This webinar was originally published in the World Socialist Web Site on 21 October 2025.
Nazism, big business and the working class: Historical experience and political lessons
On October 16, 2025, the World Socialist Web Site (WSWS) hosted a webinar examining the historical relationship between Nazism, big business and the working class—a discussion with urgent contemporary relevance.
The discussion was chaired by David North, chairperson of the International Editorial Board of the WSWS and of the Socialist Equality Party in the United States. He was joined by three distinguished historians: David Abraham, professor emeritus of law at the University of Miami and author of The Collapse of the Weimar Republic: Political Economy and Crisis; Jacques Pauwels, Canadian historian and author of Big Business and Hitler; and Mario Kessler, senior fellow at the Centre for Contemporary History in Potsdam, Germany, whose scholarship focuses on the German Communist Party and European labor movements.
The webinar opened with North recounting the vicious academic campaign that destroyed Abraham’s career as a historian in the 1980s. After publishing his Marxist analysis of how conflicts within German capitalism facilitated Hitler’s rise, Abraham faced attacks from conservative historians Gerald Feldman and Henry Ashby Turner, who accused him of fraud. Abraham explained that the attack stemmed from “ideological animus, personal pique, and intellectual know-nothingism.”
In the discussion, Jacques Pauwels attacked the claim that Hitler’s rise was accidental or unconnected to capitalist interests. “Hitler’s so-called capture of power was merely a transfer or surrender of power,” he stated. “Without the financial and other support of industry and finance, in other words, big business, the rest of the German power elite, Hitler could never have risen to supremacy.” Pauwels described fascism as “the stick of capitalism, not to be used at all times, but certainly always ready behind the door.”
Mario Kessler addressed Hitler’s mobilization of the middle classes while preventing their left-wing radicalization toward socialism. He noted that the Nazi Party “never succeeded in making consistent inroads into the working class” and “never achieved an absolute majority of the votes” in any Weimar election. Hitler’s function was to “collect the votes of the unemployed people, the resentment of all who considered themselves losers of what was called the system.” Kessler stressed that “before Hitler and the German fascists could annihilate the Jews, they had to destroy the German and European labor movement.”
Pauwels demolished the myth that Hitler improved workers’ living conditions, documenting how “the German workers’ real wages fell dramatically under Nazi rule while corporate profits soared.” He revealed that work accidents and illnesses increased from 930,000 cases in 1933 to 2.2 million in 1939, calling Nazi policy “a high profit, low wage kind of policy.” The first concentration camp at Dachau was established not primarily for Jews but because “regular prisons were full of political prisoners, mostly social democrats and communists.”
The discussion then turned to contemporary parallels. North drew explicit connections between Weimar’s collapse and America’s current trajectory under the fascistic Trump administration, noting gold’s rise from $35 per ounce in 1971 to over $4,000 today as an “objective indication of a real crisis of the American economic system.” Abraham described the emerging alliance of “old right-wingers in the fossil fuel industry” with “anarcho-libertarians” from Silicon Valley, noting that Peter Thiel recently gave lectures invoking Carl Schmitt, the Nazi legal theorist, while identifying workers, leftists, minorities, and environmentalists as civilization’s “blockage,” which Abraham described as “a kind of new Judeo-Bolsheviks.”
North posed a critical question: “Do objective conditions create the possibility for a revolutionary orientation? Is fascism inevitable?” He argued that the same contradictions driving reaction also create revolutionary potential, citing how World War I produced both catastrophe and the October Revolution.
Christoph Vandreier, chairman of the Sozialistische Gleichheitspartei in Germany, addressed the rehabilitation of Hitler and the Nazis within German academia. He described how historian Jörg Baberowski declared in Der Spiegel that “Hitler was not cruel” and “was not a psychopath,” claiming the Holocaust “was not essentially different from shootings during the civil war in Russia.” Vandreier noted that “Baberowski was supported by almost the entire academia in Germany” and that such positions “are part of the mainstream” today, coinciding with Germany’s trillion-euro rearmament program.
The historians agreed that the struggle against historical falsification is inseparable from political struggle. Pauwels emphasized that “history is subversive” and that “the powers that be don’t really want us to know how we got into this trouble.” Abraham noted a modest revival of political economy studies after decades in which “the right captured Washington, the left captured the English department.”
North concluded by emphasizing the persistence of the same fundamental contradictions: “We are not only talking about the past, but we’re really discussing the present. The same issues, the same social forces are present today.” He predicted an “explosive turn by the working class and the most advanced sections of young people and workers toward Marxism, which is the only theoretical framework for which one can understand objective reality and on that basis build a revolutionary movement.”
This article was originally published in the World Socialist Web Site on 16 October 2025.
Few figures have done more to derail and contain the revolutionary strivings of Kenya’s oppressed masses than Raila Odinga. His death on Wednesday ends the long political career of a man who, for more than four decades, served as a central pillar of capitalist rule and imperialist domination in Kenya. Whether as opposition leader, cabinet minister, or prime minister, Odinga played the role of political fixer, channelling mass protests against inequality, corruption, and repression into the dead end of constitutional reform and imperialist-backed “national unity” coalitions.
Born in 1945 in Maseno, western Kenya, Odinga was the son of Jaramogi Oginga Odinga, Kenya’s first vice president after independence and a co-founder of the Kenya African National Union (KANU) alongside Jomo Kenyatta, the country’s first president. KANU struck a deal with British imperialism and ruled a de facto one-party state for over three decades.
Raila Odinga in 2012 [Photo by CSIS / Flickr / CC BY-NC-SA 2.0]
In the early years after political independence, Jaramogi Odinga emerged as the leading figure of KANU’s left wing. Amid mass support for socialism among workers and the rural masses, Odinga sought to secure a base, advancing a programme of state-driven capitalist economic development within the national boundaries imposed by colonialism, the seizure of European settler farms without compensation and the rapid Africanisation of the civil service and public-sector jobs, as he explained in his book Not Yet Uhuru [Not Yet Freedom] (1967). These were measures to be carried out by a capitalist government leveraging close ties with the counterrevolutionary Soviet bureaucracy, not by the working class in alliance with the rural masses.
Kenyatta crushed this opposition, banning Odinga’s attempts to launch a new party, the Kenya People’s Union (KPU), and placing Odinga under house arrest.
In the decades after independence, Kenya’s new elite enriched itself through vast land grabs financed by Western loans, buying up former settler estates at the expense of the rural poor while looting state resources and deepening military and economic ties with British and American imperialism that continue to this day. As with other post-colonial African independence governments, Kenya’s experience exposed the organic incapacity of Africa’s bourgeois nationalists to realise the aspirations of the African masses for freedom from foreign domination, democracy, and social justice.
Raila Odinga’s political ascent was built on his father’s legacy as the nominal left opposition to Kenyatta and his successor Daniel arap Moi. Educated in Stalinist East Germany as a mechanical engineer, he returned to a Kenya that his father had helped build to join the ranks of the new ruling class, expanding the family’s business empire in energy, construction, and media. By the time of his death, his fortune was estimated at between $1.2 and $3.3 billion, placing him among the richest 0.1 percent of Kenyans—an oligarchic layer of roughly 8,300 individuals who, according to Oxfam, own more wealth than the bottom 99.9 percent combined. This obscene inequality epitomises the class gulf between Odinga and the millions he claimed to represent.
Odinga under Moi and Kibaki
Odinga’s political career began in the 1980s after his arrest following the failed 1982 coup attempt against Moi’s regime. He spent nearly eight years in detention, during which he was beaten, denied medical care, and subjected to psychological torture that left him with lasting speech difficulties. Upon his release, he re-emerged in the 1990s as a leading figure in the bourgeois opposition to Moi’s dictatorship, the “Second Liberation” movement. Alongside Kenneth Matiba and Charles Rubia, Odinga campaigned for the restoration of multi-party democracy, channelling growing popular anger against the regime into a struggle for limited constitutional reforms within the framework of capitalism.
Odinga’s role as leader of the opposition was boosted by what passed as the leading underground left-wing opposition to the regime, the Maoist Mwakenya. With its two-stage theory of first reinstalling capitalist democracy, postponing indefinitely the struggle for socialism, it helped funnel opposition into Odinga’s camp. It called for “all progressive democratic and patriotic political organisations, workers trade unions, peasant cooperatives, professional bodies, religious organizations, student societies, the business community, welfare and other nongovernmental interest groups to unite in a single force of action to pressure Moi to resign.” Many of its members, including future Chief Justice Willy Mutunga, became key Odinga allies.
Facing mounting unrest and pressure from Washington, long his backer but now fearful of a genuine popular uprising, Moi was forced to repeal the constitutional ban on opposition parties, paving the way for Kenya’s first multi-party elections in 1992.
By the late 1990s, Odinga had reconciled with the regime and merged his National Development Party (NDP) with Moi’s deeply unpopular KANU after contesting the 1997 elections. He went on to serve as Moi’s Minister of Energy, marking his entry into the state apparatus.
In 2002, as social opposition to Moi intensified, Odinga left Moi’s government and joined a coalition of anti-Moi bourgeois parties led by Mwai Kibaki, Moi’s former minister of finance. With Kibaki ill during the campaign, Odinga effectively led the election effort that ended Moi’s 24-year rule. However, after the victory, Kibaki sidelined him, denying Odinga and his allies the senior positions they had been promised. Given the post of Minister for Roads, Odinga soon fell out with Kibaki, whose government, like Moi’s before it, unleashed brutal police violence—including the extrajudicial killing of an estimated 8,000 mostly young men.
Out of power, Odinga continued as the main opposition figurehead, while making it clear he was virulently opposed to socialism. In his autobiography, The Flame of Freedom (2013), he recounted how, ahead of the 2007 elections:
Because of my father’s and my longstanding support for equitable distribution of national resources, I had often been accused of being left-wing anti-capitalist (the latter a strange misconception about a man who, like his father before him, had long been involved in private enterprise). It was said that, as president, I would reverse some privatisations and make radical changes to the Kenyan stock market. The latter probably also had a connection with the charge I had made that the extensive profits from illegal drug-dealing had been ploughed into the national bourse [stock market]. In mid-October, I visited the Nairobi Stock Exchange to offer assurances of my support for its continued activities.
The “Grand Coalition” with Kibaki and alliance with Kenyatta
The 2007 elections marked the peak of Odinga’s political influence and the most violent crisis of Kenya’s post-independence history. Running as the main opposition candidate against incumbent Kibaki, Odinga appeared poised for victory until widespread electoral fraud secured Kibaki a self-declared win. Odinga called for mass demonstrations, and his supporters, largely drawn from Kenya’s working-class and impoverished layers in the slums and rural areas, poured into the streets.
The regime responded with brutal repression. Ethnic violence, stoked by both ruling factions, engulfed the country, leaving more than 1,300 people dead and over 650,000 displaced. William Ruto, now Kenya’s president but then an ally of Odinga, played a criminal role in fomenting ethnic clashes for which he was later indicted by the International Criminal Court.
Odinga, fearing that the mass opposition might break out of his control and advised by Washington, entered into a US-brokered power-sharing agreement with Kibaki in 2008, becoming prime minister in a “Grand Coalition” government. The imperialist powers hailed the deal as a model of “stability.” It was designed to preserve Kenya’s role as a key regional base for Western military and financial interests.
During his five years as prime minister (2008–2013), Odinga demonstrated his loyalty to imperialism. His government backed US-led military interventions in Somalia under the banner of the “war on terror,” and supported France’s 2011 invasion of Ivory Coast. Domestically, his administration helped push through the 2010 Constitution, drafted under US and British guidance, as a mechanism to contain mass anger and restore confidence in the capitalist order after the post-election bloodshed of 2007.
In 2013, Odinga lost to Uhuru Kenyatta, son of the country’s first president. As disillusionment with the political establishment deepened, Odinga’s role as a “progressive” alternative was shown to be a fraud. When the 2017 elections were again marred by corruption and saw the killing of over 100 protesters, he briefly postured as leading a “people’s resistance movement.” But in early 2018, he abruptly reconciled with Kenyatta in the so-called “Handshake,” presenting the pact as a step toward “national unity.”
By the time of the 2022 election, Odinga had openly transformed into capitalist political fixer par excellence. Backed by Kenyatta, Kenya’s richest man whose family owns a multi-billion-dollar business empire, he faced Ruto, a former ally who exploited popular anger with a populist “bottom-up” campaign and by presenting himself as an outsider—despite being the sitting deputy president. Ruto’s slim victory reflected widespread hostility to Kenya’s political dynasties, including Odinga.
Once elected, Ruto violently turned against the working class, as the economic crisis facing the country deepened, particularly soaring costs of living intensified by the NATO-Russia war in Ukraine and the COVID-19 pandemic. In 2023, Ruto imposed the first round of an IMF austerity programme, sparking mass protests. Odinga once again sought to channel mass discontent. He called intermittent protests against the austerity-driven Finance Bill 2023, only to suspend them when they began to merge with broader strikes by teachers, doctors, and civil servants. Dozens of his supporters were gunned down.
Odinga and Ruto versus the Kenyan working class and youth
Just when Odinga believed he had successfully contained social unrest, the Gen-Z uprising of mid-2024 erupted against the entire Kenyan political establishment. What began as protests against President Ruto’s IMF-dictated Finance Bill 2024—imposing sweeping taxes on fuel, bread, cooking oil, and digital services—quickly developed into a nationwide rebellion against the whole post-independence capitalist order. Unlike previous mobilisations, this movement arose entirely outside Odinga’s control. On June 25, protesters stormed parliament, and in the brutal crackdown that followed more than 60 people were killed, thousands arrested, and dozens abducted.
While he publicly voiced sympathy for the protests, Odinga was privately negotiating with Ruto on how to defuse them. Soon after, he integrated his Orange Democratic Movement into Ruto’s administration to form the current “broad-based” government, providing a political cover for the regime to push ahead with its IMF austerity agenda and consolidate a police-state dictatorship. Odinga then moved to co-opt self-styled Gen Z “leaders” into the regime’s orbit.
The result was a de facto parliamentary dictatorship, lacking even a nominal opposition. It soon escalated bloody repression. Last July, as hundreds of thousands took to the streets, security forces killed 57 demonstrators and injured more than 600 in one of the worst massacres perpetrated by the Kenyan ruling class in decades.
Nothing could better expose the rottenness of Odinga than his death being used by the current Ruto regime to impose austerity and police-state measures. Barely had the ink dried on Odinga’s death certificate, with the media providing wall-to-wall obituaries hailing his democratic credentials, than Ruto decided to sign into law eight deeply authoritarian and anti-working-class bills.
These include the Privatisation Bill 2025, which allows the government to sell off state-owned enterprises without parliamentary approval; the Computer Misuse and Cybercrimes (Amendment) Bill 2024, granting sweeping powers to police and intelligence agencies to monitor, censor, and shut down online platforms; and the National Police Service Commission (Amendment) Bill 2024, further expanding executive control over the security apparatus.
Other laws include the National Land Commission (Amendment) and Land (Amendment) Bills, centralizing decision-making authority in Nairobi, weakening local land protections to allow more land looting by Ruto’s entourage, while the Air Passenger Service Charge (Amendment) and Virtual Asset Service Providers Bill impose new levies.
In one of his final interviews with the Sunday Nation, Odinga drew a parallel between Kenya’s youth revolt and the Egyptian Revolution of 2011, which toppled Hosni Mubarak. He recalled being “the last international leader hosted by Mubarak” before the dictator’s fall, remarking that even regimes that seem strong can collapse within weeks. Odinga’s message was a warning to the ruling elite that uncontained popular uprisings threaten the entire capitalist order.
The real lesson of Egypt, and of Kenya today, is that bourgeois “opposition” figures like Odinga, posing as champions of democracy, play the decisive role in strangling revolutionary movements and paving the way for renewed repression, austerity, and military rule. Odinga died at 80 in a private hospital for the wealthy in Koothattukulam, India, where he had been flown for specialist treatment. Like the rest of Kenya’s ruling elite, he sought medical care abroad while the country’s public health system, ravaged by decades of corruption, privatisation, and IMF-imposed austerity, lies in ruins.
Odinga’s death comes amid a new wave of social upheaval across the world, from Peru, Nepal, and Bangladesh to Madagascar, Morocco, Mozambique, and Angola, driven by soaring prices, mass unemployment, IMF austerity and opposition to war and genocide. These movements express the mounting anger of workers and youth against unbearable social inequality and imperialist oppression.
Victory depends on rejecting the various representatives of a pro-capitalist opposition, which, like Odinga, fear the independent movement of the masses far more than dictatorship. The defence of democratic and social rights poses before Kenyan workers and youth the task of building a revolutionary Marxist party, a section of the International Committee of the Fourth International (ICFI), dedicated to the perspective of Permanent Revolution—the unification of the struggles of workers and the oppressed across Africa and the world for the establishment of a United Socialist States of Africa.
This Perspective was published in the World Socialist Website Site on 06 October 2025.
Today marks two years since the beginning of Israel’s genocide in Gaza, one of the greatest crimes of the modern era. Before the eyes of the entire world, the Israeli government—armed, financed and defended by every imperialist power—has carried out a campaign of mass murder, ethnic cleansing and deliberate starvation. At least 67,000 Palestinians have been killed, including 20,000 children, and the entire population has been repeatedly displaced.
Displaced Palestinians fleeing northern Gaza carry their belongings along the coastal road toward southern Gaza, Tuesday, Sept. 9, 2025, after the Israeli army issued evacuation orders from Gaza City. [AP Photo/Jehad Alshrafi]
In order to launch this long planned genocide, Israel used as its pretext the Hamas attacks of October 7, 2023, in which a few thousand fighters with small arms, possessing no armored vehicles or aircraft, breached the Israeli border without resistance. To claim that Israel, with one of the most sophisticated intelligence networks in the world, was taken completely by surprise by a few thousand Hamas fighters is a despicable fiction.
As the events of the past two years have shown—in Israel’s assassinations of foreign leaders, military officers and scientists—Israeli intelligence has penetrated every state and movement in the region. Indeed, within months of the October 7 attacks, newspaper accounts revealed that Israel possessed the entire Hamas battle plan but orchestrated a deliberate stand-down of its troops stationed on the border.
The genocide that followed was the premeditated outcome of 75 years of brutal oppression, the implementation of the “final solution” to the Palestinian “problem.” It has exposed before the entire world the bankrupt and reactionary character of Zionism. The Israeli state has shown itself to be a murderous instrument of imperialism.
While carried out by Israel, the genocide has been a joint operation of world imperialism. Every imperialist government, from Washington to London, Paris and Berlin, together with the entire media, justified the Israeli assault on Gaza. A hideous double standard was adopted, in which any act of mass murder by Israel, which illegally occupies Gaza, was justified, while any effort at resistance by the Palestinians was demonized as “terrorism.”
Opposition to the Israeli state was slandered as “antisemitism,” in an exercise that the WSWS referred to as “semantic inversion,” in which “a word is utilized in a manner and within a context that is the exact opposite of its real and long-accepted meaning.” This became the framework for a brutal and escalating assault on democratic rights, in which opposition to genocide has been criminalized. The attempt to equate opposition to the genocide with hatred of the Jews, is, in any case, negated by the prominent role played by Jewish people around the world in mass demonstrations.
The United States has been Israel’s key weapons supplier, funneling unlimited amounts of deadly military gear to fuel the slaughter. But Germany, France, Britain and others have all contributed their share to the bloodbath. Moreover, they have all purchased billions in Israeli government bonds to help finance the murderous military machine they also armed.
Underscoring the fact that these crimes have been facilitated by the major North American and European powers, Israeli Prime Minister Benjamin Netanyahu was allowed to defend his actions from the podium of the United Nations last month, even though an arrest warrant against him for war crimes is outstanding.
The imperialists back the genocide as a central component of their drive to secure control over the oil-rich Middle East, part of a global eruption of imperialist war targeting Russia and China. Their support for the genocide has demonstrated that they are ready to deploy any and all means to secure for themselves access to markets, raw materials, labour and geostrategic influence.
This imperialist plunder has culminated in Trump’s “peace” plan, which proposes robbing Palestinians of all their rights by creating a neo-colonial protectorate under the control of America’s would-be Führer and his bagman, the unindicted war criminal Tony Blair. If Hamas follows Trump’s demand to accept this arrangement, the Palestinians will be expelled to make way for a US-controlled trade corridor through the Middle East. If they refuse, Israel will get the green light to slaughter the remaining Palestinians en masse.
A particularly foul role in this process has been played by the bourgeois nationalist regimes of the Middle East. The entire history of the 20th century has shown the incapacity of any form of nationalism to secure the democratic and social rights of the working class. The despicable role of these governments culminated in their embrace of the “peace” plan promoted by Trump, which completely repudiates the right of the Palestinian people to self-determination.
The genocide in Gaza has provoked mass revulsion and opposition throughout the world. Over the past two years, tens of millions have participated in demonstrations spanning every continent, from Europe and the Americas to the Middle East, Africa and Asia. Trump’s plan to turn the Middle East into a US fiefdom on the bones of the Palestinians, and Israel’s violent seizure of the Sumud aid flotilla, have ignited a new and broader wave of protest.
In recent days, millions have filled the streets of Italy, Spain, the Netherlands, India, Pakistan, Malaysia, Colombia and Argentina. In Italy, action initiated by dockworkers, who refused to load weapons for Israel, triggered a one-day general strike of more than 2 million workers and a million-strong march in Rome. Though still limited by the trade union bureaucracies and appeals to the Meloni government, these actions point to the immense potential power of the international working class to halt the genocide.
One day of coordinated strike action has shaken Trump’s closest European ally. An organized, global industrial and political movement of the working class could stop the imperialist war machine in its tracks. Nothing less than a mass, international movement of workers can end the genocide and block the extension of American imperialism’s drive for domination—from Gaza to a wider war aimed at Iran, Russia and ultimately China.
The development of opposition to the genocide must be guided by an understanding of the political lessons of the past two years. The central lesson is the total bankruptcy of all appeals to governments of the imperialist powers. They are not the instruments for halting genocide but its perpetrators and enablers.
The perspective of a two-state solution has failed. Only the unification of all the peoples of the Middle East can lead to a viable future. The Israeli state has proven to be a historical monstrosity, resulting in demoralization and degradation. The Israeli working class must repudiate the poisonous ideology and politics of Zionism, reject the reactionary dystopia of the “Jewish state” and strive for the unity of Israeli and Palestinian workers in the struggle for the United Socialist Federation of the Middle East.
In a lecture delivered on October 24, 2023, three weeks after the beginning of the genocide, WSWS International Editorial Board Chairman David North explained:
In the final analysis, the liberation of the Palestinian people can be achieved only through a unified struggle of the working class, Arab and Jewish, against the Zionist regime, as well as the treacherous Arab and Iranian capitalist regimes, and their replacement with a union of socialist republics throughout the Middle East and, indeed, the entire world.
This is a gigantic task. But it is the only perspective that is based on a correct appraisal of the present stage of world history, the contradictions and crisis of world capitalism and the dynamic of the international class struggle. The wars in Gaza and Ukraine are tragic demonstrations of the catastrophic role and consequences of national programs in a historical epoch whose essential and defining characteristics are the primacy of world economy, the globally integrated character of the productive forces of capitalism, and, therefore, the necessity to base the struggle of the working class on an international strategy.
Two years later, there are growing signs of a global resurgence of working class struggle. The Trump administration’s drive to establish a presidential dictatorship is bringing it into head-on conflict with the working class in the United States, despite all efforts by the Democrats to sow complacency and passivity. President Macron in France is unable to form a stable government, amid mass opposition to his demands for austerity to pay for remilitarisation. Starmer in the UK and Merz in Germany have no popular support whatsoever.
Internationally, there has been an explosion of popular anti-government struggles, led by “Generation Z”—in Kenya, Nepal, Indonesia, the Philippines, Morocco and Madagascar.
The development of this opposition along revolutionary lines requires that workers break free from the control of the social democratic, Stalinist and trade union bureaucracies, along with their pseudo-left defenders, who work to contain and dissipate opposition. This requires building new, democratic organizations of class struggle—rank-and-file committees in every workplace and neighborhood—to coordinate and lead a unified international offensive of the working class.
Workers, students, youth and all opponents of Zionism and imperialism must fight for:
An immediate halt to all weapons shipments to Israel;
A comprehensive boycott of all trade and other economic activity with Israel;
The prosecution of all US, European and other corporations assisting Israel in carrying out the genocide.
The arrest of Israeli officials for war crimes;
An end to state repression of anti-genocide protesters and the repeal of all anti-demonstration laws;
Immediate, unhindered delivery of humanitarian aid to Gaza by all available routes.
These demands must spearhead the broader movement already developing in the working class internationally. The same governments that funnel weapons of death to Israel are erecting dictatorial forms of rule at home to suppress opposition to oligarchic rule, mass impoverishment and the drive to world war.
The genocide in Gaza has laid bare the historical dead end of the capitalist system itself. The “normalization” of genocide is the product of a system that has exhausted any progressive role. It is accompanied by the normalization of fascism, the normalization of military-police dictatorship, the normalization of world war and oligarchic rule.
The perspective that must guide the working class is Trotsky’s theory of Permanent Revolution. The democratic and social aspirations of the oppressed can be achieved only through the independent political mobilization of the working class, on a world scale, for the conquest of power.
The critical task is the building of a new revolutionary leadership to guide this struggle. The International Committee of the Fourth International (ICFI) and its sections, the Socialist Equality Parties, fight to unite workers and youth across all borders in a single movement against capitalism, for the establishment of workers’ governments and the socialist reorganization of the world economy to meet human need, not private profit.
This article was originally published in the World Socialist Website on 08 October 2025.
After hitting record highs throughout this year, the price of gold continues to surge and has now passed $4,000 an ounce, taking its rise this year to more than 50 percent after a 12 percent increase for September alone.
Gold bars are shown stacked in a vault at the United States Mint on July 22, 2014 in West Point, New York [AP Photo/Mike Groll]
The gold price surge is a sign of growing uncertainty and doubts over the stability of the international monetary system based on the US dollar as the global currency. As a Wall Street Journal article noted, the gold price “has surged this year more than it did during some of America’s biggest crises” including the 2007–2009 recession and the onset of the pandemic.
Back in June, as the gold surge was accelerating and it had become the second-largest reserve asset held by central banks after the dollar, surpassing the euro, an article in the Financial Times (FT) described it as the “world’s refuge from uncertainty” and pointed to the broader implications of its rise.
Bullion, it said, had “made a roaring comeback, not just among speculators and so-called gold bugs who mistrust paper currencies, but even among the most conservative investors in the world” and that “in a febrile political era, when many of the core assumptions about the global economy are being questioned, gold has once more become an anchor.”
In the four months since these lines were written all the processes it identified have intensified.
The key “core assumption,” not only being questioned but increasingly eroded, is the capacity of the US state and its financial institutions to provide a stable foundation for the international monetary order based on the US dollar as a fiat currency after US president Nixon removed its gold backing in August 1971.
While this process has accelerated under the second Trump presidency it was already well underway before he arrived on the scene.
It has been fueled by the ongoing crises in the US financial system, expressed most sharply in the financial crisis of 2008 and the freezing of the US Treasury market in March 2020 when, for a number of days, no buyers could be found for US government debt, supposedly the safest financial asset in the world.
A central factor in the latest gold surge has been the escalation of US government debt. It now stands at more than $37 trillion. For more than a decade the rise in debt—used to finance wars, tax cuts to the wealthy and corporations as well as government bailouts—was able to proceed almost unnoticed because of the ultra-low interest rates maintained by the Fed.
But after the rate rises started in 2022, the interest bill has become an increasing drain on government finances, such that it has risen to almost $1 trillion annually and is set to become the biggest item in the US budget, surpassing even military outlays.
This has meant that the global monetary system is based on the currency of the most indebted country in the world, whose credit rating has been downgraded by all the three major rating agencies and which needs to borrow money just to pay the interest bill on past debts.
The policies of the Trump administration are working to exacerbate these underlying tensions within the global financial system.
A major blow came with the so-called “reciprocal tariffs” of April 2, through which the Trump regime upended what had remained of the post-war international trading order. The “liberation day” measures led to a spike in Treasury yields combined with a fall in the value of the dollar—a rare occurrence.
Since then, in the trade “deal” with Japan and the proposals of the Trump regime for South Korea, the tariffs have been revealed as the mechanism for standover demands by the US for the investment of hundreds of billions of dollars in the US under the direct control of the administration.
As part of his drive to establish a personalist dictatorship, combined with the moves to establish martial law in major US cities, Trump has moved to try to take direct control of the Fed. This has sparked concerns that its political independence will be effectively ended, sparking concerns in international markets about financial stability leading to an increasing turn to gold as a safe haven.
And the latest surge has been spurred on by the US government shutdown initiated by Trump as part of a drive to sack hundreds of thousands of government employees and axe whole departments.
As Mark Sobel, a former US Treasury official and now the US chair of the think-tank OMFIF told the FT back in June: “Gold’s rise in part reflects the administration’s undermining of the properties underpinning dollar dominance.”
Sobel said that attacking institutions such as the Fed and the courts while “threatening to add massively to debt and deficits through the ‘big, beautiful bill,’ and being an unreliable partner to our allies and partners” had all undercut the dollar’s status.
Others have gone further in their analysis, describing the shift into gold as a move “back to the future.” As the latest surge was getting underway in the middle of the year, Randy Smallwood, chief executive of a precious metals company, told the FT: “It wouldn’t surprise me if, in 20 years, when you take an economics course, there will be a discussion about the 60-year experiment from 1970 to 2030 on fiat currencies, and how it failed.”
In an earlier period, such comments might have been dismissed simply as the outlook of “gold bugs.” Not so today.
Even before the latest actions by Trump, central banks had begun to move. In each of the past three years, they have bought more than 1,000 tonnes of gold, hitting record levels. The bulk of the purchases have been by countries not closely aligned with the US such as China, India, and Turkey. But the rise of gold to be the second-largest reserve asset is an indication that other central banks are heading in the same direction.
The shift is extending to the private sector with the move by investors into gold-backed exchange-traded funds (ETFs). The World Gold Council has reported that $13.6 billion flowed into these funds in September, bringing the total so far this year to $60 billion—a record.
The significance of this shift is reflected in an analysis by Morgan Stanley. The traditional benchmark for investor allocations is 60 percent of funds in equities with 40 percent in bonds. But it suggested that the split should be 60/20/20. That is, gold should have an equal weight with bonds.
Significantly, such is the uncertainty around the financial position and indebtedness of all the major economies—the debt-induced turmoil in France is a case in point—that the move out of the dollar is being accompanied by growing uncertainty about other currencies. As one analyst at a metals trading firm told the FT: “People are looking to short the dollar, but they are not quite sure what currency to purchase—that uncertainty leads you straight to gold.”
And while the gold issue may appear to be simply a market phenomenon—investors trying to capitalize on the surge, others seeking a hedge in times of uncertainty, on top of the concerns of central banks, it goes deeper than that.
The entire fiat monetary system that has prevailed for the past 50 years and more—the foundation for the functioning of the global capitalist order—is starting to unravel, and that will have major economic, financial and political consequences.
This statement was published originally in the World Socialist Web Site on the 19 September 2025.
In the week since the assassination of Charlie Kirk, the Trump administration has escalated its conspiracy to establish a presidential dictatorship.
The policy of the Trump regime was spelled out clearly by fascist strategist Stephen Bannon, one of Trump’s closest political allies. “If we are going to go to war,” he declared, “let’s go to war.” The Trump administration is waging a war—against the population, against democratic rights, against Constitutional government.
President Donald Trump speaks in the Oval Office of the White House, Friday, Sept. 19, 2025, in Washington. [AP Photo/Alex Brandon]
This war is being conducted within the framework of the public deification of Kirk. Over the past week, the White House has spearheaded a campaign to ban all criticism of the Trump administration. Workers, including teachers, airline staff and others, have been fired for critical social media posts about Kirk.
On Wednesday, ABC/Disney announced that it was suspending Jimmy Kimmel Live!, after Kimmel made mild, accurate remarks on Monday about the political exploitation of Kirk’s killing. The move followed an explicit directive from the White House and its enforcers. FCC (Federal Communications Commission) Chair Brendan Carr threatened broadcasters, “We can do this the easy way or the hard way.” Nexstar and Disney, desperate to protect multibillion-dollar mergers and profits, rushed to comply.
In interviews Thursday, Carr declared that Kimmel’s suspension was not the “last shoe to drop,” calling for a “massive shift that’s taking place in the media ecosystem.” On the same day, Trump himself declared that regulators should revoke the licenses of broadcasters who air “negative coverage” of him.
The critical question now is: What must be done to stop this drive to dictatorship? In answering this question, it is necessary to identify the political context of Trump’s attempt to overthrow the Constitution, the class and economic interests that underlie the actions of the government, the social force that has the power to defend democratic rights, and the political strategy and program upon which the fight against Trump must be based.
First, it is necessary to put aside all self-deluding hopes that what is unfolding is anything less than a drive to establish a presidential dictatorship, based on the military, police, paramilitary forces and fascist gangs. The essential purpose of the glorification of Charlie Kirk has been to provide a martyr symbol to galvanize the most reactionary forces in the country.
As the World Socialist Web Site has warned, the Hitler admirers in Trump’s inner circle, such as Vice President JD Vance and White House Deputy Chief of Staff Stephen Miller, are working off the playbook written by the Nazis. Kirk is the Trump regime’s “Horst Wessel” (the name of a murdered storm trooper) and the assassination is their equivalent to the infamous Reichstag Fire, the burning of the German parliament building, which was seized upon by Hitler to claim absolute power in March 1933.
The cancellation of the Jimmy Kimmel show is yet another action based on the tactics of the Nazi regime. Any form of speech, including jokes, that was deemed insulting to the honor and dignity of Hitler was treated as a criminal offense that merited drastic punishment. The “Heil Hitler” salute became an obligatory form of greeting, even between friends.
Second, Trump is not acting on his own. However grotesque his individual qualities, he represents the interests of the corporate and financial oligarchy. Here again, the parallels to Nazi Germany are chilling. It is a historical fact that Hitler’s rise to power would not have been possible without the resources provided to the Nazi movement by leading German capitalists. Once in office, Hitler’s brutal regime served the interests of German banks and corporations, and they supported his dictatorship.
If anything, the alliance of Trump and today’s financial-corporate oligarchy is even more intense than that which prevailed in Nazi Germany. It can be described, without exaggeration, as a love affair. In the midst of Trump’s assault on democratic rights, he was feted last week at a White House dinner, where a gang of mega-millionaires and billionaires sang his praises. An even more obscene spectacle was staged this week at Windsor Castle in Britain. Seated next to King Charles III, Trump was feted at a state banquet by a retinue of oligarchs, including Tim Cook of Apple, Sam Altman of OpenAI, Satya Nadella of Microsoft, Ruth Porat of Alphabet, financiers Steve Schwarzman of Blackstone, Jane Fraser of Citigroup, Larry Fink of BlackRock and Brian Moynihan of Bank of America.
Third, underlying the public reverence for Trump are cold-blooded economic and political calculations. The staggering concentration of wealth in an infinitesimal segment of the population is not compatible with democratic forms of rule. The rich are convinced that the defense of their wealth and their unrestricted exploitation of the working class is incompatible with democracy. Dictatorship is their preferred form of political rule.
However, the oligarchy’s reasons for supporting the overthrow of whatever remains of American democracy extend beyond their uncontainable lust for ever greater heaps of money and personal wealth. The American ruling class is acutely conscious of and terrified by the existential crisis of the capitalist system. It is aware that the national debt—now approaching $40 trillion—is unsustainable.
The oligarchs are convinced that a massive assault on the living standards and even the lives of the working class is necessary. All the social reforms extending back to the Progressive era of the first two decades of the 20th century, the New Deal of the 1930s, and the Great Society of the 1960s must be ended. Critical programs like Social Security, Medicare and Medicaid are to be all but eliminated. The war on medicine—to the point of ending vaccinations against COVID, measles, mumps, polio, whooping cough, and other deadly illnesses—is aimed at substantially raising infant and child mortality and lowering life expectancy.
The wiping out of regulations that provided any sort of protection against injury and death in factories, mines, depots, shipyards, and other workplaces is a major objective.
Yet another factor in the political calculations of the capitalist elites is the geo-political crisis confronting American imperialism. The protracted deterioration in the global economic and strategic position of the United States has reached critical dimensions. The rise of China and the development of an alliance of states challenging American hegemony cannot be stopped except through war. The militarization of the United States demands ever greater expenditures, which, in turn, intensifies the pressure to slash social expenditures and wages. Moreover, the preparation and launching of wars requires the violent suppression of domestic political opposition.
These are the objective factors that underlie the collapse of American democracy. Trump’s policies are those of the ruling class. This is not to ignore the specific pathological features of his personality and that of his MAGA cabal that impart to this regime its particularly degenerate character. But even if the workings of actuarial statistics were to suddenly remove Trump from the scene, it would not halt the drive to dictatorship. The war on democracy and the working class would continue.
This objective cause of the breakdown of democracy is verified by the fact that parallel processes are being manifested in all major capitalist countries. Throughout Europe neo-fascist parties are gaining strength. The drive toward dictatorship is a global phenomenon.
Fourth, the correct identification of the source of Trump’s war against the working class leads to critical political conclusions. The starting point of any serious struggle against dictatorship is a break with the Democratic Party. To rely on the Democratic Party to oppose Trump is to guarantee defeat.
The Democrats are, like the Republicans, a party of Wall Street, the Pentagon, and the corporate-financial oligarchy. What they fear above all is not the rise of fascism but the eruption of a mass movement from below that threatens the foundations of capitalist rule. This accounts for the Democratic Party’s cowardly capitulation to the fascist glorification of Kirk and its feckless response to the suspension of Jimmy Kimmel and all the previous dictatorial decrees issued by Trump.
The prostration of the Democratic Party was exposed when the US Senate unanimously approved a resolution marking October 14, Kirk’s birthday, as a “National Day of Remembrance for Charlie Kirk.” Not one Democrat, including Vermont Senator Bernie Sanders, had the courage to object. It would have been sufficient, and politically correct, to oppose the assassination on principled grounds, i.e., that the killing of one or another despicable figure serves absolutely no progressive interest, that it sows confusion among workers and youth and that it plays into the hands of the reactionaries.
But to sanction the elevation of Kirk—a man whose record of racism, antisemitism, opposition to civil rights, and promotion of authoritarian violence is well documented—as a national hero is obscene. Yet Sanders and the Democrats joined in this sanctification.
The next day, 90 Democrats, including the party’s leadership, voted with Republicans in the House to pass a resolution “honoring the life and legacy of Charles Kirk,” praising the fascist provocateur as a martyr for “freedom” and “civil discourse,” and a “fierce defender” of “life, liberty, limited government, and individual responsibility.”
Fifth, the development of the struggle to defeat Trump must be based on the mobilization of the multimillioned working class—the social force that has the power, if mobilized on the basis of a correct political strategy, to defeat Trump and drive him from office.
The key elements of this strategy are:
1) The complete political and organizational independence of the working class from the Democratic Party and its collaborators and apologists, i.e., the DSA, Bernie Sanders, Alexandria Ocasio-Cortez and the myriad middle class organizations and individuals who believe that shouting obscenities on various social media platforms will stop Trump. These are the methods of frustrated liberals who hope that their hysterical rhetoric will move the Democratic Party to fight Trump.
2) The building of a new form of organization that can unify the working class and mobilize its vast industrial and economic power against the Trump regime. This new form of organization proposed by the Socialist Equality Party consists of rank-and-file committees. They must be established in every factory, workplace, school and neighborhood to organize resistance to Trump’s dictatorship. These committees must become centers of resistance, uniting all sections of the working class (in industry, logistics, transport, restaurants and fast food, social services, legal defense, education, arts and culture, entertainment, medicine, health care, sciences, computer technology, programming and other highly specialized professions) and student youth against Trump’s fascist government, the complicity of the Democrats, and the broader assault on democratic rights and living standards.
The building of rank-and-file committees is essential to break the stranglehold of the trade union bureaucracies, which function as industrial police for the corporations and utilize their power to block every form of resistance by the working class. Power must be transferred from the offices of the bureaucratic parasites to the workers on the shop floor and job sites, where decisions on all matters of strategy, policy and action can be made democratically by the working class.
These rank-and-file committees, spreading across all workplaces, will create new centers of coordinated social power upon which the defense of democracy throughout the country can be based. The mobilized working class will be able to inspire with confidence and unify all the now disparate elements of protest in a massive social movement against the hated government led and controlled by capitalist oligarchy.
3) This movement, led by the working class, requires a program that accurately reflects socio-economic realities and corresponds to the interests of the overwhelming majority of the population. The capitalist oligarchy has declared war on the working class. The necessary response is the declaration of war by the working class on capitalism, which must result in the socialist reorganization of society. This entails the establishment of public ownership and democratic control by the working class of major industries, banks, utilities and natural resources. Moreover, the obscene levels of wealth concentrated in the approximately 900 billionaires must be expropriated. The 400 richest Americans alone hold a combined wealth of $6.6 trillion, which represents a growth by more than $1 trillion over the previous year. The concentration of so much money and power is a social malignancy that kills democracy.
4) The most important element of this strategy—upon which the implementation and realization of all previous elements depends—is internationalism. No effective struggle can be waged by workers in the United States unless their actions are coordinated and aligned with the struggles of the global working class. The threat of fascism is an international phenomenon. The capitalist ruling class of every country has its own version of Trump and even Hitler. American workers must repudiate the reactionary, outdated and self-defeating ideology of nationalism, which is the primal evil that instigates the racism and ethnic hatreds utilized by fascism. It is not an accidental coincidence that Trump launched his drive for dictatorship by unleashing a savage assault on immigrants. The deprivation of their democratic rights was only the first stage in the overthrow of the Constitution. The masked ICE agents who prowl through cities are the vanguard of the fascist paramilitary that Trump is planning to unleash against all sections of the working class.
An inseparable corollary of the fight for the international unity of American workers with their class brothers and sisters beyond the borders of the United States is irreconcilable opposition to US imperialism, militarism and war. The Gaza genocide carried out by the Zionist regime, which has to a great extent been carried out with weapons provided by the United States, reveals the barbarism of which capitalism is capable. The mass murder of Palestinians sanctioned by all the imperialist powers is an anticipation of what the capitalist oligarchs are prepared to inflict against the workers in their “own” countries.
It flows from this internationalist strategy that the rights of immigrants must be defended against the criminal and inhumane policy of deportation. The principle of birthright citizenship, inscribed in the Constitution, must be defended without compromise. Further, the class-conscious worker rejects the insidious and cruel distinction between the “native” and “foreign born.” Moreover, sanctions and tariffs imposed by the Trump administration must be opposed. The working class cannot defend its jobs and interests by supporting economic nationalism, which is entirely reactionary in an era of the global integration of production. The working class can advance its interests only by demanding the tearing down of national boundaries, which not only strangle the development of the productive forces but also lead mankind down the terrible path to nuclear world war.
Even before Trump began his second term and launched his drive for dictatorship, the Socialist Equality Party issued a call for the formation of the International Workers Alliance of Rank-and-File Committees (IWA-RFC). This initiative has not only been vindicated. Its development has acquired burning urgency.
5) The strategy, organization and action that are necessary to defeat Trump, defend democratic rights, and prevent fascism and war will not emerge spontaneously. This program must be fought for. But the determination that is required to take up and wage this fight is incompatible with pessimism and demoralization. These moods lead to paralysis. Moreover, pessimism is invariably connected to a superficial and false appraisal of reality. The Democrats, the unions and the media cultivate the myth of an all-powerful government while insisting that nothing can be done. This is a lie. What is lacking is not mass opposition but, rather, a political strategy to guide and organize the struggle against Trump’s assault on democratic rights.
The Socialist Equality Party advances this program as the basis for the struggle against Trump and the degenerate oligarchy which he represents. Our program is not for the pessimists, the skeptics and the demoralized, but for the fighters among workers, students, youth, professionals, artists and intellectuals. There is no time to lose.
We call on all workers and young people who agree with this perspective to join the Socialist Equality Party, mobilize the power of the working class, defeat the conspiracy of the oligarchs and fight for a socialist future without fascism, genocide and war
