suhjected the latter to Intoleruble economic pressures.
spirit of proletarian internationalism*, Problems have arisen as renegades by Moscow.
military and cconomic weight to pressure them. ECONOMIC AID CUT OFF bureameracy.
on numerous occasions.
bitter fruits of socialism in one country.
republie.
SOCIALIST DEMOCRACY the USSR.
unable to crush popular il remains a fuct of some objective importance.
existence IN THE 1960s the Soviet Linion withdrew Its technicians from the People's Republic of China, stopped its ald programmes and This was because the Chinese had expressed important political criticisms of the Soviet leadership. The Chinese, quite correedy. denounced these actions so gross and flagrant betrayals of the Has it was much more than that. It was the reflection in world polities of the theory of 'socialism in one country". This theory has been the cornerstone of Stalinist politics for many decades.
because of the LABILICE DI BEEC post-capitalist states apart from the USSR. Where these have been the resalts of popular social upheavals, the indigenous leaderships have maintained a certain todependence from Moscow: in the case of Yugoslavia and China they were branded us heretics und treated China has now adopted exactly the same methods in deuling with the leaders of a popular sociul revolution in South-East Asia: the Vietnamese communists. Having failed to win the Vietnamese to their own political conceptions, the Chinese are now using their They have used Chinese nationalism in the most unscrupulous fashion und asked people of Chinese origin in Vietnam to reture to the "mother country". They have cut off economic aid and expelled Vietnamese diplomats from three South Chinese cities.
It was Lenin who first raised the slogan of the international republic of soviets, The luck of soviets felected orguns of popular power, in the Ussk and China is related to the absence of proletarian internationalium in the fanctioning of these stutes.
Examples are numerous. The Russian invasions of Hungary in 1956 and Czechoslovakia in 1968 were carried out solely to safeguard the political stability of the bureaucratic system in the ESSR and the other Eastern Europeun states: both events challenged the monopoly of political power enjoyed by the Soviet The Chinese attitude to most national Iberation movements has, over the last decade, been determined exclusively by the Soviet attifade to the same. This puts the Chinese in the imperialist camp It is obvious that their attitude to the Vietnamese is determined by purely national considerations. These then are the sordid and An internationalist alternative would seck to unite the strengths of the workers movement in these states against the common enemy. It would, while preserving the national identities of states or regions, nonetheless strive to build an international soviet It is ironic that this sentiment appeurs almost utopian today: so great is the cynicism felt by many towards the actions of China and But the very fact that the USSR exists means that imperialism is revolutions such as the Cuban and Vietnamese upheavals with Impunity, It is true (hat ibis almosi forces post-revolutionary states into the Stalinist straitjacket, but internatesten wond master errance that importance. socialist democracy a state of turmoil.
The story so far.
*Tax budger, followed by a 2li per National Insurance contributions.
"Minimum Lending (MIR) shooting up to 10 per cent in successive leaps and bounds.
"Frantic buying of Gilts and sharp price rises in the Gill *Reintroduction of a credit LOSSE *Fears that the money supply wit out of control, followed by rejuicing at the Chancellor's restraint.
What does it all mean? Has anything changed? Have some the CUIEOUICTIUES removed flation under control?
Times on Brittan noled: they (the Labour ministers) have been monetarists...
Monetarists (Brittan among them) are right-wing DIRTSEL economists. believe in the virtues of the free HIRTSEE instrument instruces and preventing line periods relative price stability.
Their idea is that expans ionary government expenditure aubed ment leads to expansion of the money supply, which in tura causes inflation.
ProIctanan PRESCRIBE JUDGING by the headlines in the national press over the past few weeks, the financial markets have been in CPS, a group of socialist economists, explain the Government's monetary policy, cuts in the April Healey:
Rare The recent mensures, Blastration, INFLUENCE monetary management.
MIR, THE THIS at-a-strike?..is inthe market in pructice pretry good In twO tfree They TWOFOLD allocating twofold: The unem climare of reduce moncy of prices and London simulatibe Lack of space precludes a detailed refutation of monerarism here, but it is clear that Treasury become dearer. mandarins are totally commelted to this school of thought Painted principally at controling the money supply, provide a clear become MiR is the rate ut which the Bank of England will lend to the discount markes, Originally are not so set by the Bank, to influence credit essential tool of monetary In recent scars it became La new-style, flexible following rarher than guiding money marker tends. Effectively, the Bank was surrendering initative to Requirement.
FICKLE Now, in a sharp reversal -the April budget has re-adopt ed the old merhod. Again the Hank and the Treasury jointly decide what the rate should be.
said: increased by about 211 per cent including 1 per cent oo Juac 8.
immediate impact is ever. splendid hay? invarily tolow the lead ot money market rate MR foreign deposits are alracted to for stay in) the / MISTRES support the pound in the ALOESE CAR ALE TERTALESD demand overscas depositors, *As the clearing banks also adjust their Base Rares, in line with MR, all forms of credit WILS IMMEDIATE By simoltangously imposing i credit corset.
mors diffieuit obtain, as well as dearer. Thus curtailment of credit expansion Tas an immediate impact on the frowth or the money supply One could think that that is all there is to ic. in fact, things simple, 2 thest measures (MILR Increase and corset) are only 'psychological" and aimed UTLTTLEHIEY Stock (bonds and are issued either to -absorb excess liquidity ar more commonty — to finance the Public Sector Borrowing Paraphrasing reactions of speculators and Financial Times of 14 June 1am buying Gilts, therefore aty bank deposits are falling therefore the money supply i going down, therefore inflation help is going to fall for ever and therefore Guts are a - the inberent contradictions.
To a sace person this may Sunde sonole front A men c Farnel Wonderland. To a sophisti- lurking round cafed fisance-capitalist, it is the quintessence of wisdom. Spec alation is a self-fulfilling prophecy, a world of makebelier, alwass spurred on for estra profit So. guided by monetarist principles, all the Government to do roundabout way was to create a buoyant market for massive Call issues (1.8 billion pounds 1b one weck) thereby mopping Bouidity and hopefully, denting inflationary pressures To do this it had to temp speculatos.
INFLATION Looking at it all the other Ernest Mandel wrote in 1975: Inflation itsell feeds the demand for money capital and makes the closure of the tam creating credit and money all the more dangerous Tor business, It always means a sharp turn towards rocessioit."
This approach is just as valid naw Inflation is a complex phenomenon, the culmination WELLER SACCOETR In the capitalist mode production. result of excessive credit or INHERENT To cur off the money tap can fight inflation ficiatly: it cannot resolve any of Least of all should we forge that continued recession and unemployment are the corner
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Soiral 00-388 8180 . Diet an A Sering one l China, Vietnam and
EXPANSIONARY Writing in the Fimanciat