World Economy
British pound plummets over “hard Brexit” fears
By Nick Beams, 8 October 2016
The currency’s sudden fall on Friday was a warning that capital inflows needed to finance the British current account deficit could dry up.
As geo-political and economic tensions mount
IMF warns of record high global debt
By Nick Beams, 7 October 2016
The International Monetary Fund said low and negative interest rates are reaching the limits of their effectiveness and could undermine the solvency of pension and insurance funds.
IMF cuts growth forecasts for major economies
By Nick Beams, 5 October 2016
The International Monetary Fund has warned of a “deflationary trap” where further cuts in interest rates cannot provide a stimulus to the world economy.
Deutsche Bank crisis: Germany and US accuse each other of economic warfare
By Stefan Steinberg, 4 October 2016
While the latest outbreak of transatlantic hostilities revolves around the perilous state of Deutsche Bank, it is not the only bank facing collapse.
Deutsche Bank and the global financial crisis
By Nick Beams, 1 October 2016
The contradiction between booming financial markets and intractable slump in the underlying economy is assuming an ever more explosive form.
Crisis at Germany’s Deutsche Bank intensifies
By Ulrich Rippert, 30 September 2016
Following the plunge in Deutsche Bank’s share price to its lowest level since 1983, Germany’s second largest bank, Commerzbank, has announced a major restructuring.
Slowdown in growth of trade highlights global economic stagnation
By Nick Beams, 29 September 2016
Both the World Trade Organisation and the International Monetary Fund warned of an increase in protectionist measures alongside a fall in the rate of world trade growth.
Economist magazine warns of revolutionary consequences of unprecedented corporate power
By Gabriel Black, 28 September 2016
A special report in the Economist magazine warns of a return to the type of economic and political conditions that produced the 1917 Russian Revolution.
Deutsche Bank plunge sparks talk of “Lehman moment”
By Nick Beams, 27 September 2016
The turmoil surrounding Deutsche Bank is only the sharpest expression of a crisis gripping the whole of the European banking system.
NASDAQ hits record after US and Japanese central banks signal continued stimulus
By Nick Beams, 22 September 2016
Global stocks rallied as the Organisation for Economic Co-operation and Development revised down its global growth estimate, citing weak trade growth and lower productivity.
Markets too dependent on central banks, BIS warns
By Nick Beams, 20 September 2016
Amid signs of increased volatility, the Bank for International Settlements issued another warning that financial markets rely too much on central banks.
The 2008 crisis and the lessons of history
By Nick Beams, 15 September 2016
The ensuing eight years have shown that the financial crisis of 2008 was not a conjunctural downturn but a breakdown in the very foundations of the global capitalist economy.
Turbulence returns to financial markets
By Nick Beams, 13 September 2016
There are warnings that the rise in bond prices could turn into a rout with significant losses for investors.
ECB keeps monetary policy on hold as tensions grow
By Nick Beams, 9 September 2016
The European Central Bank has kept its monetary policy on hold but there are growing concerns about what it can do as deflationary pressures continue.
Wells Fargo bank fined for account and credit card fraud
By Nick Beams, 9 September 2016
Questions are sure to asked as to how a bank, supposedly with tight internal controls and reviews, did not know about the creation of two million fake accounts.
South Korea’s Hanjin Shipping bankruptcy has global impact
By Ben McGrath, 9 September 2016
The company’s financial problems are a further indication of the economic instability facing the world economy.
Deteriorating Australian economy adds to pressure on Turnbull
By Mike Head, 7 September 2016
The corporate discontent with the prime minister’s performance is mounting amid falling business investment and stagnant retail sales.
Fears of rising social opposition hung over G20 summit
By Nick Beams, 6 September 2016
At the conclusion of the summit, IMF managing director Christine Lagarde also addressed these issues warning that economic growth had been “too low for too long for too few.”
Rising global tensions surface at G20 summit
By Nick Beams, 5 September 2016
It is a sure sign of the deepening malaise of the global capitalist economy, afflicted by lower growth and falling trade, that “overcapacity” in steel was at the very centre of the G20 economic agenda.
IMF issues warning on global growth to G20 summit
By Nick Beams, 2 September 2016
International Monetary Fund managing director Christine Lagarde has said the world economy could suffer from “disappointing growth for a long time to come.”
France demands end to trade talks with US amid rising US-EU tensions
By V. Gnana and Alex Lantier, 31 August 2016
As France demanded an end to talks on the TTIP trade deal, the EU said it would levy a €13 billion fine on Apple, a move the US Treasury said could damage US-EU ties.
Growing perplexity as central bankers confront permanent stagnation
By Nick Beams, 30 August 2016
With the business cycle set to enter a “dangerous” phase, central bankers are concerned that interest rates are already so low they will not be able to counter any economic downturn.
ILO report: Global youth unemployment to rise for first time in three years
By Niles Niemuth, 27 August 2016
According to an International Labor Organization report, the number of unemployed young people ages 15 to 24 will rise to 71 million this year.
No end to central bank subsidies for financial markets
Fed chair lays out long-term scenario of economic stagnation
By Barry Grey, 27 August 2016
Yellen all but acknowledged that low levels of economic growth and extreme financial instability were permanent features of the US and world capitalist economy.
Air of crisis overhangs central bankers’ meeting
By Nick Beams, 26 August 2016
The central bankers and financial authorities gathered at Jackson Hole have no economic answer to the crisis of the profit system over which they preside.
Deutsche Bank whistleblower rejects reward, cites collusion between bank and regulators
By Gabriel Black, 25 August 2016
The former vice-president accused the SEC of not prosecuting leading bank officials because of the incestuous relationship between the bank and the ostensible watchdog.
Fed divided on policy amid warnings over state of global bond markets
By Nick Beams, 19 August 2016
Underlying the divisions in the Federal Reserve is the lack of any clear understanding of where the US economy is heading.
Pacific island economies hit by global slump
By John Braddock, 17 August 2016
Led by falling commodity prices and sharp declines in the Pacific’s largest economies, growth across the region will fall sharply in 2016.
As growth prospects fall, US markets hit record high
By Nick Beams, 16 August 2016
The rise in the markets and the underlying weakening of the real economy are interconnected phenomena as finance seeks to accumulate profits through parasitism.
International bond markets turn “surreal” as speculation grows
By Nick Beams, 15 August 2016
The move by the Bank of England to undertake further “quantitative easing” has led to even more speculation in financial markets, as the underlying economy worsens.
Sri Lankan government imposes IMF privatisation demands
By Saman Gunadasa, 13 August 2016
The IMF regards Sri Lanka’s state-owned enterprises as a burden on the economy as well as a potential source of profit for investors.
The slump in US productivity: Another symptom of capitalist crisis
By Andre Damon, 11 August 2016
Behind the continuing slump in productivity and business investment is an immense growth of financial speculation.
The United Steelworkers, economic nationalism and the US drive to war
By Evan Winters and Jerry White, 10 August 2016
The USW's calls for tariffs against “foreign steel” and its nationalist agitation against China are aimed at dragooning workers into supporting US imperialism’s preparations for war.
Global economic stagnation fuels financial instability
By Nick Beams, 8 August 2016
The decision by the Bank of England to take “exceptional” financial measures reflects the worsening outlook for the global economy.
Bank of England announces record rate cut in windfall for financial markets
By Barry Grey, 5 August 2016
The rate cut, together with other measures announced by the bank, will pump 170 billion pounds ($223 billion) into the UK’s financial markets.
Manufacturing slows in Europe and Japan
By our reporter, 2 August 2016
The continued slump in the real economy is in marked contrast to the ongoing and ultimately unsustainable speculative frenzy on international share markets.
Slowdown in US, global economy
By Tom Eley, 1 August 2016
Second-quarter gross domestic product figures for the US and Europe show a further slowing in economic growth and business investment.
Jobs losses continue in Australia as slump deepens
By Terry Cook, 23 July 2016
The job cuts further highlight the impact of falling commodity prices and declining demand in China and throughout Asia.
IMF cuts growth forecast in the wake of Brexit
By Nick Beams, 21 July 2016
The IMF has warned of the possibility of a “severe scenario” for Europe if financial conditions tighten and consumer confidence falls.
Global trade stagnates amid wave of protectionism
By Nick Beams, 15 July 2016
Members of the G20 were responsible for more than 80 percent of protectionist measures in 2015.
US Justice Department blocked prosecution of HSBC bank for drug cartel money laundering
By Gabriel Black, 15 July 2016
The House Financial Services Committee report makes clear that the Obama administration’s failure to hold criminally liable a single leading Wall Street figure is the result of a highly conscious and systematic policy.
A dangerous turn to economic nationalism
By Nick Beams, 12 July 2016
With all efforts to return global economic growth to pre-2008 levels having failed, the ruling class’s economic theorists have turned to the promotion of protectionism and nationalism.
IMF chief points to war danger
By Nick Beams, 8 July 2016
International Monetary Fund head Christine Lagarde warned against the dangers posed by the prospect of a “wave of protectionism.”
Signs of post-Brexit financial crisis mount
By Nick Beams, 7 July 2016
The suspension of cash redemptions by six property investment firms in Britain could set off a crisis extending to the banking system.
Brexit to intensify Sri Lankan economic crisis
By Saman Gunadasa, 6 July 2016
The British vote threatens to exacerbate Sri Lanka’s balance of payments crisis and deepen the widespread discontent over the government’s austerity measures.
Brexit financial fallout widens
By Nick Beams, 4 July 2016
Bank of England Governor Mark Carney has warned of “economic post-traumatic stress” hitting financial markets, businesses and households.
Brexit vote highlights deepening crisis in global economy
By Nick Beams, 30 June 2016
The Brexit outcome has revealed acute problems in the “quantitative easing” program that the world’s major central banks have used to sustain the global financial system over the past eight years.
Financial market turmoil continues in wake of Brexit vote
By Nick Beams, 28 June 2016
British government leaders have issued statements claiming they have the situation under control, but to no avail as financial markets continue to plummet.
After Brexit, mounting warnings of global slump and financial panic
By Andre Damon, 27 June 2016
The ongoing sell-off in global financial markets comes amid a chorus of warnings by international institutions that the world economy faces a deepening crisis.
UK “leave” vote batters financial markets
By Andre Damon, 25 June 2016
The British pound plunged to a 31-year low, European stock markets crashed and US markets erased their gains for the year following the Brexit vote.
On eve of Brexit referendum, mounting warnings of global trade war
By Andre Damon, 22 June 2016
The World Trade Organization warned that protectionist measures by leading economies has hit the highest level on records dating back to 2009.
The return of “secular stagnation”
By Nick Beams, 17 June 2016
Fed chairwoman Janet Yellen’s comments on Wednesday pointed to the emergence of “secular stagnation” in the global economy, a term first developed in the 1930s.
Fed holds interest rates amid mounting global turmoil
By Nick Beams, 16 June 2016
The Fed decision to keep interest rates on hold is an expression of the fact that what were once considered “normal” operations of the capitalist economy are breaking down.
IMF issues warning over growing Chinese debt problems
By Nick Beams, 14 June 2016
The IMF has described rising corporate debt in China as the key “faultline” in its economy, amid concerns it could have major “spillover” effects internationally.
Economic nationalism and the growing danger of war
By Nick Beams, 4 June 2016
The global economy is increasingly marked by the return of the types of economic nationalism that had such devastating consequences in the 1930s.
Economic conflicts threaten global trade war
By Nick Beams, 3 June 2016
The decision by the US International Trade Commission to launch an investigation into 40 Chinese steel producers has far-reaching implications.
Financial parasitism and the global housing crisis
By Gabriel Black, 31 May 2016
Rent and housing costs in major cities have skyrocketed since the financial crisis, cutting into workers’ living standards and prompting concerns about a global housing bubble.
Deepening national antagonisms dominate G7 summit
By Nick Beams, 27 May 2016
The G7 nations are seeking to ramp up military pressure against China, amid a deepening economic slump and divisions within their own ranks.
International finance capital and the strikes in France
By Nick Beams, 25 May 2016
The aim of the “structural reforms” demanded by the IMF and the financial elites is the destruction of all the social gains of the European working class won in the past seven decades.
Currency conflicts surface at G-7 meeting
By Nick Beams, 23 May 2016
As with other major economic summits in the recent period, the weekend meeting of the G-7 could reach no agreement on co-ordinated measures to halt the stagnation of the global economy.
Growing warnings over Chinese debt
By Nick Beams, 18 May 2016
The IMF has reported that one sixth of Chinese business loans are on the books of companies earning less revenue than their interest payments.
US department store sales plunge, jobless claims rise
By Barry Grey, 17 May 2016
The slump in major chain store sales reflects the impact of a vast reordering of class relations in the US with devastating consequences for the working class.
Deepening contradictions within the global economy
By Nick Beams, 5 May 2016
Just as the economics of the present period are increasingly resembling the 1930s, so are the politics.
Australian government budget sets stage for volatile federal election
By James Cogan, 4 May 2016
The budget is predicated on cutbacks to working-class living standards in order to finance the ramping up of military spending and corporate tax cuts.
Apple sales decline points to faultlines in global economy
By Barry Grey, 28 April 2016
Apple exemplifies the unprecedented and unsustainable inflation of stock prices since the Wall Street crash of September 2008.
China debt levels reach record high
By Nick Beams, 26 April 2016
China’s debt levels have risen rapidly since the onset of the global financial crisis in 2008, with some analysts warning that the country may experience a “Lehman” disaster.
Divisions grow over European Central Bank policy
By Nick Beams, 22 April 2016
German criticism of the ECB’s negative interest rate regime is not the result of differences over monetary policy philosophy but is rooted in the political economy of German capitalism.
Doha oil talks collapse
By Nick Beams, 19 April 2016
The main reason for the failure to agree on an oil production freeze appears to be tensions between Saudi Arabia and Iran, which are on opposites sides in conflicts in the Middle East.
US corporate tax cheats hiding $1.4 trillion in profits in offshore accounts
By Patrick Martin, 15 April 2016
A report by Oxfam found that the 50 largest US corporations are evading $111 billion in US taxes per year—enough to wipe out child poverty in America.
Panama Papers reveal New Zealand is a tax haven for world’s elites
By John Braddock, 15 April 2016
Successive Labour and National governments are responsible for New Zealand laws that allow foreign trusts to carry out massive tax avoidance.
Economic nationalism and the global steel crisis
By Nick Beams, 14 April 2016
The program of economic nationalism promoted by the steel bosses, political leaders and the trade union bureaucrats leads to depression and ultimately war.
Financial instability far from over, says IMF
By Nick Beams, 14 April 2016
The IMF’s Global Financial Stability Report concluded that the market turbulence seen at the start of the year is not over and could be a warning of things to come.
IMF downgrades growth projections, warns of “synchronized slowdown”
By Barry Grey, 13 April 2016
Particularly striking is the prominence given in the IMF report to the impact of “noneconomic” factors in the deepening economic quagmire.
IMF to meet amid worsening stagnation and rising geo-economic tensions
By Nick Beams, 12 April 2016
As global growth continues to slow, there are rising concerns that the negative interest rate policies of major central banks are worsening the situation.
Panama Papers destabilise Cameron government in UK
By Chris Marsden, 11 April 2016
Britain stands at the epicentre of an international web of corruption serving the interests of a financial oligarchy that rules the entire planet.
Amid deepening slump, geopolitical and class tensions mount
By Nick Beams, 9 April 2016
The International Monetary Fund has called for enhanced global cooperation, but every tendency is heading in the opposite direction, with economic nationalism and militarism on the rise.
Panama Papers revelation triggers political crises around the globe
By Jordan Shilton, 7 April 2016
As pressure builds on Britain’s Conservative government over the tax arrangements of Prime Minister David Cameron, it is becoming clear that the Panama Papers are merely the tip of the iceberg.
The reality behind the “Save our Steel” campaign in Britain
By Robert Stevens, 6 April 2016
Whatever deal Tata and the government cook up with the private buyers of threatened steel plants, the trade unions will do nothing to oppose any attacks on jobs, wages and pensions.
Imperialism, political corruption and the real face of capitalism
By Andre Damon, 6 April 2016
The publication of the “Panama Papers” has exposed the criminality that pervades the financial elite and its political representatives.
UK central to global tax avoidance
Cameron government implicated in Panama Papers revelations
By Chris Marsden, 6 April 2016
The leaked Panama Papers detailing widespread global tax avoidance place the UK at the centre of this operation.
IMF report points to sources of increasing financial turbulence
By Nick Beams, 5 April 2016
The ever-closer integration of the global economy has led to increased financial instability and turbulence, and heightened “systemic risk.”
“Panama papers” tax evasion leak stokes political crises worldwide
By Andre Damon, 5 April 2016
Documents provided to the International Consortium of Investigative Journalists tie hundreds of wealthy individuals and world leaders to offshore havens used in tax evasion and money laundering.
UK Tata Steel operation at centre of escalating trade war
By Robert Stevens, 4 April 2016
The Labour Party and the trade unions have responded to the planned closure of Tata Steel’s UK plants with demands for protectionism and trade war.
The political economy of endless austerity
By Nick Beams, 31 March 2016
The imposition of austerity is determined not by a lack of economic resources, but by the relentless logic of the profit system.
Japanese economy continues to show signs of faltering
By Ben McGrath, 29 March 2016
A negative interest rate introduced in January by the Bank of Japan has done nothing to promote economic growth.
Economic nationalism, war and the fight for international socialism
By Nick Beams, 15 March 2016
The end result of the program of economic nationalism can be seen in the experience of the 1930s, when it brought about social devastation and led to world war.
Central banks confront unintended consequences
By Nick Beams, 15 March 2016
Markets are awaiting decisions by the Bank of Japan and the US Fed on monetary policies as concerns grow over negative interest rates.
European Central Bank cuts rates and pours more money into financial markets
By Nick Beams, 11 March 2016
The ECB’s latest measures will do nothing to boost the real economy, but only lead to further financial speculation and increase the danger of a currency war.
As Chinese exports plunge
IMF issues new warning on global economy
By Nick Beams, 10 March 2016
The sharp fall in Chinese exports reflects a decline in global trade that has been expressed as well in US trade data.
Bank for International Settlements warns of build-up of global debt
By Nick Beams, 8 March 2016
The European Central Bank is to meet on Thursday amid rising concerns over the longer-term consequences of the global proliferation of negative interest rates.
Chinese premier outlines plans for accelerated pro-market restructuring
By Peter Symonds, 7 March 2016
The Chinese Communist Party’s only “plan” is to further open the economy for private investment, both foreign and domestic, in the hope that it will drive economic growth.
China and Brazil: Two expressions of the deepening capitalist breakdown
By Nick Beams, 4 March 2016
As the “BRICS model” of economic growth disintegrates, conditions are emerging for another financial crisis.
Chinese government prepares to sack millions of workers
By John Ward and Peter Symonds, 3 March 2016
The emergence of huge overcapacities in China’s basic industries is intimately bound up with the continuing worldwide economic slump.
Chinese slowdown continues amid plans for major job cuts
By Nick Beams, 2 March 2016
Fears of where the global economy is heading led former British Labour shadow chancellor Ed Balls to warn of “echoes of the 1930s.”
G-20 summit rules out coordinated stimulus
By Nick Beams, 29 February 2016
Despite calls for fiscal stimulus by the International Monetary Fund, the only area in which the major economic powers are increasing their spending is on the military.
Indian ruling elite in economic bind
By Kranti Kumara and Keith Jones, 27 February 2016
Longstanding tensions between India’s BJP-led government and the country’s central bank over how to revive India’s flagging economy have intensified in the run-up to Monday’s budget speech.
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