World Economy

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.”

China’s central bank cuts rate amid further signs of slowdown

By Nick Beams, 13 May 2015

The latest rate cut has raised concerns that China’s financial authorities are “behind the curve” of the country’s economic slowdown.

Bond market sell-off signals mounting financial crisis

By Nick Beams, 8 May 2015

In the last two weeks an estimated $2 trillion has been wiped off share and bond markets.

Australian central bank cuts interest rate to record low

By Nick Beams, 6 May 2015

The Reserve Bank of Australia has been caught in the financial vortex created by global interest rate cuts and a developing currency war.

US economy stalled in first quarter

By Andre Damon, 30 April 2015

Business investment collapsed in the first quarter, even as US companies sat atop a record $1.4 trillion cash hoard.

Deutsche Bank: Union trades jobs for speculation

By Gustav Kemper and Peter Schwarz, 30 April 2015

Deutsche Bank is now concentrating on international speculation and substantially downsizing its business with smaller customers.

Obama, Republicans push anti-China trade pact

By Patrick Martin, 23 April 2015

The Trans-Pacific Partnership is aimed at reinforcing US dominance in the Asia-Pacific region against the rising economic, political and military power of China.

US economic decline overshadows IMF-World Bank meeting

By Nick Beams, 21 April 2015

While not on the official agenda, there was a palpable sense that the key institutions of the post-war economic order are starting to crumble.

Caterpillar moves to close its plant in Tasmania, Australia

By Terry Cook, 21 April 2015

Caterpillar will retrench almost its entire workforce in Burnie and relocate production to Thailand over the next 12 months.

Economic stagnation, financial parasitism dominate IMF-World Bank meeting

By Nick Beams and Barry Grey, 18 April 2015

Official reports prepared by the International Monetary Fund show that the global economy is not on the cusp of a recovery, but moving deeper into crisis.

More layoffs as global oil price slump continues

By Niles Williamson, 18 April 2015

The world’s largest oilfield service company, Schlumberger, announced this week that as a result of declining oil production it will cut 11,000 jobs worldwide, bringing the firm’s total layoffs so far this year to 20,000.

Former Fed Chairman Ben Bernanke hired by hedge fund Citadel

By Andre Damon, 18 April 2015

Bernanke’s new job constitutes little more than a kickback for services rendered to Wall Street.

China’s growth rate takes another downturn

By Nick Beams, 16 April 2015

The decline in Chinese growth to the lowest point since the global financial crisis is having significant international consequences.

IMF warns of slow growth, high unemployment

By Barry Grey, 11 April 2015

The IMF’s analysis amounts to a tacit acknowledgement that the crisis is of historical dimensions and the underlying problems in the global capitalist system have not been resolved.

Australian central bank warns of worsening economic outlook

By Mike Head, 8 April 2015

Yesterday’s Reserve Bank decision to leave record low interest rates on hold highlights the precarious state of Australian capitalism.

A decisive turning point in the crisis of American imperialism

By Nick Beams, 1 April 2015

The decision by some 40 countries to sign up for the China-backed Asia Infrastructure Investment Bank is a critical marker in the economic decline of American imperialism.

US layoffs mount amid signs of economic slowdown

By Andre Damon, 28 March 2015

US steel companies announced thousands of layoffs this week.

Growing warnings of another financial disaster

By Nick Beams, 25 March 2015

There are an increasing number of warnings that financial markets could be headed for a “liquidity crunch” if major players head for the exits at the same time.

IMF rejects Sri Lankan request for loan bailout

By Saman Gunadasa, 20 March 2015

The IMF’s blunt message to Sri Lanka is for new social attacks on the working class and poor.

The conflict over the China-backed Asian investment bank

By Nick Beams, 19 March 2015

The British decision to join the Asian Infrastructure Investment Bank has opened the way for other European powers to sign up, despite intense opposition from the US.

US stocks surge as Fed signals slower rise in interest rates

By Barry Grey, 19 March 2015

Any tightening of the central bank cash spigot threatens to bring the bull market, and the windfalls it provides the rich and the super-rich, crashing down.

Investors pledge billions to Egyptian junta at Sharm el-Sheikh conference

By Alex Lantier, 14 March 2015

Finance capital is launching new projects because it assumes the Egyptian military dictatorship’s bloody repression will guarantee low wages and high profits.

European Central Bank bond-buying program fuels financial turbulence

By Nick Beams, 12 March 2015

The commencement of the European Central Bank’s bond-buying program is already sending shock waves through global financial markets.

China cuts growth forecast, warning of “deep-seated” economic problems

By Nick Beams, 6 March 2015

In opening the National People’s Congress yesterday, Chinese Premier Li Keqiang warned that “the downward pressure on China’s economy is intensifying.”

Wealth of world’s billionaires surges past $7 trillion

By Joseph Kishore, 4 March 2015

The inexorable rise in the wealth of the ultra-rich, amidst economic stagnation, is an expression of the parasitic character of world capitalism.

Record global stock prices reflect growth of financial parasitism

By Nick Beams, 27 February 2015

The emergence of negative bond yields signifies that the international bond market is being transformed into a gigantic Ponzi scheme.

Mounting signs of global economic stagnation

By Nick Beams, 18 February 2015

Profits are increasingly being accumulated not through investment and increased production, but by various forms of speculation.

Growing problems for Chinese economy

By Oliver Campbell, 17 February 2015

Inflation in China has fallen to its lowest level in five years as the economic slowdown continues.

A revealing Financial Times comment on the Greek debt crisis

By Nick Beams, 16 February 2015

Financial Times columnist advises Syriza-led government to stand firm in “high noon” showdown with euro zone finance ministers.

HSBC documents reveal criminal conspiracy of banks and governments

By Andre Damon, 11 February 2015

The British, American and other governments buried evidence that Europe’s largest bank was running a massive tax fraud service.

US wage and GDP growth decline in the fourth quarter

By Gabriel Black, 2 February 2015

While the United States has been slowly adding jobs, many of these jobs are in low-wage sectors or industries that are moving in that direction.

Germany moves into deflation as global bond prices point to deepening slump

By Nick Beams, 30 January 2015

The potential consequences of falling consumer prices and money flooding into bond markets threaten to outweigh even those of the 2008 financial crisis.

Mass job losses unfold in global oil industry

By Gabriel Black, 26 January 2015

Several major oil service companies announced that they would cut significant sections of their workforce, leading to tens of thousands of new layoffs.

Financial markets celebrate European Central Bank launch of €1 trillion quantitative easing program

By Nick Beams, 23 January 2015

The measure will have little or no impact on the real economy. Rather, it is aimed at making available further supplies of ultra-cheap cash for financial speculation.

Capitalism and the global plutocracy

By Andre Damon, 21 January 2015

A group of people who can fit into a double-decker bus control more wealth than 3.5 billion people, equivalent to the combined populations of China, India, the United States and the European Union.

China records lowest growth in 24 years

By Will Morrow, 21 January 2015

China’s economy is racked by mounting debt and productive overcapacity, resulting from the stimulus measures adopted by the Chinese regime since the 2008 crash.

IMF cuts growth forecast amid warnings of rising global unemployment

By Nick Beams, 21 January 2015

The International Monetary Fund has downgraded its forecast for global economic growth in 2015, slicing 0.3 percentage points off its estimate last October.

Mexico’s state oil company sacks thousands of workers

By Don Knowland, 20 January 2015

Amidst falling oil prices, attempts by Pemex to cut production costs while courting foreign energy investors will fall most heavily on workers.

Canada’s finance minister postpones budget as economic turmoil deepens

By Roger Jordan, 17 January 2015

The drop in world oil prices has roiled the Canadian economy, which is heavily reliant on energy export-earnings and the Alberta tar sands.

Financial markets rocked by decision to abandon ceiling on Swiss franc

By Nick Beams, 16 January 2015

The decision by Swiss authorities to end the franc’s fixed relationship to the euro has led to one of the most rapid currency appreciations in history.

World Bank lowers its growth forecast

By Nick Beams, 15 January 2015

The latest World Bank report offers no prospect for a recovery in the world economy and points to significant risks.

US and EU press ahead with secretive new trade agreement

By Julie Hyland, 15 January 2015

The objective of the new Transatlantic Trade and Investment Partnership is to consolidate an economic empire to dictate terms to those outside.

Oil prices and bond yields continue their decline

By Nick Beams, 14 January 2015

Oil prices on Tuesday sank further toward their levels of 2009, while bond yields hit zero in Japan.

The economic and political implications of deflation

By Nick Beams, 10 January 2015

The announcement that Europe has gone into deflation underscores the deepening breakdown of the global capitalist economy.

Euro zone officially tips into deflation

By Stefan Steinberg, 9 January 2015

More than six years since the 2008 financial crash, Europe is beset by economic stagnation.

Political instability and global slump intensify financial turmoil

By Nick Beams, 7 January 2015

Markets fell again on Tuesday, reflecting the impact of falling oil prices and political turmoil.

Sharp market falls over euro and oil price slump

By Nick Beams, 6 January 2015

The main factor in the fall in US markets appears to have been the further sharp decline in oil prices.

2014–2015: Results and prospects

By David North and Joseph Kishore, 5 January 2015

The twenty-first century is no longer a novelty. As we begin the New Year, the past fifteen years provide sufficient data to allow us to identify the principal economic, geopolitical and social processes and tendencies that will determine the nature and direction of events in 2015 and the years ahead.

Figure hits $4.1 trillion

Wealth of world’s 400 richest billionaires rose $92 billion in 2014

By Andre Damon, 3 January 2015

The wealth of the global financial elite soared last year amid surging stock markets fueled by cash infusions from central banks.

Blood and capital

By Johannes Stern, 3 January 2015

International finance capital looks to the Egyptian military with enthusiasm not only for what it is doing in Egypt, but for the model the financial markets favor for every country.

European Central Bank president’s interview sends euro to four-year low

By Nick Beams, 3 January 2015

ECB President Mario Draghi has taken another step to full quantitative easing amid increasing deflationary pressures.

Oil price fall roils Canadian economy

By Dylan Lubao, 3 January 2015

Plummeting oil prices are causing Alberta and several other provinces to initiate new austerity drives and Canadian oil producers to slash investments and jobs.

Global financial markets facing instability in 2015

By Nick Beams, 31 December 2014

Divergent central bank policies are a potential source of financial turmoil in 2015.

The Dow at 18,000: Contradictions mount in world economy

By Nick Beams, 27 December 2014

The ever-widening gap between financial markets and the real economy is creating the conditions for economic turmoil and the eruption of social and political struggles.

Wall Street surge another sign of instability

By Nick Beams, 22 December 2014

The gyrations on Wall Street last week underscore how dependent financial markets are on the supply of ultra-cheap money from the US Federal Reserve.

Oil price slide and ruble plunge shake global markets

By Nick Beams, 16 December 2014

The worsening global slump is sending shock waves through financial markets.

Oil price fall brings global market turbulence

By Nick Beams, 15 December 2014

Share prices fell last week amid fears that the rapid drop in oil prices is having an impact on debt markets and signals a world downturn.

Jobless toll continues to rise in Australia

By Mike Head, 13 December 2014

There are now about five times as many unemployed workers as the number of job advertisements.

Report shows rising social inequality in major capitalist countries

By Dietmar Henning, 12 December 2014

Thirty years ago, the richest 10 percent in OECD countries earned seven times more than the poorest 10 percent. Today, the ratio is 9.5 to 1.

Global recessionary trends strengthening

By Nick Beams, 11 December 2014

The state of the euro zone economy continues to go from bad to worse.