By Steve Wallace

The financial events of 2008–2009 inaugurated not only an economic but a new ideological crisis of capitalism. How deep this crisis will become depends on the development of the economic situation and the intervention of the political left. The character of this crisis, however, can be seen most clearly by placing it in an historical context.

Twenty years ago, in 1989–91, capitalism achieved enormous victories. It overthrew the non-capitalist economies in the USSR and Eastern Europe. The opportunity to achieve this was created by the final failure of the policy of ‘socialism in one country’ inaugurated by Stalin – with its economically utopian attempt to create a fully developed socialist society within the framework of a single state, its introduction of a fully planned economy in a short period by administrative means, and the political repression that followed from such policies.

By Sammy Barker

The relative decline of US imperialism has underpinned the domestic debate about President Obama’s troop surge in Afghanistan.

In his speech to the Corp of Cadets at West Point on 1 December, Obama said: ‘…as we end the war in Iraq and transition to Afghan responsibility, we must rebuild our strength here at home. Our prosperity provides a foundation for our power. It pays for our military. It underwrites our diplomacy. It taps the potential of our people, and allows investment in new industry. And it allows us to compete in this century as successfully as we did in the last. That is why our troop commitment in Afghanistan cannot be open-ended because the nation that I am most interested in building is our own.’

This drew a fierce response from the Wall Street Journal, which supports the surge as a necessary expression of power, not as an unfortunate diversion from its exercise at home:

By Stephen MacAvoy

The narrowing of the Tory lead in the opinion polls over recent months underlines that the outcome of the next election is not certain. The political implications are clear: a shift by Labour to policies that motivate the overwhelming majority of the population threatened by the Tories’ planned harsh economic policies could prevent a Conservative government.

Despite the backdrop of a deep economic downturn and strong backing from most of the press amongst other factors, the Conservatives are still only polling on average at around 40 per cent (see UK Polling Report 28 December).