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Dollar

Dollar fall an expression of the crisis of US and global capitalism

By Nick Beams.

Reposted below is the perspective published on wsws.org here on July 01, 2025

Dollar
A worker carries a sheet of newly printed U.S. dollar bills at the Bureau of Engraving and Printing’s Western Currency Facility in Fort Worth, Texas, Dec. 8, 2022. [AP Photo/LM Otero]

The US dollar has had its worst start for the year since 1973, in the wake of President Nixon’s August 1971 decision to remove its gold backing and abrogate the Bretton Woods Agreement of 1944, which had been a central plank of the post-war monetary order established after the chaos of the 1930s.

In the first six months of the year, it has fallen by more than 10 percent against a basket of six major currencies, in a sign of a loss of confidence in its status as the dominant currency and a safe haven in periods of financial turbulence and stress.

The dollar had been under downward pressure from the beginning of the year, with a turning point in its slide coming after April 2, when Trump announced the imposition of massive “reciprocal tariffs” on a range of countries.

The upending of the post-war international trading system signified by this decision set off financial turbulence, with a significant fall in the US bond market sending yields (interest rates) higher.

But instead of there being a move into the dollar, considered to be the “normal” response, there was a dollar selloff, sending its value in currency markets down as the prevailing theme was “sell America.”

This downward movement has continued despite Trump’s decision on April 9 for a 90-day pause in initiating the tariff hikes to allow negotiations to take place. Trump was responding to a selloff in the bond markets, which he said had started to get a little “yippy.”

In the near three-month period since then, no agreements have been announced, except for a deal with the UK, and nervousness is returning with the July 9 deadline for the end of the pause approaching. The concern is not only on the blanket reciprocal tariffs, but involves other measures announced by Trump, in particular, the tariff hikes on autos, which are directed against Japan and Germany.

Japan has been engaged in a series of discussions with the Trump administration over the tariff hikes, which threaten to cost its car industry tens of billions of dollars, but no agreement has been reached.

In comments to the Financial Times on the dollar’s slide, after it dropped by a further 0.5 percent yesterday, a foreign exchange strategist at the financial firm ING, Francesco Pesole, pointed to some of the reasons.

“The dollar has become the whipping boy of Trump 2.0’s erratic policies,” he said, citing the tariff war, the growth of US debt, and the continued attacks on the independence of the US Federal Reserve.

Trump has labeled Fed Chair Jerome Powell a “numskull” and a “moron” for his refusal to cut interest rate cuts in line with his demand that the Fed rate be reduced to as low as 1 or 2 percent from its present level of 4.5 percent.

The turbulence resulting from Trump’s agenda and the increase in the debt flowing from his tax-cutting budget, which could see as much as $3.2 trillion added to the US debt mountain of $36 trillion, were cited in comments by economists in a poll conducted by the FT.

In its report on the poll, it said that Trump’s “breathtaking fiscal policy excess,” together with “attacks on the Federal Reserve’s independence, risk diminishing the US’s status as the ultimate safe haven for foreign investors.”

A comment by Saroj Bhattarai of the University of Texas at Austin summed up the prevailing sentiment.

“The safe-haven assets appear to be [the] Swiss Franc and gold. In fact, [the] US looks like an emerging market, whereby policy uncertainty leads to rising risk premia that drive long-term yields up and the currency value down.”

Citing what took place after April 2, dubbed by Trump as “liberation day,” Evi Papa, an economist at a major Madrid University, said: “US Treasury [bonds] might not be a safe asset anymore.”

Lack of confidence in the US dollar is driving the price of gold to new highs – it has risen by around 25 percent this year and at one point hit $3,500 per ounce, 100 times its price of $35 when Nixon removed the gold backing from the US dollar. One of the drivers of the rise is increased buying by central banks.

The Taxpayers Association of Europe (TAE) has even sent letters to the finance ministries and central banks of Italy and Germany, urging that their gold held in the Fed’s gold vault in Manhattan be moved out.

TAE President Michael Jäger told the FT: “We are very concerned about Trump tampering with the Federal Reserve Bank’s independence.”

Those fears are not misplaced when it is recalled that the removal of the gold backing from the US dollar in 1971 was simply announced on Sunday night television without any discussion with other powers.

As the dollar slide continues amid mounting debt, there is a real prospect that the Trump administration could act unilaterally at any stage.

One idea circulating in the economic circles of the Trump regime is that US Treasury bonds could be turned into perpetual bonds, that is, while they would continue to pay interest, the principal would never be repaid – an action that would be regarded as a default by the US on its debt.

This was rejected by Treasury Secretary Scott Bessent back in April, but the fact that he had to quash it, at least for the present, is an indication of the kind of measures being discussed as the debt crisis deepens.

While the actions of the Trump administration are the proximate cause of the dollar decline, they are themselves the outcome of the historic crisis of US imperialism, rooted in its long-term economic decline.

When global capitalism was restabilized after the war, not least by the Bretton Woods Agreement, it was the industrial powerhouse of the world. It used that power to establish economic order after the chaos of the 1930s.

This was not a product of the benevolence of the US. It was based on the recognition that unless this were done, then the world, and the US, would return to the conditions of the Depression, bringing with it the prospect of social revolution.

But the revival of the world economy steadily undermined the dominant position of the US in world trade, leading to balance of payments and trade deficits, which meant it could no longer redeem dollars for gold.

Following the Nixon decision, the dollar retained its position as the global currency. But it did so on new foundations. It was a fiat currency, no longer backed by value in the form of gold, but by the power of the US state and its financial markets.

However, the rise of finance, which this entailed, set in motion processes that have led to the present crisis. Over the past 50 years, the US has become the center of financial parasitism and speculation, resulting in a series of financial storms – the October 1987 stock market crash, the collapse of the dotcom bubble in 2001, the crash of 2008, and the Treasury market freeze of March 2020, to name some of the more prominent.

Throughout this period, there has been an escalation of government debt, not least because of the increase in military spending and massive corporate bailouts. This is reflected in the growth of the Treasury market, where government debt is bought and sold, from around $5 trillion in 2008 to $29 trillion today.

The rise of parasitism and speculation as the chief driver of profit accumulation, leading to the rise of an oligarchy based on finance capital, is indicated by the fact that just 15 percent of financial market transactions are involved in the development of new investments, with 85 percent based on dealings in financial assets.

Finance capital cannot continue to endlessly accumulate, seemingly creating profit out of thin air, through debt. All financial assets, shares, debt, and the various other arcane mechanisms are, in the final analysis, a claim on the surplus value extracted from the working class.

Consequently, there is no peaceful solution to the mounting crisis within the framework of the capitalist order. For the US, this means the intensification of war, on the economic and military front, as it seeks to batter down its rivals, foes like China, as well as erstwhile allies in Europe, coupled with a war against the working class at home, enforced by a dictatorial regime.

Nor is there the prospect of a so-called multipolar world where currencies coexist and peacefully compete, as is being advanced by China and increasingly by Europe. That road is a return to the economic conflicts of the 1930s, which led to World War II. This is why, in the midst of deepening economic turmoil, governments around the world are arming and rearming.

The dollar-debt crisis is rooted not simply in the personality and actions of Trump – he is only the most malignant expression of the historic bankruptcy of the capitalist system as a whole.

It places before the working class the necessity to end this system of war, economic crisis, deprivation, fascistic and authoritarian regimes in the political struggle for international socialism and the building of the world party of socialist revolution, the International Committee of the Fourth International, to lead it.

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US attack Iran

American imperialism’s bombardment of Iran: A day that will live in infamy

By WSWS Editorial Board

We repost below the World Socialist Web Site Editorial Board statement published on wsws.org here on June 23, 2025

US attack Iran
A B-2 stealth bomber conducts a flyover on the South Lawn of the White House, Saturday, July 4, 2020, in Washington. [AP Photo/Alex Brandon]

June 22, 2025 is a day that will live in infamy. In a massive and unprovoked assault, the United States launched a sneak attack on Iran, dropping the most powerful non-nuclear bunker-buster bombs ever used in combat on Iranian nuclear energy facilities. This act of aggression is the continuation and escalation of the US-backed Israeli genocide in Gaza, and threatens to engulf the entire Middle East and set the world on fire.

Codenamed “Operation Midnight Hammer,” the assault involved more than 125 aircraft, including at least eight B-2 Spirit stealth bombers, backed by fighter jets, refueling tankers and surveillance aircraft, in what was the largest B-2 strike operation in US history. 

The centerpiece of the attack was the deployment of the GBU-57A/B Massive Ordnance Penetrator (MOP), a 13.6-ton bunker-busting bomb—the most powerful non-nuclear weapon of its kind ever used. Twelve MOPs were dropped on the heavily fortified Fordow uranium enrichment site, and two more on Natanz. These were accompanied by numerous 2,900-pound Tomahawk missiles, which rained down on both facilities as well as the Isfahan research complex.

US President Donald Trump justified his attack in a four-minute homicidal, lying rant, delivered Saturday night. Announcing that US forces had struck three nuclear facilities, he claimed they were part of a “horribly destructive enterprise” which was supposedly necessary to “stop the nuclear threat” posed by Iran. 

In fact, these sites are part of Iran’s civilian nuclear energy program, developed in accordance with the Nuclear Non-Proliferation Treaty (NPT) and subject to international inspection. For years, the United States’ own intelligence agencies have assessed that Iran was not actively pursuing nuclear weapons. But in the tradition of the Bush administration’s lies about Iraq’s “weapons of mass destruction,” Trump once again invoked fabricated threats to justify extraordinarily reckless acts of unprovoked aggression.

Trump boasted of the “spectacular military success” of the attack, which he intended to serve as a message to the entire region, declaring that “Iran, the bully of the Middle East, must now make peace.” 

The reference to Iran as the “bully of the Middle East” turns reality on its head. For over a third of a century, US imperialism has been at war and carried out regime change operations throughout the region, including in Iraq, Afghanistan, Syria, Libya and Yemen. Over the past two years, the Israeli government has waged a genocidal war in Gaza with continuous US support, slaughtering tens of thousands of innocent civilians. This has been merely a dress rehearsal for a broader campaign of mass murder. 

Having just launched an unprovoked military strike against a sovereign nation in flagrant violation of international law, Trump now demands “peace”! By this, he means “unconditional surrender,” as he demanded last week—that is, the turning over of the country to direct imperialist dominance. On Sunday, Trump explicitly called for “regime change” in Iran, following his threat last week to assassinate Ayatollah Khamenei.

Trump declared, “For 40 years”—since the overthrow of the US-backed Shah—“Iran has been saying, ‘Death to America, death to Israel,’” and proclaimed that “hundreds of thousands throughout the Middle East … have died as a direct result of their hate.” The carnage Trump blames on Iran is in fact the outcome of successive US wars and interventions, under Democrats and Republicans, that have devastated entire societies. It is not Iran that has inflicted “hundreds of thousands” of deaths—it is the United States.

The strikes were directly coordinated with the fascist Israeli government, which is continuing to launch missile attacks on Iran. As Trump stated, “We worked as a team as perhaps no team has worked before.” Just prior to Trump’s remarks, Israeli Prime Minister Benjamin Netanyahu issued a statement hailing the US airstrikes and thanking Trump, declaring that the two were pursuing a policy of “Peace through strength: First comes strength, then comes peace.” In other words, slaughter and terror must precede submission.

Trump concluded with a naked threat of further violence: “There will be either peace, or there will be tragedy for Iran. … Remember, there are many targets left.” The logical next step in this campaign of destruction is the use of tactical nuclear weapons—an option the Trump administration has repeatedly declared is “not off the table.” 

Saturday’s attack makes clear that there are no red lines for American imperialism, which will stop at nothing. Its criminality knows no limits. No government has so openly and flagrantly violated international law since the Nazi regime.

The bombing of Iran is a central component of an escalating global war. It is not a question of warning of the danger of a new world war—it has already begun. American imperialism is seeking to resolve its deepening internal social and political crisis through military aggression. Having targeted Iran, the logic of imperialist war is leading inevitably to confrontation with China. Regime change in Iran is aimed at securing unchallenged control over the Persian Gulf, the Caspian Sea and the broader Eurasian landmass—regions rich in oil, gas and critical trade routes.

Trump hailed the strikes as a “spectacular military success,” but in reality, he has embarked on a catastrophic and utterly reckless course of action. Whatever short-term calculations were made by the White House and Pentagon, they have now launched a war whose consequences they cannot control. They have sown the wind and will reap the whirlwind. As with the war against Iraq launched in 2003, American imperialism has a rendezvous with disaster, but on a far larger scale.

It remains to be seen how Iran will respond, as well as its close allies, Russia and China. Iran’s parliament has moved to close the strategic Strait of Hormuz, through which a significant share of the world’s oil supply passes—an action that will send global energy markets into turmoil and could trigger a global recession. For years, the passivity of the Iranian bourgeois government—marked by appeals for negotiations and the avoidance of direct confrontation—has emboldened US imperialism. 

Whatever the immediate response of Iran, Russia and China, however, the decisive issue is the reaction of the international working class. The most significant and far-reaching impact of Saturday’s attack will be on the consciousness of billions of people throughout the world. This act of imperialist aggression is already provoking mass outrage, expressed on all social media platforms and through initial protests that took place throughout the US on Sunday.

The war on Iran follows nearly two years of expanding global opposition to the genocide in Gaza. It exposes beyond any doubt the thoroughly criminal character of American foreign policy. The United States is increasingly seen by billions of workers throughout the world as a criminal government that operates outside of all legal restraint. The myth that American imperialism defends “freedom” or “democracy” lies forever in the past.

The war will pour gasoline on the already raging social and political crises in the United States, across Europe and around the world. It is the action of a regime ruled by and for the financial oligarchy. As it bombs and murders abroad, the Trump administration is dismantling democratic rights at home and erecting a political dictatorship. The Democratic Party, the so-called opposition, is paralyzed and complicit—paralyzed by its fear of the working class and complicit in the aims of imperialism.

Mass opposition is emerging. Just one week before the bombing of Iran, millions participated in the largest anti-government demonstrations in American history. The question is not whether opposition exists, but how it can be organized, directed and armed with a political perspective. The immense anger and revulsion provoked by the bombing must be transformed into a conscious political movement of the working class, linking the fight against war and dictatorship to the struggle against capitalism.

The working class is the social force that must be mobilized to stop imperialist barbarism. The criminal war being waged against Iran is not an aberration, but the product of the entire capitalist system. It must be halted through the unified global struggle of the working class, organized across all national boundaries. 

The International Committee of the Fourth International and its affiliated Socialist Equality Parties call for an immediate end to the US-Israeli war against Iran and the dismantling of the entire imperialist war machine. We urge workers and youth to organize protests, walkouts and strikes in every country.

Imperialism is plunging the world into barbarism and criminality. It is not a matter of reforming a bankrupt system, but of overthrowing it through the conscious and organized struggle of the working class for power. The alternative to war and dictatorship is socialism. What is needed is the building of a new revolutionary leadership to lead this movement forward, and to make socialism—the democratic control of the economy by the working class in the interests of all humanity—the guiding principle of a new social order.

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Iran

Stop the war against Iran!

By WSWS Editorial Board.

We repost below the World Socialist Web Site Editorial Board statement published on wsws.org here on June 21, 2025

Iran
Smoke rises from an oil storage facility after it appeared to have been struck by an Israeli strike on Saturday, in Tehran, Iran, Monday, June 16, 2025. [AP Photo/Vahid Salemi]

American imperialism and its Israeli proxy continue to escalate their illegal, unprovoked war of aggression against Iran, with US nuclear-capable B-52s and aircraft carrier battle groups readying to launch an imminent attack.

Nearly a quarter century after the United States invaded Afghanistan and Iraq, the American ruling class is once more preparing to launch a criminal war, this time against a vast country with a population more than three times larger than Iraq.

Through war, the would-be dictator Donald Trump and the financial oligarchy that rules via the Republican and Democratic parties hope to:

  • Reimpose the shackles of neo-colonial subjugation on Iran, 45 years after the Iranian people toppled the monarchical dictatorship of the US-installed Shah.
  • Secure unbridled US imperialist control over the world’s principal oil-exporting region and key global ocean trade routes, so as to prepare for war with Washington’s principal strategic adversaries, China and Russia.
  • Stave off economic crisis and financial collapse through plunder.
  • Divert attention from a massive domestic crisis and mounting social opposition.

The consequences of this reckless gamble will be catastrophic for the Iranian people, the Middle East and the entire world.

For all its massively armed gangsterism, deceit and treachery, the outcome of this war will be no less—and probably more—disastrous than the “wars of choice” that US imperialism waged in Afghanistan, Iraq, Vietnam and Korea.

The political establishments in the US and other imperialist centers, on the other hand, are in full war propaganda mode. Iran is vilified as a “terror state” and an “existential” threat to the Israeli and American people.

But who will take any of this seriously after decades of lies and criminality—after being bombarded with claims that Iraq possessed “weapons of mass destruction” and endless apologias for Israel as it bombs hospitals and slaughters people queuing for food in its drive to kill and expel the Gaza Palestinians?

Twenty-two years ago, at the launch of the Pentagon’s “shock and awe” invasion” of Iraq, World Socialist Web Site Chairman David North wrote, “Whatever the outcome of the initial stages of the conflict that has begun, American imperialism has a rendezvous with disaster. It cannot conquer the world. It cannot reimpose colonial shackles upon the masses of the Middle East.”

US imperialism is going to war not just against the 90 million people of Iran but against the entire world. On Friday, millions took to the streets of Iran and other countries in the Middle East to voice their opposition to the illegal US-Israeli assault. 

Throughout the world, people understand that the Trump administration is preparing to launch a war of aggression in alliance with Israel, whose genocidal assault on Gaza has made it the most despised state in the world. 

In the US, there is a growing mass movement against Trump, with 10-15 million people joining the June 14 “No Kings” protests. Moreover, a Washington Post poll found that the Americans it surveyed oppose US involvement in a war against Iran by a nearly two-to-one margin.  

The working class, as the classical Marxists explained, must evaluate its attitude toward any war by examining the social interests involved.

The US-Israeli war on Iran is an imperialist war. It is being waged on a historically oppressed country. The dominant factor in its political history has been a century-long struggle for emancipation from first British and then American imperialism.

Moreover, the war is part of an interconnected chain of military operations spanning decades. The same governments, organizations and media outlets now backing Israel’s onslaught on Iran were the most strident in supporting the war against Russia, provoked by the imperialist powers and justified on the basis of Russia’s invasion of Ukraine. 

Over the past 35 years, US imperialism has sought to reverse the consequences of the wave of anti-colonial and social revolutions of the 20th century and to counter the erosion of its global hegemony through ever-expanding militarism and aggression.

The World Socialist Web Site, the International Committee of the Fourth International and its affiliated Socialist Equality Parties stand unequivocally for the defeat of US imperialism and its Israeli proxy.

Iran is a capitalist country, led by a reactionary bourgeois nationalist regime. Rising to power on the basis of the 1979 Revolution, its greatest fear is the working class. Faced with mounting US threats over the past two decades, the Iranian bourgeoisie has combined repeated efforts to reach an accommodation with Washington with a drive to eliminate what remains of the social concessions made in the immediate aftermath of the popular explosion that overthrew the Shah.

The International Committee of the Fourth International opposes the bourgeois government in Iran. But its attitude to the imminent war is determined by the fact that Iran, a historically oppressed country, is threatened with subjugation and annihilation by an alliance of imperialist powers. The Iranian resistance to the imperialist onslaught is entirely legitimate and politically progressive.

Those who argue that the reactionary character of the Iranian government negates the right of Iran to defend itself are giving “left” cover to the imperialist war drive.

As Leon Trotsky wrote in 1937, shortly after Japanese imperialism launched its war of conquest against China, when an oppressed country comes under imperialist attack, the duty of socialists is to defend it irrespective of the reactionary character of its government. Answering those who refused to defend China because it was then led by Chiang Kai-shek and the bourgeois nationalist Kuomintang, which strangled the 1925-27 anti-imperialist revolution and massacred tens of thousands of revolutionary-minded workers, Trotsky explained:

China is a semicolonial country which Japan is transforming, under our very eyes, into a colonial country. Japan’s struggle is imperialist and reactionary. China’s struggle is emancipatory and progressive. …

Japan and China are not on the same historical plane. The victory of Japan will signify the enslavement of China, the end of her economic and social development, and the terrible strengthening of Japanese imperialism. The victory of China will signify, on the contrary, the social revolution in Japan and the free development, that is to say unhindered by external oppression, of the class struggle in China.

The working class in Iran and globally must oppose the US-Israeli onslaught, but they must do so through their own class struggle methods. This means developing a global working class counteroffensive that ties the fight against imperialist war and the ever-widening assault on the social and democratic rights of the working class to the fight against capitalism. This requires the struggle for the building of sections of the ICFI in Iran, throughout the Middle East and internationally.

In conventional military terms, the US-Israeli attackers have a vast preponderance of destructive power. But as the history of revolutions and colonial wars has repeatedly shown, military might, although significant, is only one factor. 

The principal vulnerability of imperialism lies in the massive and rapidly expanding potential for social opposition that exists in the Middle East, throughout Asia, Africa and in the growing resistance of workers in the imperialist centers.

It is this force that constitutes the decisive answer to imperialist aggression and the expanding global war and that must be mobilized. This can only be done in implacable opposition to all the rival bourgeoisies, their governments and political representatives.

In the US, all factions of the Democratic Party and its chief media voice, the New York Times, are supporting a war that has been organized by a president they themselves admit is systematically violating the Constitution and seeking to establish a presidential dictatorship.

Trump is waging war on two fronts: abroad against Iran, and at home against democratic rights and the working class. These are two sides of the same process. A war with Iran will inevitably be accompanied by an escalation of political repression and social austerity. With the war budget already over $1 trillion, the working class will be forced to foot the bill.

Trump’s anti-Constitutional drive to establish a presidential dictatorship within the United States and the launching of an illegal war against Iran are interconnected elements of a criminal government. The interaction of these elements threatens the US and the world with a catastrophe. If there is any country that is in desperate need of a regime change, it is the United States.

The same basic processes are present in Europe. The talks held by the European imperialist powers with Iran’s foreign minister in Vienna Friday were a fraud, aimed at browbeating Tehran into surrender. Any reservations they have about Trump’s rush to war concern their own predatory interests: that they could be burned in the inferno Trump and Netanyahu have set alight; that all-out war in the Middle East will divert US war materiel from Ukraine; and that they are at risk of being cut out by Washington of the spoils of imperialist conquest and plunder.

The Chinese and Russian capitalist regimes, basing themselves on the most pragmatic, short-term calculations and clinging to the hope that they can reach some accommodation with Trump and US imperialism, have taken no action to oppose the onslaught on Iran.

As for the Iranian regime, its conduct before and during the war has only underscored that the national bourgeoisie is incapable of waging a struggle against imperialism. Even now after Trump has demanded “unconditional surrender,” it persists in making appeals to the would-be fascist dictator, while pleading for the European imperialist gangsters to intervene on its behalf.

This war, like World War I and World War II, arises out of the fundamental contradictions of capitalism: between a globally integrated economy and the outmoded nation-state system, and between private ownership of the means of production and the social character of modern economic life.

The International Committee of the Fourth International and its affiliated Socialist Equality Parties call for mass opposition to the Trump administration’s plans to launch a direct war against Iran. We call for protests, demonstrations and walkouts to oppose this act of imperialist aggression.

Only the international working class, armed with a revolutionary socialist program, can put an end to imperialist war and the capitalist system that breeds it. The ICFI insists that the fight against war must be fused with the fight for workers’ power and the socialist reorganization of global economic life.

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Iran

Oppose the imperialist war on Iran!

By WSWS Editoria Board.

We repost below the World Socialist Web Site statement published on wsws.org here on June 13, 2025

Iran
Damages are seen in a building after an explosion in a residence compound after Israel attacked Iran’s capital Tehran, Friday, June 13, 2025. (AP Photo/Vahid Salemi) [AP Photo]

On Thursday evening, under the cover of darkness, Israel launched a massive air and missile assault on Iran, striking air defenses, nuclear facilities, key military personnel and command centers.

At least 78 people were killed and over 300 injured in the largest attack on Iran since the Iran-Iraq War of the 1980s. Israel assassinated six nuclear scientists and 20 high-ranking military personnel, including the Chief of Staff of Iran’s military and the commander-in-chief of the Islamic Revolutionary Guard Corps.

The World Socialist Web Site unequivocally condemns Israel’s illegal and unprovoked assault on Iran as a brazen act of imperialist aggression. The increasingly unhinged Israeli regime—already carrying out a genocide against 2 million people in Gaza—has now deliberately provoked war with a country 10 times its size, threatening catastrophic consequences for the entire region.

Israel’s claim that it acted in “self-defense” against an alleged Iranian nuclear program is an absurd and transparent fraud. It is well known that Israel possesses nuclear weapons, acquired in violation of international law.

Prior to the assault, Iran was engaged in negotiations with the White House over its nuclear program. In the days leading up to the strike, every major imperialist government—including the United States—made statements saying they opposed an Israeli attack on Iran, calling instead for a negotiated settlement.

The United States even went so far as to announce a new round of talks with Iran on Sunday just hours before Israel, with US foreknowledge and complicity, began raining missiles down on Tehran. Within the span of 24 hours, the White House went from vocally proclaiming it opposed an Israeli attack on Iran to publicly gloating about it.

Asked by the Wall Street Journal Friday whether the US got a “heads-up” of the attacks, US President Donald Trump replied, “Heads-up? It wasn’t a heads-up. It was, we know what’s going on.”

In reality, the so-called “negotiations” were a treacherous charade, designed to provide Israel with the opportunity to kill Iran’s military leaders in their homes. Among those targeted and killed in Israel’s Thursday night attack was top Iranian nuclear negotiator Ali Shamkhani.

Citing US and Israeli officials, Axios reported Friday that “Trump and his aides were only pretending to oppose an Israeli attack in public—and didn’t express opposition in private. ‘We had a clear U.S. green light,’ one claimed. The goal, they say, was to convince Iran that no attack was imminent and make sure Iranians on Israel’s target list wouldn’t move to new locations.”

The fact that Iran allowed a significant portion of its leadership to be killed—apparently while they were in civilian dwellings vulnerable to missile strikes, even as the American press openly telegraphed an Israeli attack—is a devastating exposure of the Iranian regime’s strategic bankruptcy. The regime placed immense confidence in the good faith of the Trump administration. Ignoring and forgetting all that has happened, including Trump’s authorization of the murder of General Suleimani in January 2020, the Iranian leaders were convinced that the United States would restrain Israel while negotiations were pending. They fell for a simple trick, like a child taking candy from a stranger.

But there are politics behind the Iranian regime’s astonishing naivete. Terrified of its own working class, the Iranian capitalist elite is desperately seeking an agreement with the imperialist powers, who have demonstrated their full commitment to Iran’s destruction and subjugation.

Israel’s attack on Iran has also exposed where the European imperialist powers really stand, despite their recent criticisms of aspects of the Israeli genocide in Gaza. The German government announced that Netanyahu had informed Chancellor Merz of the planned assault. Both the French and German governments issued statements affirming Israel’s “right to defend itself” and condemning retaliatory strikes by Iran.

The attack on Iran is the direct outcome of the longstanding US-Israeli drive to create a “new Middle East” under imperialist domination, intensified in the wake of the events of October 7, 2023. It was made possible by the immense political, military and intelligence support Israel has received from the United States for decades, under both Democratic and Republican administrations.

The Pentagon and Israeli military have long planned and war-gamed an assault on Iran and its nuclear program—an attack that Trump has repeatedly vowed to authorize.

US imperialism has never accepted the outcome of the 1979 Iranian Revolution, which overthrew the dictatorship of Shah Mohammad Reza Pahlavi, a key American ally in the Middle East. Washington backed Iraq in its brutal war against Iran throughout the 1980s. Even as it turned on Iraq—waging war in 1990–91 and invading in 2003—the installation of a US-aligned regime in Tehran remained a central objective. 

Today, Iran is grouped with Russia, China, and North Korea as a major obstacle to US global hegemony—one that Washington is determined to eliminate at any cost.

The ultimate aim of this assault is the imperialist domination of the Middle East—the world’s most important oil-exporting region and home to critical trade routes and strategic chokepoints, including the Persian Gulf. By subjugating Iran, a key ally of both Russia and China, the United States aims to strengthen its global position in preparation for direct confrontation with its principal strategic rivals.

History has shown that imperialist wars lead to unforeseen and catastrophic consequences. Just as the US invasion of Iraq unleashed a regional disaster, so too will Israel’s assault on Iran. The people of the Middle East will not remain passive as their countries are turned into battlegrounds for imperialist domination. 

The international working class must respond by building a conscious movement against imperialist war and the capitalist system that gives rise to it.

The World Socialist Web Site calls for the defense of Iran from imperialist violence and subjugation. But this can not be waged through the support of any bourgeois government. It requires the independent mobilization of the working class of the Middle East and the whole world, in opposition to all ethnic, racial and religious divisions, on the basis of a revolutionary socialist program.

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Gaza

Israeli academics issue open letter condemning Gaza genocide

By Andre Damon, David North

We re-post here the World Socialist Website perspective article published on June 01, 2025.

Gaza
Palestinians after an Israeli air strike in the northern Gaza Strip [Photo by UN Photo/Shareef Sarhan / CC BY-NC-ND 2.0]

On Wednesday, 1,200 Israeli university academics and administrators issued an open letter protesting the “war crimes and even crimes against humanity” committed by the Israeli military in Gaza.

The letter—addressed to the Association of University Heads in Israel, the Board of Academic Public Colleges, the Israel Academy of Sciences and Humanities, and Academics for Israeli Democracy—is a reaction to the launching of “Operation Gideon’s Chariots” in March, which is employing the mass starvation of the Palestinian population in pursuit of what is now the open policy of the Israeli government: the ethnic cleansing of Gaza.

The statement declares:

Since Israel violated the ceasefire on March 18, almost 3,000 people have been killed in Gaza. The vast majority of them were civilians. Since the start of the war, at least 53,000 people have been killed in Gaza, including at least 15,000 children and at least 41 Israeli hostages. At the same time, many international bodies are warning of acute starvation—the result of intentional and openly declared Israeli government policy —as well as of the rendering of Gaza into an area unfit for human habitation. Israel continues to bomb hospitals, schools, and other institutions. Among the war’s declared goals, as defined in the orders for the current military operation “Gideon’s Chariots,” is the “concentration and displacement of the population.” This is a horrifying litany of war crimes and even crimes against humanity, all of our own doing.

As academics, we recognize our own role in these crimes. It is human societies, not governments alone, that commit crimes against humanity. Some do so by means of direct violence. Others do so by sanctioning the crimes and justifying them, before and after the fact, and by keeping quiet and silencing voices in the halls of learning. It is this bond of silence that allows clearly evident crimes to continue unabated without penetrating the barriers of recognition.

The letter signifies the emergence of public opposition within Israel to the war. It is not yet clear how broadbased this opposition is. Recently published polls indicated that there still remains widespread support for the regime’s onslaught against the Palestinians, which—if the polls are accurate—reflects the deep social disorientation produced by decades of reactionary Zionist policies and propaganda.

However, given the relentless barrage of lies to which Israelis are subjected, the fact that more than 1,000 academics have denounced the policies of the government as criminal is a significant development.

The letter is a devastating indictment not only of Netanyahu’s government but of its international backers in Washington, London, Berlin and other capitals, who have denounced criticisms of Israel’s genocide in Gaza as a form of “antisemitism.” The New York Times and other major imperialist media outlets have not reported on the letter, despite prominent coverage in Haaretz and Al Jazeera.

The letter contrasts the vocal role that Israeli universities played in the 2023 mass protests against the Netanyahu government’s attempt to suppress the judiciary with their relative silence on the ongoing genocide. It declares:

Israeli higher education institutions play a central role in the struggle against the judicial overhaul. It is precisely against this backdrop that their silence in the face of the killing, starvation, and destruction in Gaza, and in the face of the complete elimination of the educational system there, its people, and its structures, is so striking.

There are other signs of growing opposition in Israel to the Gaza genocide. The publication of the letter followed demonstrations Tuesday at universities throughout Israel, where students and lecturers protested the ongoing genocide in Gaza. “This is the first action against the ongoing denial and the silent support for crimes being committed in our name,” the organizers told Haaretz. At Tel Aviv University, students and lecturers protesting the genocide were assaulted by campus police officers.

One of the organizers of the protest told Haaretz, “There’s a sense of a breakthrough, that from now on, it won’t be possible to hold back.” She added, “There’s a whole community living under a kind of censorship, feeling stifled, with a scream lodged in their throats. The message we got from the students is clear: they need us to stop staying silent.”

Ayelet Ben-Yishai, a professor at the University of Haifa, told Al Jazeera that for some participants, the decision to publicly oppose the genocide was in response to “the breaking of the ceasefire in March. That was a watershed moment for many, plus witnessing the starvation we’ve been forcing on Gaza ever since then.”

The group organizing the publication of the letter is known as the “Black Flag Action Network.” Professor On Barak of Tel Aviv University told Haaretz that the group’s name is a reference to the term “coined by [then Jerusalem Magistrate Court] Judge Benjamin Halevy following the 1956 Kafr Qasim massacre, in which 48 innocent Palestinians were killed by the Israeli Border Police.” Judge Halevy wrote in his ruling, “The hallmark of manifest illegality is that it must wave like a black flag over the given order, a warning that says: ‘forbidden!’ Not formal illegality … but rather, the clear and obvious violation of law.”

Barak added, “The widespread indifference [toward Gazans] among many Israelis is the result of an intensive dehumanization campaign that must be actively resisted.”

Professor Yael Hashiloni-Dolev of Ben-Gurion University of the Negev told Haaretz, “Anyone with even a shred of responsibility or humanity can no longer buy into the propaganda. We must recognize that war crimes and crimes against humanity are openly being committed in Gaza. We’re in the midst of a moral collapse.”

Al Jazeera noted that “the academics’ letter is unique in that it places Palestinian suffering at the heart of its objections to the war.”

Professor Ben-Yishai told Al Jazeera, “we wanted to make Palestinian suffering central. We wanted to say that we stand alongside and in solidarity with Palestinians. This was also about taking responsibility for what we are doing in Gaza and opening people’s eyes to it.”

The letter appeals to “all the people of this land, Palestinians and Jews.” It declares, “For the sake of the lives of innocents and the safety of all the people of this land, Palestinians and Jews; for the sake of the return of the hostages; if we do not call to halt the war immediately, history will not forgive us.”

The letter has the character of a moral appeal. Its authors do not address the fundamental historical and political issues that underlie the genocide. But however deeply felt the outrage against the war, the development of an effective opposition to the regime requires a break with the ideology and policies of Zionism. The genocidal character of this war is the culmination of the policies based on the reactionary political foundations upon which the “Jewish state” was erected in 1948. 

The opposition of Jewish and Arab socialists, and the Trotskyist Fourth International, to the formation of the Zionist state in 1948 has been vindicated.

The authors of the letter state that “It is our duty to save what can still be saved of this land’s future.” The phrasing leads one to hope that the reference to “this land” rather than to Israel indicates a growing awareness that the existence of the Israeli state, based on the expropriation and annihilation of the Palestinian people, forecloses any future other than one that perpetuates mass murder.

The only viable future is one that achieves the revolutionary dissolution of the existing Zionist state and the unification of the Palestinian and Jewish working class in a socialist republic.

Israeli academics issue open letter condemning Gaza genocide Read More »

malini

The Conscience of Sinhala Cinema: Malini Fonseka’s enduring Cinematic Legacy

By Sanjaya Wilson Jayasekera

We are posting here a brief obituary of Sri Lanka’s veteran actress Malini Fonseka, written by comrade Sanjaya Jayasekera and published on his personal website and social media on 25 May 2025. This articles was also published by the daily newspaper themorning.lk Here. Nearly six-decade of the cinematic career of actress Fonseka deserves a full and extended review.

malini
Malini Fonseka

The demise of actress Malini Fonseka on May 24, 2025, marks the end of a cinematic epoch. She is undoubtedly the “Queen of Sinhala Cinema,” as she has been often referred to by millions of her fans, aged and young. Nearly six-decade of her career was not a simple arc of celebrity, but a deep and continuous cinematic identification with the lives of ordinary people, especially women, under the weight of history, patriarchy, backwardness and class oppression. In a country where cinema often struggles between the tides of commercialism, populism, nationalism and repression, Fonseka remained a moral and aesthetic lodestar, truthfully imbuing her characters with emotion, quiet resistance, and tragic insight.

To merely describe Fonseka as a beloved actress is to evade the seriousness of her contribution. She was an artist of social consciousness—her performances bore the weight of Sri Lanka’s post-independence traumas, its unfulfilled democratic promises, and the contradictions of a backward capitalist society pressing in from every side.

In Lester James Peries’ Nidhanaya (1972), one of the greatest Sri Lankan films ever made, Fonseka plays the innocent, ill-fated woman preyed upon by a man whose wealth and obsession lead to murder. Her character is not merely a victim but a mirror held up to a crumbling feudal order. Fonseka conveys, through silence and subtle gestures, a person slowly awakening to the forces arrayed against her. Her sacrifice is not just personal—it is metaphorically the death of innocence in a society entrapped by its own past.

In Beddegama (1980), based on Leonard Woolf’s The Village in the Jungle, Fonseka as Punchi Menika inhabits a world of colonial exploitation and rural destitution. This is not melodrama but precise, economical realism. Fonseka does not “perform” poverty and female endurance—she lives it. Her face, increasingly lined by anxiety and despair, communicates the pain of a society ground down by injustice, hunger and disease, made worse by the cruelty of an indifferent state.

Equally remarkable is her performance in Dharmasena Pathiraja’s Bambaru Avith (1978). In this film, Fonseka delivers one of her most restrained yet potent performances of the role of a young lady in a coastal village caught in the maelstrom of social disintegration and the predatory arrival of urban outsiders. Fonseka’s portrayal is marked by an acute sensitivity to the class tensions simmering beneath the film’s surface. Her role is not simply a symbol of rural innocence but a deeply aware, emotionally complex figure who senses the destruction bearing down on her community. In a film that critiques both the romanticization of village life and the corrosive effects of capitalist intrusion, Fonseka embodies the silent tragedy of a society being commodified. With minimal dialogue and subtle expressions, she gracefully communicates despair, resignation, and the quiet resistance of a woman rooted in her world but unable to halt its unraveling.

Bambaru Avith
Bambaru Avith: Malini Fonseka with Vijaya Kumaratunga

In Akasa Kusum (2008), directed by Prasanna Vithanage, as Sandhya Rani, a faded film star confronting the ruins of her career and personal life, Fonseka embodies the alienation and disillusionment of an artist discarded by an industry that once idolized her, and without any social insurance. The film alludes to the stardom of Fonseka herself. Vithanage’s film, while ostensibly a character study, inadvertently exposes the broader social decay under capitalism, where cultural memory is short and individuals are reduced to commodities. Fonseka’s restrained yet deeply expressive performance underscores the tragedy of a woman whose labor and talent have been exploited, then abandoned—a microcosm of the artists’ precarious existence in a profit-driven system. The film’s critique of bleak nostalgia and the fleeting nature of fame resonates with the broader crisis of art under conditions where everything, including human creativity, is subordinated to the market. While Akasa Kusum does not explicitly engage with class struggle, Fonseka’s portrayal of Sandhya’s isolation and resilience speaks to the perseverance of ordinary people amid systemic indifference. 

Fonseka’s performances in a wide range of other films—including Eya Dan Loku Lamayek (1977), Siripala Saha Ranmenika (1978), Ektamge (1980) and Yasa Isuru (1982) —as well as in teledramas such as Pitagamkarayo (1997), are etched into the collective memory of Sri Lankan audiences. In each of these roles, she brought to life women shaped by their social conditions, investing them with dignity, emotional depth, and a quiet intensity that transcended the screen. Whether portraying the struggles of urban motherhood, the constraints of poverty, caste and patriarchy, or the conflicted desires of village life, the veteran actress was able to truthfully reveal the deeper realities of the society around her.

Like several other leading actors of her generation, Fonseka was a significant historical product of her time. By the 1970s, Bollywood’s musical and melodramatic cinema exerted a powerful influence over Sri Lankan audiences, who flocked to theaters largely drawn by star appeal. Sinhala cinema, still emerging as a serious artistic medium, had to contend with the commercial dominance of Indian films. Fonseka’s rise to stardom was not merely a matter of charishma; her compelling screen presence, combined with the emotional depth and authenticity she brought to nearly every role, enabled her to capture the imagination of a broad audience. In doing so, she played a crucial role in affirming the cultural legitimacy and artistic potential of Sinhala-language cinema, as part of the world cinema.

Fonseka’s popularity, unmatched for decades, was not simply built on glamour but on the deep compassion she earned. For the oppressed, she did not offer escapism; she offered recognition and fight. Her status as “queen” is a title she earned from the sincere presentation of the struggles of those who loved her. 

Her art reminds us of what cinema can be: a site of conscience, a record of the oppressed, and a spark of rebellion. She belongs to that rare tradition of film actors—like Smita Patil, Giulietta Masina, and Liv Ullmann—who made of their bodies and voices a battlefield of history.

In the later years of her life, Fonseka became associated with the bourgeois nationalist establishment, serving as a Member of Parliament from 2010 to 2015 under the government of then-President Mahinda Rajapaksa. While no political concessions can be made to her alignment with Sinhala nationalist politics, her profound contributions to cinema—rooted in social realism and the depiction of the oppressed—remain of enduring artistic and historical value. Her body of work deserves to be critically appreciated, drawn inspiration from and preserved as a significant part of both Sri Lankan and world cinema.

Malini Fonseka will be remembered not merely as a great actress, but as an artist of the oppressed masses. Her characters will continue to live, as all genuine art does, not only in memory but in the continuing struggles of those they represented.

The Conscience of Sinhala Cinema: Malini Fonseka’s enduring Cinematic Legacy Read More »

Germany

Germany’s Social Democrats and conservatives elect Merz as Chancellor, sign reactionary coalition agreement

By Johannes Stern.

Germany
Front from left to right: Markus Söder (CSU), Friedrich Merz (CDU) and Lars Klingbeil (SPD) present the coalition agreement [AP Photo/Ebrahim Noroozi]

On Tuesday afternoon, Friedrich Merz (CDU) was elected in the second round of voting and subsequently appointed as the new German Chancellor by President Frank-Walter Steinmeier (SPD).

Merz had initially failed in the first ballot—a unique occurrence in German post-war history. With 621 MPs present, Merz was six votes short of the required majority of 316 votes to become Chancellor: 310 MPs voted for him, 307 against him, there were three abstentions, and one vote was invalid. Nine MPs did not take part in the vote.

Merz’s unexpected non-election had caused feverish nervousness in all Bundestag parties. In the end, the Bundestag parties agreed to schedule a second round of voting on the same day.

Shortly before the vote, the notoriously right-wing CDU/CSU parliamentary group leader Jens Spahn announced that a new ballot would be held with the agreement of the CDU/CSU, SPD, Green and Left Party parliamentary groups. The whole of Europe, perhaps even the whole world, was watching this election. He then thanked everyone who had made a second round of voting possible so quickly.

The role of the Left Party and the Greens as essentially right-wing parties of the state could not be clearer: in the face of a looming political crisis in Berlin, they played a key role in installing Merz and paving the way for his extreme right-wing government.

The Merz government heralds a new stage in the rightward evolution of the ruling class. It is undoubtedly the most reactionary and anti-working class government since the fall of the Nazi regime 80 years ago. Its central aim is to remove the last restraints imposed on German militarism as a result of its unprecedented crimes in the Second World War. With the adoption of war credits amounting to €1 trillion on March 18, the Bundestag has already paved the way for a massive military build-up.

The coalition government of the CDU/Christian Social Union (CSU) and the Social Democrats (SPD) will not only rearm like Hitler. It will organise a historic onslaught on social spending to finance rearmament and establish a police state to enforce it against the enormous opposition among the population. Domestically, it will also adopt the refugee policy of the fascist Alternative for Germany (AfD) and help the fascists’ nationalistically charged “cultural policy” achieve a breakthrough.

Leading members of the government, such as Interior Minister Alexander Dobrindt and State Secretary for Culture Wolfram Weimer, are politically far to the right and could easily be members of the AfD. Chancellor Merz himself embodies the interests of the financial oligarchy like no other. For four years, he headed the German branch of BlackRock, the world’s largest asset manager.

The SPD, which was founded more than 150 years ago under the banner of Marxism, is now the organiser of this shift to the right as a right-wing state party. Yesterday, it announced that Boris Pistorius (SPD) will remain Minister of Defense under Merz. Pistorius personifies the “new era” in foreign policy ushered in by SPD Chancellor Olaf Scholz, who received a farewell at a militaristic spectacle on Monday evening. Pistorius has set himself the goal of making Germany “fit for war” again and preparing it for a direct war against the nuclear-armed power Russia.

Party leader Lars Klingbeil takes over as Vice-Chancellor and Finance Minister. In this role, he will ensure that the costs of horrendous military spending and escalating global trade wars are borne by the working population. He will work closely with the new SPD Labor Minister Bärbel Bas, who, as a nominal “party leftist,” will push through the brutal cuts in close cooperation with the trade unions.

The coalition agreement signed yesterday reflects the reactionary personnel of the new government. The focus is on war policy and the comprehensive militarisation of society. The following goals, among others, are mentioned:

  • Dominance over Europe and a role for German imperialism as a world power

In the coalition agreement, the CDU/CSU and SPD define the entire globe as a zone of influence for German imperialism. According to the agreement, the German government is striving for an Africa policy that “does justice to the strategic importance of Africa,” declares that the “Indo-Pacific region” is “of elementary interest” and announces that it intends to “continue to show a presence in the region.” The “expansion of strategic partnerships with the countries of Latin America and the Caribbean” is also “of particular importance.” Overall, the aim is to “intensify bilateral relations with the countries of the Global South and expand them into a global network.”

As in the past, this global power politics means German support for genocide and war. The coalition declares the “security of Israel” to be a “fundamental German national security interest”—in the midst of the genocide committed by the far-right Netanyahu regime against the Palestinian population. At the same time, it assures the Islamist forces in Syria of support “in the stabilisation and economic reconstruction of the country”—in order to gain geopolitical influence and deport refugees.

With regard to the war against Russia, the coalition agreement announces that “military, civilian and political support for Ukraine will be substantially strengthened and reliably continued together with partners.” Germany must “for the first time since the end of the Second World War … be in a position to guarantee its own security to a much greater extent.” Germany will assume “a leading role” in the further development of the Common Security and Defense Policy (CSDP).

  • Militarisation of schools and universities

“We are anchoring our Bundeswehr [Armed Forces] even more firmly in public life and are committed to strengthening the role of youth officers, who fulfil an important educational mission in schools,” it says on page 130 in the section on “Defence policy.” It continues: “We are committed to dismantling obstacles that impede dual-use research or civil-military research cooperation, for example.” We will “eliminate the deficit that exists in Germany in the area of strategic security research and advocate its promotion in the sense of a networked understanding of security.”

  • Reintroduction of compulsory military service

“We are creating a new, attractive military service that is initially based on voluntary service,” explain the coalition partners. The design of this service will be based on “the criteria of attractiveness, meaningfulness and contribution to the ability to grow.” In doing so, “the Swedish military service model” is being used as a guide and “the conditions for military registration and monitoring will be created this year.”

  • Development of a war economy and massive armaments industry

The planning and procurement system will be “reformed” and “new implementation paths” will be enforced for major projects and future technologies. In particular, “future technologies for the Bundeswehr” are to be promoted, including “satellite systems, artificial intelligence, unmanned (also combat-capable) systems, electronic warfare, cyber, software-defined defence and cloud applications as well as hypersonic systems.” This requires “simplified access and increased exchange with research institutions, the academic sector, start-ups and industry.”

The “special infrastructure fund” of €500 billion is also designed to prepare for war. “We are simplifying the definition of requirements and approval for military construction projects and creating exemptions in construction, environmental and public procurement law as well as in the protection and dedication of military land with a Federal Armed Forces Infrastructure Acceleration Act,” it says on page 132. The “concerns and infrastructure measures for overall defence” are to be “established as an overriding public interest and prioritised in implementation over other state tasks.”

The historic rearmament and war policy will be financed by equally historic attacks on the working class. “We will make a considerable contribution to consolidation in this legislative period,” it says in the section on “budget consolidation.” The agreement only mentions a few specific measures—such as cutting citizens’ benefits—but the role model is clear: the US, where the Trump regime is ruthlessly cutting social spending in the interests of the financial oligarchy and destroying all existing social rights.

The deeply anti-worker policy of the new federal government is based on the support of all Bundestag (Federal Parliament) parties. The Greens provided the CDU/CSU and SPD with the necessary two-thirds majority in the Bundestag to pass the war credits. The Left Party backed it in the Bundesrat (Federal Council). And the trade unions are also firmly on the side of the government. They reaffirmed their loyalty to the rearmament course and worked systematically in recent weeks to isolate the wage struggles at the post office, in the public sector and at the Berlin Transport Company, and to prevent a joint all-out strike by the working class.

The broad support for militarism and social spending cuts by all Bundestag parties and trade unions shows that the struggle against fascism, war and social inequality can only be waged through the independent mobilisation of the working class. In its statement on the formation of the government, the Socialist Equality Party (SGP) therefore called for “the establishment of rank-and-file committees in workplaces and neighbourhoods that will allow workers to take the fight against mass redundancies and wage cuts into their own hands and combine it with the fight against war.”

The statement continues:

We counterpose the international unity of the workers to the growth of nationalism, trade war and rearmament. The war can only be stopped and social and democratic rights can only be defended if capitalism itself is abolished and replaced by a socialist society in which people’s needs, not profit interests, take centre stage. The big banks and corporations must be expropriated and placed under democratic control.

This article was originally published in the World Socialist Web Site Here

Germany’s Social Democrats and conservatives elect Merz as Chancellor, sign reactionary coalition agreement Read More »

David North

David North addresses working class at 2025 International Online May Day Rally

Fred- debt
The US federal debt [Photo: Federal Reserve Economic Database]

On Saturday, May 3, the International Committee of the Fourth International (ICFI) and the World Socialist Web Site (WSWS.org) held the annual International Online May Day Rally. The event took place at a critical juncture in international geopolitics, which determines life-and-death questions of the working class—who, in recent weeks and months, have demonstrated growing militancy in their struggles against the capitalist establishment. WSWS posted both the video and text of the opening speech delivered by WSWS International Editorial Board chairman David North today (May 05). We are reposting the video here and we invite the workers, youth, intellectuals and all those who want to defeat austerity,  fascism, dictatorship, genocide, war and social retrogression to seriously study this speech and the other speeches, and resolutely decide to join the international Trotskyist movement and build the ICFI as the only revolutionary leadership of the international working class to fight for world socialism. 




David North addresses working class at 2025 International Online May Day Rally Read More »

Dollar

Dollar’s role as global reserve currency under fire

By Nick Beams.

At first, it was just a quiet murmur in relatively isolated sections of the financial press. Today, however, the voices are growing louder: the US dollar could lose its role as the world’s global currency amid the breakdown of all the arrangements and mechanisms of the post-war period under the impact of the US economic war against the world initiated by President Trump.

Dollar
A street money exchanger poses for a photo without showing his face as he counts U.S. dollars at Ferdowsi square, Tehran’s go-to venue for foreign currency exchange, in downtown Tehran, Iran, Saturday, April 5, 2025. [AP Photo/Vahid Salemi]

This week, the Financial Times (FT) ran a major article under the headline “Is the world losing faith in the almighty US dollar?” The answer was that it is.

The concern has been sparked by an unusual development in financial markets. Under “normal” conditions, financial disturbances bring about a rise in the dollar’s value as investors seek a safe haven and move to acquire US Treasury bonds.

But since so-called “liberation day,” when Trump unveiled his “reciprocal tariffs,” there has been a move out of US government debt, and the value of the dollar has fallen. The price of gold, a real store of value, as opposed to debt and credit, continues to reach record highs.

There was a slowing of this movement when Trump announced a 90-day pause on the reciprocal tariffs, which range between 30 and 50 percent for a wide range of countries, to allow for negotiations. But the question remains: What happens after the pause ends?

Whatever the immediate answer, one thing is certain: There will be no return to the status quo ante, with Trump warning that nobody “gets off the hook.” This week, talks took place between the administration and Japan in Washington. The Japanese trade representative returned home empty-handed.

The implications of the new situation were underscored in a comment by a leading FT columnist, Rana Foroohar, entitled “America the Unstable.”

Foroohar began by saying that her “takeaway” from the tariff chaos and fallout was that America, under Trump, has become an “emerging market.”

In previous periods of political and economic stress, US equities and the currency rose because of the “haven status” of the dollar.

“It didn’t seem to matter that all the things that had bolstered American companies from low rates to financial engineering to globalization itself were tapped out. US asset markets seemed impervious to the notion of the dollar-doomsday scenario that would send both the currency and asset prices tumbling. Trump has finally ended America’s exorbitant privilege.”

She concluded by saying that previously she would have ruled out the possibility that America could become the epicenter of an emerging market-style debt crisis, but “not anymore.”

Trump’s measures—the tariff hikes that will slow the economy and proposed tax cuts for corporations—will add trillions of dollars to what is increasingly being characterized as an “unsustainable” debt mountain, currently at $36 trillion and rising.

In a report issued earlier this month, George Saravelos, global head of foreign exchange research at Deutsche Bank, summed up the growing outlook in leading global financial circles.

“Despite President Trump’s reversal on tariffs, the damage to the USD has been done,” he wrote in a report. “The market is reassessing the structural attractiveness of the dollar as the world’s reserve currency and is undergoing a process of de-dollarization.”

However, the crisis is not merely a product of Trump’s actions. It has been long in the making—the outcome of a protracted decline in the economic position of the US.

Trump, as is now openly acknowledged, has taken an axe to the economic, trade, and financial mechanisms set in place after World War II, considering that they have contributed decisively to the weakening of the US.

Of course, Trump, for whom, like Henry Ford, “history is bunk,” never explains why they were put in place and why the US played the leading role in their establishment. It was very much, to invoke the phrase he so often uses in his rampages, due to concerns with “national security.”

The purpose of the post-war measures was to prevent the return to the conditions that had prevailed in the period between the wars, grounded not least on the understanding that this would lead to revolutionary struggles by the working class in the major capitalist countries, including in the US, which had seen enormous eruptions of class battles in the latter years of the 1930s.

The post-war economic order rested on three pillars—the establishment of the US dollar, backed by gold as the international currency, the reduction of tariffs and promotion of free trade to prevent the emergence of the trade and currency wars that had proved so disastrous in the 1930s, and the reconstruction of war-torn Europe under the Marshall Plan. All three were based on the strength and industrial power of the US economy.

Contrary to the claims of various bourgeois economists and not a few self-styled Marxists that the post-war economic capitalism boom which followed had refuted the Marxist analysis of the historically inevitable economic breakdown of the capitalist system, the post-war framework did not overcome its fundamental contradictions—above all, that between the world market and its division into rival nation-states and great powers.

And within the space of 25 years—a short period of time from the standpoint of history—these contradictions emerged. On August 15, 1971, President Nixon, in the face of a growing balance on trade and balance of payments deficit in the US, removed the gold backing from the US dollar—unilaterally abrogating the Bretton Woods Agreement of 1944.

It was a sign that the power of American capitalism, the basis of the post-war order, was starting to markedly weaken.

The scrapping of the Bretton Woods system ushered in a new global financial system. In the 1950s and 1960s, currencies had exchanged at fixed rates. Maintenance of those fixed rates and the prevention of currency wars required that finance and investment flows were subject to tight regulation.

But with the ending of the dollar-gold connection, currencies started to float freely, which meant that capital and financial controls had to be increasingly scrapped. A new international economic order developed based on credit creation and the free flow of money around the world.

The US dollar continued to function as the basis of the international financial system, but it underwent a major transformation. It was now a fiat currency, no longer backed by gold, that is, real value, but solely by the American state. A new global monetary order emerged.

As the FT article noted: “Despite Nixon’s severing the dollar’s link to gold in 1971, the greenback has remained at the center of the monetary universe. In fact, thanks to the dollar’s importance in the expanding and increasingly interconnected global financial system, its importance has only grown. Far from eroding the dollar’s importance, the Nixon shock entrenched it in many ways.”

The freeing of the dollar from the restrictions due to its being tied to gold and the concomitant government regulations aimed at maintaining a fixed exchange system unleashed finance from the constraints imposed on it under the previous regime, opening up vast new avenues for profit accumulation.

Increasingly, above all in the US economy, this gave rise to what has been called financialization, the accumulation of profit via speculative and parasitic methods.

The more these methods developed, the more regulations on finance capital introduced in response to the crisis of the 1930s were scrapped, culminating in the repeal of the last remaining piece of Depression-era legislation, the Glass-Steagall Act, by the Clinton administration in 1999.

In 1991, the liquidation of the Soviet Union by the Stalinist bureaucracy, coupled with the restoration of capitalism in China and the junking of national development policies by the bourgeois national regimes in the former colonies, opened up new profit opportunities through the globalization of production.

Eager to grasp them, the US called for the entry of China into the new world order. The Clinton administration pushed for its admission to the World Trade Organization, which was subsequently ratified by the US under the presidency of George W. Bush.

The US saw the cheaper labor of China as a profit gold mine and that within the new order, China would remain subordinate to it. But the capitalist economy has its own relentless logic, which operates behind the back of imperialist leaders, no matter how powerful.

The Chinese capitalist oligarchy, now confronted with the transformation of the country from a nation of peasants to one with hundreds of millions of workers, as well as an aspiring middle class, recognized it had to move up the value chain.

It could not simply function as the supplier of cheap consumer goods but had to expand production into more sophisticated commodities based on advanced technology if it was to sustain economic growth and maintain what it called “social stability.”

However, this development has posed an existential challenge to US hegemony. This was recognized by the Obama administration in 2011 when it launched its pivot to Asia. His trade representative Michael Froman wrote an article in Foreign Affairs in 2014 recognizing the weakened position of the US and that the global trading system had to be “revitalized” to allow it to play the leading role.

Such efforts, however, came to naught as the balance of trade and payments continued to widen. And the US government debt has continued to escalate at what is acknowledged as an “unsustainable” rate.

The US has only been able to continue on the debt path because of the dollar’s role as the global reserve currency. So long as investors, domestic and international, as well as other governments, kept money flowing into the debt market, the US imperialist state, with its vast military spending, has been able to continue to function.

Back in 2023, CNN and News commentator Fareed Zakaria set out this relationship.

“America’s politicians have gotten used to spending seemingly without any concerns about deficits—public debt has risen almost fivefold from roughly $6.5 trillion 20 years ago to $31.5 trillion today. The Fed has solved a series of financial crashes by massively expanding its balance sheet twelvefold, from around $730 billion 20 years ago to about $8.7 trillion today. All of this only works because of the dollar’s unique status. If that wanes, America will face a reckoning like none before.”

In the face of this crisis the view is being advanced in some circles that whatever the dollar’s travails, it will continue to operate as the world currency.

The FT article on the dollar crisis cites the remarks of Mark Sobel, a former Treasury official and now US chair of OMFIF, a financial think tank.

“The dollar’s dominance will remain in place for the foreseeable future because there are no viable alternatives,” he said. “I question whether Europe can get its act together, and China is not opening its capital account soon. So what’s the alternative? There just isn’t one.”

Sobel’s assertions about the inability of Europe and China to provide as alternative to the dollar are no doubt true.

But his analysis is incomplete because it is based on a faulty logic which ignores the lessons of historical experience. It rests on the assumption that since global trade and finance requires an international currency, the dollar must therefore continue to play that role because there is nothing to replace it.

However, the logic of the present situation is neither that the dollar’s role can continue nor that another national currency will replace it. Rather, it is that the world economy will increasingly fracture into rival trading, financial and currency blocs—a conflict of each against all—as it did between the two world wars with all the disastrous consequences that produced.

For all their irrationality and outright madness there is a logic to Trump’s policies. Every statement and executive order he imposes is justified on the basis of national security—that the present economic order has undermined the military capacity of the United States to fight wars, and this must be rectified at all costs.

The crisis of the dollar therefore signifies that the conditions for a new world war are rapidly developing in which for the US, China—the existential threat to its hegemony—is the chief target.

With tariffs set at 145 percent, and still more hikes to come, and restrictions imposed on the export of high-tech goods to China, the US has imposed a virtual economic blockade against Beijing. How long before that leads to outright military conflict? History suggests sooner rather than later.

The ruling classes in the US and internationally have no solution to the crisis of the capitalist system over which they preside. Everywhere their response to the breakdown is economic warfare, increased military spending and the evisceration of democratic rights through the imposition of fascist and authoritarian regimes.

The international working class is the sole social force which has the capacity to resolve the historic crisis of the capitalist system, exemplified so sharply in the crisis of the dollar, in a progressive manner. But for that power to be actualised it must take up and fight for the perspective of socialist revolution.

This article was originally published in the World Socialist Web Site on 18 April 2025 Here

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Rani

The Myth of Common Guilt: ‘Rani‘ as Perversion of Truth in the Form of Art

By Sanjaya Jayasekera.

In “My Thoughts on Handagama’s Rani,” published in Daily FT on March 281, Jagath Weerasinghe—artist, archaeologist, and cultural commentator—extends, rationalises, and legitimises the central reactionary thesis of Asoka Handagama’s recent film Rani. This is a film whose underlying narrative, presented in the guise of artistic subtlety and aesthetic ambiguity, represents a deeply ideological falsification of history. Weerasinghe’s endorsement of the director’s central proposition2—reproduced in Sinhala translation in Anidda on March 30 by Vidura Munasinghe—is emblematic of a broader trend among the middle-class intelligentsia and the pseudo-left, who serve as ideological apologists for the crimes of the capitalist state.

Rani
A scene in the film “Rani” by Asoka Handagama

The core thesis promoted by both Weerasinghe and the film is that the atrocities carried out during the 1988–90 period—enforced disappearances, state death squads, mass graves, torture camps, and extrajudicial killings, as well as the fascistic violence perpetrated by the Janatha Vimukthi Peramuna (JVP)—were not the products of concrete political decisions, class interests, and specific agencies of state and party power. Instead, they were the result of a society in which “violence had become systemic and normalised.” Weerasinghe writes: authoritarian regimes perpetuate brutality “for political gain and self-preservation, creating an environment where violence is not only carried out by those in power but is also internalised, accepted, and even participated in by ordinary citizens. In such a climate, even those with moral integrity can find themselves complicit—whether through silence, fear, or the gradual erosion of ethical boundaries.”

This pseudo-sociological claim—that violence was embedded in the very fabric of society and was collectively enacted by the masses—leads to a profoundly reactionary conclusion: that there is a shared moral guilt for the crimes of the period, borne by everyone, without any class distinction. Rani—the eponymous protagonist, who is portrayed as initially a passive observer of the surrounding terror but who gradually becomes emotionally and psychologically implicated—and every other defenseless rural man and woman, the worker, the unemployed youth, who were terrorized for their lives both by the fascism of the JVP and by state repression, are depicted as responsible for and willing participants in the atrocities.

Was this culpability moral, political, or both? While Weerasinghe leaves no doubt that he intends to assign moral culpability to the masses—an implication clearly shared by the director—this vulgar theory leaves the spectator wondering who bears political accountability. That is precisely the issue at hand. The film and its director’s apologetics place the blame on the “ordinary” masses. Political responsibility follows moral culpability. Consequently, the oppressed are identified with the oppressor, giving rise to a vision of a society that is hopeless, anarchic, and devoid of historical or scientific grounding. This approach is crudely ahistorical, impressionistic, and unscientific—and it serves a definite class interest.

The capitalist state agents of terror, its political leadership, the military-intelligence apparatus, and the misdirected cadre of the JVP are equated, and these contradictory forces are placed on the same grounds as the poor and the working people, constituting a homogeneous society of “ordinary citizens.” They are all morally and indiscriminately dissolved into an amorphous, classless “we.” The final anecdote of the film, which Weerasinghe refers to, is founded upon this proposition and leads to the conclusion that the director wanted the viewers of his film to read into as the alternative narrative: the killing of Richard de Soysa was not necessarily ordered by President R. Premadasa, nor did it serve the interests of the latter or the ruling class. This is a liquidationist proposition that casts doubt upon many other suspected assassinations and abductions of the period, getting the political leadership of the state off the hook. In conclusion, this is where the “broader and more layered exploration of the underlying social and political realities,” which Weerasinghe claims the purported “fiction” allows its viewer to delve into, lands.

Such a political framework is not new. It has appeared time-to-time in bourgeois and petty-bourgeois historiography, where the responsibility for state crimes—pogroms, wars, genocides—is shifted onto “society” or “human nature.” One prominent historical analogue is Daniel Goldhagen’s Hitler’s Willing Executioners: Ordinary Germans and the Holocaust (1996), which absurdly claimed that the Holocaust was not the outcome of a historically developed political program of German imperialism and the fascist state of the Nazi Third Reich, but the result of a deep-seated, inherent antisemitism among the German people3. Thus, the “ordinary” Germans were willing accomplices in the Final Solution, the extermination of over six million Jews. Hitler was only the final executioner of this ideology. This deadly distortion of history has been widely discredited by serious historians, not only for its factual inaccuracy, but for the reactionary political implications it carries4.

Weerasinghe offers no sociological or historical research to substantiate his claims—nor does the director, who admits to conducting little serious investigation prior to the making of the film. However, similar arguments have been advanced internationally through certain psychological and sociological theories that lack rigorous empirical grounding. Chief among these are the studies of Stanley Milgram and Philip Zimbardo, whose respective experiments on obedience to authority and simulated prison environments have been widely cited to suggest that ordinary individuals can become complicit in acts of cruelty under systemic pressure. Both studies have come under sustained criticism for methodological shortcomings, ethical violations, and issues of reproducibility. More importantly, when abstracted from their immediate experimental context and applied uncritically to complex social phenomena like mass political violence, these theories devolve into a kind of psychological determinism. They obscure the class forces and political programs that shape historical events and instead offer a right-wing, pseudo-scientific narrative in which atrocities are the inevitable result of human nature or diffuse social norms—thereby absolving the state and the ruling elite of political responsibility.

In the Sri Lankan context, this argument has especially reactionary consequences. It leads to the notion that the Sinhalese majority are collectively responsible for the 1983 pogrom against Tamils, and ultimately, for the genocide in Mullivaikkal in 2009. A section of the middle class of the country harbours this ideology, which was once starkly expressed by Pubudu Jayagoda, a leader of the pseudo-left Frontline Socialist Party (FSP), who claimed that racism is deeply ingrained in the Sinhalese “society”5, reducing complex political phenomena to abstract moral failures of entire ethnic groups of conflicting classes6. This is not only unscientific and historically false, but it plays directly into the hands of the capitalist state and chauvinist forces, who exploit communalism to divide the working class on racialist lines to prevent unified struggle.

Marxism begins not with moralism, but with the concrete analysis of social relations and historical processes. The essential questions that must be addressed in any serious assessment of the 1988–90 period are the following: What were the objective causes of the JVP-led insurrection and its fascistic methods? What class forces were involved in the repression? What was the role of imperialism, the IMF, and the Sri Lankan bourgeoisie in creating the social crisis that produced this violence? And above all, was there an alternative revolutionary leadership that could have mobilized the working class against both the JVP and the capitalist state?

The JVP uprising was not a spontaneous eruption of madness, nor was it the inevitable product of a culture of violence. It emerged from a deep social crisis rooted in the failure of the post-colonial bourgeoisie and the betrayal of the Lanka Sama Samaja Party (LSSP) in 1964, which had entered into a class collaborationist coalition with the bourgeois Sri Lanka Freedom Party (SLFP). In the aftermath of this betrayal, tens of thousands of rural youth—disillusioned by the parliamentary left and devastated by the economic liberalization policies of the J. R. Jayewardene regime—were drawn to the radical rhetoric of the JVP.

The JVP, despite its populist posture, was never a Marxist organization. It rejected the class struggle, dismissed the internationalism of the Fourth International, and relied on petty-bourgeois nationalism and adventurist terror. In 1987–89, it launched a campaign of assassinations and fascistic violence that paralyzed the working class and the middle class. The response of the state was a campaign of ruthless repression. Death squads, torture camps such as Batalanda, and state-sponsored terror claimed the lives of an estimated 60,000 youth.

Massacre 1989
A scene of mass killings and daily-life in rural Sri Lanka in September 1989. Photo by Prasanna Hennayake

This was not a case of generalized ”ideology of violence” within society. It was class warfare, waged from above by the capitalist state to defend private property, intimidate the working class, and preserve bourgeois rule. It was facilitated by the political vacuum created by the betrayals of the old left and the inability of the Revolutionary Communist League (RCL), the predecessor of the Socialist Equality Party (SEP), to politically break the working class and the rural poor from the grip of the petty-bourgeois JVP and other Stalinist and Maoist organizations in time to develop an alternative mass leadership.

However, it was only the RCL, the Sri Lankan section of the International Committee of the Fourth International (ICFI), the world party of the working class, which alone insisted that the fascist violence of the JVP and the state terror could only be opposed by the independent political mobilization of the working class on a socialist and internationalist program. In November 1988, in order to mobilize the independent power of the working class, it called for a united front of working-class organizations to fight both state repression and JVP fascism, as an immediate practical measure. Instead of supporting this effort, the LSSP, the Communist Party (CP), Nawa Sama Samaja Party (NSSP), and Ceylon Workers’ Congress (CWC) aligned themselves with the terror of the UNP regime, which armed them against the JVP. This betrayal aided the state in unleashing mass repression on the rural poor of the South and launching its racist war against the oppressed Tamil people.

None of these dynamics are on the historical balance sheet of those who seek to “push” the contemporary youth “to the very edges of these established frameworks.”

Today, the pseudo-left has once again emerged as a shield for the ruling class, which has endorsed the JVP/NPP as its saviour. The JVP-led NPP is using its parliamentary position not to uncover or prosecute the war crimes of the past, but to bury them. Its recent tabling and debating of the Batalanda Commission report—gathering dust for over two decades—is a cynical gesture meant to divert public attention from IMF austerity measures. The NPP is objectively poised not to challenge the military, nor the UNP, nor the interests of imperialism. It fears that any real reckoning with the crimes of 1988–90 will expose not only the state, but the politics of the JVP itself.

The working class and rural poor must reject the “common guilt” thesis advanced in Rani and promoted by figures like Weerasinghe. They must demand justice based not on emotional reconciliation, but on historical truth and political accountability7.

Neither of these are possible within the capitalist state. It requires the building of a revolutionary socialist movement of the working class to finally break the grip of imperialism, overturn the legacy of terror, and unify the oppressed—Sinhala, Tamil, and Muslim—on the basis of a common struggle against exploitation.

The film’s thesis, and Weerasinghe’s article by extension, constitute an aestheticized historical falsification, a rebranding of a reactionary historical revisionism in the garb of “critical reflection.” The function of art, if it is to be progressive, is not to obscure these truths but to clarify them. Rani fails in this most fundamental task. It replaces history with impressionism, class analysis with pseudo-science, and revolutionary clarity with reactionary confusion.

  1. My Thoughts on Handagama’s Rani, Jagath Weerasinghe, Daily FT on March 28, 2025. <https://www.ft.lk/columns/My-thoughts-on-Handagama-s-Rani/4-774887>
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  2. Anidda, February 2, 2025, A discussion with Ashoka Handagama by Upali Amarasinghe, p19.
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  3.  ‘[A]ntisemitism moved many thousands of “ordinary” Germans—and would have moved millions more, had they been appropriately positioned—to slaughter Jews. Not economic hardship, not the coercive means of a totalitarian state, not social psychological pressure, not invariable psychological propensities, but ideas about Jews that were pervasive in Germany, and had been for decades, induced ordinary Germans to kill unarmed, defenseless Jewish men, women, and children by the thousands, systematically and without pity.’ Daniel Goldhagen, Hitler’s Willing Executioners: Ordinary Germans and the Holocaust, (New York: Alfred A. Knopf, 1996), p. 9.
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  4. The Myth of “Ordinary Germans”: A Review of Daniel Goldhagen’s Hitler’s Willing Executioners,  David North (April 1997) in The Russian Revolution and the Unfinished Twentieth Century (2014). <https://www.wsws.org/en/special/library/russian-revolution-unfinished-twentieth-century/15.html
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  5. <https://www.facebook.com/reel/3824881814291061?sfnsn=wa&mibextid=6AJuK9> ↩︎
  6. Race, class and social conflict in the United States, Niles Niemuth, SEP Summer School Lecture 2021, <https://www.wsws.org/en/articles/2021/09/06/race-s06.html
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  7. Batalanda Slaughter Chambers and the Mass Graves: The class roots of crimes against the poor and the working class of Sri Lanka, Sanjaya Jayasekera, March 23, 2025, <https://www.thesocialist.lk/batalanda-slaughter-chambers-and-the-mass-graves-the-class-roots-of-crimes-against-the-poor-and-the-working-class-of-sri-lanka/


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