The world of capitalism is much more chaotic and integrated than that could be explored the turmoil of a country without dissecting the position of its social capital in the global division of labor of capitalism and its place in the balance of power of the blockades and its relation to the process of events and current developments between the poles. In the case of Ukraine, the problem isn´t simply whether or not to join NATO, but the explosive trend of inevitable competition between the strongest poles of international cpital and breaking the depth of crisis, corruptions and competitions of this point, in the conditions of catastrophic collapse and grounding of the world labor movement have the most decisive role in igniting conflicts. To see the roots, it must first look at the current state of the value-added cycle and the reproduction of global capital.
The institutes say that the net-profit or new capital generated by the workers of the world only in 2021, a year in which the world working class , under constant pressure of Covid-19, seems to have worked less !! it has exceeded the limit of 94 trillion US dollars. According to these official centers of capitalism, this figure increases by more than 3 trillion dollars every year and it turns out that it´s increasing more and more, its annual growth rate also develops and goes up. For example, over the last 60 years between 1960 and 2020, it has risen from about 9 trillion to over 94 trillion dollars. The astronomical surplus value produced by the international working class during a year that is constantly rising, becomes additional capital. Each year 94 trillion dollars, at a rate of several percent increase, adds to the total current capital of the world which in turn is more than thousand trillion dollars. We have to think for a moment that all these investmented capital want profit and these are looking in search of conventional interest rates that in organic, intrinsic and inseparable connection with this terrestrial component, there are many other real components that they all play a fundamental and crucial role in having a faint image of the present world. The degree of labor productivity and homogeneity with it, the global average of the organic composition of capital is rising dramatically. A certain volume of product that until 50 years ago needed to produce by several thousand workers with long working days, today, even in societies with not very high levels of industrial development and low average labor productivity and very limited ability to compete in the international capital market, it´s done by a few hundred or even fewer workers. the debate isn´t about reducing the absolute number of workers in the world, this figure has certainly increased, but the important thing is that if in the last days of the twentieth century, a total of 10 trillion dollars in annual surplus value was generated by about 3 billion workers and the process of its realization and reorganization was completed and twenty years later, by 2020, a population of 4 billion workers generate more than 94 trillion dollars in surplus value and realize the process of circulation and investment. The relative growth of workers is 30% but the cancerous galactic development of surplus values is more than 900% . These figures say that the total volume of global capital is rising at a lightning-fast and uncontrollable rate, despite the successive outbreaks of crisis and the increase in annual international surplus values is astounding. At the same time, the nature of capitalism and its coercion is internal and inevitable, the only source of surplus production and inevitably the only creator of capital, not absolute but relative, but it´s rapidly shrinking and decrease. The need for international capital for profit and self-increase is increasing exponentially and the relative porportion of capital (labor force) that must meet these needs in the whole of capital is declining, and this doesn´t just make the periodic earthquake-like crisis of capitalism certain, definite and coercive inevitable, it doesn´t just reduce the distance between these crisis but only the dimentions of the beating do not double and moreover, it subjugates capitalism to a historical, irreversible and irreparable process of declining interest rates. The average interest rate on US social capital as a pole able to capture the largest share of international surplus value in the 1960s was higher than 45 percent but this figure dropped 15% in the last years of the century and today is much lower than this. Amazon, the largest industrial and financial giant is worth more than 321 billion dollars, this Trust exploits more than one million workers and its annual surplus value is over 22 billion dollars but the rate of profit it makes , doesn´t reach to 8%. Where is this process going to lead ? and what has capitalism done in the last half century to challenge it ? and also what has happened to humanity ? The answer to these questions needs a lot of books .
In a few lines, we should point out the need for discussion that capital has used its full capacity in this regard and to counnter this trend, it has gone all the way and has devastated the lives of 6 billion of the world´s working class. The basis of capital action in this challenge has been the dramatic reduction of the cost of production in any form and the intensification of the pressure of the exploitation of the working class by any means and the fierce competition of social capital of any country or pole to increase its share of global working class exploitation to the detriment of rivals. Capital has undergone drastic changes in its work process or value-added process. It hasn´t established a factory for many years, and not only build a new school, it will merge existing schools and provide for the widespread closure of educational institutions. Capitalism doesn´t set up hospital, it orders the rapid dismantling of large and small medical institutions and it crushes any protest against this ambush, and the case of establishing or even preserving the survival of elderly care and disabled companies sends to the history archive. Nowhere it does talk about providing safe drinking water for humans and it has no plan to develop cities, build dams and bridges, roads and supply electricity to the dark fields but instead of these things and turns the housing of the working masses into factories and in the deprived houses sets up the assembly line of modern technical and industrial products. It makes human habitation a place where mobile phone and computers, televisions and modems and the most sophisticated information technologies come together. If at one time it turned its need for super-cheap labor force of women into a banner of restricting domestic work but now a significant portion of the labor force markets is tied to the work of women, children and men deep in the squalid homes of the suburbs. Capital has planned and implemented a lot of these developments in these decades. The essential axis to the whole process and the historical re-division of necessary and surplus work has been to the detriment of the former and to benefit of the latter golden profit. The result is that so far the share of the necessary work of the working class has rised or worsening of food and clothing, drink water and housing, rest and health and treatment and worker´s education in favor of increasing the capital gain and accumulation process of capital. The capitalist system didn´t see any limitation , even until the end of the second half of the twentieth century that its mechanism for challenging crises and neutralizing the dynamic process of dropping interest rates or to prevent the spread of crises with the help of merely brutal attack on the livelihoods and basic necessities of the working masses or the more brutal suppression of any of their initial protests. In addition, the capitalism was considering that by using the leverage of capital export to all parts of the world and opening new areas of accumulation and employing as many new workers as possible too.
On the one hand, it was bringing a larger amount of labor force into the employment market and on the other hand, it increased the intensity of the exploitation of the working masses. This situation has changed dramatically since the beginning of the second halft of the twentieth century. A brutal attack on the last remnants of the daily livelihood of workers around the world, in the first place the workers of the three continents of Asia, Latin America and Africa, then the weaker working class layers of the three continents of America, Europe and Oceania and finally the whole workers of the world have become the only means and way of capitalist survival. At the bottom of such a dark situation, and the destructive competition of capitalist governments and various parts or competing blocks of global capital have also reached a peak. The social capital of any country, or in particular giant poles of capitalism, resort to any cruelty to steal every penny of surplus values from each other in international realm. In such a phase of the accelerated process of degeneration, created crisis with the crisis of global capital, the Chinese capitalism has grown exponentially over the last three decades. A country that until the late 80s of the twentieth century that had the stamp of insufficient growth of capitalism on the face and so far it´s considered in developing, practically in terms of annual accumulation volume and the competitiveness of social capital in the international market and the share of profits from total surplus value among the three leading poles of world capital has put such United States, European Union and Japan in danger of falling out of the situation and enduring the worst of inevitable economic crisis. Alibaba´s profit in 2020 has more than tripled the profit of Amazon Trust. China´s annual accumulation in Africa is higher than all other poles and is growing faster. At a time when the world´s economic giants and the powerful poles of capitalism don´t see the investment of capital in the area of basic facilities required for the expansion of accumulation as profitable, the China´s state-owned and private giant banks and trusts with the prospect of achieving desirable profits, and have also turned Sierra Leone and the south of the Sahra into realm of massive investment. China´s accumulation in the region recently exceeded 23 billion dollars between 2007 and 2020. This amount is twice the total loans provided by the five largest countries in the world, the United States, Japan and Germany, France and United Kingdom to the governments of this continent. Two Chinese banks, Exim Bank and Economic Development Bank, according to the Global Development Institute, only between 2016 and 2020, over 533 separate investments have been made and are ready for operation in the area of establishment or expansion of the basic institutions necessary for the expansion of the accumulation.
For years, China-USA trade balance has been in China´s favor, and the difference is over 300 billion dollars a year. In order to understand the real place of trade and their positive and negative in the relationship between the social capital of the two countries so we have to look at the production process of goods on both sides of the exchange. China exports 500 billion to the United States and these goods are ready to enter the market due to the low price of labor force in China and consequently, the low price of raw mmaterials and machinary, auxiliary equipment and the total cost of production at a low price. In proportion to their size, they are taking the US market out of the hands of domestic producers, and have a significant impact on interest rate fluctuations, and they´re lowering that rate to the detriment of American capital, and at the same time, at the same rate of declining public interest, and deprive American capitalists of the greatest surplus value from the exploitation of American workers. The story is different about America and exports don´t exceed 200 billion dollars. the difference between the cost of production and selling price isn´t as high as what we said about Chinese goods. In this regard, and considering all the components, the difference between the profits of the two countries in these exchanges is huge. Why chinese capitalism has this position is a question that will not be answered briefly in this article.
Let´s go from America to Europe. With each passing year, a much larger number of German, Italian and French, English and Dutch trusts or other continental countries, in order to reduce production costs and increase profits and the challenge of the severity of the crisis is forcing the consumption of semi-finished goods, raw materials and aids that are made in China. The production cycle and value-added of these industries or the social capital of these countries as a whole are inextricably linked to these products. This entanglement is deepening moment by moment and the volume of China´s exports to the whole continent is much bigger and heavier every day than the day before. It´s no exaggeration to say that any turmoil in these massive exchanges could be a blow to the whole process of capital reproduction in these countries.
About 50% of the total foreign trade of Latin American counntries, countries that until yesterday were considered the backyard of the United States, is monopolized by Chinese corporations and financial and economic enterprises. Of the 8 largest banks in the capitaliist world that play a major role in global capital issuance, the two banks are owned by China social capital. These banks invest about 700 billion dollars annually in different parts of the world. For years, various Democratic and Conservative governments in the United States have been collecting and subtracting the profits and losses of repairing or rebuilding bridges, highways, urban tunnels and roads and makes the heavy casualities of that as their hobby of the day that doesn´t cost more than 10 billion dollars, however, they prefer the occurrence of massacres to incur these costs. Chinese capitalism has completed the construction and completion of 6000 railway lines in 2020 and 2021 alone, and it has been building and finishing the Silk Road for many years. The road that is supposed to bring China´s social capital to even greater profits and power.
Consider what we´ve said briefly about the state of the capitalist day, the points made about the position of the capital poles. We must follow the same path to reach the fiery war in Ukraine. If the EU, Japan and the US despite the brutal war over profits and each sees its growing share of international surplus value as dependent on interconnectedness and fragmented but unified polarity against China, but Russia and China need each other tens of times more than the rivals coalition. Here the two countries have much stronger and more compelling reasons to complement each other, resolve each other’s Achilles heel, and line up as unitedly and consistently as possible. Not only the ruling regime of Russia but an important part of the opposition bourgeoisie of this country, specifically the Liberal Democrats, the Communist Party and the Righteous Russia see themselves as convenants to revive the tsarist empire or as loyal heirs to the revival of the former Soviet Union, who see the burden of humiliation of failures, setbacks and the insult of decades heavily on themselves and for this reason, they have to stand together to revive the past and heal their own wounded nationalismm. The same failures, frustrations and humuliations and also roaring reactionary ideals that underlie Putin´s power, and it empowers and support Putin´s decisions internally. The Putin´s administration has worked in this direction since the first period of its rule until today and the Russian working class, like all other sections of this class is catastrophically grounded and buried in the prescripted solutions of the reactionary bourgeoise. The labor movement sees no trace of radical class alignment because this movement has left the field for the ruling bourgeoise and the opposition everywhere. Putin and his allied bourgeoisie are taking advantage of this situation and opportunity to follow the path they´ve taken over the decades to reduce further the drastic pressures that Europe and the United States have exerted on Russia since the collapse of the camp, and recover as many lost areas as possible, such as South Ossetia, and membership in the Russian Federation and encourage the former Soviet republics to further limit their ties with the West, similar to what happened in Tajikistan, Turkmenistan and Kazakhstan, it has been one of these efforts. The actions that have certainly resulted and the obvious result of which is the distinction that Russia has today in comparison with the collapsed society, declining and degenerating, subjugated and the target of the triumphant and boastful, arrogant and insulting greed by the United States and the West in the Yeltsin era. The Russian bourgeoisie will make every effort to continue these advances, to retake or to restore the former position. The ruling Russian regime needs China in this direction, and sees China´s social capital as its essential support. But the main point is that what Russia is pursuing and the Russian ruling bourgeoisie is trying to achieve, if not more, but so is the urgent need of the Chinese bourgeoisie and its social capital too. Russia is the largest nuclear power in the world today, although the army of this country is, in terms of annual budget and number of military or warplanes, in second place after the United States. But in some ways, for example, having about three million and six hundred thousand troops, and 21932 war-tanks or other weapons are at the forefront of all the warrinng armies of the capitalist world. Russia is one of the five veto-wielding members of the capitalist “Security Council” of the united nations, that in terms of fossil energy reseves, oil and gas exports is able to have a very decisive impact on the cycle of reproduction and value-added global capital. This country, with all these components and even other important data, plays a very important role in the current conflicts between current blockades of the capitalist world, and in its current conflict with the West it is capable of significantly eroding Europe. China is in dire need of Russia and its playing role and Russia desperately needs a strong economic reliance like China´s social capital. These two, complement each other in these formations, much more than Europe and America can complement each other.
If we put all the above points together, the puzzle seems to be completed. China needs Russia´s role in these fields and the Russian ruling bourgeoisie is counting on Chinese capitalism to achieve its short and long-term goals. Putin´s administration, based onn these calculations, sees Ukraine as the most ready and favorable point of coercion and it has been annoncing that very clear that the United States must end its military presence in Europe and all former members of the Warsaw Pact who have joined NATO, get out of this alliance, and ukrain should forever forget about joining NATO too. He certainly has a longer list of these expectations in his pocket for a plan with Europe, and among these demands, Ukrain has a very prominent feature. Ukraine is the only country in any way favorable and ready to ignite the conflict, and it´s the line between Russia and Europe and at the same time, for decades it has been the scene of the widest possible intervention and crisis by both the US and EU against Russia. Both coups, known as the Velvet and Square revolution were organized and executed by the Europeans with the help of Part of the Ukrainian bourgeoisie, including the country´s neo-nazi parties, and the further the West advances in Ukrain is to tighteen the circle of siege of the Russian bourgeoisie by the West. Half of Ukrainians speak Russian and in the conditions of the day, at a time when the torch of the anti-capitalist struggle of the working class is extinguished everywhere, they´re ready to die inn the footsteps of Russian nationalism. Does Putin intend to occupy Ukraine completely, it´s not easy to predict the situation when all sections of the world´s bourgeoisie are ready to set the whole world on fire for every cent of present interest and profit. Any action, any crime or atrocity can be expected from all governments, factions and mafias. However, the main issue for the russian bourgeoisie ins´t the occupation of Ukraine, rather, it´s a question of unconditional surrender of the ruling bourgeoisie and a declaration of withdrawal as emphatically as possible from the desire to ally with the West. Let´s deal with the most important and basic point and that is that we´re talking to the working mmasses of the world. The act of the bourgeoisie is to ignite the fires of the most brutal anti-humanity wars to increase its share of the total shares of surplus-values, profits, political power and ownership and the rule of capital. The working masses nowhere in the world, not only do they have no interest in any of these wars and incitements but who are just victims of these wars. Cent by cent of the wars´costs are paid by our unpaid wages, and all the people who are killed are members of our class, every child who turns to ashes in the flames of war are children of working masses. All the houses that are destroyed are our humble houses, it´s ur drinking water that is cut off , it´s the product of the labor and exploitation of our class generation after generation, which is set on fire, and the beasts of the bourgeoise fight for more shares of profits, power and property. The bourgeoise for the wars turns workers to the army´s infantry and sacrifice our lives for their own profits, and for this purpose, brings the flag of homeland and patriotism !!! and are using the dirty trick such a defending homeland and nationality, ethnicity and religion. We should be firm and determined to shout that our war is just the class war against capital and capitalism throughout this world. The Russian and Ukrainian worker is exploited as much as possible by the bourgeoisie of this or that country´s capitalism. The workers of Ruassia and Ukraine should be united and hold each others´ hands and ask the entire European working class that all together united against any war, against every action of warfare states, and take a step for a common organized formation against the entire global capital.
Naser Paydar
Feb. 2022
