The Infinite War and its Roots
by Stan Goff
>>But we must take into account the social relations of energy, and
value-theory. It is not the finite physical limit of oil that matters right
now. It matters what is finite in the context of what is economically
essential. Does oil have any perfect substitutes? At this conjuncture, the
answer is an unequivocal "no." What is the value of oil in terms of embodied
socially-necessary labor-time? In other words, can the value of oil rise
fast enough for the whole economy to be contained? The answer to that is an
unequivocal "yes."<< (end of quote)
Mr. Stan Goff ideological and theoretical underpinning is showing. He asks:
"What is the value of oil" and "can the value of oil rise fast enough for the whole economy to be contained? The answer . . . is "yes."
Well, value is not price and the "the finite physical limit of oil " is not measurable. The value of oil is subject to the same dynamic as any other commodity. Revolutionizing the technology base of oil location, extraction, synthesizing and transportation decreases the amount of human labor involved in its production. The value of oil falls, meaning a given measure of labor produces more oil than a previous magnitude of labor. The historic and immediate labor content of oil production is towards zero as opposed to "more human labor needed" to produce a given quantity of oil. The price of oil is not its value but also runs in the direction of zero. Concretely, a fall in the price of oil cheapens the cost factor in the production of most commodities.
This matter requires theoretical "deconstruction" because in real life value and price is inexplicably fused into the social equation. The glut of oil is the reality major oil producers face. These major producers are running at a break neck pace to bring more oil to the market in the exchange relations on the one hand, while attempting to limit the same oil, so that its price will not collapse due to the pressure of competition. That is the (THE) contradiction from which capital cannot escape.
>It matters what is finite in the context of what is economically
essential<
is not a theoretical unraveling but a political statement posing as analysis.
"Economically essential" mean "profitable" pure and simple. No matter what direction the price of oil moves in, its value run in one direction - towards zero or rather "less." However, the pressure of competing blocks and individuals combines push the price of oil on the world market towards "lower." Raising the price - called value by Mr. Goff, of oil as, such cannot contain the "economy."
>In other words, can the value of oil rise fast enough for the whole economy to be contained?<
is not a theoretical unraveling but a political statement dressed up as theoretical discourse. The issue is not oil abstracted from the process of societal reproduction. Stated another way, oil is understood as essential to production on the basis of an industrial infrastructure. "Production" in this usage means everything - the totality of commodities, which are created. The totality of commodities has to be sold - consumed, to realize a profit.
In history, the question of "money in the hands of consumer barrier" has been the face of the general crisis of capital as it completed its history making circuit to transform the world from the feudal mode of production. Each stage in this process of capital development ran into the barrier of the market identified as the overproduction crisis, meaning the problem of "money in the hands of consumer barrier."
The emergence of Soviet power liberated one-sixth of the world from capitalist market relations and erected a barrier - more than less, to exchange based on capitalist property relations. The barrier erected to capitalist market exchange - more than less, was guarded by an immense military structure. One could properly characterized the crisis of capitalist production as a general crisis of capital, not simply because of the productive capacity outrunning the consuming capacity of the masses or because the crisis affected all areas of the economy, but also because a portion of the earth was blocked - more than less, as an area of expansion.
"Old school Reds" called this process, "the October Revolution ushered in the general crisis of capital."
(I still like the Old School Red presentation of matters or their art. The October Revolution did not consolidate the general crisis of capital but rather, "Ushered It In." This is like being in the movie theater after the lights go out and you cannot find your seat and you call for the usher to escort your women and you through the dark.)
Today what we face is not the general crisis of capital as such. The reason is not simply the collapse of Soviet power. The underlying problem is the revolution in the material power of production and the emergence of a qualitatively distinct and new method of production.
In one way or another throughout the world social revolution is overwhelming and realigning every aspect of social and political life. Like unseen geological tectonic shifts manifesting in catastrophic earthquakes, underlying material forces are disrupting and reshaping social relations everywhere. No matter how much one might try to describe the new world in old terms and categories, it just doesn't fit. What we are facing is not the intensification of the old contradictions of capitalism, and the old formulas of the "struggle against imperialism" don't point the way forward or offer any solutions.
The general crisis of capital was a period of quantitative development within a specific historical period of the development of capitalism. All quantitative development is marked by crisis. The general crisis indicated a certain stage of capitalist development, that stage where the system could continue to turn inward and die or expand and enter another quantitative stage of expansion. As we know, neocolonialism and the politics of oil era or what is called the creation of the petrodollar, provided that expansion.
The spreading, economic and political antagonisms today are not an expression of a new or renewed general crisis, but the expression of the destruction, not only of a system, but also of society. The mode of production in its technological features or the material power of the productive forces or the instruments of production are in the process of completing a leap from production on the basis of industrial process - electromechanical to electro-computerized. Electromechanical process by definition required petroleum and its byproducts to lubricate moving parts of every machine or decrease the friction.
Stop and pause. Let's do a test.
Open up the panel on your computer - after unplugging it. Mechanical movement is at the first stage of replacement by impulse motion. No oil needed! Even in heavy machinery a host of new products - lubricants are today available on the market to "grease" the running of machinery. These new synthetics - many vegetable based, are remarkable and increasing used in the auto industry.
Therefore, the "general crisis" is not the term we would use today. The general crisis was resolved through war, reform and the postwar expansion of US imperialism. In the past this process gave rise to all kinds of economic doctrine and policy, which in the last instance said, "let us figure out a way to increase the consuming capacity of the masses" to keep capital "on-line." There is no resolution today within the capitalist system. There is no room for reform once society enters the process of the evolutionary leap.
Stan writes:
>>Oil has no perfect substitute. Neither solar cell nor coal nor plutonium can
run trucks or airplanes. There are theoretical substitutes, but not one
shows any promise in the near term of even being developed. It is the
lifeblood of the entire global capitalist system, and has been for 100
years. If oil prices go beyond a very operational price of no return, so to
speak, the economy will most certainly be contained, very likely to the
point of collapse. Imagine the consequences today, for example, if oil
prices jumped a mere 50 percent. But if best predictions are correct, and we
are entering the era of post-peak production, a steady and accelerating
increase in the price of oil is inevitable, and soon.
So capitalism itself, utterly dependent on this single finite substance, is
faced with a very real and very threatening energy crisis. Progressive (as
in gradual) change is now producing an abrupt step-change. We may not
perceive it as such yet, because U.S. capitalists are very adept at
commoditifying the mass-intellect, and making its assertions appear both
upright and noble, as we can see in the ubiquitous display of American
flags.
Every oil shock since 1973 has corresponded to or promptly followed a war.
To understand why, we have to account for the concrete and current structure
of the world capitalist system. <<
(end of quote)
Well, Stan said a mouthful.
"The concrete and current structure of the world capitalist system," means unraveling its changing technological basis of operations or what is called the revolution in the means of production.
"General Crisis of Capital?" Yes, and No. "Yes," if one means the outbreak of a cyclical crisis occurring under conditions where society is undergoing an evolutionary leap, which leads to the "no," because something deeper than a cyclical crisis is now taking place.
"General Crisis of Capital?" No, something else is unfolding called revolution in the mode of production. I will personally reframe from using the term, "General Crisis of Capital" because it refers to an old period. The only exception is when I forget that I supposed to remember not to use the term. I do have a problem remembering the things I supposed to not forget.
"Glut of oil" on the world market? Yes, and there is a twofold purpose of war in the Middle East from the standpoint of our bourgeoisie. One factor is to keep oil off of the market and another is to transform the political superstructure - if you will, and gut it of its lingering feudal vestiges while consolidating the hegemony of the US sector of the world bourgeoisie. These two factors are part of a complex of crisis in the world capitalist system.
Shortage of oil? Not in this world. The shortage is in our vision and imagination.
Melvin P.
