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Blood for lithium

by "Save the civilians"
Economic background of the war in Ukraine
The term "blood for oil" has become commonplace for the wars in the Middle East. In contrast, the discussion about the war in Ukraine is more about history and geopolitics. The economic background tends to be a blank spot. So here is some information to fill it in:
Agriculture

Thousands of soldiers are dying for the 'Ukrainian country's defence', while the country itself is being 'peacefully' sold to foreign corporations
https://www.state.gov/reports/2021-investment-climate-statements/ukraine/
https://www.fr.de/wirtschaft/ukraine-bodenschaetze-rohstoffe-schwarze-erde-krieg-russland-westen-agrar-landwirtschaft-zr-92661153.html
https://eltabanoeconomista.wordpress.com/2023/05/28/guerra-y-robo/
https://www.donbass-insider.com/fr/2023/11/30/zelensky-et-soros-lempoisonnement-des-terres-ukrainiennes/

Energy


The disconnection from the eastern/Russian power grid and connection to the western European grid was prepared long before the Russian invasion
https://www.bpb.de/themen/europa/ukraine-analysen/344564/analyse-die-anbindung-der-ukraine-an-europas-stromsystem-zwischen-technischen-details-und-harter-geopolitik/ https://www.bundesregierung.de/breg-de/schwerpunkte/krieg-in-der-ukraine/ukraine-moldau-eu-stromnetz-2016702

There was also a 'small war' on gas long before the 'mysterious' blowing up of Nord Stream II
https://en.wikipedia.org/wiki/Russia%E2%80%93Ukraine_gas_disputes
https://de.wikipedia.org/wiki/Russisch-ukrainischer_Gasstreit

Lithium

It is a key metal for electric cars and thus the move away from fossil fuels. Some of the largest deposits in Europe are located in the Donbass, currently under Russian control
https://www.geo.gov.ua/wp-content/uploads/presentations/en/investment-opportunities-in-exploration-production-strategic-and-critical-minerals.pdf Page 7
https://www.renewablematter.eu/articoli/article/ucraina-tutte-le-riserve-di-litio-e-le-risorse-minerarie-nelle-zone-di-guerra
https://www.youtube.com/watch?v=LEgqafjfa50
Does this explain the attitude of leading German Green politicians towards the war in Ukraine? This time 'blood for lithium'?

Wage levels

An hourly wage of €1.30 is very convenient for investors now that it has risen to €1.45 - €3.24 in China and the transport routes from Ukraine are much shorter. The ban on strikes due to martial law is also 'very practical'.
https://www.timedoctor.com/blog/average-salary-in-ukraine/
https://www.sozonline.de/2023/11/ich-weiss-nicht-wie-man-dieses-system-bekaempft-aber-ich-fang-jetzt-damit-an/
https://www.sozonline.de/2023/12/eindruecke-von-einer-reise-in-die-ukraine/
So much for Ukraine in particular. In view of the high number of wars, however, the question arises: are they perhaps part of the economic system, like getting wet is associated with rain?

There are two theories that point in this direction:

1) Military spending counteracts the fall in the rate of profit
https://www.tandfonline.com/doi/full/10.1080/10242694.2020.1832394
https://de.wikipedia.org/wiki/Permanente_R%C3%BCstungswirtschaft
http://www.mxks.de/files/other/Deutschmann.FiskusProfitrat.html#footbackV.15 , especially 206+207


2) Military spending stabilises the economy in the sense of Keynes, just like social spending.
https://vdocuments.net/sweezy-baran-monopoly-capital.html?page=116 , p.212+213 https://www.lunapark21.net/ruestungsproduktion-und-kapitalismus/ ‘Wie geschmiert’
(The former is more favourable to the owners of the capital goods industry in particular than social spending, which strengthens wage earners).

Let's take a closer look at the special features of military spending:

1) They are not negotiated on the market, but with the state, which is easier, especially if senior politicians/officials later want to move into well-paid positions in defence companies
https://www.dielinke.at/artikel/international/drei-apokalyptische-reiter-krieg-kapitalismus-und-globalisierung/ , rider no. 1

2) The ability to plan is higher due to purchase guarantees,
https://www.lunapark21.net/ruestungsproduktion-und-kapitalismus/ , 'Mit Wachstum'

3) The profit margin as well
https://vdocuments.net/sweezy-baran-monopoly-capital.html?page=114 , p.208
https://www.lunapark21.net/weltweite-ruestungsbranche-und-ukraine-krieg/

However, there are also some pitfalls:

1) The employment effect decreases as the technology of weapons becomes more complex https://vdocuments.net/sweezy-baran-monopoly-capital.html?page=117 , p.214
The only thing that 'helps' is an increase in the number of wars and an increase in the share of armaments production in gross national product (see 2 per cent target 'military expenditure/GNP')


2) If not all expenditure is financed by taxes distributed among wage earners and companies, the payments to wage earners and companies are not matched by a purchasable commodity, resulting in permanent inflation.
https://www.lunapark21.net/ukraine-krieg-und-inflation/

3) The ecological consequences undermine the prerequisites of the economy in the long term
https://www.3sat.de/wissen/nano/231020-sendung-krieg-ist-ein-turbo-fuer-die-erderwaermung-nano-100.html , first two contributions

4) The military-industrial-political complex emerges
https://en.wikipedia.org/wiki/Military%E2%80%93industrial_complex
https://de.wikipedia.org/wiki/Milit%C3%A4risch-industrieller_Komplex
https://www.lunapark21.net/diese-armee-muss-raus-auf-die-strasse/

5) Contrary to the propaganda of the 'Zeitenwende armourers', security decreases with increasing armament, any misinterpretation can make the entire world uninhabitable through escalation
https://vdocuments.net/sweezy-baran-monopoly-capital.html?page=117 , P.215 https://www.ippnw.de/atomwaffen/gesundheitsfolgen/artikel/de/ein-atomkrieg-wuerde-das-globale-klim.html


What does this mean for the peace movement?

1) It must be prepared for the fact that wars do not 'break out', but are systematically produced and provoked. They are part of the 'business model'. Even if there are other causes of war - peace work remains Sysiphus work as long as capitalism exists.

2) However, it would be a mistake for the peace movement as such to propagate socialism as an economic system. Firstly, because this would exclude many pacifists of other ideologies and secondly, because there are few examples that work in practice. 😥

3) However, we can and must point out that war and armaments necessarily entail either tax increases or cuts in social spending or permanent inflation.

4) In addition, parliamentarians and politicians who represent armaments companies and not citizens must be clearly named. They are out of place.



Examples:


The price of a 155mm bullet rose from €2000 (2021) to €3300/unit (2023) for Rheinmetall and up to €8000/unit for others.
https://www.reuters.com/world/nato-urges-common-standards-curbs-protectionism-boost-artillery-output-2023-10-2
https://t.me/ukr_leaks_fr/5703
https://www.businessinsider.de/politik/deutschland/so-gut-verdient-rheinmetall-an-munitionslieferungen-fuer-die-ukraine/
https://www.neopresse.com/wirtschaft/ukraine-so-viel-verdient-der-ruestungskonzern-rheinmetall/


The state assumes the entrepreneurial risk for investments in the war zone Ukraine
https://www.gtai.de/de/trade/ukraine/wirtschaftsumfeld/bundesregierung-erweitert-investitionsgarantien-fuer-die-ukraine-1026478
https://www.nd-aktuell.de/artikel/1177301.ruestungskonzern-rheinmetall-wenn-die-violinen-schweigen.html
https://www.jungewelt.de/artikel/461814.ukrainekrieg-vor-mageren-jahren.html

The money for military 'aid' mainly benefits the industry in their own country
https://www.washingtonpost.com/opinions/2023/11/29/ukraine-military-aid-american-economy-boost/

The positions of Marie-Agnes Strack-Zimmermann ( https://www.strackzimmermann.de/ ), chairwoman of the Bundestag's 'Defence' Committee, harmonise conspicuously with the interests of Rheinmetall, which is based in her constituency of Düsseldorf.

And for the private contractors of the SCAAP munitions plant in Scranton, Pennsylvania, it is certainly no disadvantage that President Biden was born there
https://www.army.mil/article/263789/secretary_of_the_army_discusses_modernization_efforts_during_scaap_visit
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