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International Communist Workers Party

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The Yuan vs. the Dollar:

Currency Wars Lead to World War

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The post-World War II world order is breaking apart. The role of the US dollar as the only world's reserve currency is threatened. This world order replaced the previous one led by Britain with its empire and gigantic military power. In those days, the British pound operated as the world's reserve currency. The change in leadership lasted 30 bloody and destructive years, which saw two world wars as well as two massive social revolutions led by communists (first the Soviet Union, then China).
The world order is breaking apart because the world economic crisis which erupted in 2008 is far from over. This crisis is caused by a general fall in the rate of profit from productive investments. There is too much productive capacity in the world's economy for any particular investment to reap a healthy profitable return. Until enough of that capacity has been destroyed - either by bankruptcies or war - the economic crisis will continue.

IMPERIALISTS VERSUS IMPERIALISTS
The longer the crisis lasts, the more volatile the situation becomes. There is no ruling class in the world, for example, that has not declared war on its working class. The idea is that through cuts in health care, pensions or wages, they can restore some profitability. This means there is not a country in the world where the capitalist few aren't facing the increasingly impoverished masses with fear.
This fear plays a larger and larger role in their calculations, but it is not yet the main thing that worries them: restoring the rate of profit to capitalist production is. Capitalism is a world system that needs a world market to expand into and a world currency to operate it. Since World War II, the US dollar has played that role. Since the 1970's when the US told the world "It's our currency, your problem," there has been a growing resentment among imperialists about the way the US uses its position to protect its investments and threaten those of other countries. The crisis has accelerated both tendencies. On the one hand, the US made a unilateral decision to flood the world's financial markets by printing trillions of dollars. Called 'Quantitative Easing' (QE), it is a decision that has played havoc with markets around the world but kept the US free from the worst aspects of the crisis. On the other hand, the relative weakness of the US economy (the world's largest debtor nation) and the relative strength of the Chinese economy (with one of the largest reserves in the world) has presented China with the opportunity to strive to replace the US dollar with the yuan as the world's reserve currency.

IMPERIALIST WARS OR COMMUNIST REVOLUTION?
Initiating a number of currency swaps (where trade is done in yuans and local currencies) with countries like Iran, India, and Brazil, China set in motion a movement in the world's economy to bypass the role of the dollar. Now, as the major meeting of the Chinese ruling party takes place, its official think tank published the 383 Project, a detailed plan to make the yuan an international currency in some regions and an international reserve currency within ten years.
The plans might be drawn up by economists in think tanks but they will be implemented by generals and Armed Forces. Their success or failure, however, depends on us - the workers and soldiers of the world. The imperialists have their QEs or 383 Projects, we--the workers of the world--are developing our answer: Red Flag and the communist revolution we are organizing.
It took two world wars for the dollar to vanquish the pound. It will take another one to change the dollar for the yuan. Such a war will affect everyone the world over. Let's fight to usher in the age of no currency: a communist world without money, where production is for need, not for sale and profits. As the old world order breaks apart, it's time for us to "Seize the hour, seize the minute!" Let's Mobilize the Masses for Communism!


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