World Economy

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.

A crisis of global dimensions

By Joseph Kishore, 9 October 2015

As the world enters the final months of 2015, it can be said that not only the frequency, but also the intensity of crises is reaching a new inflection point.

IMF-World Bank meeting confronts lowest global growth since 2009

By Nick Beams, 9 October 2015

The world capitalist economy is being hit by two interconnected and toxic processes: worsening economic stagnation and the mounting risk of a major financial crisis.

The TPP: A step on the road to war

By Nick Beams, 8 October 2015

The foundation of the TPP is not free trade but an alliance between the US and Japan to weaken China and create the conditions for reducing it to semi-colonial status.

US-dominated Pacific trade pact agreed

By Mike Head, 6 October 2015

The TPP is a wide-ranging blueprint intended to be the economic instrument of the US military and strategic “pivot” to Asia to confront China.

Markets “celebrate” poor US jobs data

By Nick Beams, 6 October 2015

Like players in a gambling casino given free chips by the house, financial investors boosted share prices on the prospect that interest rises in the US are off the table for this year.

US jobs data underscore downbeat IMF assessment of world economy

By Nick Beams, 3 October 2015

The recessionary trends and falling commodity prices gripping the global economy are having a growing impact on the United States.

Global recessionary trends intensify

By Nick Beams, 1 October 2015

The crisis of mining giant Glencore, whose shares plunged by 30 percent this week, is only one expression of the slump gripping the global economy.

Reports forecast worsening economic conditions for Australia

By Mike Head, 26 September 2015

The mining investment boom that partly shielded the Australian economy from the full effects of the global financial crisis, has gone into sharp reverse.

Fed chief points to rate rise this year

By Nick Beams, 25 September 2015

The speech by US Fed chairwoman Janet Yellen Thursday sought to counter criticisms of the decision last week to keep interest rates on hold.

China, emerging economies and commodities roil financial markets

By Barry Grey, 24 September 2015

The very economies that were hailed as the engines of global growth following the Wall Street crash of September 2008 are now at the forefront of a deflationary crisis that threatens to plunge the world into a full-scale depression.

Fed decision fails to calm markets

By Nick Beams, 22 September 2015

Divisions have emerged in financial circles over the Fed’s decision not to lift interest rates, highlighting the absence of any coherent policy on the part of those in charge of the financial system.

Citing global economy, Fed keeps rates near zero

By Barry Grey, 18 September 2015

Exuberance over the decision to delay a rate hike was tempered by concerns over the state of the global economy and financial system as reflected in the Fed statement.

Japan’s credit rating cut as economy contracts

By Ben McGrath, 18 September 2015

The S&P move is a signal to Japan that the financial markets demand further measures to shift the economic burden onto the backs of the working class.

Seven years since the Wall Street crash

By Nick Beams, 15 September 2015

Seven years after the eruption of the crisis, financial parasitism has reached unprecedented heights while the global economy stagnates.

A world convulsed by crises

By Andre Damon and Barry Grey, 12 September 2015

Crisis is not the exception, but the rule. The very speed of events, with virtually no intervals of calm between the storms, denotes an intensifying general crisis.

Market turbulence linked to conflicts over ruling class policy

By Nick Beams, 11 September 2015

The market gyrations are an expression of the combination of greed and fear that underlies financial markets, arising from their parasitic dependence upon ultra-cheap money.

China confronts continuing economic turmoil

By Peter Symonds, 11 September 2015

Despite heavy government intervention, share markets are still volatile, amid more evidence of a marked economic slowdown.

Chinese slowdown impacts Asian economies

By Peter Symonds, 8 September 2015

The downturn in the Chinese economy is reverberating around the world, nowhere more so than in Asia.

The G20 summit: A spectacle of political bankruptcy

By Nick Beams, 7 September 2015

The G20 meeting pledged to keep the global economic “recovery” on track despite warnings by the IMF that its forecasts for growth made as recently as July were no longer applicable.

More signs of global downturn send stocks plunging again

By Andre Damon, 2 September 2015

Renewed assurances from the Federal Reserve of continued infusions of cash into the financial markets have been insufficient to calm fears of a sharp deterioration in world economic activity.

Central banks step in to prop up global financial bubble

By Andre Damon, 31 August 2015

Once again, the world’s central banks and governments have made clear that they will do whatever it takes to preserve the wealth of the financial elite.

China’s economic downturn raises concerns about political instability

By Peter Symonds, 28 August 2015

Questions are already being raised about the future of Chinese Premier Li Keqiang who is immediately responsible for economic policy.

Fed acts to push US stocks higher

By Barry Grey, 27 August 2015

The US central bank is prepared to provide whatever public funds are needed to shield the financial elite from the consequences of a new eruption of the capitalist crisis.

US stock rally collapses amid fears of global slump

By Andre Damon, 26 August 2015

As an early rally in US markets “turned to dust” Tuesday, there were calls for a new round of Fed money-printing to once again rescue the financial elite.

“Reform summit” to discuss stepped up class war in Australia

By James Cogan, 26 August 2015

Underlying the declarations of “urgency” is the rapid deterioration of Australia’s economic position.

As global selloff deepens, US stock market teeters on edge of collapse

By Barry Grey, 25 August 2015

Within four minutes of the trading start, the Dow had sunk by 1,089 points, or 6.6 percent, the biggest single-day point drop in US history.

Global Ponzi scheme threatens to implode

By Andre Damon, 24 August 2015

The global stock market selloff reflects the inability of governments and central banks to address the fundamental contradictions of the capitalist system that led to the Wall Street crash of 2008–2009.

Panic sell-off on world financial markets

By Barry Grey, 22 August 2015

The meltdown on equity markets is being driven by signs that the world economy is sliding into a new recession or outright depression.

Global markets plunge amid signs of deepening slump

By Andre Damon, 21 August 2015

US stocks fell by the largest amount since February 2014, as fears of a world economic slowdown mixed with concerns over global exchange rate instability and geopolitical conflict.

World capitalism “toboggans toward catastrophe”

By Barry Grey, 19 August 2015

Seven years after the Wall Street crash, fears are growing within ruling circles internationally that the world capitalist economy is descending into depression.

Japan contracts as world economy lurches toward depression

By Barry Grey, 18 August 2015

The Japanese report followed a wave of negative data pointing to sharply slower growth in China and last week’s surprise devaluation of the renminbi.

Mass layoffs worldwide as corporate mergers near new record

By Andre Damon, 15 August 2015

Under conditions of slowing economic growth and record amounts of cash on corporate balance sheets, mergers and acquisitions are being used to intensify the assault on the working class.

China devaluation fuels market turmoil

By Nick Beams, 13 August 2015

The efforts to limit the fallout from the decision by China to devalue its currency could be undermined by recessionary trends in the global economy.

Canada-US frictions flare over Trans Pacific Partnership

By Roger Jordan, 13 August 2015

Canada’s government and business elite are livid over a US-Japanese deal that would undermine its privileged access to the US auto market.

Chinese currency devaluation underscores global instability

By Nick Beams, 12 August 2015

Stock markets and commodity prices fell sharply in the wake of the decision to devalue the yuan, reflecting concerns about the perilous state of the Chinese and world economy.

Second-largest US coal producer files for bankruptcy

By Andre Damon, 5 August 2015

The filing signals a new assault on jobs in the already devastated US coal industry.

The rot at the heart of the American economy

By Nick Beams, 4 August 2015

The latest US economic data show a contraction in investment amid the lowest wage increases in more than 30 years.

US-led Pacific trade pact talks break down

By Mike Head, 3 August 2015

The latest failure of Trans-Pacific Partnership negotiations is a debacle for the US drive to counter China.

TPP investor-state dispute settlement clauses allow corporations to sue governments

By Oscar Grenfell, 3 August 2015

The Obama administration’s ongoing push for the Trans-Pacific Partnership (TPP)—a trade bloc of 12 countries—seeks to enshrine US economic dominance over the Asia-Pacific in binding agreements.

Indonesian President Widodo under pressure as economy slides

By John Roberts, 29 July 2015

International finance capital and local business interests have stepped up their demands for a new Indonesian cabinet.

Chinese stock market suffers biggest one-day sell-off since 2007

By Andre Damon, 28 July 2015

Chinese financial authorities announced a new round of share purchases in the latest attempt to prop up the country’s plunging stock market.

Mining job cuts: The destructive anarchy of the capitalist market

By Nick Beams, 27 July 2015

Anglo American’s decision to cut one-third of its workforce is symptomatic of the job destruction ripping through the global mining industry as commodity prices plunge.

Global commodity prices in sharp decline

By Nick Beams, 23 July 2015

The fall in commodity prices is having a major impact on emerging markets, as well as raw-material exporting countries, in particular Australia and Canada.

Dramatic drop in profits for largest corporations in Latin America

By Cesar Uco, 23 July 2015

The latest figures confirm the fact that the so-called emerging markets are unable to offset the drop in production and consumption in the US and the EU.