World Economy

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.

Perplexity and divisions mark G-20 meeting

By Nick Beams, 26 February 2016

The G-20 meeting in Shanghai is riven by the widening divisions between the major capitalist powers as the crisis of the global economy intensifies.

Germany’s Deutsche Bank in crisis

By Gustav Kemper, 23 February 2016

Fears of collapse and panic sell-offs on the stock market have halved Deutsche Bank’s value over the course of a year to €20 billion.

“Secular stagnation” and the contradictions of capitalism

By Nick Beams, 23 February 2016

The lowering of interest rates, quantitative easing and now negative interest rates are only compounding financial instability and laying the basis for another crisis.

Global volatility triggers concerns about Australian banks

By Mike Head, 20 February 2016

The ongoing collapse of commodity prices has placed question marks over the exposure of the banks to losses in the resources sector.

OECD downgrades global growth forecast

By Nick Beams, 19 February 2016

The Organisation for Economic Cooperation and Development said global growth has “practically flat-lined” and financial instability risks are on the rise.

Real estate statistics point to precarious state of Chinese economy

By John Ward, 19 February 2016

For the past seven years, speculative property investment has maintained growth in China, but this has laid the foundation for a broader crisis.

Economic problems mount in Japan and China

By Nick Beams, 17 February 2016

The latest statistics from the world’s second and third largest economies underscore the worsening world downturn.

Stock market panic risks new financial crisis

By Andre Damon, 12 February 2016

The global sell-off expresses growing fears that the trillions pumped into the financial system since 2008 have done nothing to improve its underlying health, and may have sown the seeds for a crash on an even greater scale.

A new stage in the global economic breakdown

By Nick Beams, 9 February 2016

The growing financial crisis in China, marked by capital flight and mounting concerns over debt levels, is accompanied by increasing doubts about the stability of the entire global banking system.

Oil price fall brings significant losses for big producers

By Nick Beams, 5 February 2016

The conventional wisdom was that the fall in oil prices would boost the economy, but this soothing scenario has been shattered.

The Ezubao scam: A sign of deeper problems in China’s financial system

By Peter Symonds, 5 February 2016

Ezubao was part of the largely unregulated peer-to-peer online finance industry that has drawn in millions of small investors with the offer of high returns.

Global manufacturing continues to fall

By Nick Beams, 2 February 2016

The Chinese steel industry recorded a loss of more than $9 billion for 2015, in the clearest expression of China’s economic slowdown.

Japan moves to negative interest rates

By Nick Beams, 30 January 2016

A quarter of the world’s gross domestic product now emanates from countries with negative official interest rates, an unprecedented situation in the history of world capitalism.

Wall Street falls on global growth fears

By Nick Beams, 28 January 2016

A downturn in the share prices of two major companies, Apple and Boeing, was responsible for more than half of yesterday’s fall in the Dow.

Global slowdown to deepen attacks on jobs

By Nick Beams, 25 January 2016

Stock markets recovered some of their losses at the end of the last week, but the underlying trend in the world economy is slower growth and outright recession.

The political significance of the global economic turmoil

By Nick Beams, 21 January 2016

The turmoil on global markets is an expression of the breakdown of the mechanisms and structures that have sustained world capitalism over the past quarter-century.

The ruling class meets at Davos

By Andre Damon, 19 January 2016

This year’s World Economic Forum in Davos, Switzerland takes place against the backdrop of a deepening global crisis and soaring inequality.

What is driving the stock market panic?

By Barry Grey, 18 January 2016

After more than seven years of bailouts and trillions in virtually free cash for the banks and financial markets, the real economy has not only not recovered from the Wall Street crash of 2008, it is rapidly deteriorating.

Global stocks plunge amid fears of a new financial crisis

By Barry Grey, 16 January 2016

Friday’s selloff, with the EURO STOXX/50 index down 2.37 percent and all of the major US indexes lower by well over 2 percent, caps off the worst-ever yearly opening for Wall Street.

Wave of selling hits US markets

By Nick Beams, 14 January 2016

The sharp downturn in US markets has come amid a series of statements by banking officials that the conditions for a new financial crisis are rapidly developing.

China’s deep economic malaise

By Peter Symonds, 13 January 2016

The economic slowdown, which is exposing massive overcapacity and high levels of debt, is threatening to trigger an upsurge in the class struggle.

Chinese markets continue to fall, amid mounting concerns over growth

By Nick Beams, 12 January 2016

The Shenzhen Composite Index has fallen by more than 20 percent so far this year, wiping off almost $1 trillion from share values.

Australian stocks fall sharply on China and global fears

By Mike Head, 12 January 2016

A new year sharemarket rout highlights Australian capitalism’s acute vulnerability to the slowing growth and signs of economic instability in China.

Global markets continue to fall

By Nick Beams, 9 January 2016

The impact of events in China points to the worsening situation facing major Western corporations.

Stock markets continue to plunge amidst growing signs of economic crisis

By Andre Damon, 8 January 2016

The continued sell-off points to growing fears of a divergence between stock market values, which have been rising for nearly six years, and the slowdown of the world economy.

Global financial turmoil continues on fears of slower growth

By Nick Beams, 7 January 2016

The fall in oil prices to their lowest level in 11 years points to deepening recessionary trends that increase the risk of defaults in high-risk, high-yield bonds.

The New Year stock sell-off

By Barry Grey, 5 January 2016

The indicators of a deepening crisis in production sent shock waves through the financial markets because they portend the looming collapse of a vast speculative house of cards built up since the 2008 Wall Street crash.

2016 will be a year of escalating class struggle

By Jerry White, 4 January 2016

Class conflict will become an ever-more dominant feature of life in 2016 as the ruling classes in the US and around the world demand that workers pay for the global economic crisis.

IMF head warns of slow growth and economic “shocks” in 2016

By Barry Grey, 31 December 2015

IMF Managing Director Christine Lagarde wrote that global economic growth next year would be “disappointing” and the outlook for the medium term had also deteriorated.

On the threshold of the New Year

By Joseph Kishore and David North, 31 December 2015

It is characteristic of a period of crisis that more and more the essential nature of capitalism—a system of exploitation, inequality, war and repression—comes into alignment with the everyday experiences of broad masses of people.

A New Year’s sense of foreboding over the global economy

By Nick Beams, 30 December 2015

Economic developments in 2015 were dominated by intensifying recessionary trends throughout the world economy.

WTO buries Doha Round: Another rupture in the post-war order

By Nick Beams, 22 December 2015

The decision to end the Doha Round signifies the end of the multilateralism that formed a crucial foundation of post-World War II economic expansion.

After Fed rate hike, global economic fault lines deepen

By Nick Beams, 19 December 2015

The growing turbulence in financial markets is a manifestation of deepening recessionary trends in the global economy.

Federal Reserve begins “dovish tightening” with first rate hike in nine years

By Barry Grey, 17 December 2015

Fed Chair Janet Yellen stressed that further increases would be incremental and gradual and interest rates would remain abnormally low, triggering a sharp rise in US stock prices.

Junk bond crisis brings “stress” warning

By Nick Beams, 15 December 2015

The price of oil is at its lowest point for seven years with natural gas prices at the lowest level in more than a decade, sparking a crisis in the bond markets.

Junk bond panic signals new stage in crisis of world capitalism

By Barry Grey, 14 December 2015

The mounting crisis in the junk bond market has profound and convulsive implications for the entire credit system, in the US and internationally.

Paris agreement papers over failure to act on climate change

By Patrick Martin, 14 December 2015

Even in the face of a growing threat to human survival, the leaders of rival capitalist nations are incapable of serious action to combat global warming.

Weakening currency and economic slowdown in China

By Peter Symonds, 14 December 2015

The downward slide in the renminbi’s value threatens other Asian export-dependent countries and heightens the danger of a currency war.

Stocks plunge amid fears of global slump and credit meltdown

By Barry Grey, 12 December 2015

The global slowdown, reflected in collapsing prices for oil and other basic commodities, is now wreaking havoc on the corporate bond market.

A new tipping point in the global economic crisis

By Nick Beams, 10 December 2015

Corporate defaults are on the rise, not only in the energy sector hit by falling prices, but across the board.

BIS warns of sudden end to “uneasy” financial calm

By Nick Beams, 8 December 2015

Junk bonds are heading for their first losses since the global financial crisis, indicating the present stock market boom may be living on borrowed time.

The significance of the elevation of the Chinese renminbi

By Nick Beams, 5 December 2015

The renminbi’s elevation to the status of a global reserve currency is an expression of vast shifts in the world economy that underlie the rise in geopolitical tensions.

Australia: Reserve Bank leaves rates on hold despite plunge in investment

By Mike Head, 2 December 2015

The investment figures throw into doubt the government’s efforts to talk up the country’s economic prospects.

IMF lifts Chinese currency to reserve status

By Nick Beams, 1 December 2015

The decision to include the Chinese renminbi as an international reserve currency will be viewed by Beijing as a step forward but it is a two-edged sword.

Capacity to generate global economic growth “under question”

By Nick Beams, 24 November 2015

There is a growing realisation among policymakers that their economic models are no longer applicable.

Financial parasitism and the destruction of democracy

By Andre Damon, 24 November 2015

Under conditions of deepening economic and political crisis, the world’s ruling classes are willing to use any means necessary to ensure their continued monopolization of society’s wealth.

Japan enters “technical recession”

By Nick Beams, 18 November 2015

The deepening economic slump in Japan points to the failure of the program of “Abenomics” to provide any real economic boost.

The “Great Recession” and the deepening austerity drive

By Nick Beams, 16 November 2015

The loss of output following the global financial crisis is equivalent to the removal of Germany from the world economy.

Obama lectures the G20

By Barry Grey, 14 November 2015

That the US, whose economy is growing at an anemic rate of about 2 percent, is deemed the world’s “bright spot” says a great deal about the failure of the G20 to engineer a genuine recovery from the 2008 financial crash.

OECD cuts estimate for global growth

By Nick Beams, 10 November 2015

The Organisation for Economic Cooperation and Development warned Monday that the sharp slowdown in world trade could be a harbinger of recession.

Global markets cheer dismal economic figures

By Andre Damon, 3 November 2015

Global stock markets are surging as negative economic news makes interest rate cuts by central banks more likely.

Japan’s economic outlook worsening

By Nick Beams, 3 November 2015

Japan, the world’s third-largest economy, is hovering on the brink of recession as quantitative easing fails to provide a boost.

Deutsche Bank to cut up to 35,000 jobs

By Marianne Arens, 2 November 2015

The Ver.di trade union is cooperating with the Deutsche Bank management to lay off tens of thousands of workers.

Holding rates near zero, Fed keeps option of a hike in December

By Barry Grey, 29 October 2015

The Fed has come under enormous pressure to abandon its stated intention, declared last year, to begin gradually raising interest rates in 2015 for the first time in nine years.

Central banks boost stocks as world economy sinks deeper into slump

By Nick Beams, 26 October 2015

There is no recovery in the global economy, as one emergency measure is piled on another, and those in charge of economic and monetary policy have no idea how to engineer one.

The global significance of China’s economic slowdown

By Nick Beams, 23 October 2015

China’s economic slowdown will heighten deflationary and recessionary trends throughout the world economy.

Chinese economy continues to slow

By Nick Beams, 20 October 2015

Although China’s third-quarter growth rate was the slowest since 2009, the real state of the economy may be even worse than presented in official figures.

China slowdown continues as imports fall

By Nick Beams, 15 October 2015

Chinese imports have fallen by one fifth over the past year as credit-fueled growth slows.

Top 1 percent own more than half of world’s wealth

By Patrick Martin, 14 October 2015

The growth of global inequality has reached a turning point, with the financial aristocracy owning more than the rest of the human race combined, according to a Credit Suisse report.

Perplexity and gloom dominate IMF-World Bank meeting

By Nick Beams, 12 October 2015

A report issued on the eve of the IMF-World Bank meeting said that emerging market economies had over-borrowed by $3 trillion over the past decade.