Land and Housing
S'bu Zikode

[Text of a speech by S'bu Zikode at the Diakonia Council of Churches Economic Justice Forum - an audio recording of the speech, including the discussion afterwards, is available from Diakonia. Translated from the Sowetan.]

I have been asked to speak on the burning issues of land and housing. I only get these invitations because of the strength of the movement of which I am part and so, on behalf of Abahlali baseMjondolo, I thank Diakonia for this platform.

The churches have rallied to our struggle in difficult times – after fires, after arrests, after beatings. We know about the role that the churches have played in Brazil and in Haiti and we believe that the churches can play the same role here if they take a clear decision, as some church leaders bravely have already, to be with the people, to clearly take the side of the people instead of being just another 'stakeholder'. Bishop Rubin Philip has stood strong in the politics of the poor and tonight I want to say that we wish him a quick and full recovery from his illness.

Notes on the "Bailout" Financial Crisis George Caffentzis 0. These notes on the political-financial crisis were written in the last month while many US financial corporations were, in effect, nationalized in response to the bankruptcy of several major investment and commercial banks. The notes have been prompted by the fact that there has been remarkably little political activity in the streets, union halls, retirement communities of the country demanding a resolution of the crisis in favor of the millions of workers who are now losing wages, houses and pensions. Certainly not even the most compliant unions and the retirement associations were invited to participate in the negotiations that were carried on concerning the legislation. Is this lack of attention to workers' interests due to the "shock" tactics that the Bush Administration used to push the "bailout" legislation? Perhaps, but we also think that money and the financial sector of capitalism that deals directly with it have been inherently opaque to working class political analysis and action for more than a century. (The last time there was a self-conscious working class debate on a national level concerning the money form was the 1896 election when the fate of the gold standard hung in the balance.) The purpose of these notes is to present in outline a way of understanding this crisis as developing out of class struggles taking place in the US and internationally in the last decade. This can be useful, I believe, since if class struggles had the power to create the crisis, then understanding them might guide us to the path that would lead us out of the crisis with more power. 1. Financial crises are difficult to understand from the point of view of class politics, for our model of class struggle to this day is still the factory where the workers' labor power is bought (through the payment of a wage) by capitalist firms and put to work along with machines and other inputs to produce a product that is sold for a profit. The workers are worked harder, longer, more dangerously and/or more productively in order to make a larger profit. They respond to this work regime by a combination of means, from compliance to a thousand and one ways of passive resistance to strikes to factory take-overs, while the capitalists devise strategies to resist this resistance. This struggle can take a myriad of forms (sometimes involving the most refined application of social and psychological sciences and sometimes the most brutal forms of assassination and torture), but the factory model is categorically straight forward: workers resist exploitation and capitalists resist their resistance; with profits and wages most often moving inversely. It is all apparently simple, but it can become complex because in a struggle there are many deceits and tricks each side plays both on each other and on observers (present and future). When it comes to money and the financial corporations that operate with it (banks, mortgage loan corporations, and other money market firms) this model of class struggle seems not to operate. Why? There are at least three primary reasons. First, money is quite a different "product" than either physical things like cars or services like massages. It is a bit mysterious. Words that combine the philosophical and necromantic like "magical," "abstract," "fetishistic," and "universal" are often used to describe money and to immediately give the impression that, compared to other commodities, the usual rules do not apply. For example, money is a unique kind of commodity, for it exchanges with all other commodities, a role that no other commodity plays. Second, while industrial or commercial firms require the production and sale of a non-monetary commodity in order to "make money," financial firms make "money from money." They seem to operate in an abstract realm without a spatial location. This adds to the weirdness of the financial firms that during the history of capitalism have always attracted both fascination and hostility from other capitalists and workers. Third, they claim a different form of income than other capitalists and workers: Interest. When it comes to making money they make it in the form of interest on loans to capitalists (who pay interest out of their profits) and workers (who pay interest out of their wages). In other words, the money financial firms "make" is created "elsewhere" by workers working for non-financial capitalists. The workers of the financial firms themselves may be exploited--e.g., be forced to work long hours and get paid in worthless stock bonuses--but the income that the firms' owners receive does not derive from these employees' efforts in producing a product. It comes from the profits and wages of those who received loans who are, in most cases, not their employees. Where does the right to earn interest come from? How is it determined? These kinds of questions haunt our understanding of financial firms, since it appears that in a society where work is the source of value, interest appears to be like "creation out of nothing"!

A Shattering Moment in America's Fall from Power John Gray, The Observer Sunday September 28 2008 The global financial crisis will see the US falter in the same way the Soviet Union did when the Berlin Wall came down. The era of American dominance is over. Our gaze might be on the markets melting down, but the upheaval we are experiencing is more than a financial crisis, however large. Here is a historic geopolitical shift, in which the balance of power in the world is being altered irrevocably. The era of American global leadership, reaching back to the Second World War, is over.

"The Social Factory" Otonom “Meanwhile, and incidentally, there opened up for us the prospect, which cannot be sharply defined yet at this point, of a specific relation of capital to the communal, general conditions of social production, as distinct from the conditions of a particular capital and its particular production process.” (Marx, Grundrisse Notebook V, 1973)1 This emphasis by Marx which has mostly remained unrealized among the lines of Grundrisse has not been paid attention and reflected upon by Marxists in general except Negri. Even if it may have been reflected upon, it wouldn’t be wrong to say that the implications of such a reflection have been very few in political theory and practice. This is not a problematic which is disregarded intentionally. As Marx has already said, this is related to the insufficient historical and social development of the specific relation of capital to communal, general conditions of social production, which is a prospect for us that cannot be defined yet at this point.