(Akahata is published by the Communist Party of Japan)
A theoretical exchange meeting between Fuwa Tetsuzo, director of the Japanese Communist Party’s Social Sciences Institute and member of the JCP Standing Executive Committee, and the Communist Party of China took place in Beijing recently.
Present at the discussion from the CPC were 14 officials, including Chen Fengxiang, deputy director of the International Department of the CPC Central Committee, and Li Jun, head of the Policy Research Office of the International Department, and Zhou Yuyun, the office vice head.
Chen opened the discussion by welcoming Fuwa’s visit and said that, based on the results of the two previous CPC-JCP theoretical meetings concerning the issues of contemporary capitalism and socialism, this discussion will focus on the issue of the global financial crisis.
He also stated his views on the historical background and causes of the present financial crisis.
Fuwa responded to Chen by pointing out the in-depth inclination of the parasitic or decaying nature of capitalism as well as changes in global power relations due to the shrinking sphere of capitalism’s influence.
Fuwa characterized the current global economic crisis as being caused by a combination of overproduction and a financial crisis based on panic.
He said that the current crisis broke out after the burst of the global financial bubble triggered by a sub-prime loan crisis, which came after the burst of the housing bubble that had been created by a rise in fictitious market demand. The global financial crisis was caused by the burst of the financial bubble produced through securitization of bad loans, he added.
Stressing that questions of the contemporary world cannot be analyzed without applying Marx’s theory, Fuwa referred to some of Marx’s core theories of crisis and the credit system as effective analytical tools to crisis analysis.
The CPC side raised questions and views on the issues of the globalization of the economy and neo-liberalism.