World Economy

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There is a growing realisation among policymakers that their economic models are no longer applicable.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

Federal Reserve documents stagnant state of US economy

By Barry Grey, 21 July 2015

The explosion of asset values and wealth accumulation at the very top of the economic ladder has occurred alongside an intractable and continuing slump in the real economy.

Chinese state banks commit $200 billion to stem market selloff

By Nick Beams, 20 July 2015

The massive bank intervention was one of a series of measures initiated by the government and financial authorities to halt the plunge in share values.

OECD report: 39 million unemployed young people in industrialized nations

By Trent Novak, 15 July 2015

One in four young people in Greece and Spain is “neither employed nor in education or training.”

Pew report: 84 percent of world population subsists on under $20 per day

By Andre Damon, 11 July 2015

The much-vaunted rise of the “global middle class” is “more promise than reality,” according to a report published this week by the Pew Research Center.

IMF report: Global growth lowest since 2009

By Andre Damon, 10 July 2015

Nearly eight years since the first signs the global financial crisis, the world economy is mired in slump and faces another financial collapse.

China share rout hits global markets

By Nick Beams, 9 July 2015

Every day for the past week, the Chinese government and financial regulators have announced new measures to try to halt the slide, but none has succeeded.

New York Stock Exchange halts operations for nearly four hours

By Barry Grey, 9 July 2015

The shutdown was by far the longest ever trading halt attributed to computer problems.

The significance of the Chinese stock market rout

By Nick Beams, 8 July 2015

The Chinese regime sought to create a social base of support in better-off sections of the middle class, which are now being hammered by the stock market plunge.

China’s share plunge casts lengthening shadow over global markets

By Nick Beams, 7 July 2015

The Chinese government has thrown the “kitchen sink” at the falling share market but to no avail.

Chinese government desperate to halt market slide

By Nick Beams, 6 July 2015

The Chinese central bank’s commitment to provide funds to financial markets indicates growing concern in government circles over the depth of the stock market fall.

Top bankers’ pay rose 17 percent in 2014

By Andre Damon, 4 July 2015

The vast sums of money pocketed by bank executives are bound up with activities that range from borderline legal to flagrantly illegal.

Chinese stocks continue to fall despite attempted counter-measures

By Nick Beams, 3 July 2015

The World Bank has again described the Chinese financial system as unbalanced and potentially unstable.

Global parasitism creates conditions for a new financial meltdown

By Nick Beams, 1 July 2015

The annual report of the Bank for International Settlements has criticised the reliance by central banks on monetary policy, calling instead for “structural reforms.”

As global markets plummet

Bank closures impose deepening misery on Greek people

By Alex Lantier, 30 June 2015

Retirees were unable to obtain their pension benefits as a weeklong bank holiday began amid warnings of fuel and medicine shortages.

Syriza’s fraudulent capital controls

By Nick Beams, 30 June 2015

Billions of euros have been taken out of Greece by wealthy individuals and corporations in order to make a financial killing if the country goes back to the drachma.

China’s central bank cuts rates after shares plunge

By Nick Beams, 29 June 2015

The People’s Bank of China is increasingly responding to events rather than following a pre-determined strategy.

OECD report documents growth of financial parasitism

By Nick Beams, 29 June 2015

Financial parasitism is leading to the destruction of the productive forces upon which the livelihoods of the world working class depend.

OECD report points to growing dangers for world economy

By Nick Beams, 26 June 2015

Major life insurance companies in Europe may be threatened with insolvency as a result of problems caused by the global low-interest rate regime.

Layoffs continue amidst economic stagnation

By Gabriel Black, 20 June 2015

US layoffs were up 13 percent in the first five months of 2015 compared to the prior year.

Financial markets jittery on eve of Fed statement

By Nick Beams, 17 June 2015

There are fears that a rise in US interest rates will have major global repercussions, especially through the flight of capital from emerging markets.

Growing signs of China’s economic slowdown

By Oliver Campbell, 12 June 2015

Even as the manufacturing industry continues to stagnate, speculation in shares is soaring.

No growth boost from developing economies says World Bank

By Nick Beams, 11 June 2015

The bank has cut its forecast for global growth from its prediction six months ago.

The revealing remarks of a central banker

By Nick Beams, 11 June 2015

The invocation by Japanese central banker Haruhiko Kuroda of “Peter Pan” economics is a graphic expression of the bewilderment of those supposedly in control of the world economy.

Obama hints at escalation of Iraq-Syria war

By Patrick Martin, 10 June 2015

At a press conference to close the G7 summit, the US president said that all the major powers were “prepared to do more” in the war against Islamic fundamentalists.

OECD cuts global growth forecast amid growing financial turbulence

By Nick Beams, 5 June 2015

The downgrade follows what the OECD called the worst quarter for global economic growth since the 2008 financial crash.

European leaders dictate terms for Greece

By Nick Beams, 3 June 2015

German chancellor Angela Merkel convened a meeting in Berlin late Monday that laid out the demands of Greece’s creditors.

Parasitism and the economic crisis

By Andre Damon, 2 June 2015

Seven years after the 2008 financial crisis, the world economy has become the object of unremitting plunder by the global financial aristocracy.

Oil price drop triggers sharp decline in Canadian economy

By Roger Jordan, 2 June 2015

Canada’s economic output fell 0.6 percent in the first quarter of 2015—its largest contraction since the height of the 2008-09 global financial meltdown.

US economy contracted in first quarter

By Andre Damon, 30 May 2015

The ongoing slump in the US economy comes amid a roaring stock market, combined with record share buybacks, mergers and acquisitions, and surging CEO pay.

The escalation of global financial parasitism

By Nick Beams, 25 May 2015

The rise in stock markets expresses not the health, but rather the deepening sickness, of the global economic order.

OECD report: Global social inequality hits new record

By Gabriel Black, 23 May 2015

The growth of inequality has been accompanied by the expansion of part-time and contingent labor, particularly for younger workers.

Token fines for banks caught rigging foreign exchange markets

By Andre Damon and Barry Grey, 21 May 2015

Wednesday’s announcement was further confirmation that the US and international financial aristocracy is above the law.

Only one in four workers worldwide has a stable job

By Andre Damon, 20 May 2015

Jobs created in the aftermath of the 2008 crisis have been disproportionately contingent and part-time, according to a new report published by the International Labor Organization.

Surprise move by European Central Bank to speed up debt purchases

By Nick Beams, 20 May 2015

The accelerated ECB purchase of sovereign debt is another indication of increasing nervousness in global financial markets.

Five major banks to plead guilty to rigging currency markets

By Andre Damon, 15 May 2015

The effect of guilty pleas for crimes involving massive manipulation of financial markets will be essentially zero, beyond the immediate costs the fines levied on the institutions.

Former Sri Lankan president warns of government financial bankruptcy

By K. Ratnayake, 14 May 2015

Kumaratunga blamed the crisis on the previous Rajapakse government’s “lack of transparency.”