October 16—As we go to press, Congressional leaders announced a deal to postpone the debt crisis and end the partial government shutdown. This deal is supposedly an Obama victory, but workers shouldn't celebrate. Washington negotiations will likely lead to more cuts in Medicare and Social Security. And with Chinese capitalists declaring that "the world should start to 'de-Americanize,'" the crisis pushed the planet closer toward world war. "What is this debt ceiling crisis anyway?" asked a student.
"It's another Republican excuse to stop Obamacare," another student exclaimed. "That's the connection to the government shut-down." "It's like the government maxing out its credit card," someone else explained. "Usually Congress just raises the limit, but Tea Party Republicans are refusing to do that unless their demands are met."
"It's more than that," a comrade declared. "It's a symptom of the deep crisis of US capitalism and its empire. Obama had to cancel plans to attend economic summit meetings in Indonesia and Brunei. This article says that his 'pivot to Asia' has been stalled by 'strife in the Middle East and strife with Capitol Hill. …China is a clear beneficiary.'" (NY Times, 10/3)
"It's an oligarchy," another student burst in. "Corporations do whatever they want. We should talk about the TPP [Trans-Pacific Partnership]. Governments will have no control over corporations at all."
"That's in this article, too," the comrade replied. "Obama wants the TPP trade deal signed by the end of the year, but now that seems less likely."
The comrade explained that with US imperialism's economic and diplomatic power in decline, they are more likely to use their military power sooner, rather than later. "So what does that mean for us?" she asked.
"We need to work for revolution now!" one student answered, as others nodded.

Dollar at Risk: World War Sooner Than You Think
What's at risk for U.S. capitalism is the "privilege of the dollar," explained business analyst Floyd Norris (NY Times, 10/11). Norris compared the present crisis to President Franklin D. Roosevelt's devaluation of the dollar in 1935, trying to rev up the US economy in preparation for World War II.
US capitalists can borrow money in their own currency and then print more, making each dollar they repay worth less. When capitalists in Argentina and Thailand faced debt crises, they had to submit to harsh policies imposed by the US-controlled IMF and World Bank. Now IMF and World Bank leaders are in New York, along with Chinese and other capitalists, scolding –but only scolding — the US.
Defaulting on debts could raise the long-term cost of US debt, further weakening the US imperialists' economy and influence. "Why risk destroying the United States' world standing over a dispute about health insurance?" Norris asked. And, as Red Flag has explained, Health Reform (like Education and Immigration Reform) is part of the US rulers' war preparations.

Tea Party Crosses the Line
When Congress didn't pass a budget last spring, an automatic "sequester" went into effect. The imperialists didn't like these across-theboard cuts, but they could live with them — temporarily. In September, top military chiefs told Congress that continued sequestration would mean restricting military capabilities and cancelling or delaying weapon system purchases. "We will not be able to use prior-year funds to mitigate shortfalls as we did in [fiscal] 2013," said Adm. Jon Greenert.
Tea Partiers pose as pro-military, but they won't put the money where their mouth is. So now Wall Street and mainstream Republicans are turning against them. Even Dan Danner, who led small-business opposition to Obamacare, complains that "The interests of the business community … don't seem to be their top priority."
Likewise, immigration reform is "favored by business groups and [Republican] party leaders but stymied in the House by many of the same lawmakers now leading the debt fight." (NY Times 10/9)
The biggest capitalists are smacking down the Tea Party because it's sabotaging the war plans of US imperialism and the functioning of the capitalist political system (democracy).

We Need Communism, Not Democracy
Establishment liberal Robert Reich worries that only 17 percent of Americans say they are basically content with the government. He pleads, "It's our government, and the most important thing you can do … is to make it work for all of us."
The Chamber of Commerce, the AFL-CIO and the United Way joined forces to say that "it is important that we turn to the normal processes our government has for resolving these issues." These "normal processes" of capitalism and its political system don't work for "we the people," the students concluded.
"But do enough people agree with us?" one worried. "Most students have been programmed not to care."
"Come to an MTA transit division, or one of the pro-immigrant marches, and you will see how many workers welcome Red Flag," the comrade replied. "Here at school, whenever our friends distribute papers, 80 students take them in under an hour."
"I need to learn more about communism," another student said.