does not keep out foreign currency and speculators, their currency (the Cedi) is manipulated by the imperialists. This is true across the Third World, where inflation will continue to be felt much more harshly than it is for us here in the belly of the beast.

The other problem in countries like Ghana is the foreign debt. Inflation is playing a big role here, as the USD becomes more expensive compared to local currencies, larger and larger portions of the money supplies in exploited countries are going to pay the same interest rates on loans from the imperialists. Debt forgiveness in these countries needs to occur to protect the lives of millions threatened with starvation today.

According to the World Food Program, “An expected 345.2 million people [are] projected to be food insecure in 2023 – more than double the number in 2020.”(5) The recent increase in famine is mainly in the poorest, exploited countries, and triggered by a combination of inflation, war and climate change.

We know there is enough food in the world to feed everyone. The problem is capitalism cannot be efficient enough to distribute it to places where super-exploitation occurs. And super-exploitation is necessary to maintain profit rates. Without positive profit rates, capitalism grinds to a halt.

When socialist China had actual shortages in essentials, they would ration them instead of increasing prices and making the problem worse. Then they would focus on increasing production of those essentials (rather than decreasing production like the capitalists do when there’s no profits to be had).(6) Contrast this with prisoners (and everyone else) in the United $tates who are now paying higher prices for food and other essentials because the commissary is operated on the capitalist market. The anarchy of production under capitalism means we constantly have too much or too little of various goods as individuals decide what to produce based on their own profit interests. And this is particularly noticeable when the economy starts to slow down or shows volatility as it has been lately.

Socialist China focused on production to manage and drive the economy, whereas imperialist United $tates focuses on money supply to do so. In socialist China the banks were merely a tool to manage and allocate resources to manage production for the people’s needs.

Why Banks are failing

As mentioned above, Silicon Valley Bank (SVB) had a big problem due to the value of its federal bonds dropping in value. They had bought the bonds when interest rates were much lower, so as the Fed continues to increase interest rates these old bonds drop in value. They cannot cash in the bonds until their term is due and they can only sell them at a loss. Some big players began pulling their money out of the bank, perhaps related to this knowledge. Soon SVB could not cover the deposits they owed people. The U.$. government has stepped in to cover it, and now the FDIC is covering infinite deposits if your bank fails, instead of the previous limit of $250,000. This is another sign of the willingness of the imperialists to throw newly printed cash at the problem.

One interesting point here is that federal bonds are a “safe” investment. SVB didn’t fail because of garbage mortgage-backed securities as happened in 2008. So the financial system is failing firms that play it safe this time around. In addition, according to the FDIC, SVB was not in the worst situation.(7) In other words, other banks in the United $tates have worse balance sheets than SVB and will fail if there is a run on their money. “The total unrealised losses sitting on the books of all banks is currently $620bn, or 2.7% of US GDP.”(7)

The biggest failure this year, at the time of this writing, was the 165 year-old bank Credit Suisse. Meanwhile the market is jittery around many large imperialist banks with stock prices seeing big dips and credit default swaps (CDS) spiking in price. CDSs going up means other institutions are not confident these banks can pay off their debts and are charging more to insure bonds from these banks. The differing interests of these major financial institutions are beginning to show on the markets as they bet against each other.

Conclusion

Prisoners are on some of the most fixed budgets of any population in this country. In order to get their basic needs related to nutrition, hygiene and outside contact, prisons need to increase pay rates and limits on how much money prisoners can spend and receive from the outside. In some states these reforms have already occurred, and this is in the interests of the commissary companies, which the prison systems want to keep satisfied.

The solution to the bigger economic contradictions playing out now is obviously replacing capitalism with socialism. The report from socialist China cited above succinctly explains why this is the case. Capitalism doesn’t just put profit over the need of people and life on this planet, capitalism actually requires profit to function. When profits dry up, as we’re seeing some evidence of right now, capitalism can’t produce what people need. Of course, we’re also seeing various forms of state intervention to ensure that this does not happen by providing more money and creating profitable situations using the central banks. But these contradictions continue to exist, and different interests are acting in anarchic ways, so that state intervention cannot always work as it does in a socialist economy.

<sup>Notes:
1. Peng Kuang-hsi, 1976, Why China Has No Inflation, Foreign Languages Press:Peking, p.23-24.
2. https://en.wikipedia.org/wiki/Shanghai_Stock_Exchange
3. Peng, p.28.
4. Peng, p.30.
5. World Food Programme, “2023: Another Year of Extreme Jeopardy for those Struggling to Feed their Families.”
6. Peng, p.37
7. Michael Roberts, 21 March 2023, “Bank Busts and Regulation”, The Next Recession.</sup>

[Arms & Empire(1980) by Richard Krooth is a MIM must read. MIM(Prisons) just developed a study guide to go along with this book. The below is the intro to the study guide with some key quotes from the book.]

Introduction to the study pack

The Maoist Internationalist Movement (originally named the Revolutionary Internationalist Movement) was founded at a time when inter-imperialist conflict between the camp led by the United $tates and that led by the social-imperialist USSR posed a threat to the world. In one of the founding documents, written in 1983, comrades saw the combination of liberation struggles in the Third World and this inter-imperialist conflict as a hotbed for communist revolutions.(1)

MIM founders saw the success of communist revolution as an absolute necessity to prevent a new inter-imperialist war, that would likely lead to nuclear war. As such, they recognized that a revolutionary situation could arise within the United $tates in a matter of years, despite having a budding skepticism of the interests of most in our country in communist revolution.

For most of MIM’s existence now we have not been in the situation described above. By 1991 the “Cold War” was over with the dissolution of the Soviet imperialist bloc. For a solid 3 decades we lived under a “unipolar world”, where U.$. dominated organizations and alliances ruled the world (NATO, World Bank, IMF, etc).

For many years now (in 2022) China has been the rising imperialist power, mostly independent of the U.$.-dominated institutions, though deeply integrated with the U.$. economically. As the contradictions heighten in the U.$.-China economic system, they also heighten in the capitalist system overall. The post-USSR era brought a sacking of the wealth of the former Soviet states by cleptocratic capitalists. This aligned with the capitalist development of China, and the return of exploitative relations dominating over 1 billion people who became the primary producers for consumers in the United $tates and around the world. These processes of wealth extraction were the life-blood for global capitalism for those 3 decades of inter-imperialist peace. But, capitalism must keep expanding, and there is not much more room to expand. Meanwhile, the COVID-19 pandemic triggered a series of collapses in the international system of distribution that prioritized profitability over resiliency.

Earlier this year, Russia invaded Ukraine, in what many fear is the first hot war of what will be an escalating inter-imperialist war. Though to date, it has not yet exceeded in scale the U.$./USSR conflicts of the Cold War. It has brought with it massive trade barriers. The Amerikans have rallied the world to isolate Russia with great success, yet differences in interests have also arisen. This will force many realignments in the coming months and years. The battle for markets, using tariffs and embargoes and currency manipulations, will only escalate. This makes Arms & Empire such a relevant read today.

In 1997, MIM passed a resolution stating:

“For MIM’s purposes, World War III began immediately after World War II ended in 1945. World War III continues today. It is a war between the imperialists and the oppressed nations. By defining World War III as post-World War II, MIM does not mean to say that imperialists did not wage war on the oppressed nations prior to 1945, only that the post-1945 period has specific characteristics (such as: 1. the leading roles of the U.S. and, for a time, the USSR and 2. the predominance of neocolonialism) which separate this period from the pre-1945 periods.”(2)

We can say that world war is inherent to imperialism. As Lenin defined it, imperialism is when the world has been completely divided up by competing monopolist powers, making the export of finance capital the dominant aspect of the economy, and finance capitalists become the shapers of the world. This competition translates to economic and military warfare, both of which result in large numbers of unnecessary humyn deaths. Imperialism kills millions. When warfare between the imperialists can be minimized for a period, the warfare is aimed primarily at the oppressed nations who are resisting the imperialists trying to control and exploit them.

On the eve of World War I, the revisionist Kautsky proposed a theory of ultra-imperialism to supercede imperialism, where the imperialists can ban together to manage the world internationally. Today, there are many bad Marxists who unknowingly promote this metaphysical view of world imperialism where the imperialist forces of NATO and the U.$. are an invincible unbreakable force, and that the best thing the communists can hope for is a counter-balance to U.$. hegemony while tailing other independent imperialists such as Russia or China. While also unknowingly parroting neo-Kautskyism, these revisionist Marxists also unite with the bourgeois Liberals on the world view of a post-Soviet world. The bourgeois liberals had their own theories of “the end of history” after the collapse of the Soviet Union that envisioned the current order to have proven itself as the stable state in which we would remain. In this book, Richard Krooth concisely points out why these fantasies can never come true. The internal contradictions of capitalism and imperialism, brilliantly exposed by Marx and Lenin, translate to antagonistic contradictions among the imperialists that cannot be resolved by synthesis but only by one aspect of that contradiction overtaking the other via warfare. This remains true despite brief periods of relative peace between the imperialists that must also coincide with periods of prosperity and great opportunity for the imperialists. And has MIM has pointed out, even in times of prosperity, the different interests of the labor aristocracy can damper the plans of imperialist unity.(3)

Today, the labor aristocracy is talking about their inability to consume products not made by them in their movement to increased wages, decreased worktimes, etc. However, they seem to be able to consume products not made by them pretty well. Cars, phones, food, etc. are mostly produced by the Third World proletariat, and the main gripe comes with things they don’t own rather than things they don’t produce: rent for example.

As we enter a period of heightened inter-imperialist conflict, we echo the sentiments of MIM’s founders. We are not for war, but we recognize that war by the proletariat to overthrow imperialism is necessary to stop war. As military and economic warfare expands among imperialists and between imperialists and the oppressed nations, opportunities for successful revolutions to put the proletariat in state power increases. This is the solution to war. We aim to destroy imperialism, because imperialism is destroying the planet.

<sup>Notes:
1. Manifesto on the International Situation and Revolution (first few pages)
2. Resolution on World War III (1997 MIM Congress)
3. Social-democratic gravy train opposes European Union (2005 MIM Congress)
4. also see: “Ukraine: Imperialism in Crisis” in Under Lock & Key 77 for broad discussion of economic and military warfare against Russia in 2022.</sup>

Key summary quotes from book

End of the Introduction:

“For we will see that empire was systemic and competitive; that competition and nationalism then powered the changeover from one system of empire to another; that, consequently, the mercantile colonial system was replaced by a system of free trade with the coming of industrialism; that free trade was thereafter replaced by a return to colonial empires with the rise of monopolization in the leading nations; that war between the Powers resolved little in the fight for world domination; and that a new growth of monopolies led to strengthened colonial spheres of influence and renewed warfare.”

Explanation of the Great Depression (top of p.119):

“The U.S. had long since closed down free trade into America, stopping Germany and other European countries from exporting to American shores to pay their debts. This secured the U.S. dollar for a while, making it the hardest currency in the world, pushing up its value vis-a-vis other currencies, but also making it inaccessible to nations that otherwise would have purchased from America. When other nations could not obtain dollars by exports to the U.S., obviously they could import nothing at all. And so U.S. exports tended to fall and had to be replaced with bilateral trade agreements. Up went U.S. unemployment when markets fell away and bilateral trade could not replace them. Then down came the dollar, the U.S. devaluing in 1933 in an attempt to stimulate the exports again. But, alas, it was too late. The depression was on, production was down, America was spreading crisis to Europe!”

Lead up to WWII (p.129-30):

“Within European nations especially, the road to war was laid out in stages – the first for counterrevolution, the second for capitalist resurgence, and the third for crises and the rise of antagonistic governments seeking to take what all others held in trade, investments, colonies and profits. In the first period (1917-23) we can discern how civilian bands of reactionaries had used force and violence against the agrarian or socialist”revolutions“… The reactionaries demanded”law and order," eventually leading to “counter-revolutions.” Yet the incipient fascist movements did not themselves assume government power, for the marketplace was being re-established and did not require a fascistic state.

"The second period (1924-29) had no use for a fascist government either. The powers of capitalist production were expanding, the market fetters were destroyed, and al the important nations save Great Britain were on the economic upgrade. While the United States enjoyed legendary prosperity and the Continent was doing almost as well, Hitler’s putsch was a footnote in political economy. France evacuated the Ruhr, the Reichsmark was restored by U.S. loans, the Dawes Plan took politics out of reparations, Locarno was in the offing for peace, and Germany was initiating seven fat years. The gold standard ruled from Moscow to Lisbon by the close of 1926; buyers could now pay for their imports, restoring the capitalist marketplace to its full capacity.

"Then came the Great Crash of 1929, the market economy turning down, general economic crisis forcing nations to be sellers but not buyers in the world. The continuing deadlock of market dealings demanded changes in the political way in which economic solutions were planned. The Italian trusts chose fascism as a way out of their economic malaise. The German cartels demanded continental markets and colonies, not by marketplace dealings - for they were shut out of the markets and colonies of the other Powers - but by military conquest. Hitler, their puppet, demanded no more than they asked, Germany taking the lead in totalitarianizng Europe. And with Japan in the Asian wing, the Axis Pact aligned fascist power over five continents.

“Thereby the material conditions of society – monopoly ownership, overproduction, market struggle, political bankruptcy, and military occupation – had ended the marketplace system. The monopolists and cartelists needed fascism to build themselves strong for a military confrontation which, they believed, would award them with more raw materials, more markets, more profits and more power. The liberal business interests, then opting for increasing national competitiveness, also blocked any move towards allowing the social means of production to provide for popular need, instead of their private profit. The fascists, combining jingoism and planned speed-ups for the working population, now displayed a tawdry alternative to the free marketplace. And the monopolists then brought them into power in hopes that their accumulation of private gain would continue undiminished. World War II inexorably followed, not only because leaders willed it, but also because the solutions to economic and political crises required it.”

The latest issue of ULK (#75) was very informative. The article on Afghanistan was a good review of many of the issues.

One you did not mention and that is one of the reasons that China is sending money is that of the mineral resources of the country.

About 8 years ago I had a teacher who applied to work as an analyst for the CIA. As part of his application he did a report on Afghanistan. He found out why the U.$. invaded the country. There are large deposits of copper and lithium ore. The U.$. soldiers were to protect the Chinese workers who were building the railway that would transport the ore into China for processing.

Just like Spain, France, etc. in the 16th and 17th centuries, the U.$. government was in another country to steal its natural resources.

MIM(Prisons) responds: Certainly, natural resources continue to be a major impetus for imperialist foreign policy and war. The gas lines through the Caspian Sea were also a key concern in the region at the time.

Your description of the roles of the Amerikans and Chinese in Afghanistan is emblematic of the relationship between the two countries ever since the capitalist roaders took over in China in 1976. Today contradictions have heightened as Chinese capital has become more developed and therefore needs to exert its interests independent of the United $tates. Meanwhile the Amerikans have begun looking at bringing production and supply chains of basic goods a little closer to home after becoming dependent on the labor of Chinese proletarians. These contradictions playing out demonstrate why inter-imperialist conflict is the rule.

In a recent online debate between two random “Marxist-Leninists” and two fascists, one of the self-described “Marxist-Leninists” stated that every country in the last 100 years has been socialist. The fascists are happy to parade such meaningless dribble as “Marxism” so that they can make Marxism look bad. With Obama’s election, white nationalist fear became expressed in many derogatory words, including “communism” and “Marxism,” with no sense of irony that they were accusing the number one enemy of the world’s people of being a communist.

What is common among “Marxists” in the First World is saying every country is socialist that says it is and has some form of state intervention in the economy. This superficial analysis has also helped muddy the water of what socialism is. And it allows the fascists to say that they share many of the goals and ideals of the self-described Marxists. In particular they both look to China as a positive model of how to run a country and they both think Amerikans and various First World European nations are being victimized by the current world system. The fact that many of these fascists have chauvinist anti-Chinese views and wish war against the social-imperialist CPC is of no matter. For MIM, the question of whether today’s China is socialist or social-imperialist is a dividing line question.

To understand what socialism is, MIM has long recommended The Chinese Road to Socialism by Wheelright and MacFarlane. For the history of the coup that overthrew socialism in China MIM distributed The Capitalist Roaders Are Still on The Capitalist Road. In 1986, MIM cadre Henry Park published “Postrevolutionary China and the Soviet NEP” comparing state capitalism in the early days of the Russian revolution to state capitalism after the coup in China. In 1988, Park published “The Political Economy of Counterrevolution in China: 1976-88”, which tied all of these subjects together through a Maoist framework and analyzes the failures of state capitalism in post-Maoist China.

Pao-Yu Ching’s From Victory to Defeat serves as a more up-to-date introduction to the topic of the differences between socialism and capitalism in the last 100 years of Chinese history. It is written as a sort of FAQ and provides a broad overview, while explaining the key concepts that allow us to differentiate between the two economic systems. As such, MIM(Prisons) recommends Pao-Yu Ching’s work as a solid starting place when exploring this topic. The topic of “What is socialism?” must be fully grasped by all communists.

It seems that Pao-Yu may disagree with the Maoist class analysis. In eir introduction ey states, “Today the living conditions of the working masses in imperialist countries have grown increasingly difficult.”(p.9) Ey then alludes to rising prices, rising debt and precarious work, none of which necessarily reflect worsening objective conditions. Without a recognition that these populations are parasitic on the working classes, this line leads to the politics of the fascists and social-fascist “Marxist-Leninists” mentioned above. It is also relevant to the question of revisionism in the formerly socialist countries who looked to emulate the lifestyles of Amerikans. Since this point is not taken up in the rest of the book we will not dwell on it here, but it remains the biggest problem with this work.

What is Socialism?

Many of our readers and those who are interested in what we have to say in general are still confused as to what socialism is for the reasons mentioned above. Ultimately it is defined differently by different people, and it is used politically rather than scientifically. Pao-Yu outlines what the most advanced example of socialism looked like quite nicely in eir short book, so we will just mention some key points here to help clarify things.

Socializing industry first required that the state took control of the means of production in the form of factories, supply lines, raw materials, etc. This is where many stop with their definition of socialism. Some other key things that Pao-Yu points out is that success was no longer measured in the surplus produced but rather on improvements in the production and overall running of the enterprise.(p.20) This recognizes that some will be more profitable in a capitalist sense, but that the nation benefits more when all enterprises are improving, not just the profitable ones. Another key point is that laborers were guaranteed a job that was paid by the state at a standard rate.(p.28) This eliminated labor as a commodity that you must sell on the open market. Commodities are at the heart of capitalism. Socialism is the the transition away from commodities, starting with the most important commodity of humyn labor.

The above only applied to a minority of the country, as the vast majority of China was a peasant population. It is only in recent years that the peasantry is now less than half the population. It is in the countryside where the capitalist roaders and the Maoists disagreed the most. Pao-Yu walks us through the different phases of the transition to socialism and how the principal contradiction shifted in each phase. Ey explains the contradiction amongst the countryside, where production was not owned collectively by the whole population, and the cities where it was. The disagreement with the capitalist roaders was a disagreement over the principal contradiction at the time, which they thought was the advanced social system (of socialism) with the backward productive forces (of small scale farming by peasants). To resolve this contradiction the capitalist roaders thought they must accelerate production, industrialize agriculture, and feed the industrialized cities with the surplus of that agricultural production. This focus on production is one of the key defining lines of revisionism.

While Marx taught us that the productive forces are the economic base that define humyn history and the superstructure, he also said the contradiction with the relations of production is what leads to revolutionary transformations of society. As Pao-Yu points out, learning from Mao Zedong, during these revolutionary periods is when the relations of production become primary, in order to unleash the productive forces that have become stagnant under the previous mode of production.(p.30) In other words peasants living under semi-feudalism in China pre-liberation were not improving their conditions. They needed to revolutionize how they related to each other, how they were organized, specifically the class relations, in order to move towards a new mode of production (socialism) that could meet their needs much better. Therefore Mao focused on education, theory, class struggle, culture, the people, instead of focusing on production, profitability, surplus, and wage incentives, as the capitalist roaders did. The Maoist path took the Chinese peasants through a gradual process of increasing collectivization through communes, which was quickly dismantled after the coup in 1976.

What is Democracy?

Another question those living in bourgeois democracies often ask is how you can have democracy with only one party, where people are purged for having the wrong political line? Pao-Yu makes the point well by explaining that in established bourgeois democracies you can have many parties and many candidates, because they all represent the same class.(p.48) This is the case because these countries are stable in their mode of production (capitalism). In the transition to a new economic system the political struggle is between two classes. In the case of capitalism transitioning to socialism, it is between the bourgeoisie and the proletariat (and their class allies on each side).

The bourgeoisie by definition is always competing amongst itself, so it cannot have one party represent all of their interests, except in extreme crises when fascism becomes viable. In the United $tates today, the left-wing of the bourgeoisie are represented by the democrats while the right-wing flock to the republicans. Even amongst these parties are different bourgeois factions fighting amongst each other. The proletariat however is united in it’s class interest, so there will be no need for multiple proletarian parties. There are many books that outline the components of socialist democracy where people select their representatives at each level of administration, where free speech and criticism are encouraged, where education is universal and free and where everyone is involved in studying theory and practice to shape the decisions that affect their day-to-day lives. It does not require having multiple political parties to choose from as bourgeois democracies do in their electoral farce.

What is China?

Pao-Yu covered China before, during, and after socialism so that the reader can better understand the differences. As such the book is a good introduction to the explanation of why China has not been on the socialist road since 1976. Ey touches on the loss of the guaranteed job, with the introduction of temporary workers, the ending of the right to strike and free expression among the workers, the ability of managers to start keeping the profits from the enterprises they oversee, the loss of universal medical care, and the focus on production for other nations, while importing the pollution of those consumer nations. Ey briefly documents the struggles of the workers to maintain control of the enterprises they once owned collectively. China is now a capitalist hell hole for the majority objectively and it does not matter whether the CPC has millions of cadre who believe the opposite subjectively.

The Global Economy

One point Pao-Yu makes that we have also stressed as being important, is the role of the proletarianization of the Chinese masses in saving global imperialism from crisis. When the imperialist economies were facing economic crisis in the 1970s, one third of the world’s population was not available to be exploited by the imperialist system. One of the laws of capitalism is its need to always expand. When China went capitalist, it opened up a vast population to exploitation and super-exploitation for the imperialists. This labor was the source of value that the imperialist system thrived off of by the mid 1980s until just recently.

Interestingly, Pao-Yu says that almost 30% of the Chinese population is petty bourgeoisie, owning (often multiple) investment properties and traveling around the world.(p.111) In a previous article we explained that we saw China as a proletarian country still despite its imperialist activities. We referred to Bromma’s research that stated China’s “middle class” was 12-15% of the population some years prior. It is interesting to hear that the Chinese petty bourgeoisie has reached the same size in absolute numbers as the Amerikan one. It would be interesting to compare the wealth of these two groups, we presume the Amerikans remain wealthier. Of course, China is still majority proletariat, while Amerika is almost completely bourgeoisified, so the class interests of these nations overall remain opposed to one another. But we will rarely hear the proletarian voices from China until a new proletarian party rises there.

The housing market is one example of how China has emulated the United $tates. Investing in properties has become an important way for the new petty bourgeoisie in China to accumulate wealth without working. Just last week, the Chinese investment firm Evergrande made headlines when it became public knowledge that they would not be able to pay the billions of dollars they owe. Evergrande has significant backing from Amerikan finance capital, as is true for the Chinese economy in general. Therefore the collapse of the Chinese housing market could have real ripple effects in the global economy.

The fact that real estate investment firms exist in China, and that they are defaulting on hundreds of billions of dollars owed, is really all you need to know to see that the economy is oriented towards profit and not people. Things like inflation and bubbles and stock markets and speculation just didn’t exist during the Maoist era. The reintroduction of these things for the last four decades destroyed the progress in class struggle in China long ago.

Salutations MIM(Prisons), and appreciation for the book The Wind Will not Subside about the years in revolutionary China. I wrote specifically to donate these stamps and to comment on what I’ve rend so far – because I’m not done with it.

Mao was a true paradox: simple yet complex, intellectual yet humble, he know how to control by letting go, he was an obvious mystery. And he was a Gangsta! I never knew hes wife and kids were tortured, raped and killed. He never spoke on the personal motivations of his mission, because he knew that his was just one story out of millions of similar stories. Se he wasn’t special.

Politicians of today would’ve used that story to their advantage, solely to get votes. And once ey got the votes, ey would then use that power to do the same thing that was done to em. Ey would’ve exploited to the fullest that tragedy. That was deep to me.

He also had the courage to go against traditional revolution (Russia), and challenge the status quo by not being afraid to fail if need be. Mao had the vision and intuition to understand that you don’t hamper the youth’s growth by pounding into them what ey are doing wrong. Ey will lose enthusiasm and ultimately give up.

About study groups. I have come to realize the less formal ey are, the more successful ey are. If we tell youngsters that we are going to start a “study group”, it reminds em too much of school. Although in essence, that’s what it is, the title rubs em the wrong way. I pass literature, books, ULKs around, then after ey’ve read them, I ask questions, give input and feedback. It is a slow process, but it works. I’m not perfect, and I am only one of many, but I have found the method that works for me. Maybe it will help a comrade who is sincerely trying to bring about change.

Salutations to all who labor in the name of communism

Anti-imperialists got a little taste of good news from Trump last month when ey announced plans to pull troops out of Syria. Ey later backpedaled saying ey did not set a timeline for such a pull out. But Trump has long made comments indicating that the new focus of U.$. strategy will be to combat China and Russia. In other words, the war on oppressed nations, particularly in the middle east and north Africa, and euphemistically dubbed the "War on Terror," will no longer be the primary focus.

It has always been MIM line that we are in a period of World War III, that is a low intensity war by the imperialists against the oppressed nations. The hegemony of the United $tates allowed for this to be the focus in the decades following World War II. That hegemony is fading, and the emergence of a fourth world war, or a third inter-imperialist war is bubbling to the surface.

Of course, inter-imperialist war does not mean the oppressed nations get a reprieve from the needless brutality of capitalism, as inter-imperialist war is always about carving up the oppressed nations for their resources and markets. Enter "Prosper Africa", the plan announced by U.$. National Security Advisor John Bolton in December. Bolton stated, "America's vision for the region is one of independence, self-reliance and growth, not dependency, domination and debt."(1) This is a hypocritical jab at China, from the country who has done more to make Africa dependent and in debt in the last half-century than any other. At the same time the Trump administration is calling for more "honest" dealings with Africa, that recognize U.$. economic and political interests more openly.

The "Prosper Africa" plan coincides with Pentagon plans to reduce U.$. troops in Africa by 10%. Nothing close to our demands to shut down Africom, rather a subtle adjustment of current U.$. strategy. The immediate focus seems to be drawing hard lines in the sand of the African continent between those compliant with U.$. imperialism and those who are not.

In recent years, China has joined forces with other emerging imperialist or sub-imperialist nations with independent banking capital including Brazil, India, Russia and South Africa (BRICS). As a group, the BRICS countries have greatly increased trade with African countries over the last decade. Increases in trade on the whole is a benefit to the well-being of all peoples involved. While this trade provides outlets and opportunities for capital from countries with growing finance capital, the established imperialist powers (the United $tates and France) face a reduction in their access to markets and in their ability to strong arm the oppressed nations of the world into serving their interests. This threatens to contribute to economic crisis in the advanced imperialist economies, and trigger more militaristic and desperate actions politically.

The Trump administration has hinted at pulling support from United Nations (U.N.) "peacekeeping" missions in Africa. While opposing the U.N. garners support from white nationalists subscribing to isolationalism and Amerikkkan exceptionalism, the real motivation here is likely to reduce Chinese influence in the region. More than 2,500 Chinese troops are stationed in war zones created by U.$. and French imperialism in South Sudan, Liberia and Mali. China accounted for 1/5 of the U.N. troops pledged to operations in Africa in 2015.(2)

China established its first military base outside of China in 2017 at the strategic location of Djibouti in the Horn of Africa. This is in line with a shift in Chinese foreign policy over the last decade from non-interference to "protecting our country's over-seas interests."(3) The United $tates, France and Japan are among the countries with existing bases in Djibouti, where the government depends on military leases as an important source of income.

The U.$.-backed coup and murder of Muammar Gaddafi in 2011 helped break the continent's resistance to Africom. Up until then Africom had to operate out of Europe. With the pan-Africanist government in Libya out of the way, Africom was able to operate from within Africa for the first time. Now the United $tates has at least 46 military bases in Africa and close military relations with 53 out of the 54 African countries. Many countries have agreements to cede operational command of their militaries to Africom.(4)

While the coup in Libya was a victory for U.$. imperialism, it continues to be a disaster for Libyans, with repercussions for the whole region. The United $tates will have a much harder time stemming the still-expanding Chinese pole that challenges U.$. hegemony in Africa. As this contradiction threatens the world with inter-imperialist war, it offers opportunities for the oppressed to move independently as cracks widen in the imperialist system.

The Dangerous Class and Revolutionary Theory
J. Sakai
Kersplebedeb Publishing, 2017
Available for $24.95 (USD) + shipping/handling from:
kersplebedeb
CP 63560, CCCP Van Horne
Montreal, Quebec
Canada
H3W 3H8

The bulk of this double book is looking at the limited and contradictory writings of Marx/Engels and Mao on the subject of the lumpen with greater historical context. MIM(Prisons) and others have analyzed their scattered quotes on the subject.(1) But Sakai’s effort here is focused on background research to understand what Marx, Engels and Mao were seeing and why they were saying what they were saying. In doing so, Sakai provides great practical insight into a topic that is central to our work; the full complexities of which have only begun to unfold.

Size and Significance

In the opening of the "Dangerous Class", Sakai states that "lumpen/proletarians are constantly being made in larger and larger numbers".(p.3) This follows a discussion of criminalized zones like the ghetto, rez or favela. This is a curious conclusion, as the ghettos and barrios of the United $tates are largely being dispersed rather than expanding. Certainly the rez is not expanding. Sakai does not provide numbers to substantiate these "larger and larger" lumpen populations today.

In our paper, Who is the Lumpen in the United $tates? we do run some census numbers that indicate an increase in the U.$. lumpen population from 1.5% of the total population in 1960 to over 10% in 2010. However, other methods led us to about 4% of the U.$. population today if you only look at oppressed nation lumpen, and 6 or 7% if you include whites.(1) This latter number is interestingly similar to what Marx estimated for revolutionary France (around 1850)(p.66), what Sakai estimates for Britain around 1800(p.112), and what Mao estimated for pre-revolutionary China.(p.119) Is 6% the magic number that indicates capitalism in crisis? The historical numbers for the United $tates (and elsewhere) are worthy of further investigation.

Alliances and Line

Certainly, at 6% or more, the lumpen is a significant force, but a force for what? In asking that question, we must frame the discussion with a Marxist analysis of capitalism as a contradiction between bourgeoisie and proletariat. There’s really just two sides here. So the question is which side do the lumpen fall on. The answer is: It depends.

One inspiring thing we learn in this book is that the lumpen made up the majority of the guerrillas led by Mao’s Chinese Communist Party at various times before liberation.(p.122) This shows us that the lumpen are potentially an important revolutionary force. However, that road was not smooth. On the contrary it was quite bloody, involving temporary alliances, sabotage and purges.(pp.201-210)

Sakai's first book spends more time on the French revolution and the obvious role the lumpen played on the side of repression. Marx's writings on these events at times treated the Bonaparte state as a lumpen state, independent of the capitalist class. This actually echoes some of Sakai’s writing on fascism and the role of the declassed. But as Sakai recognizes in this book, there was nothing about the Bonaparte government that was anti-capitalist, even if it challenged the existing capitalist class. In other words, the mobilized lumpen, have played a deciding role in revolutionary times, but that role is either led by bourgeois or proletarian ideology. And the outcome will be capitalism or socialism.

Defining the Lumpen, Again

Interestingly, Sakai does not address the First World class structure and how that impacts the lumpen in those countries. Our paper, Who is the Lumpen in the United $tates? explicitly addresses this question of the First World lumpen as distinct from the lumpen-proletariat. While MIM changed its line from the 1980s when it talked about significant proletariats within the internal semi-colonies of the United $tates, this author has not seen Sakai change eir line on this, which might explain eir discussion of a lumpen-proletariat here. Sakai's line becomes most problematic in eir grouping of imperialist-country mercenaries in the "lumpen". Ey curiously switches from "lumpen/proletariat" when discussing China, to "lumpen" when discussing imperialist-country mercenaries, but never draws a line saying these are very different things. In discussions with the editor, Sakai says the stick up kid and the cop aren't the same kind of lumpen.(p.132) Sure, we understand the analogy that cops are the biggest gang on the streets. But state employees making 5 or 6-digit incomes with full bennies do not fit our definition of lumpen being excluded from the capitalist economy, forced to find its own ways of skimming resources from that economy. The contradiction the state faces in funding its cops and soldiers to repress growing resistance is different from the contradiction it faces with the lumpen on the street threatening to undermine the state's authority.

Sakai dismisses the idea that the line demarking lumpen is the line of illegal vs. legal. In fact, the more established and lucrative the illegal operation of a lumpen org is, the more likely it is to be a partner with the imperialist state. That just makes sense.

The inclusion of cops and mercenaries in the lumpen fits with Sakai's approach to the lumpen as a catchall non-class. We do agree that the lumpen is a much more diverse class, lacking the common life experience and relationship to the world that the proletariat can unite around. But what's the use of talking about a group of people that includes Amerikan cops and Filipino garbage pickers? Our definitions must guide us towards models that reflect reality close enough that, when we act on the understanding the model gives us, things work out as the model predicts more often than not. Or more often than any other models. This is why, in our work on the First World lumpen in the United $tates, we excluded white people from the model by default. We did this despite knowing many white lumpen individuals who are comrades and don't fit the model.

How about L.O.s in the U.$.?

The analysis of the First World lumpen in this collection is a reprint of Sakai's 1976 essay on the Blackstone Rangers in Chicago. Sakai had referred to L.O.s becoming fascist organizations in New Afrikan communities in a previous work, and this seems to be eir basis for this claim.

While the essay condemns the Blackstone Rangers for being pliant tools of the Amerikan state, Sakai does differentiate the young foot soldiers (the majority of the org) from the Main 21 leadership. In fact, the only difference between the recruiting base for the Rangers and the Black Panthers seems to have been that the Rangers were focused on men. Anyway, what Sakai's case study demonstrates is the ability for the state to use lumpen gangs for its own ends by buying off the leadership. There is no reason to believe that if Jeff Fort had seen eye-to-eye with the Black Panthers politically that the youth who followed him would not have followed him down that road.

Essentially, what we can take from all this is that the lumpen is a wavering class. Meaning that we must understand the conditions of a given time and place to better understand their role. And as Sakai implies, they have the potential to play a much more devastating and reactionary role when conditions really start to deteriorate in the heart of the empire.

Relating this to our practice, Sakai discusses the need for revolutionaries to move in the realm of the illegal underground. This doesn't mean the underground economy is a location for great proletarian struggle. It can contain some of the most egregious dehumanizing aspects of the capitalist system. But it also serves as a crack in that very system.

As comrades pointed out in our survey of drug use and trade in U.$. prisons, the presence of drugs is accompanied by an absence of unity and struggle among the oppressed masses. Meanwhile effective organizing against drug use is greatly hampered by threats of violence from the money interests of lumpen organizations and state employees.(2) The drug trade brings out the individualist/parasitic tendencies of the lumpen. Our aim is to counter that with the collective self-interest of the lumpen. It is that self-interest that pushes oppressed nation youth to "gang up" in the first place, in a system that is stacked against them.

The revolutionary/anti-imperialist movement must be active and aggressive in allying with the First World lumpen today. We must be among the lumpen masses so that as contradictions heighten, oppressed nation youth have already been exposed to the benefits of collective organizing for self-determination. The national contradiction in occupied Turtle Island remains strong, and we are confident that the lumpen masses will choose a developed revolutionary movement over the reactionary state. Some of the bourgeois elements among the lumpen organizations will side with the oppressor, and with their backing can play a dominant role for some times and places. We must be a counter to this.

While Mao faced much different conditions than we face in the United $tates today, the story of alliances and betrayals during the Chinese revolution that Sakai weaves is probably a useful guide to what we might expect. Ey spends one chapter analyzing the Futian Incident, where "over 90 percent of the cadres in the southwestern Jiangxi area were killed, detained, or stopped work."(p.205) The whole 20th Army, which had evolved from the lumpen gang, Three Dots Society, was liquidated in this incident. It marked a turning point and led to a shift in the approach to the lumpen in the guerilla areas. While in earlier years, looting of the wealthy was more accepted within the ranks of guerrilla units, the focus on changing class attitudes became much greater.(p.208) This reflected the shift in the balance of forces; the development of contradictions.

Sakai concludes that the mass inclusion of lumpen forces in the guerrilla wars by the military leaders Mao Zedong and Chu Teh was a strategic success. That the lumpen played a decisive role, not just in battle, but in transforming themselves and society. We might view the Futian Incident, and other lesser internal struggles resulting in death penalties meted out, as inevitable growing pains of this lumpen/peasant guerilla war. Mao liked to quote Prussian general Carl von Clausewitz, in saying that war is different from all other humyn activity.

For now we are in a pre-war period in the United $tates, where the contradictions between the oppressed and oppressors are mostly fought out in the legal realms of public opinion battles, mass organizing and building institutions of the oppressed. Through these activities we demonstrate another way; an alternative to trying to get rich, disregarding others' lives, senseless violence, short-term highs and addiction. We demonstrate the power of the collective and the need for self-determination of all oppressed peoples. And we look to the First World lumpen to play a major role in this transformation of ourselves and society.

In my last article on China I rehashed the 40-year old argument that China abandoned the socialist road, with some updated facts and figures.(1) The article started as a review of the book Is China an Imperialist Country? by N.B. Turner, but left most of that question to be answered by Turner's book.

We did not publish that article to push some kind of struggle against Chinese imperialism. Rather, as we explained, it was an attack on the promotion of revisionism within the forum www.reddit.com/r/communism, and beyond. The forum's most-enforced rule is that only Marxists are allowed to post and participate in discussion there. Yet almost daily, posts building a persynality cult around Chinese President Xi Jinping, or promoting some supposed achievement of the Chinese government, are allowed and generally receive quick upvotes.

The title of our previous article asking is China in 2017 Socialist or Imperialist may be misunderstood to mean that China must be one or the other. This is not the case. Many countries are not socialist but are also not imperialist. In the case of China, however, it is still important (so many years after it abandoned socialism) to clarify that it is a capitalist country. And so our positive review of a book discussing Chinese imperialism, became a polemic against those arguing it is socialist.

One of the major contradictions in the imperialist era is the inter-imperialist contradiction. The United $tates is the dominant aspect of this contradiction as the main imperialist power in the world today. And currently Russia and China are growing imperialist powers on the other side of this inter-imperialist contradiction. Reading this contradiction as somehow representative of the class contradiction between bourgeoisie and proletariat or of the principal contradiction between oppressed nations and oppressor nations would be an error.

We have continued to uphold that China is a majority exploited country, and an oppressed nation.(2) But China is a big place. Its size is very much related to its position today as a rising imperialist power. And its size is what allows it to have this dual character of both a rising imperialist class and a majority proletariat and peasantry. Finally, its size is part of what has allowed an imperialist class to rise over a period of decades while insulating itself from conflict with the outside world — both with exploiter and exploited nations.

A major sign that a country is an exploiting country is the rise and subsequent dominance of a non-productive consumer class. At first, the Chinese capitalists depended on Western consumers to grease the wheels of their circulation of capital. While far from the majority, as in the United $tates and Europe, China has more recently begun intentionally developing a domestic consumer class.(3) This not only helps secure the circulation of capital, but begins to lay the groundwork for unequal exchange that would further favor China in its trade with other countries. Unequal exchange is a mechanism that benefits the rich First World nations, and marks a more advanced stage of imperialism than the initial stages of exporting capital to relieve the limitations of the nation-state on monopoly capitalism. As we stated in the article cited above, China's size here becomes a hindrance in that it cannot become a majority exploiter country, having 20% of the world's population, without first displacing the existing exploiter countries from that role. Of course, this will not stop them from trying and this will be a contradiction that plays out in China's interactions with the rest of the world and internally. At the same time with an existing "middle class" that is 12-15% of China's population, they are well on their way to building a consumer class that is equal in size to that of Amerika's.(3)

In our last article, we hint at emerging conflicts between China and some African nations. But the conflict that is more pressing is the fight for markets and trade dominance that it faces with the United $tates in the Pacific region and beyond. China remains, by far, the underdog in this contradiction, or the rising aspect. But again, its size is part of what gives it the ability to take positions independent of U.$. imperialism.

As we stated in our most recent article, this contradiction offers both danger and opportunity. We expect it to lead to more support for anti-imperialist forces as the imperialists try to undercut each other by backing their enemies. Then, as anti-imperialism strengthens, the imperialists will face more global public opinion problems in pursuing their goals of exploitation and domination. In other words, a rising imperialist China bodes well for the international proletariat. Not because China is a proletarian state, but because the era of U.$. hegemony must end for a new era of socialism to rise. We should be clear with people about the definitions of imperialism and socialism to make this point.

Whether N.B. Turner agrees with us on these points is unclear. It is possible eir line is closer to Bromma's, who we critiqued because ey "claims a trend towards equalization of classes internationally, reducing the national contradictions that defined the 20th century."(3) As mentioned above it seems highly unlikely for China to be able to replicate the class structure of the United $tates. And it is absolutely impossible to recreate it globally.

China's potential to play a progressive role in the world in coming years does not change the fact that the counter-revolution led by Deng Xiaoping dismantled the greatest achievement towards reaching communism so far in history. If we do not learn from that very painful setback, then we are not applying the scientific method and we will not even know what it is that we are fighting for. How and when socialism ended in China is a question that is fundamental to Maoism.

On 26 October 2017, U.$. President Trump declared the opioid epidemic a public health emergency. The declaration should lead to more federal funding for grants to combat opioid abuse.(1) As we explain below, this epidemic disproportionately affects euro-Amerikans. Trump linked his campaign to build a wall along the current Mexican border to the battle against this epidemic, despite the fact that prescription painkillers are at the root of it. This is consistent with the Amerikan government's solution for drug problems created by imperialism. For the crack epidemic of the 1980s Amerika responded with mass incarceration of New Afrikan men as the solution. As opioid addiction continues a steady rise, Trump offers further militarization of the border.

Opioids have been used by humyns for thousands of years both medicinally and recreationally, with many periods of epidemic addiction. Use began with opium from poppies. Morphine was isolated in 1806. By the early 1900s heroin was promoted as a cure for morphine addiction in the United $tates, before being made illegal in 1924. There was a lull in heroin use during the 1980s, when cocaine and crack overshadowed it. Various prescription pain killers began to come back into vogue in the 1990s after the "Just Say No!" mentality was wearing off. Since then, use and abuse has been on a steady rise, feeding a new surge in the use of heroin as a cheaper alternative. This rise, in the economic centers of both the United $tates and China, is directly linked to capitalism.

The Danger

While K2 is one dangerous substance plaguing U.$. prisons these days, partly due to its undetectability, opioids are by far the biggest killer in the United $tates, and we expect that is true in prisons as well. Drug overdoses surpassed car accidents as the number one cause of accidental deaths in the United $tates in 2007 and has continued a steady rise ever since. The majority of these overdoses have been from opioids.(2)

While the increase in deaths from opioids has been strong across the United $tates, rates are significantly higher among whites, and even higher among First Nations. One reason that use rates are lower among New Afrikans and Latin@s is that it has been shown that doctors are more reluctant to prescribe opioids to them because they are viewed as more likely to become addicted, and Amerikan doctors see them as having a greater pain threshold.(3)

We did see some evidence of this trend in the results of our survey on the effects of drugs in U.$. prisons. The most popular answer to our question of whether certain groups did more drugs in prison than others was no, it affects everyone. But many clarified that there was a strong racial divide where New Afrikans preferred weed and K2, while whites and usually Latin@s went for heroin and/or meth. Some of these respondents said that New Afrikans did less drugs.(4) A couple said that New Afrikans used to do less drugs but now that's changing as addiction is spreading. In states where K2 has not hit yet (CA, GA, CO) it was common to hear that whites and "hispanics" (or in California, "southern" Mexicans) did more drugs. The pattern of New Afrikans preferring weed and K2 seemed common across the country, and could have implications for strategies combating drug use among New Afrikans compared to other groups. In particular, stressing that K2 is completely different and more dangerous than weed could be part of a harm reduction strategy focused on New Afrikans.

If prison staff were doing their jobs, then we would expect rates of both overdoses and use in general to be lower in prisons. But we know, and our survey confirmed, that this is not the case (78% of respondents mentioned staff being responsible for bringing in at least some of the drugs in their prison). In hindsight, it may have been useful to ask our readers what percentage of prisoners are users and addicts. Some of the estimates that were offered of the numbers using drugs in general were 20-30%, 90%, 75%, and many saying it had its grips on the whole population.

Deaths from opioids in the general U.$. population in 2015 was 10.5 per 100,000, double the rate in 2005.(5) This is higher than the rates in many state prison systems for overdoses from any drug, including Florida, Georgia, Illinois, Ohio, Texas and Pennsylvania that all reported average rates of 1 per 100,000 from 2001-2012. California was closer at 8 per 100,000 and Maryland exceeded the general population at 17 deaths from overdoses per 100,000 prisoners.(6) At the same time, prison staff have been known to cover up deaths from overdoses, so those 1 per 100,000 rates may be falsified.

In our survey of ULK readers, we learned that Suboxone, a drug used to treat opioid addiction, is quite popular in prisons (particularly in the northeast/midwestern states). Survey respondents mentioned it as often as weed as one of the most popular drugs, and more than heroin. Suboxone is actually used to treat heroin addiction. And while it is not supposed to be active like other opioids, it can lead to a high and be addictive. It is relatively safe, and will not generally lead to overdose until you combine it with other substances, which can lead to death.

Prescription drugs are not as common as other drugs in most prisons, according to our survey. Though in some cases they are available. We received a few responses from prisons where prescription drugs prescribed by the medical staff seemed to be the only thing going on the black market. Clearly there is variability by facility.

Two Paths to Recovery

The increases in opioid abuse in the United $tates has been staggering, and they cause a disproportionate amount of the deaths from drug overdoses. About 10% of opioid addicts worldwide are in the United $tates, despite only being less than 5% of the world's population.(7) At the same time, only about 1% of people in the United $tates are abusing opioids.(8) This is not the worst episode in U.$. history, and certainly not in world history.

Around 1914 there were 200,000 heroin addicts in the United $tates, or 2% of the population. In contrast, some numbers for opium addicts in China prior to liberation put the addiction rate as high as 20% of the population around 1900, and 10% by the 1930s. That's not to dismiss the seriousness of the problem in the United $tates, but to highlight the power of proletarian dictatorship, which eliminated drug addiction about 3 years after liberation.

Richard Fortmann did a direct comparison of the United $tates in 1952 (which had 60,000 opioid addicts) and revolutionary China (which started with millions in 1949).(9) Despite being the richest country in the world, unscathed by the war, with an unparalleled health-care system, addicts in the United $tates increased over the following two decades. Whereas China, a horribly poor country coming out of decades of civil war, with 100s of years of opium abuse plaguing its people, had eliminated the problem by 1953.(9) Fortmann pointed to the politics behind the Chinese success:

"If the average drug addiction expert in the United States were shown a description of the treatment modalities used by the Chinese after 1949 in their anti-opium campaign, his/her probable response would be to say that we are already doing these things in the United States, plus much more. And s/he would be right."(9)

About one third of addicts went cold turkey after the revolution, with the more standard detox treatment taking 12 days to complete. How could they be so successful so fast? What the above comparison is missing is what happened in China in the greater social context. The Chinese were a people in the process of liberating themselves, and becoming a new, socialist people. The struggle to give up opium was just one aspect of a nationwide movement to destroy remnants of the oppressive past. Meanwhile the people were being called on and challenged in all sorts of new ways to engage in building the new society. There was so much that was more stimulating than opium to be doing with their time. Wimmin, who took up opium addiction in large numbers after being forced into prostitution in opium dens, were quickly gaining opportunities to engage at all levels of society. The poor, isolated peasants were now organized in collectives, working together to solve all kinds of problems related to food production, biology and social organization. The successful struggle against drug addiction in China was merely one impressive side effect of the revolutionizing of the whole society.

In contrast, in the capitalist countries, despair lurks behind every corner as someone struggles to stay clean. The approach has ranged from criminalization to medicalization of drug addiction as a disease. "Once an addict, always an addict", as they say. Always an individualist approach, ignoring the most important, social causes of the problem. That drug addiction is primarily a social disease was proven by the practice of the Chinese in the early 1950s, but Western "science" largely does not acknowledge the unquestionable results from that massive experiment.

It is also worth pointing out the correlation between drug abuse and addiction, and capitalist economics specifically. Whether it was colonial powers forcing opium on the Chinese masses who had nothing, in order to enslave them to their economic will, or it is modern Amerikan society indulging its alienation in the over-production of prescription pills from big pharmaceutical companies marketing medicine for a profit.

China Today

And now, opioid addiction is on the rise again in capitalist China after decades. A steady rise in drug-related arrests in China since 1990 are one indicator of the growing problem.(10) As more profits flowed into the country, so have more drugs, especially since the 1990s. We recently published a review of Is China an Imperialist Country?, where we lamented the loses suffered by the Chinese people since the counter-revolution in 1976. It goes to show that when you imitate the imperialists, and put advancing the productive forces and profits over serving the people, you invite in all the social ills of imperialism.

In China drug addiction has now become something that people fear. Like it did with its economy, China has followed in the imperialists' footsteps in how it handles drug addiction. Chinese policy has begun treating addicts as patients that need to be cured to protect society. Rather than seeing those who give up drugs as having defeated the oppressor's ways, they are monitored by the state, lose social credibility, and have a hard time getting a job.(11) Under socialism, everyone had a job and no one needed recreational drugs to maintain themselves mentally. The path to combating drug addiction and abuse is well-established. Attempts under imperialism that don't involve liberatory politics of the oppressed have little to no effect.