June 27, 2022
By Chris Fry
This article is a continuation from Part 1. which discussed the recent wave of inflation that has hit workers and the oppressed communities with devastatingly high prices. It also discussed the Federal Reserve’s plan to “stop inflation” by sharply raising interest rates, which threatens to add the specter of a recession, adding spikes in interest rates and an explosion of layoffs to the current inflation crisis.
On June 22, Federal Reserve Chairman Jerome Powell appeared before the Senate Banking Committee. Senator Warren asked Powell:
Warren asked Powell if Fed rate increases will lower gas prices, which have hit record highs this month.
“I would not think so,” Powell said.
Warren asked if grocery prices will go down because of the Fed’s war on inflation.
“I wouldn’t say so, no,” Powell said.
Obviously, this bankers’ banker is not the slightest bit interested in the rapid decline in the standard of living of the working class. But his drastic policy is designed to please somebody. So, we must explore why we face this current spike in prices as well as an impending recession….
This is a global issue, not restricted to just the U.S.
When a zombie company goes bankrupt, its assets are turned over to its creditors. Banking and industrial monopolies can feast on the zombie corporate “remains”. But common stockholders like IRAs, 401-K programs and pension funds get nothing, and the bankrupt company workers, numbering some 2.2 million, are thrown out on the street, enough to throw the country and the world into a depression.
To finance capital owners, to the billionaire class, all of this is a good thing. It promises them more power and domination. It motivates them to strengthen their forces of reaction and repression, to wage imperialist war, to suppress any resistance. But to the workers and oppressed, it spells disaster, a new crisis, and a new need for organized militant struggle.