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When we study Marx in my graduate social theory course, it never fails that at least one student will say (approximately), "Class struggle didn't escalate in the way Marx expected. In modern capitalist societies class struggle has disappeared. So isn't it clear that Marx was wrong and his ideas are of little value today?" I respond by challenging the premise that class struggle has disappeared. On the contrary, I say that class struggle is going on all the time in every major institution of society. One just has to learn how to recognize it. One needn't embrace the labor theory of value to understand that employers try to increase profits by keeping wages down and getting as much work as possible out of their employees. As the saying goes, every successful capitalist knows what a Marxist knows; they just apply the knowledge differently. Workers' desire for better pay and benefits, safe working conditions, and control over their own time puts them at odds with employers. Class struggle in this sense hasn't gone away. In fact, it's inherent in the relationship between capitalist employer and employee. What varies is how aggressively and overtly each side fights for its interests.

STOCKHOLM - Almost every developed nation in the world was walloped by the financial crisis, their economies paralyzed, their prospects for the future muddied. And then there's Sweden, the rock star of the recovery.

If you watch just one funny and handsome Marxist critique of the financial crisis, make it the Royal Society for the Encouragement of Arts, Manufactures and Commerce's animated version of David Harvey's RSA speech "Crises of Capitalism." It's been making the rounds this afternoon, and for good reason: Mr. Harvey, a Marxist scholar who heads CUNY's Center for Place, Culture & Politics, describes not just the failures that caused the ongoing fiasco, but the failure of how we've explained it.

Reuters reports: "The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy." The new rating is AA+. In explaining their decision Standard & Poors cites both the decision by Republicans in Congress to turn the debt ceiling into a political football and the Republicans intransigence on tax increases. Some excerpts from the release:

But the problem is that we live in a society where capitalism itself has become rampantly feral. Feral politicians cheat on their expenses, feral bankers plunder the public purse for all its worth, CEOs, hedge fund operators and private equity geniuses loot the world of wealth, telephone and credit card companies load mysterious charges on everyone's bills, shopkeepers price gouge, and, at the drop of a hat swindlers and scam artists get to practice three-card monte right up into the highest echelons of the corporate and political world.

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Last week, Brazilian President Lula da Silva and Turkish Prime Minister Reccep Erdogan announced a breakthrough agreement on the Iranian nuclear impasse that they claimed would make further sanctions on Iran "unnecessary." The agreement, accepted by Iran, was immediately rejected by the US and its European allies, who chose instead to continue the three-decade long US effort to strangle and isolate Iran by all means available. In what Graham Fuller, a top-ranking former intel official, called "a stunningly insulting response," Hillary Clinton proudly announced consensus for a fourth round of sanctions against Iran days later, which she called "as convincing an answer to the efforts undertaken in Iran in the past few days as any we could provide."

Wall Street's banditry was the proximate cause of the Great Recession, not its underlying cause. Even if the Street is better controlled in the future (and I have my doubts), the structural reason for the Great Recession still haunts America. That reason is America's surging inequality.

An absolute environmental catastrophe is unfolding in the Gulf of Mexico right now. British Petroleum (BP) has opened up the sea floor 40 miles off the Louisiana coast allowing millions of gallons of crude oil to erupt into the Gulf. The scope of the discharge is far worse than being reported in the main-stream-media.

As the financial crisis in the euro zone worsens and the heads of the IMF and the ECB come to Berlin to persuade Germany to help Greece now, local commentators are calling for speed and decisiveness. As they see it, political jockeying before the May 9 election in North Rhine-Westphalia is no reason for German politicians to endanger the whole euro zone.

Trading derivatives on regulated exchanges would be a major step forward, but it may no longer be enough. Economic bubbles are not recognized by those inside of them, the Congress of the united States being no exception. The $604.6 trillion derivatives bubble, which is equal to more than ten times world GDP, is a global issue. If existing OTC derivatives remain in place and there are no restrictions on what banks can trade derivatives, there is no actual or immediate reduction of systemic risk. Thus, the risks that led to the financial crisis in 2008 are likely to remain present in the global financial system for years to come. In fact, many banks have more CDS risk now than in 2008. Passing a bank-approved version of the financial reform bill, while it may be portrayed as a political victory or serve to calm financial markets temporarily, is unlikely to prevent another global financial crisis.

Across Western Europe, the "lifestyle superpower," the assumptions and gains of a lifetime are suddenly in doubt. The deficit crisis that threatens the euro has also undermined the sustainability of the European standard of social welfare, built by left-leaning governments since the end of World War II.

Much reporting on opposition to the Obama administration portrays it as a sort of populist uprising. Yet the antics of the socialism-and-death-panels crowd are only part of the story of anti-Obamaism, and arguably the less important part. If you really want to know what's going on, watch the corporations.

For thirty years, now, Republicans have been yammering about small government, deficits, the glories of the free market, and the incompetence and wastefulness of government. It's all been a big lie, part of a well funded and cleverly executed coup d'etat, designed to enable the ultra rich and corporations to literally take power out of the hands of government and money out of the pockets of individual citizens.

Earlier this week, the Federal Reserve Bank of New York published a blog post about the "mistake of 1937," the premature fiscal and monetary pullback that aborted an ongoing economic recovery and prolonged the Great Depression. As Gauti Eggertsson, the post's author (with whom I have done research) points out, economic conditions today - with output growing, some prices rising, but unemployment still very high - bear a strong resemblance to those in 1936-37. So are modern policy makers going to make the same mistake?

The double dip of this crisis is upon us. The latest data agree: the housing market has been in full double-dip mode for five months as home prices keep declining. The foreclosure disaster keeps increasing the combination of homeless families and empty homes. Think capitalist efficiency. Unemployment rose back above 9 % again. The average length of unemployment is now 39.7 weeks, the longest since these records began in 1948. Investments by businesses are decelerating and governments keep dropping workers. 

A couple of years ago, a Republican committee staff director told me candidly (and proudly) what the method was to all this obstruction and disruption. Should Republicans succeed in obstructing the Senate from doing its job, it would further lower Congress's generic favorability rating among the American people. By sabotaging the reputation of an institution of government, the party that is programmatically against government would come out the relative winner.

The period from March 2009 was the year of wishful thinking. Central banks cut interest rates and governments opened their cheque books providing a flood of cheap money that gave the illusion of recovery and a normal functioning economy. By pouring a lot of water into a bucket with a large hole, the world sustained the impression that the receptacle was almost full.

Europe's consistent inability to move quickly enough to get ahead of the financial markets during the Greece crisis is shaking the euro and the foundations of the European Union itself, as critics of the euro have long predicted would happen.

Christina Romer, former member of President Obama's Council of Economic Advisors, accuses the administration of "shamefully ignoring" the unemployed. Paul Krugman echoes her concerns, observing that Washington has lost interest in "the forgotten millions." America's unemployed have been ignored and forgotten, but they are far from superfluous. Over the last two years, out-of-work Americans have played a critical role in helping the richest one percent recover trillions in financial wealth.