HOW THE SIX BILLION PEOPLES LIFEBLOOD IS BEING
SUCKED BY THE PARASITIC CAPITALISTS
The Capitalist Aristocracy (the big capitalists) are finding it increasingly difficult to invest
their monies in order to maintain continued growth of their capital. Investments in commodity
production as virtually stagnated for quite some time, because the development of technology
has facilitated the extraction of surplus value (profits) from fewer and fewer workers. This
means that unemployment is increasing and wages generally are falling; and therefore the
absolute demand for commodities is also falling (i.e. the market for capital goods, is not
increasing in conjunction with the increase in population). Hence the progressive increase in
poverty and hunger. It follows therefore, that investment in commodity production (more
products) is not feasible, and therefore capital has to find other means to maintain itself and
grow. One of these other means, has been the STOCK EXCHANGE where speculative
buying of company shares through investment bodies referred to as HEDGE FUNDS, has to
some extent mitigated the dilemma of capital.
Stock Exchanges are a means for the monopoly capitalists to realise profits
Trillions of dollars are exchanging hands every day on the bourses (stock exchanges) in the
financial centres of the capitalist world. Periodically these hedge-fund speculators, push up
the share prices (of course, through purchases) to attract the smaller investor and the middle
classes. In America from 1995 to 2000, the stock market, through the manipulations of the
hedge fund managers, were able to attract trillions of dollars, from the lower middle classes
and the upper section of the working class; which resulted in the sky-rocketing of share-value.
It is believed that some of the technology stocks on the NASDAQ were overvalued, by more
than a thousand percent (10 times their actual value). Profits are only profits when it is
realized; the hedge-fund managers waiting in the wings, until the market had reached dizzy
heights, started to off-load the overvalued shares, in order to realize their profits. This resulted
in the share prices tumbling down as the hedge fund managers offloaded their shares. Seven
trillion dollars were wiped off the value of shares from the New York STOCK EXCHANGE
within a couple of weeks in 2001. Guess who the losers were – the middle class and the upper
section of the working class. The winners were the hedge-fund managers and the institutional
investor(monopoly capitalists). As the share prices were tumbling due to the panic sell-off by
the working class and middle classes, the hedge-fund managers were picking up the bargains.
The stock-markets since the crash of 2001 has been unable to attract the so-called man-in-thestreet to invest; and hence speculative profits are difficult to make on the stock exchange. This
state of affairs is unacceptable to the parasitic capitalist, and so a new form of bloodsucking
was found – PRIMARY COMMODITY SPECULATION.
Monopolies and cartels manipulate prices
Generally speaking in theory, the prices of commodities are supposed to be determined by
supply and demand; that means if there are shortages in supply, then prices would go up.
Conversely if there is abundance, prices will go down. What is the reality? Today the
concentration and centralization of production and the existence of cartels and trusts, has
virtually negated the supply and demand theory. Prices are primarily determined by these
monopolies. However, when it comes to commodity prices, these are determined on the
commodity markets, which are supposed to be subjected to supply and demand; but here too
prices are commanded by the monopolies and the speculative buyer. None other than the
hedge-fund manager, has been the major agency determining prices; hence the astronomical
jump in the prices of commodities such as oil, gold, wheat, iron ore etc. (Do not believe that
the rise in price e.g. of oil, is due to the possible attack by American Imperialism on Iranian
nuclear plants, or Hurricane Katrina, or problems in the NIGER DELTA in NIGERIA. These
are all put forward to justify the naked robbery of the world population, through price
increases. In fact last year SAUDI ARABIA reduced their oil production by half a million
barrels per day. The capitalist media, and the bourgeois “so called” economic analyst are cocriminals with the hedge fund managers)
How the monopoly capitalists benefit
This benefits the capitalist aristocracy in two ways:
1. At the source of production, the capitalist is making enormous profits due to high
prices.
2. At the point of sale, acting on behalf of the same capitalist, the hedge fund
managers, due to their speculative buying and selling at exorbitant prices, make
enormous profits for the same capitalist. It may be worth noting that 60% of the
world’s productive resources, like mines and oil wells, factories, land etc, belongs to
only 400 families spread across the world. Thus, the question of supply and demand,
and consequently also of inflation, has no bearing whatsoever to the objective reality;
that a handful of capitalists are controlling the lives, if not the very existence of the
entire human race.
The implications for the world working class, peasantry, lower middle classes and
smaller capitalists
What are the implications for the close to six billion people of the earth viz a viz the ever
increasing high prices? Already there are more than a billion people starving, and we mean
absolutely. Another two billion are just managing to survive i.e. they are on the bread-line so
to speak. If the present situation of high commodity prices (oil, wheat, maize, sunflower
seeds, etc) are allowed to continue, 3 billion people will soon be absolutely starving.
Capitalism Imperialism has reached the last phase of barbarism. Henceforth the future
proposes two solutions. The decimation of 3 billion people through a slow starving painful
death, or the elimination and expropriation of the 400 families and the companies they own
and control. The only agency which can accomplish the latter, is the organised world
proletariat, through their instrument of revolutionary change, the world revolutionary working
class party, the rebuilt 4th International. It is the duty of every honest and dedicated proletarian
revolutionary to take up this task immediately. There is no more time to waste; the human
race is facing a catastrophe.