Part 011 - PAMPHLET 037 011

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to develop, whereas production has to be limited, it has become impossible to prevent the growth of unemployment and inflation. In the major capitalist countries of Europe the rate of unemployment has now reached 12-13 per cent and the inflation crisis is sweeping the capitalist world. The crisis of capitalism finds clear expression in the fact that the position of the United States, the ringleader of world imperialism, is becoming more and more difficult. The United States is in this difficult position because it is not only sharing the same crisis as the capitalist powers, but has also been gradually losing its leading position in the capitalist world. As their economic domination is being weakened as a result of the economic progress of the European capitalist countries and Japan, the US imperialists are basing their economy more and more on armaments in order to maintain their domination over the capitalist world and allow the large munitions monopolies to make profits. As a result, the deficit in their state budget has become enormous, and their foreign debts have swollen so that the United States, which was once the greatest creditor country in the world, has, now, become the largest debtor nation. Since in the United States the armaments monopolies are trying to make greater profits by ceaselessly expanding the munitions industry, the process of basing the economy on armaments cannot be halted. The United States has attended the negotiations on nuclear arms reduction, but in no way does this mean that its monopolies have abandoned their desire to expand the munitions industry. The American armaments monopolies may not regard the reduction of those nuclear weapons which have already been manufactured and sold as affecting their interests directly, but on no account will they tolerate any reduction or banning of nuclear arms 7