World Economy
IBM’s purchase of Red Hat highlights growing power of technology giants
By Mike Ingram, 10 November 2018
With its purchase of the open source enterprise Linux company Red Hat, IBM hopes to compete with rival tech giants, Amazon, Microsoft and Google, particularly in the area of military cloud contracts
Chinese president denounces “law of the jungle” on trade
By Nick Beams, 6 November 2018
The Chinese president’s speech was an attempt to secure allies in the deepening trade war with the US.
Trump manoeuvres in lead-up to talks with Chinese President Xi
By Nick Beams, 3 November 2018
The aim is either to extract major concessions from China or, failing that, create the best conditions for pressing ahead with trade war measures.
Falling growth rate sparks concern in China’s ruling circles
By Nick Beams, 2 November 2018
A Politburo statement reflected the growing anxiety in Beijing over the economy and the impact of US trade war measures.
A major escalation in the US economic war against China
By Nick Beams, 1 November 2018
The US Commerce Department has imposed restrictions on dealings with a major Chinese high-tech firm, Fujian Jinhua, citing “national security interests.”
Watch: Two Hundred Years Since the Birth of Karl Marx
By Nick Beams, 31 October 2018
This lecture was delivered by Nick Beams, a member of the international editorial board of the World Socialist Web Site, at several Australian universities during September and October 2018.
Wall Street falls as US-China trade tensions rise
By Nick Beams, 30 October 2018
Bloomberg reported that the US is planning to introduce new tariffs covering all Chinese imports if talks fail between US President Donald Trump and Chinese President Xi Jinping.
Former Fed chair warns of new financial crisis
By Nick Beams, 26 October 2018
In remarks unprecedented for a former central banker, Janet Yellen told the Financial Times that the lessons of the financial crash of 2008 were being forgotten.
Fall in hi-tech shares wipes out Wall Street’s 2018 gains
By Nick Beams, 25 October 2018
The tech-heavy NASDAQ index has dropped by its biggest amount in seven years, having fallen by 12 percent since its peak in August.
Sharp decline in numbers in latest China Rich List
By Robert Campion, 23 October 2018
The fall reflects the impact of a slowing Chinese economy, the impact of the US trade war measures and sharp falls in China’s share markets this year.
China growth slows to lowest level since financial crisis
By Nick Beams, 22 October 2018
While the trade war launched by the US has yet to make a significant impact on growth, the official Chinese statement referred to what is called the “severe international situation.”
Record high income in 2017 for top one percent of wage earners in US
By Gabriel Black, 20 October 2018
In 2017, the top one percent of US wage earners received their highest paychecks ever, according to a report by the Economic Policy Institute.
European Union and Rome fight over Italian budget
By Marianne Arens, 20 October 2018
In the conflict over the Italian budget, the EU Commission takes the side of the banks, stock exchanges and credit agencies, while the government pursues a course of militarism and attacks on immigrants and workers.
India seizes “shadow bank” to avert potential “catastrophic” impact on financial system
By Kranti Kumara, 20 October 2018
Financial observers have said the collapse of IL&FS could have been India’s “Lehman Brothers moment”—a reference to the September 2008 bankruptcy that triggered the global financial meltdown.
Wall Street volatile as global economy becomes “fragile”
By Nick Beams, 19 October 2018
Market instability is being fuelled by the worsening global economic outlook and escalating trade tensions between the US, China and other countries.
As Pakistan seeks IMF bailout, US intensifies pressure on Islamabad
By Sampath Perera, 16 October 2018
Washington has served notice that it intends to leverage Pakistan’s current account crisis to disrupt Islamabad’s economic and strategic partnership with China
Another financial earthquake in the making
By Nick Beams, 15 October 2018
Two reports prepared by the IMF for its semiannual meeting pointed to the mounting problems of the global economy and financial system.
Wall Street fall continues in day of swings
By Nick Beams, 12 October 2018
All major US indexes are now below their 200-day moving average, which is regarded as a key indicator of the market’s direction.
Major fall on Wall Street as interest rates rise
By Nick Beams, 11 October 2018
The main factor behind the fall appears to be the spike in yields on US Treasury bonds, which have risen sharply in recent days to above 3 percent.
IMF revises down global growth projection
By Nick Beams, 11 October 2018
The world outlook report warns that trade tensions have shifted the “balance of risks” to the downside.
Key provision of USMCA trade deal aimed at China
By Nick Beams, 9 October 2018
A clause in the US trade deal with Canada and Mexico is aimed at nothing less than a “reset” of global trade relationships.
Australian banks downgraded as concerns mount over falling property prices
By Mike Head, 5 October 2018
The loss of “unquestionably strong” status is another indicator of a potential property and financial crash, with devastating consequences.
After North America trade deal, Trump to escalate trade war against China
By Nick Beams, 3 October 2018
In a manner recalling a Mafia don, Trump made clear that the threat of auto tariffs was central in securing the trade agreement with Canada and Mexico.
Ten years since the 2008 bank bailout
By Andre Damon, 3 October 2018
The creation of the Troubled Asset Relief Program on October 3, 2008, was the initial step in a massive redistribution of wealth and restructuring of class relations in the United States and internationally.
IMF chief warns of rising risks facing global economy
By Nick Beams, 2 October 2018
The IMF is set to downgrade its forecast for global growth amid rising trade tensions.
Trump threatens “strategic allies” with auto tariffs
By Nick Beams, 29 September 2018
After being used against the European Union, the threat of auto tariffs on “national security” grounds was brought out against Japan and Canada this week.
After a decade of falling pay, US Federal Reserve acts to stop “wage inflation”
By Jerry White, 28 September 2018
The central bank executives understand that investors tend to make far more money when the sword of mass unemployment hangs over workers’ heads.
Federal Reserve lifts interest rates and indicates further hikes
By Nick Beams, 27 September 2018
For the first time since the Fed began its low-interest rate regime after the financial crisis of 2008, its base rate is above the level of inflation, indicating that wages are a key target.
US-China trade war intensifies
By Nick Beams, 26 September 2018
The escalation of the conflict and the growing recognition that it is not a temporary spat, which can be solved through negotiations, has led to concerns in sections of the financial media.
“History never teaches anyone anything”
Russian neo-Stalinist defends Partido Obrero’s “refounding” of Fourth International
By Bill Van Auken, 24 September 2018
Said Gafurov, a former advisor to Vladimir Putin, defends the PO's policy on the basis that the struggle of Trotskyism against Stalinism has lost all political significance.
Adam Tooze’s Crashed: The limitations of a Left-liberal historian
By Nick Beams, 22 September 2018
The historian Adam Tooze has published a detailed account of the origins and development of the global financial crisis of 2008 and its aftermath.
The militarist component of Trump’s trade war
By Nick Beams, 20 September 2018
While China is at present the prime target, the Trump administration sees the US as being involved in an economic war against the rest of the world.
China retaliates against US trade war measures
By Peter Symonds, 19 September 2018
The escalating trade war is heightening economic instability and fueling geo-political tensions, not only between the US and China, but internationally.
The implications of US-China trade war
By Nick Beams, 18 September 2018
The world’s two largest economies have entered a rapidly-escalating trade war with vast global consequences.
China’s $60 billion in aid and loans to Africa in context
By Gabriel Black, 18 September 2018
While China’s role in Africa has grown significantly in the past two decades, the United States and its allies remain the principal issuers of debt.
Ten years after Lehman: New financial crises in the making
By Nick Beams, 17 September 2018
Commentaries on the anniversary of the Lehman Brothers collapse voice fears of another meltdown.
US set to escalate trade war against China
By Nick Beams, 10 September 2018
Trump’s threat of further tariffs means that Chinese exports into the US would be subject to increased tariffs if China carries through on its threat of retaliatory measures.
A record $31.5 trillion hoarded by corporate oligarchs
By Eric London, 8 September 2018
The Wealth X report points to the immense revolutionary potential in the present situation. The resources for the transformation of the planet on an egalitarian basis already exist.
Mounting turmoil in emerging markets
By Nick Beams, 6 September 2018
The plunge in emerging market currencies is a product of the strengthening of the dollar and the increase in US interest rates, which is sucking capital back into American markets.
Argentine government announces “emergency” measures to face deepening recession and growing unrest
By Andrea Lobo, 5 September 2018
In his speech Monday, President Macri declared that the market had supported Argentina for two years and warned that “poverty will increase.”
IMF pushes for more social cuts in Ukraine
By Jason Melanovski, 3 September 2018
Amid growing strikes of miners and other workers, the IMF is using the corruption of the Ukrainian oligarchy to push for social cuts.
Trade tensions increase as US-Canada talks miss deadline
By Nick Beams, 1 September 2018
Trump warned that if Canada did not agree to US terms “the easiest thing we can do is tariff their cars coming in,” a threat which he repeated in remarks yesterday.
Turbulence hits emerging markets as Argentina’s central bank hikes interest rates to 60 percent
By Nick Beams, 31 August 2018
The Argentine currency has lost half of its value this year and fallen to a record low against the US dollar.
Tax cuts boost US bank profits to record highs
By Trévon Austin, 30 August 2018
Banks and corporations are channeling the bulk of their savings from the tax cuts into stock buybacks, dividend increases and mergers and acquisitions.
China-US trade talks: The divisions deepen
By Nick Beams, 27 August 2018
The Chinese Commerce Ministry stated there were “constructive and frank” talks, but gave no indication of any further discussions in the future.
Nearly 90,000 retail jobs lost in UK in 12 months
By Barry Mason, 25 August 2018
Retailers are shifting employees from secure full-time contracts to less secure ones with “less rigidity and more flexibility.”
The class dynamics of the stock market bull run
By Nick Beams, 24 August 2018
The record-breaking stock market rally is the outcome of the relentless class war pursued by the ruling elite after the 2008 financial crash.
China-US talks but trade war set to escalate
By Nick Beams, 20 August 2018
The basic conflict centres on the US demand that China not only lessen the trade deficit but also significantly pull back on its plan to boost its industrial and technological base.
CEO pay up 17 percent while US workers’ wages stagnate
By Matthew Taylor and Barry Grey, 18 August 2018
The typical CEO of a large firm in the US makes in a single day almost as much as the typical worker earns in an entire year.
Amidst Turkish crisis Indian rupee falls to all-time low
By Deepal Jayasekera, 18 August 2018
The decline of Indian rupee is a part of a global rush by investors away from so-called emerging markets.
The global implications of the Turkish lira crisis
By Nick Beams, 16 August 2018
Ten years after the 2008 financial crisis, the growing intensity of economic warfare threatens to collapse the financial house of cards created by the multi-trillion-dollar bailout of the global banking system.
The Turkish crisis and the threat of world war
By Bill Van Auken, 15 August 2018
Underlying the reckless and punishing attack by Washington on Turkey’s economy are predatory geostrategic aims that are threatening to drag humanity into a new world war.
Erdogan charges US “stab in the back” as Turkey crisis deepens
By Bill Van Auken, 14 August 2018
The Turkish president vowed to retaliate against “traitors” undermining the economy as the lira slid again precipitously on Monday.
World markets brace for impact of Turkish lira crisis
By Nick Beams, 13 August 2018
The European Central Bank has put on watch major European banks that are heavily exposed to Turkish debt.
Turkish lira plunges as US trade war measures strangle Turkish economy
By Alex Lantier and Halil Celik, 11 August 2018
President Trump is trying to use trade tariffs to compel Ankara to step up attacks on the working class and totally subordinate its foreign policy to US imperialism’s demands.
US-China trade war escalates
By Nick Beams, 9 August 2018
The US has threatened to impose tariffs on another $200 billion of Chinese products, possibly by the beginning of September following public hearings to be held later this month.
Latin American elites respond to trade war with desperate “roadmap” for regional trade bloc
By Andrea Lobo, 9 August 2018
The escalating trade-war measures between the major global economies are accentuating the rabid competition between Latin American ruling elites for investments and trade.
China threatens tariffs on $60 billion of US goods
By Nick Beams, 4 August 2018
Coming on top of the tariffs already imposed on $34 billion worth of US goods, the new measures would mean that around 85 percent of US exports to China would be covered.
Chinese president under pressure over trade war with US
By Peter Symonds, 4 August 2018
Just months after constitutional changes enabling him to stay in office indefinitely, Xi Jinping is reportedly facing internal criticism from party elders and factional rivals.
Trump set to hike tariff threat against China
By Nick Beams, 2 August 2018
The US is actively considering escalating proposed tariffs on an additional $200 billion worth of Chinese goods to 25 percent up from the initial level of 10 percent.
Rifts emerge in US-EU trade deal
By Nick Beams, 31 July 2018
The Trump administration is keeping a gun at the head of the EU over auto tariffs as it continues an investigation into whether to impose them on “national security” grounds.
Qualcomm deal scuttled: China hits back at US in trade war
By Nick Beams, 27 July 2018
The collapse of the takeover has far-reaching implications for other high-tech companies that had been waiting for the outcome of the Qualcomm-NXP deal before proceeding with their own plans.
The Trump-Juncker agreement: A manoeuvre in the global trade war
By Nick Beams, 26 July 2018
The threat by Washington to impose a 25 percent tariff on auto imports has not been removed, but only suspended while negotiations go ahead on broader trade relations.
Seven months after Trump’s tax cut
Corporate tax collection rate at historic low
By Gabriel Black, 26 July 2018
The trillions in deficits created by the tax cuts for the rich will be used to justify further slashes to critical social programs that millions of Americans rely on.
Trade tensions intensify at G20 meeting
By Nick Beams, 23 July 2018
Rather than addressing any of the trade conflicts ripping through the world economy, the main work of the G20 meeting was to craft a statement that avoided them.
Trump repeats threat to impose auto tariffs
By Nick Beams, 20 July 2018
If the auto tariffs go ahead, they would be the largest trade war measure invoked by the Trump administration so far.
EU and Japan sign trade deal
By Nick Beams, 19 July 2018
The deal was five years in the making but the impetus to have it finalised was increased by the US trade war measures that have targeted both parties.
US rejects EU carve-out from sanctions against Iran
By Nick Beams, 16 July 2018
The US decision is another major economic blow against the European powers, which had looked to the nuclear agreement with Iran as opening the way for lucrative trade and investment deals.
Trump escalates trade war against China
By Nick Beams, 12 July 2018
The statement issued by the US trade representative was that of an imperial overlord whose word is law, to be obeyed without question, with any opposition to be met by escalating reprisals.
Trade war and the political independence of the working class
By Nick Beams, 7 July 2018
On the eve of World War II, Leon Trotsky wrote that that the bourgeoisie “toboggans with closed eyes towards an economic and military catastrophe.” Eighty years on, his words have a profound resonance.
OECD report details
A global economic “recovery” without wage increases
By Patrick Martin, 6 July 2018
A report by the grouping of 36 most economically developed countries found that the proliferation of low-wage, part-time jobs has held down wage growth for workers throughout the world.
Trump fires opening shot in trade war against China
By Nick Beams, 6 July 2018
The US president has already threatened to impose additional tariffs on up to $400 billion worth of Chinese goods if Beijing retaliates.
Trudeau beats nationalist drum as Canada imposes retaliatory tariffs against US
By Roger Jordan, 4 July 2018
Ottawa is waging trade war not to defend workers and their livelihoods, but to protect the markets and profits of Canadian big business.
Escalating trade war starts to make economic impact
By Nick Beams, 3 July 2018
Chinese stock markets have continued the fall over the first six months of the year that has wiped some $2 trillion off market valuations.
Trump goes with Mnuchin plan on Chinese investment
By Nick Beams, 28 June 2018
The move appears to have been motivated to a considerable extent by Wall Street’s reaction to a more hardline proposal that prompted the Dow to fall at one point by 500 points on Monday.
Citing tariffs, Harley-Davidson to move US production to Europe
By Jacob Crosse, 27 June 2018
In response to the developing trade war between the US and Europe, motorcycle maker Harley-Davidson said it is shifting some production to international facilities.
Trade war fears hit global markets
By Nick Beams, 26 June 2018
The Trump administration reportedly plans to invoke powers allowing the president to impose sanctions on the grounds of a “national emergency.”
After tariff measures against China
Trump threatens to escalate trade war with Europe
By Nick Beams, 23 June 2018
Central bankers at a meeting in Sintra, Portugal, voiced their concerns about the developing global trade war.
Trade war and the eruption of economic nationalism
By Nick Beams, 22 June 2018
As in the 1930s, the re-emergence of trade war and protectionism are accompanied by the most grotesque forms of right-wing xenophobia and authoritarianism.
White House report lays out economic war against China
By Nick Beams, 21 June 2018
China’s “economic aggression” is denounced as threatening the US and the global economy.
Trump escalates trade war with new tariff threat against China
By Nick Beams, 20 June 2018
The latest moves by the US administration brought a fall in stock markets amid growing concerns that trade war will have a significant impact on investment and global supply chains.
Washington launches trade war measures against China
By Ben McGrath, 16 June 2018
The decision by the Trump Administration to initiate a trade war between the world’s two largest economies will contribute to the already growing tensions and danger of military conflict in the Asia-Pacific region.
After G7 summit, Merkel calls for European rearmament
By Johannes Stern, 13 June 2018
German Chancellor Angela Merkel declared that Germany “must promote our principles and values in Europe, potentially in alliance with Canada or Japan”
Recriminations, threats between US and allies continue after collapse of G7 summit
By Barry Grey, 12 June 2018
The level of acrimony and division following the unprecedented failure of the latest in a long line of summits points to a fundamental and irreparable breakdown of the post-World War II economic order.
US-European tensions erupt at the G7 summit
By Andre Damon, 9 June 2018
The bitter denunciations of America’s trade war measures by its closest allies are just one manifestation of the divisions ripping apart the world geopolitical order.
Mexico responds to Trump’s trade war measures with tariffs on US goods
By Rafael Azul, 9 June 2018
Retaliating against US steel and aluminum import tariffs, the government of Mexico imposed tariffs on 71 products exported by the United States.
G7 conflict set to deepen at leaders’ summit
By Nick Beams, 7 June 2018
The G7 has been called the G6 plus one, as Canada, the EU and Japan seek to coordinate their response to US tariffs.
Deep divisions over US trade policies at G7 finance ministers meeting
By Nick Beams, 4 June 2018
The statement from the G7, agreed to by Canada, the UK, Germany, France, Italy and Japan, pointed to the “negative impact of the unilateral trade actions of the United States.”
Backlash against US over tariffs
By Nick Beams, 2 June 2018
The European Union is pushing ahead with counter-measures against the US. It is expected to announce its final list of products to be targeted later this month.
US imposes steel and aluminium tariffs
Trump administration takes major step toward global trade war
By Nick Beams, 1 June 2018
The European Union said it would take immediate steps to retaliate, warning of a 1930s-style depression.
Trump sets out timetable for anti-China tariffs
By Nick Beams, 31 May 2018
The White House measures are aimed at China’s efforts to develop high-tech industries.
Naming of technocratic government plunges Italy into crisis of class rule
By Alex Lantier, 30 May 2018
Financial markets are panicking and protests are being called, as bitter divisions inside the Italian bourgeoisie erupt to the surface.
Bipartisan hostility to Trump deal on Chinese telecom firm ZTE
By Nick Beams, 28 May 2018
Moves are underway in the US Congress, supported by leading Republicans and Democrats, to extend bans on Chinese telecos regarded as a threat to “national security.”
Trump orders “national security” probe into auto industry
By Nick Beams, 25 May 2018
The investigation was directly linked to statements about economic preparations for war.
Trump trade deal comes under anti-China fire
By Nick Beams, 24 May 2018
The delay in imposing tariffs on China has been condemned by both sides of the US Congress as giving in to Beijing.
Limited truce in US-China trade conflict
By Nick Beams, 22 May 2018
Despite the postponement of US tariffs, the threat of open trade war remains.
Inconclusive outcome of US-China trade talks
By Nick Beams, 21 May 2018
The vagueness of the final, brief communiqué, left the way open for both sides to offer their own interpretations on what had been agreed.
Little room for manoeuvre in US-China trade talks
By Nick Beams, 17 May 2018
A letter signed by 32 Democrats stated that “America’s national security must not be signed away as bargaining chip in trade negotiations.”
Two voices of concern over Trump’s “New World Order”
By Nick Beams, 15 May 2018
One has the sense from both articles of the growing fears in ruling circles of the consequences of the US economic and foreign policy agenda for the stability of the world capitalist system.
US trade war claims China’s ZTE as first victim
By Nick Beams, 11 May 2018
ZTE operates on a global scale, doing business in more than 160 countries with over 74,000 employees, and generating revenues of $17 billion last year.
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