Revolution in South Asia

An Internationalist Info Project

Philippine Communists: Capitalist Crisis is Excellent Conditions for Revolution

Posted by n3wday on November 5, 2008

This article was sent out on the Maoist Revolution e-list.

Excellent conditions for revolutionary upsurge in the face of the worsening global capitalist crisis

Communist Party of the Philippines
October 15, 2008

The world capitalist system is undergoing a deepening recession that can only result in the massive destruction of productive forces and further concentration of capital in the hands of a few. This global economic malaise is now causing production slowdowns, massive job losses, worsening impoverishment and intensified exploitation and oppression of the proletariat and ordinary people in the capitalist centers, with even worse consequences for peoples in the Third World.

The bursting of the biggest financial bubble in history and the severest financial crisis since the Great Depression have already caused the collapse and subsumption of many of the largest banks and financial
institutions, the sweeping credit crunch, the continuing meltdown of stock markets and near paralyzation of other financial markets.

The financial crisis has become so acute that, aside from several
hundred billions already thrown in, the US government has allocated $700
billion and is planning to pour in more funds in a vain attempt to
salvage the “toxic assets” of finance giants and buttress the battered
capitalist financial system in the US and abroad. More than a trillion
dollars is being poured in by the US and other imperialist governments
and big finance capitalists to salvage more collapsing banks and
financial markets in other capitalist countries.

These measures have, however, only been met with doubt and skepticism
over their effectivity in stemming the financial crisis. After a few
gasps of apparent resuscitation, financial markets have only continued
to plunge. All these massive diversions of taxes and funds to rescue
losing finance giants from their own greed have only angered the
impoverished masses much divested of social assistance and made more
miserable in the face of deprivation and worsening economic hardships.

The current crisis besetting the global capitalist system reaffirms the
correctness of the Marxist-Leninist critique of the moribund capitalist
system and the need to overthrow it through revolutionary struggle and
supplant it with a socialist order.

The rotten capitalist system has become even more absurd and
unproductive as the imperialists are engaged in ever greater financial
speculation and accumulation of surplus finance capital than in
production. Meanwhile, accelerating overproduction of surplus capital
leads to cyclical overproduction in the real economy with piles of
unsold inventories of houses, cars, computers, food items and other
commodities, followed by production slowdowns, underconsumption and
stagnation. The result is massive destruction of productive forces and
billions of people around the world condemned to unemployment, poverty,
hunger and utter desperation.

At the root of the current financial crisis is the concentration and
accumulation of capital which has resulted in the ballooning of finance
capital detached from production in the real economy. The amount of
surplus capital employed in financial speculation has grown several
times bigger than productive capital. The current financial crisis, in
particular, was triggered by the accumulation by big finance capitalists
of trillions of dollars of overblown assets and superprofits from the
housing and subprime derivatives bubble.

As a result of the unproductive accumulation of finance capital,
industrial production has turned recessive and presently continues to
contract. Joblessness in the US is at a five-year high, with the number
of unemployed expected to swell by another million by year’s end. This
is on top of the 9.5 million already unemployed in the US.
Underemployment is soaring to even higher record levels. The consumption
crisis, following the burst of the housing bubble, has become protracted
and has made a turn for the worse. Previous irrational capitalist
overproduction has turned to disastrous stagnation and underconsumption.

In the face of the worsening crisis of the capitalist system, it is the
miserably pauperized working class and ordinary people who suffer the
most. More than a trillion dollars have been used to salvage losing
finance capitalists in the imperialist countries and provide their
losing executives with tens of billions in “golden parachutes.” On the
other hand, the mass of their working class and ordinary people whose
tax payments provided these funds, are left with practically nothing.

The imperialists have been forcing trade and investment liberalization
and denationalization policies on their semicolonies as a means of
further exporting their surplus capital, dumping their surplus products,
plundering natural resources and taking advantage of the cheap labor and
raw materials in their semicolonies. This has resulted in the
large-scale destruction of productive forces, and mass unemployment,
poverty and hunger in these countries. The spread of the global crisis
of capitalism and the intensification of the exploitation and oppression
of the working class and oppressed people are worsening even further the
chronic crisis in the semicolonies and impoverished nations.

As its “solution” to the threat of the worsening global capitalist
crisis on the flimsy semicolonial and semifeudal economy, the puppet
Arroyo regime is further opening up the national economy to foreign
investments, plunder of the natural resources, lopsided neocolonial
trade, increased deficit government spending, more public and foreign
borrowings, and even more intensified taxation of the people. The US and
its puppet regime are pushing more policies and measures geared towards
the removal of whatever remaining protection there is for the national
patrimony and the interests of the toiling masses and the people. The
policies include the long-standing scheme to change the constitution of
the reactionary government to prolong the reign of the ruling regime.

These policies and measures aim to further open up the economy and
resources of the country to the ravages of the imperialists and their
big comprador and big bureaucrat accomplices. Instead of alleviating the
crisis, the resulting production downfalls, increased unemployment,
intensified inflation, reduced consumption and heightened poverty and
hunger will only worsen the economic crisis and heighten the people’s

The current crisis of the global capitalist system provides excellent
conditions for revolutionary upsurge as the working class and other
oppressed and exploited people all over the world who have been pushed
to the wall have no other recourse but to further intensify their
revolutionary struggles and advance their interests.

The Communist Party of the Philippines (CPP) and the entire
international proletarian revolutionary movement anticipate the
reinvigoration and resurgence of the Marxist-Leninist-Maoist movement
and the heightening of working class and people’s revolutionary
struggles the world over.

The worsening socio-economic crisis in the Philippines is pushing
millions of workers, peasants and other democratic sectors to wage
people’s struggles and advance and support people’s war. The CPP calls
on all revolutionary mass forces to take advantage of the current
situation to step up recruitment, consolidate their ranks and intensify
their struggles.

In the midst of the worsening crisis of the present system, the New
People’s Army (NPA) will further intensify revolutionary armed struggle,
launch more tactical offensives against the fascist armed forces, deal
heavy blows on the US-Arroyo regime for its pro-imperialist,
anti-democratic and antipeople policies and punish it for inflicting
great harm and misery upon the people.

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