interest

South Korean Dictator Dies, Western Media Resurrects a Myth

By K. J. Noh

General Chun Doo Hwan was the corrupt military dictator that ruled Korea from 1979-1988, before handing off the presidency to his co-conspirator General Roh Tae Woo.  Chun took power in a coup in 1979, and during his presidency he perpetrated the largest massacre of Korean civilians since the Korean war. He died on November 23rd, in pampered, sybaritic luxury, impenitent and arrogant to the very last breath.  

Many western media outlets have written censorious, chest-beating accounts of his despotic governance and the massacres he perpetrated (hereherehere, and here)-- something they rarely bothered to do when he was actively perpetrating them in broad daylight before their eyes.  Like the light from a distant galaxy--or some strange journalistic time capsule--only after death, decades later, do "human rights violations" in South Korea burst out of radio silence and become newsworthy.

Better late than never, better faint than silent, better partial than absent, one could argue.  Still all of them miss out on key facts, spread lies through omission.  A key dimension of Korean history and politics looks to be buried with his death. A little background history is necessary to elucidate this.

The Sorrows of the Emperor-Dictator

The imperial president, Park Chung Hee

Chun's predecessor and patron, the aging South Korean dictator Park Chung Hee, had ruled the country as an absolute totalitarian despot for 18 years, but he knew in his bones that his days were numbered. He had survived two violent assassination attempts, mass civil protests, and even opprobrium from his American puppet masters, despite serving them loyally by sending 320,000 South Korean troops to Vietnam. Even Park's closest advisors were worried about the fragility of his rule.

Park Chung Hee had been a former Japanese military collaborator during Japan’s colonization of Korea. A US-installed puppet Syngman Rhee had smashed socialism in the South through genocide--a method later to be replicated in Indonesia's "Jakarta method".

Park Chung Hee (in Sunglasses) and Cha Ji Chul (right; in camo), 1961 during their coup.

But the puppet-genocidaire Rhee was in turn toppled by student protests in 1960, and the integration of South Korea into a US-led security structure and capitalist order looked precarious due to popular hatred of the US. Into this foment, Brigadier General Park took power in a vicious putsch. Park was a totalitarian fascist groomed within the Japanese military system, where he had conducted counterinsurgency against Korean independence fighters in Manchuria. (One of them, a legendary guerrilla leader called Kim Il Sung, would escape his clutches and become a life-long nemesis). He had then been trained and cultivated by the US during the 1950's, attending military school in the US. When Rhee was deposed, Park rapidly took power, pledging fealty to the US and total war against communists. Having already proven his anticommunist credentials through a massive treachery, betrayal and slaughter, he was welcomed by the Kennedy Administration. This established the Junta’s legitimacy, while maintaining the continuity of US colonial “hub and spoke” architecture in the region.

Park Chung Hee as Japanese Military Officer

Park nominally assumed the presidency through an election but then tightened his regime until he attained the powers of the Japanese Emperor, whom he had worshipped and admired during Japanese rule. He formally rewrote the constitution after the Japanese imperial system, legally giving himself the powers of Showa-era Sun God.  This, along with his dismissal of colonial atrocities to normalize relations with Japan, in obeisance to the US strategic design for the region, resulted in massive civil insurrection against him.  These protests were barely put down with mass bloodshed, torture, disappearances, and terror.  But even among his inner circle, doubts were voiced about his extreme despotic overreach.   

 

The Insurance Policy: Ruthless and Cunning

From the earliest days of his rule, Park Chung Hee had cultivated high ranking officers to key positions, as loyal retainers in an insurance policy in case a coup happened against him.  A secret military cabal, later to be called "Hanahwe" [also, “Hanahoe”; "the council of one"], a group of officers within the 1955, 11th class of South Korea's Military Academy, had signaled their total fealty to Park during Park's military coup in 1961.  As a result, Hanahwe members were rapidly brought in-house, rewarded with powerful roles within the military government, and formed a deadly, elite Praetorian guard within the labyrinthine power structures of the Park Administration. 

Park Chung Hee with Lyndon B. Johnson, 1963

Two of them were the leaders of this secret-society insurance policy.   One of them, Chun Doo Hwan, would be referred to as the "ruthless one", known for his amoral brutality and utter lack of conscience.  He would later be called "the slaughterhouse butcher".  The other was Roh Tae Woo, Chun's military blood brother, the "cunning one", known for his strategic, tactical, and political cunning.

Power players, left to right: Roh Tae Woo, Chun Doo Hwan, Cha Ji-Chul

Together, “Ruthless and Cunning” would prove their mettle in Vietnam, auditioning as understudies for the US Imperial war machine, and proving their bona fides by operating a rolling atrocity machine, the SK 9th Infantry "White horse" Division, where Chun’s 29th regiment would cut its teeth on brutal massacres against Vietnamese civilians. Psychopathic and Amoral, they would form a two-headed hydra, ensuring Park's rule against enemies within and without.  A third member of Hanahwe, Jeong Ho Yong, would also cut his teeth in the 9th Division in Vietnam, as would the Capital Mechanized "Fierce Tiger" Division, and various Marine and Special warfare brigades.  All would gain recognition and favor with the US military brass in Vietnam, where South Korean troops would eventually outnumber US troops on the ground.  They would also play key roles in future Korean history.  

  

Sex, Whiskey, and Guns: High Deductibles

Park's insurance policy kicked in when his KCIA chief pumped him full of bullets at a whiskey-sodden orgy gone bad in late autumn of 1979.  Two young women--a nervous college student and a popular singer--had been procured to serve the sexual whims of the president at a luxurious KCIA "safehouse" that had been set up for such routine vernal assignations.  During the pre-coital dinner banquet, with expensive whiskey serving as lubricant, a heated argument arose between the KCIA Chief, Kim Jae Kyu and Chief Presidential Bodyguard, Cha Ji Chol, about how to put down massive civil protests against Park's rule in Pusan and Masan. Cha Ji Chol proposed the "Pol Pot option" arguing that a massacre of 30,000 civilians would subdue civilians and put the genie back in the bottle.  This was accompanied by insults at Kim for not having implemented such "effective" measures.   Kim Jae Kyu, incensed either at the casual brutality or at the blatant criticism, put an abrupt end to the debate by drawing his pistol and shooting Cha and Park. "I shot the heart of the beast of the (Yushin) dictatorship", he would later claim.  Park's insurance policy would rapidly kick in at that point, although the deductible would be his own life.  

Enter the Praetorian Guard: Tigers, Horses, and Dragons

After Park's death, Oct 26th, Lt General Chun Doo Hwan, the head of the Armed Forces Defense Security Command (DSC)--Park's institutional Praetorian Guard--rapidly took matters in hand.  Chun would rapidly take over, first the investigation of the assassination, then key army positions, and then the government.  Some historians marvel at the rapidity with which Chun consolidated power and how quickly he disciplined loose factions within Park's old guard.  This ignores the rhizomatic base of Hanahwe deep within the executive and in all branches of the military, and the institutional powers baked into the DSC to preserve loyalty and deter subversion and coups. 

Chun, using his statutory powers, and good dose of military firepower, arrested key military leaders for the assassination, and then on Dec 12th, 1979 instigated a coup, supported by Hanahwe comrade Roh Tae Woo, now division commander of the 9th “White Horse” Division. Roh withdrew the elite unit away from its critical position on the DMZ to the Capital, where they were joined by another Vietnam/Hanahwe classmate, general Jeong Ho Yong.  These troops, with another Vietnam-veteran division, the Capitol Mechanized "Tiger" Division, and various special warfare brigades, fought the old guard in the streets before rapidly subduing them. Not long after this class reunion, Chun would declare martial law and appoint himself president with a new constitution and fill all key military ranks with his Hanahwe classmates.

 

A "Splendid Holiday" turns sour

Mass protests broke out again after Chun’s declaration of Martial Law on May 17th, 1980.  In the city of Gwangju, hundreds of students protested. 

Chun's response was to send a crack division of special warfare troops to smash heads, assault bystanders, and shoot protestors, in an operation named "Splendid Holiday". Beatings, rapes, and mass killings were the order of the day; “blood flowed like rivers in the streets”.

Mass Protest in Gwangju, May 1980

However, in an extraordinary turn of events, stunned protestors, instead of capitulating at the terror, responded by storming police armories and requisitioning weapons, taxis, buses, and improvised explosives, to fight the elite troops to a standstill. Despite the deployment of helicopter gunships and Armored Vehicles, 3000 Special Warfare Paratroopers, along with 18,000 riot troops, found themselves driven out of the city. In this, the liberation of Gwangju stands out as one of the most astonishing feats of civil resistance of the 20th century.

Riot Troops and Paratroopers assault protestors and bystanders in Gwangju

This victory was not to last, however. After the rebels surrendered thousands of arms as a gesture of good faith to seek amnesty, Chun's administration would assault the city with 2 armored divisions and 5 special forces brigades. An untold number of civilians--excess death statistics note 2300 individuals--would be slaughtered, searing Gwangju into the historic annals of atrocity and infamy.

Anti-government protests would go underground, and re-erupt 7 years later, when Chun's presidency, which had been awarded the Olympics found it inconvenient to perpetrate another massacre in front of the international press in the run up to the Olympics.  Chun would accede to protestors' demands for a direct election, the outcome of which conveniently passed the presidency to his Hanahwe second, General Roh Tae Woo.

 

The missing factor:  Who let the dogs out?  

The above are the basic historical outlines, acknowledged by most journalists and historians.  But what they miss out, is the platform and permissions that circumscribed these historic events.  In particular, two questions arise: Under what authority did Chun initiate his coups? And how did he subdue Gwangju?  The answer leads back to the same place.  

South Korea has never had a policy independent of the US--it has always been a vassal neo-colony. This was demonstrated when the US placed THAAD missiles on Korean soil, ignoring the explicit orders of President Moon Jae-In by coordinating secretly with the South Korean military. Even US Ambassador Donald Gregg, acknowledged openly before Congress that the US-South Korea relationship had historically been a Patron-Client relationship.

This is because the Southern state of Korea, from its inception, was created deliberately by the US after liberation to thwart a popular, indigenous socialist government (the Korean People's Republic) from taking sovereign power over the entire peninsula.

Since its occupation in 1945 by the US military government, South Korea has always been constrained and controlled by the US. Its politics and culture, even where it might be nominally independent, has been thoroughly colonized by the US. For example, in the early 90's, a fractious intra-party conflict broke out between two Cabinet factions of the Liberal Kim Young Sam presidency.  The “irreconcilable” fight was between cliques who had studied political science at UC Berkeley and those who had studied at Yale.  Such were boundaries of South Korean discourse and the overarching nature of US influence.

This state of affairs is most true of the South Korean military, which was cloned from the US military during the US occupation of 1945-1948, and which has been continuously under US control (Opcon) since July14th, 1950

A young Chun Doo Hwan at US Army Special Warfare School, Fort Bragg (1950’s)

Key leaders such as Park, Chun, Roh were trained and indoctrinated into US military practices and culture and had close personal connections with the US military.  Chun, for example, had attended the US Psychological Warfare school and Special Warfare school in Fort Bragg, Ranger school at Fort Benning, and Airborne training at the US Army infantry school before receiving commissions to lead Special Warfare forces.  He then in Vietnam fighting under US MACV command before ascending to key positions in the ROK military.

This dependency is starkest regarding military operational control, which the US still maintains in “wartime” to this day. ROK divisions cannot move or act independently without explicit orders from the top of the military command chain, or unless explicit permission is granted to be released from this operational control. The head of the military command chain at the time of Gwangju was General John A Wickham Jr, the head of the UNC/CFC command.  Wickham would have been subordinate to the US Joint Chiefs of Staff. 

In other words, SK troops do not get to commit massacres on their own.  They need a hall pass from the US to engage in any military maneuvers or actions.  The US military granted them such a hall pass to travel down to Gwangju, knowing that this plan that would likely result in the slaughter of students and citizens.  The released units under the Special Warfare Command, a lethal killing machine, are all divisions with a deep integration with and long history of serving the US.

Chun Doo Hwan with Ronald Reagan, 1981

The US claims that it was utterly in the dark and in no position to refuse the release of Opcon demanded by South Korea: that the Koreans snatched up Opcon, like a bully stealing lunch money, and then went on to commit mass atrocities that the US could only sit by and watch in slack-jawed innocence. These are after-the-fact re-workings of history by creative lawyers ignorant of military realities. Militaries are instituted to have unity of command, and Chun was a US-trained, known actor in a specific chain of command, with close ties to the US brass.  The notion that a partially established coup junta of a client state could simply Swiss-cheese US military command structure and snatch Opcon to commit massacres at will strains credibility.  The absurd official portrayals of the US Military brass as hapless damsels before roguish generals is refuted by official records and smacks of satire or desperation.   

Protestors running from Troops, Gwangju, 1980

In fact, Journalist Tim Shorrock  using the declassified "Cherokee files", has detailed well the discussions that happened at the time of Gwangju: top US officials in the Carter administration 1) knew of the brewing crackdown and 2) greenlighted military action, knowing full well the costs.  According to Shorrock’s meticulous reporting:

[Troops] were sent with the approval of the US commander of the US-Korea Joint Command, Gen. John Wickham…That decision, made at the highest levels of the US government….exposed how deeply the Carter administration was involved in the planning for the military coup of 1980….the Carter administration had essentially given the green light to South Korea’s generals to use military force...

This action was authorized to avoid a second "Iran" debacle, where another US-placed despot had been overthrown by popular revolt to US consternation, humiliation, and loss.  Not only did the US greenlight the massacre by US-familiar Vietnam-veteran divisions, the US deployed the USS Coral Sea to support the flank of Chun's military during the retaking of the city and heightened surveillance support with AWACS. In other words, the Gwangju massacre was a US-enabled-and-supported operation, done with explicit US knowledge and coordination.

Pentagon lawyers have argued that they had previously "released opcon" to the Korean military, so that these massacres were not done under direct US control. That is a distinction without a difference, akin to a pit bull owner saying that they took their beast off the leash, and therefore are not responsible for the deadly consequences.  The ROK military was a US-trained-and-coordinated combatant force; some units involved had served directly under the US I Corps in Vietnam only years prior to Gwangju.  The very fact that the US released opcon, knowing full well their capacities, military histories, and what was on the cards, makes the whole argument a poor exercise in plausible deniability.  No one who has the smallest understanding of how armies work would fall for "the pit bull ate my homework" excuse.   

The US has also argued that the Special Warfare division was exempt from opcon at the time.  This, too, is a legal fiction--Special Warfare Troops, of all ROK troops, are the most tightly integrated and bound to US command, where they have a long history of training, coordinating, and working with and as proxies for the US military. (The US maintains this pretense because SWF are designed to infiltrate into NK, where the necessity to avoid US command responsibility requires a legal fiction of "independence").

The same could also apply for Chun's coups as well.  The Dec 12th coup involved the movement of the Vietnam-veteran 9th division, far away from its position guarding the DMZ to attack the incumbent government, along with maneuvers of the Capital Mechanized Division and Special warfare troops.  The May 20th coup also involved large troop maneuvers to threaten and dissolve the Korean parliament.  South Korea is a small, crowded peninsula, bristling with arms and military bases on hair trigger alert, surveilling and monitoring every inch of its territory for military movement.  To assert that the US command was aware of the coups is not conspiracy that presumes US omniscience.  It's simply assuming clear signaling on a crowded dance floor to avoid inadvertent collisions.  It's inconceivable that such a massive troop maneuver would not have been signaled up the chain at minimum to avoid a friendly fire incident.  

 

Return OPCON, Restore Peace

So where do these facts leave us? 

As the media stir up the flies around Chun's sordid past, they also seek to bury with his body the fact that South Korea's military is an appendage of the US military, and that its warts, chancres, and tumors are grown from within the US body politic. Exorbitant atrocities such as the Bodo League Massacres, or the Gwangju Massacre, accrue to the secret debit account of the US imperial ledger, where human rights violations vanish off the books, and where moral debt and karmic interest are never calculated or reconciled.  

Despite a confusing, bifurcated organizational structure (Independent command control vs. Subordinated operational control; Peacetime Opcon vs. Wartime Opcon), the bare political fact is that South Korea's military falls effectively under US control, not simply in “wartime”, but whenever it is politically expedient or strategically necessary. This card was obvious when the ROK military simply defied Moon’s moratorium on THAAD missile installation and took its orders from the US, not even bothering to notify the Korean president that the missiles had been delivered in-country.  Subsequent investigation revealed that the South Korean military claimed a confidentiality agreement with the US military as the reason to hide the information from South Korea’s own commander-in-chief.  

Not only does the ROK military translate the will of the US in domestic actions--including coups and massacres, but it has also functioned as a brutal sidekick for US aggressions abroad, and serves as a strategic force projection platform and force multiplier for US containment against China. Unlike any other "sovereign" state in the world, South Korea's 3.7 million troops and materiel all fall under US operational control the instant that the US decides that they want to use them.

This is despite the fact that since the inception of its civilian government in 1993, SK has sued the US for the return of Opcon.  This request is now going into its third decade; the US has simply stalled, moved goal posts, changed definitions and conditions, and stonewalled to this date.

This debate around Opcon is important in the current historical moment as the US is escalating to war with China. Any de-escalation with North Korea will require the declaration of peace, predicated on the return of sovereign opcon to South Korea.  However, the US will not seek to de-escalate tensions with North Korea, because if that happens, South Korea is likely to confederate in some manner with North Korea, join China's Belt and Road Initiative and then become integrated as an ally of China.  This would cripple the US security architecture in the Northeast Pacific.  This renders any peace with North Korea antithetical to US strategic interests. 

Secondly, the US escalation for War with China requires the capacity to access and threaten the Chinese continent across a series of leverage points. Inescapably, South Korea will be a key theater of battle, because of its geostrategic position as a bridgehead onto China.  Also, the temptation to leverage a force of 6.7 million South Koreans (3.7 M troops +3 M paramilitary) as cannon fodder for war against China is simply too irresistible to pass on.  In light of this, Korea expert Tim Beal argues that in this moment of heightened tension with China, the most dangerous place in the Pacific is not the South China Sea or the East China Sea, but on the Korean Peninsula.  

We will see this conflict heighten as South Korea enters into a new presidential election cycle between a US-favored conservative candidate, and a China-sympathetic progressive candidate.  

Nevertheless, South Korea’s history offers a stark and ominous lesson, one that the MSM would prefer you ignore: a battle is brewing, with very high stakes.  Under pressure, the US has taken brutal actions to maintain control and hegemony. It may do so again.  

Chun’s passing is being taken as an opportunity to distribute soporific drafts of historical amnesia--the better to sleepwalk into war or tragedy, again. 

People with a conscience should not let this misdirection pass.  To close one’s eyes to history is to enable future atrocities and war.   Only with eyes wide open does the public have a chance of staving off this coming war. 

 

K.J. Noh, is a scholar, educator and journalist focusing on the political economy and geopolitics of the Asia-Pacific.   He writes for Dissident Voice, Black Agenda Report, Counterpunch, Popular Resistance, Asia Times, MR Online.  He also does frequent commentary and analysis on the news programs The Critical Hour, By Any Means Necessary, Fault Lines, Political Misfits, Loud & Clear, Breakthrough News, Flashpoints. He believes a functioning society requires good information; to that end, he strives to combat the weaponization of disinformation in the current cold war climate.

Why Coronavirus Could Spark a Capitalist Supernova

By John Smith

Republished from Open Democracy. This article is part of Open Democracy’s 'Decolonising the economy' series.

“Global yields lowest in 500 years of recorded history. $10 trillion of negative rate bonds. This is a supernova that will explode one day,” tweeted Bill Gross, the ‘bond king’, in 2016.

This day has come closer. Capitalism now faces the deepest crisis in its several centuries of existence. A global slump has begun that is already devastating the lives of hundreds of millions of working people on all continents. The consequences for workers and poor people in Asia, Africa, and Latin America will be even more extreme than for those living in Europe and North America, both with respect to lives lost to coronavirus and to the existential threats to the billions of people already living in extreme poverty. Capitalism, an economic system based on selfishness, greed and dog-eat-dog competition, will more clearly than ever reveal itself to be incompatible with civilisation.

Why is supernova – the explosion and death of a star – an apt metaphor for what could now be about to unfold? Why could the coronavirus, an organism 1000th the diameter of a human hair, be the catalyst for such a cataclysm? And what can workers, youth and the dispossessed of the world do to defend ourselves and to ‘bring to birth a new world from the ashes of the old’, in the words of the US labour hymn, Solidarity Forever?

To find answers to these questions, we need to understand why the ‘global financial crisis’ that began in 2007 was much more than a financial crisis, and why the extreme measures taken by G7 governments and central banks to restore a modicum of stability – in particular the ‘zero interest rate policy’, described by a Goldman Sachs banker as “crack cocaine for the financial markets” – have created the conditions for today’s crisis.

Global capitalism’s ‘underlying health issues’

The first stage of a supernova is implosion, analogous to the long-term decline in interest rates that began well before the onset of systemic crisis in 2007, which has accelerated since then, and which fell off a cliff just as coronavirus began its rampage in early January 2020. Falling interest rates are fundamentally the result of two factors: falling rates of profit, and the hypertrophy of capital, i.e. its tendency grow faster than the capacity of workers and farmers to supply it with the fresh blood it needs to live. As Marx said, in Capital vol. 1, “capital’s sole driving force [is] the drive to valorise itself, to create surplus-value… capital is dead labour which, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks.”

These two factors combine to form a doom loop of awesome destructive power. Let us examine its most important linkages.

Many things both mask and counteract the falling rate of profit, turning this into a tendency that only reveals itself in times of crisis, of which the most important has been the shift of production from Europe, North America and Japan to take advantage of the much higher rates of exploitation available in low-wage countries. The falling rate of profit manifests itself in a growing reluctance of capitalists to invest in production; more and more of what they do invest in is branding, intellectual property and other parasitic and non-productive activities. This long-running capitalist investment strike is amplified by the global shift of production – boosting profits by slashing wages rather than by building new factories and deploying new technologies. This enables huge mark-ups, turbo-charging the accumulation of vast wealth for which capitalists have no productive use – hence the hypertrophy of capital.

This, in turn, results in declining interest rates – as capitalists compete with each other to purchase financial assets, they bid up their price, and the revenue streams they generate fall in proportion – hence falling interest rates. Falling interest rates and rising asset values have created what is, for capitalist investors, the ultimate virtuous circle – they can borrow vast sums to invest in financial assets of all kinds, further inflating their ‘value’.

Falling interest rates therefore have two fundamental consequences: the inflation of asset bubbles and the piling up of debt mountains. In fact, these are two sides of the same coin: for every debtor there is a creditor; every debt is someone else’s asset. Asset bubbles could deflate (if productivity increases), or else they will burst; economic growth could, over time, erode debt mountains, or else they will come crashing down.

Since 2008, productivity has stagnated across the world and GDP growth has been lower than in any decade since World War II, resulting in what Nouriel Roubini has called “the mother of all asset bubbles,” while aggregate debt (the total debt of governments, corporations and households), already mountainous before the 2008 financial crash, has since then more than doubled in size. The growth of debt has been particularly pronounced in the countries of the global South. Total debt for the 30 largest of them reached $72.5tn in 2019 – a 168% rise over the past 10 years, according to Bank of International Settlements data. China accounts for $43tn of this, up from $10tn a decade ago. In sum, well before coronavirus, global capitalism already had ‘underlying health issues’, it was already in intensive care.

Global capitalism – which is more imperialist than ever, since it is both more parasitic and more reliant than ever before on the proceeds of super-exploitation in low-wage countries – is therefore inexorably heading to supernova, towards the bursting of assets bubbles and the crashing of debt mountains. Everything that imperialist central banks have done since 2008 has been designed to postpone the inevitable day of reckoning. But now that day has come.

10-year US Treasury bonds are considered the safest of havens and the ultimate benchmark against which all other debt is priced. In times of great uncertainty, investors invariably stampede out of stock markets and into the safest bond markets, so as share prices fall, bond prices – otherwise known as ‘fixed income securities’ – rise. As they do, the fixed income they yield translates into a falling rate of interest. But not on March 9, when, in the midst of plummeting stock markets, 10-year US Treasury bond interest rates spiked upwards. According to one bond trader, “statistically speaking, [this] should only happen every few millennia.” Even in the darkest moment of the global financial crisis, when Lehman Brothers (a big merchant bank) went bankrupt in September 2008, this did not happen.

The immediate cause of this minor heart attack was the scale of asset-destruction in other share and bond markets, causing investors to scramble to turn their speculative investments into cash. To satisfy their demands, fund managers were obliged to sell their most easily-exchangeable assets, thereby negating their safe-haven status, and this jolted governments and central banks to take extreme action and fire their ‘big bazookas’, namely the multi-trillion dollar rescue packages – including a pledge to print money without limit to ensure the supply of cash to the markets. But this event also provided a premonition for what is down the road. In the end, dollar bills, like bond and share certificates, are just pieces of paper. As trillions more of them flood into the system, events in March 2020 bring closer the day when investors will lose faith in cash itself – and in the power of the economy and state standing behind it. Then the supernova moment will have arrived.

The left’s imperialism-denial, and its belief in the ‘magic money tree’

The gamut of the left in imperialist countries – the Jeremy Corbyn-led wing of the Labour Party in the UK; the motley crew of left-Keynesians such as Ann Pettifor, Paul Mason, Yanis Varoufakis; supporters of Bernie Sanders in USA – are united on two things: they all acknowledge, to one degree or another, that imperialist plunder of colonies and neocolonies happened in the past but do not acknowledge that imperialism continues in any meaningful way to define relations between rich and poor countries.

And they believe in one or other version of the ‘magic money tree’, in other words, they see the decline of interest rates into negative territory not as a flashing red light showing the extremity of the crisis, i.e. not as the implosion phase of a supernova, but as a green light to borrow money to finance increased state investment, social spending, a Green New Deal, and even a bit more foreign aid. In fact, there is no magic money tree. Capitalism cannot escape from this crisis, no matter how many trillions of dollars governments borrow or central banks print. The neoliberals rejected magical thinking, now they embrace it – this shows the extent of their panic, but it does not make magical thinking any less fantastical. The trillions they spent after 2007-8 bought another decade of zombie-like life for their vile system. This time they will be lucky to get 10 months, or even 10 weeks, before the explosion phase of the supernova begins.

Coronavirus – catalyst for cataclysm

The coronavirus pandemic occurred at the worst possible time: growth in the eurozone had shrunk to zero; much of Latin America and sub-Saharan Africa were already in recession; the sugar-high from Trump’s huge tax-giveaways to US corporations was fading; the US-China trade war was causing serious disruption to supply chains and was threatening to entangle the EU; and tens of millions of people joined mass protests in dozens of countries across the world.

Interest rates are now deep in negative territory – but not if you are Italy, facing an enormous increase in its debt/GDP ratio, not if you are an indebted corporation trying to refinance your debts, not if you are an ‘emerging market’. Since March 9, corporate interest rates have gone through the roof; in fact few corporations can borrow money at any price. Investors are refusing to lend to them. Corporations are now facing a credit crunch – in the midst of global negative interest rates! That’s why the ECB decided to borrow €750 billion from these same investors, and use it to buy the corporate bonds which these same investors now refuse to purchase, and why the USA’s Federal Reserve is doing the same on an even bigger scale. Italy’s (and the EU’s) fate now depends on the willingness of the Bundesbank to replace its private creditors. Their refusal to do this would be the final stage of the EU’s death agony.

During the middle two weeks of March, imperialist governments announced plans to spend $4.5 trillion bailing out their own bankrupt economies. An emergency online summit of the G20 (the G7 imperialist nations plus a dozen or so ‘emerging’ nations, including Russia, India, China, Brazil, and Indonesia) on 26 March, declared “we are injecting over $5 trillion into the global economy.” These are weasel words; by ‘global’ they actually mean ‘domestic’! The response of the ‘left’ in the imperialist countries is to clap its hands and say, we were right all along! There is a magic money tree after all! – apparently not realising that this is exactly what happened post-2008: the socialisation of private debt. Or that, unlike post-2008, this time it will not work.

Yet, as imperialist governments belatedly mobilise – and monopolise – medical resources to confront the coronavirus crisis in their own countries, they’ve abandoned poor countries to their fate. The left in the imperialist countries (or we could just say ‘imperialist left’, for short) has also ignored the fact that there is nothing in these emergency cash injections for the poor of the global South. If you are an ‘emerging market’, well, fuck off and join the queue for an IMF bail-out! As of March 24, 80 countries were standing in this queue, waiting for some of its $1tr lending capacity. $1 trillion sounds like a lot of money, and indeed it is, but, as Martin Wolf, chief economic correspondent for the Financial Times, points out, “the aggregate external financing gaps of emerging and developing countries are likely to be far beyond the IMF’s lending capacity.”

Furthermore, as Wolf suggests, the purpose of IMF loans is to help with “external financing gaps” – in other words, to bail out imperialist creditors, not the peoples of debtor nations; and they invariably come with harsh and humiliating conditions that add to the crushing burden already pressing down on the peoples of those countries. In this sense, they are just like the vast government bailouts of private capital in the rich countries – but without anything added on to finance welfare payments or partially replace wages. The aim of the latter is to purchase the docility of the working class in the imperialist nations, but they have no intention of doing this in Africa, Asia and Latin America.

On March 24, the United Nations issued an appeal for $2bn to fight the coronavirus pandemic in Africa, Asia and Latin America. This money, which the U.N. hopes to raise over the next nine months, is 1/80 of the annual budget of the U.K.’s NHS, and less than 1/2000 of the $4.5tr they plan to spend keeping their own capitalist economies alive. It is also less than 1/40 of the money which imperialist investors have taken out of ‘emerging markets’ during the first three weeks of March, “the largest capital outflow ever recorded,” according to IMF managing director Kristalina Georgieva.

The maximum extent of relief for the collateral effects of the coronavirus epidemic on the peoples of poor countries in Africa, Asia and Latin America was indicated by World Bank president, David Malpass, who said after the G20 summit ended that his board is putting together a rescue package valued at “up to $160 billion” spread out over the next 15 months – a minuscule fraction of the economic losses that the coming global slump will impose on the peoples of the absurdly-named ‘emerging markets’.

“We have a revolutionary duty to fulfill" – Leonardo Fernandez, Cuban doctor in Italy

So, what is to be done? Instead of applauding the bailout of big corporations, we should expropriate them. Instead of endorsing a temporary moratorium on evictions and the accumulation of rent arrears, we should confiscate real estate so as to protect workers and small businesses. These, and many other struggles to assert our right to life over the rights of capitalists to their property, are for the near future.

Right now the priority is to do whatever is necessary to save life and defeat the coronavirus. This means extending solidarity to those who are most vulnerable to the pandemic – homeless people, prisoners, asylum seekers enduring ‘hostile environments’ – and to the dispossessed and victims of imperialism in the slums, shantytowns and refugee camps of the global South. Raghuram Rajan, former governor of the Bank of India, points out that “pending a cure or a reliable vaccine, the world needs to fight the virus into submission everywhere in order to relax measures anywhere.” The Economist concurs: “If covid-19 is left to ravage the emerging world, it will soon spread back to the rich one.”

The coronavirus pandemic is just the latest proof that we need not so much an NHS, but a GHS – a Global Health Service. The only country that is acting on this imperative is revolutionary Cuba. They already have more than 28,000 doctors providing free health care in 61 poor countries – more than the G7 nations combined – and 52 in Italy, 120 more to Jamaica, and are helping scores of other countries to prepare for the pandemic. Even the far-right Bolsonaro government in Brazil, which last year expelled 10000 Cuban doctors, branding them terrorists, is now begging them to return.

To defeat coronavirus we must emulate Cuba’s medical internationalism. If we are to defeat this pandemic we must join with its revolutionary doctors and revolutionary people, and we must prepare do what Cuba did to make this internationalism possible – in other words, we must replace the dictatorship of capital with the power of working people. The coronavirus supernova makes socialist revolution – in imperialist countries and across the world – into a necessity, an urgent practical task, a life and death question if human civilisation is to survive and if the capitalist destruction of nature, of which the coronavirus epidemic is merely the latest symptom, is to be ended.

Thanks to Andy Higginbottom, Shih-yu Chou, and Walter Daum for comments on earlier drafts of this article.