Another step toward first U.S. debt crisis in history

San José, CA – Today, Oct. 15, right-wing Republicans in the House of Representatives stopped the House Republican leadership from trying to pass a compromise measure to re-open the federal government and raise its debt ceiling. This marks another step towards the first U.S. debt crisis in history.

Across the globe, workers are fighting back against their bosses and people are standing up to their oppressors. On May 1 people around the world will celebrate International Workers Day – commonly called May Day – by taking to the streets. To mark the occasion, the Freedom Road Socialist Organization (FRSO) urges all revolutionaries, progressives, activists and organizers here in the U.S. to go all out building the people’s fightback against capitalist greed and struggle for socialism.

Millones de personas se encuentran sin trabajo. Aquellos que dieron de baja están siendo evacuados de sus hogares porque sus hipotecas están siendo ejecutadas, perdieron seguros de salud y luchan cada vez mas duro para sobrevivir. El desempleo entre la juventud esta muy alto. Incluso los graduados universitarios se ven forzados a vivir en la casa de sus padres. Muchos no pueden hacer mensualidades a los préstamos universitarios. Millones de inmigrantes, ambos documentados e indocumentados, son dados de baja y sin poder trabajar, se ven obligados a abandonar el país después de haber trabajado años en los EU.

Most of the countries in the euro-zone, which includes most of the major economies of Europe (Great Britain and Switzerland being two notable exceptions), are now in a recession. The zone’s largest economy, Germany, is rapidly slowing. This growing crisis of overproduction among the capitalist economies of Europe is having a worldwide impact, with Asian economies and the U.S. being affected by slowing trade and growing fears of another financial crisis.

Agreement won’t help Spain’s economic depression

San José, CA – On June 9, Spain and the European Union made an agreement to bail out Spain’s troubled banking sector. This agreement means Spain is the fourth country (along with Portugal, Ireland and Greece) in the eurozone to have to take a bailout.

St. Paul, MN – Frente a una pancarta que dice, “Rescate del pueblo pobre y trabajador – No a los billonarios!” las líderezas del Comité por el Derecho de Asistencia Pública anunciaron una campaña para combatir el impacto de la creciente crisis económica en una conferencia de prensa el 29 de octubre. Acompañándolos en la actividad se hicieron presentes miembros del sindicato de oficinistas AFSCME 3800, el Comité Anti-guerra, Mujeres en Contra de la Militarización y otros grupos que luchan por la paz y la justicia.

San José, CA – Poco antes de las fiestas de fin de año, los republicanos en la Cámara de Representantes y en el Senado acordaron recortar programas sociales de ayuda para personas de bajos recursos y para las clases trabajadoras como son el “Medicaid” (servicios de salud para personas de bajos recursos), los prestamos para que los estudiantes asistan a la universidad, “TANF” (Ayuda Temporal para Familias Necesitadas) y el “Medicare” (servicios de salud para personas mayores). Al mismo tiempo, los republicanos aprobaron en la Cámara de Representantes una propuesta, respaldada por el presidente Bush, para reducir los impuestos para los negocios y para los ricos.

Raleigh, NC – “We’re in the middle of an historic crisis,” the president of the North Carolina Public Sector Workers Union (UE 150), Angaza Laughinghouse, told Fight Back!. “It requires a historic response from unions, youth groups, faith groups and community organizations to develop the fight back.”

Minneapolis, MN – “You got bailed out, we got sold out! Stop foreclosures now!” was the rallying call during a protest here June 13 as a crowd of 75 people surged to the doors of a US Bank branch on Lake Street. Minneapolis police officers blocked the doors of the bank building, calling in more squad cars, which arrived with sirens blaring.

Minneapolis, MN – In a packed Hennepin County Court room, May 26, District Judge Lloyd Zimmerman decided to delay the foreclosure-related eviction trial of Rosemary Williams until June 22. A hearing on the legal issues to be considered at the trial is scheduled for June 16.

San José, CA – The United States is now in its longest recession since the Great Depression of the 1930s. At the end of April, the recession that officially began in December of 2007 reached 17 months in length, passing the deep 1981-82 and 1974-75 recessions. The economy has lost almost 6 million jobs, or 4.1% of total jobs at the beginning of the recession, the worst downturn since the recession of 1948. Unemployment in the African American community hit a depression-level 15% in April, while unemployment for Asian Americans has risen the fastest, more than doubling over the last year.

St. Paul, MN – Fifty protesters gathered on tax day, April 15, on the front steps of the Minnesota state capitol building to demand state government tax the rich and not balance the state budget on the backs of working and low-income people. Organized by the Minnesota Coalition for a People’s Bail Out, speakers included leaders of labor unions, low-income groups and anti-war organizations.

San José, CA – On Friday, April 10, the U.S. Department of the Treasury reported that the federal government budget deficit for the first six months of Fiscal Year 2009 (which runs from October to September) was $957 billion. This was more than three times as large as the deficit was at the same time last year and is on track to a record $1.8 trillion ($1800 billion) deficit as projected by the Congressional Budget Office. This is the largest federal government budget deficit relative to the size of the economy since 1944 at the height of World War II.

663,000 More Jobs Lost in March

San José, CA – On April 3 the monthly jobs report by the Department of Labor showed that the official unemployment rate jumped from 8.1% in February to 8.5% in March, while the economy lost another 663,000 jobs. In addition, the number of jobs lost in January was increased by 90,000, to 741,000, which was the worst one-month job loss in 60 years. So far the economy has lost 5.1 million jobs since the recession began, making this the worst recession in terms of jobs lost in more than 50 years.

Chapel Hill, NC – Chanting “They say cut back, we say fight back!” a group of 50 students, campus workers and faculty marched on the Board of Trustees meeting March 26. The main theme of the protest was “No budget cuts on the backs of students and workers.” After rallying on campus, the demonstrators marched over to the Carolina Inn, a luxurious hotel that was hosting the Board of Trustees meeting.

San Jose, CA – On Monday, March 30, President Obama took a tough line with General Motors and Chrysler, which had asked for billions more in aid from the government. GM CEO Wagner was forced to resign, and GM has 60 days to submit a new business plan with more cost cutting. Chrysler was given 30 days to sell a stake to Italy’s Fiat. Otherwise, said Obama, the car companies will go into bankruptcy. To help the companies through this restructuring, the government will be guaranteeing car warrantees and payments to parts suppliers.

Demonstrators say, “Moratorium now on foreclosures and evictions!”

Minneapolis, MN – About 100 demonstrators gathered outside the Minneapolis Convention Center to protest a massive auction of foreclosed homes, March 28. The protest was initiated by the Minnesota Coalition for a People’s Bailout.

St. Paul, MN – The first legislative hearing on the Minnesota People’s Bail Out Act (House File 626) was held in the Minnesota House Labor and Consumer Protection Division Committee, March 20.

Fed to Inject $1.15 Trillion More into Credit Markets

San José, CA – On March 18, the Federal Reserve announced that it would inject an additional $1.15 trillion into credit markets. With short-term interest rates already close to zero percent, the Federal Reserve will try to lower long-term interest rates in an effort to boost the economy. The Fed will buy another $750 billion in bonds backed by mortgages guaranteed by Fannie Mae and Freddie Mac, $300 billion in long-term U.S. government treasury bonds and another $100 billion in bonds issued by Fannie Mae and Freddie Mac.

Recently the media has been abuzz with talk of the possible ‘nationalization’ of ailing big banks such as Citigroup. Both Democrat and Republican senators, as well as the former chair of the Federal Reserve, Alan Greenspan, have raised the possibility of a temporary ‘nationalization’ or government takeover of big banks.