Recently, the Bank of England hiked its interest rates yet
again to 5.75%,the fifth rise since August 2005, and "further action" on
interest rates could be on its way. The interest rate may go to 6% or more by
the end of this year. The credit-led boom is now in jeopardy as central banks
raise interest rates everywhere.
The financial turbulence of recent days has
wiped billions off the price of shares all around the world. On Friday August
10th Londonâ€™s stock exchange, the FTSE 100, alone dropped Â£63
billion. What does this mean?
This speech was delivered at a meeting of
the leadership of the International Marxist Tendency in Barcelona on 24 July
2007. The recent turbulence on world stock markets fully confirms the
perspectives outlined in it.
poorest 50% of the world's 6.6bn population own just 1% of the world's riches.
The answer? "Although we Americans strive to provide equality of economic
opportunity, we do not guarantee equality of economic outcomes, nor should
we." (Ben Bernanke, the chair of the US Federal Reserve)
This is an important book, written by Andrew Kliman, and published by
Lexington Books. In a nutshell, what Andrew Kliman shows is that Marx's laws of
motion of capitalism (how capitalism works and does not work) are logically
consistent and theoretically valid.
High levels of growth have been achieved in the
world economy, but these have been based on huge levels of easy credit, on
debt. This is not sustainable in the long run. Figures on the state of the US
economy indicate that the system is reaching its limits and crisis is looming.
The nerves of stock market speculators canâ€™t be in too good
a shape these days. Wall Street has just suffered its second biggest point drop
in four years. This immediately spread to Asian stocks markets that suffered
hints at a tax on capital gains and the Shanghai
stock exchange falls by 10%, but then the fall affects all the other major
stock exchanges. What does all this indicate? Michael Roberts gives his view on
A reader has objected to some of Michael
Robertsâ€™ criticisms of Andrew Glynâ€™s latest book. Among others it deals with
the question of whether profit rates in the post-war period were affected by
wage increases. Roberts replies showing that the fundamental reason for the
decline was the same as that stated by Marx.
In his new book, Capitalism
Unleashed, Andrew Glyn attempts to explain how capitalism moved from the
crisis of the 1970s to recovery in the 1980s and 1990s. However, although full
of interesting information, the book fails to provide an overall analysis and
misses some essential aspects of Marxist theory.
Milton Friedman died on 16 November aged 94
years. He was one of the foremost bourgeois economists of the 20th
century. His reputation as a monetarist theoretician and advisor to the likes
of Thatcher, Reagan and Pinochet as these attacked all the gains of the working
class was well earned.
The financial press and the investment houses of global finance capital are in euphoria. The world's stock markets are booming. But a closer look reveals that all this euphoria is misleading and the real situation is far less healthy than would appear on the surface.