World Economy

At the recent meeting of the World Economic Forum in Davos, the rich and powerful gathered to discuss a strategy for the defence of their system. In the past, the mood of this gathering has been one of confidence and determination. This year, however, it reeked of desperation. The ruling class has gone from victory celebrations to staring into the abyss within the space of just 25 years.

As we step into a new year, the world is facing a decisive turning point. The crisis of capitalism is reaching a new level – one that threatens to overthrow the entire existing world order that was painfully put together after the Second World War. 10 years after the financial collapse of 2008, the bourgeoisie is nowhere near solving the economic crisis. 

Rob Sewell, editor of Socialist Appeal(British paper of the IMT) spoke at the Revolution Festival in London about the 2008 financial crisis, 10 years after the fact. He explains that we are living through perhaps the greatest ever organic crisis of capitalism, from which there has been no meaningful recovery; and that all attempts to deal with the fallout of 2008 (from quantitative easing to austerity) have now disrupted the social and political situation.

Upwards of a trillion-and-a-half Danish kroner in “dirty money” (an amount that corresponds to about 60 percent of the Danish GDP) appears to have passed through the Danish financial giant Danske Bank. This case is just one in a long series of scandals, which show that the bourgeois rule of law is an illusion.

The headline announcement from the latest UK budget was that “the era of austerity is finally coming to an end”. This assurance, coming from a Conservative chancellor, is an indication of just how far the mood in society has shifted. After eight years of cuts borne by the working class, the vulnerable, and the poor, it is clear that ordinary people are no longer willing to tolerate any more hollow rhetoric that “we’re all in this together”.

According to the British chancellor, Philip Hammond, austerity is apparently over. But for the super-rich it looks like it never even began! The latest figures reveal that the international billionaire class made more money in 2017 than in any year in recorded history.

26 years ago, after the fall of the Soviet Union, the defenders of capitalism were euphoric. They spoke of the death of socialism and communism. Liberalism had triumphed and therefore history had reached its final expression in the form of capitalism. That was the moment when Yoshihiro Francis Fukuyama uttered his famous (or notorious) prediction that history had ended. What he meant by this was as follows: now that socialism (in the form of the Soviet Union) had failed, the only possible

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While all eyes are on the unfolding trade war between China and the United States, another crisis in the world economy is threatening to spin out of control. Since April, Argentina and Turkey have seen their currencies collapse and inflation spiral. Other so-called emerging economies such as Indonesia, India, Brazil and South Africa are also coming under similar pressures.

10 years ago, on 15 September 2008, Lehman Brothers – one of the largest and oldest investment banks in the world – filed for bankruptcy after being engulfed by the subprime mortgage scandal.

In the years following the global financial crisis of 2008, the world has seen the most widespread questioning and rejection of the capitalist system since the collapse of the Soviet Union. The intractable crisis of the world economy is making itself felt in all spheres of life, causing immense instability in politics and world relations.

Expectations for the G7 were not high, but the outcome was even worse than expected. For the first time ever, the G7 ended without a joint statement, and with Trump lashing out at Canada and the EU. The summit in North Korea, on the other hand, ended with all smiles and a joint statement promising peace, denuclearisation and security.

Since the beginning of 2018, the Argentinian peso has fallen 30 percent against the dollar, reaching 25 pesos per dollar. The severity of the crisis has forced the government to raise interest rates to 40 percent. Seeing that this didn’t help, the government has taken steps to ask the IMF for a multi-billion-dollar loan to prop up the faltering economy. Seemingly coming like lightning from a clear blue sky, what this pending disaster really reveals is the fragile state of the Argentinian

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The Conservative government in Britain is facing a perfect storm of crises. Brexit looms large over every decision and event. The question of the Irish border and the customs union has intensified the civil war inside the Tory Party. And without a majority to command in Parliament, the Prime Minister is paralysed, unable to pass any meaningful

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The serious representatives of capitalism are petrified that the ongoing trade dispute between China and America could erupt into a full-blown economic war. In a recent editorial for the Financial Times, associate editor Martin Wolf described US President Donald Trump’s latest plan to reduce the $337bn US-China trade imbalance by imposing $200bn worth of tariffs on Chinese goods (over two years) as a

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“The Governor of the Bank of England has warned that massive job losses driven by technology could resuscitate Marxism in the West,” announced the Daily Telegraphrecently.

After placing hefty tariffs on solar panels, washing machines, steel and aluminium, Trump is now picking a fight with China. His latest proposals target $60bn worth of Chinese exports, and threaten a trade war between two of the largest economies in the world.

In the last week, US President, Donald Trump announced his intention to raise tariffs on steel and aluminium imports, threatening to start a dangerous trade war with the rest of the world. This could plunge the world economy into another deep slump.

The last two months have seen renewed worries about the economy. It was meant to be a period of optimism, with plenty of positive figures on unemployment, wage growth and so on. Yet in spite of the figures, the markets are jittery and the bourgeois is gradually realising that none of the problems that caused the crisis in 2008 have been resolved. If anything, they have become even worse.

A pesar de toda la euforia del último periodo acerca de la recuperación de la economía mundial y el crecimiento bursátil, los acontecimientos han dado un brusco giro a peor. La semana pasada, las bolsas de todo el mundo se derrumbaron.

Despite all the euphoria in the past period about the world recovery and booming stock markets, events have taken a sharp turn for the worse. Over the past week, stock markets around the world have plunged.

Earlier this month, Oxfam published the latest statistics on wealth inequality. They reveal that the slogan of “we are the 99 percent” really is true. The richest 1 percent globally own more than the rest of us put together. 42 billionaires own the same wealth as the 3.6 billion people who form the poorest half of the world's population.

The news of heavy fraud and corruption in two of South Africa’s biggest monopolies has thrown the big capitalists into turmoil. The scandals, which broke out almost simultaneously, involve two global behemoths, Naspers and Steinhof, and implicate some of the very biggest tycoons in the country, such as Christo Wiese, Markus Jooste and Koos Bekker.

British capitalism is clearly in a parlous state. The miserable spurt of growth of a few years ago has completely run out of steam, leaving the UK in a disastrous position. All the economic forecasts from the top institutions for the coming period have been downgraded from those of a year ago.

The lack of any major announcements in this year’s budget, delivered on 22 November by the chancellor, Philip Hammond, reflects the insoluble web of contradictions that now entangles the Tory government.

Just when Theresa May and the Tories would have been hoping for some respite after a dismal conference period, the OBR (Office for Budget Responsibility) has sent a shockwave through British political and business circles. In its annual “Forecast Evaluation Report” (FER), published this month, the OBR downgraded the UK’s economic outlook, having revealed that both GDP and productivity growth had consistently fallen short of OBR predictions over the last two years.

The following draft document was discussed at the World Congress of the International Marxist Tendency in July 2016. The main aim of the document is to define the main economic, social and political trends in the world today and to develop a perspective for the class struggle in the next period. The document was originally drafted in October 2015. [You can read the final version of the document, which was passed at the congress ...

On September 28, 2000 a majority of the Danish voters said no to the Euro - 53.1% voted No and 46.9% voted Yes. This was a surprisingly high No-vote, since almost all the different opinion polls and "experts" etc., had been predicting a very close, almost fifty-fifty situation. The participation in the referendum was very high - about 88%, which is the highest percentage in a Danish EU-referendum since the first one in 1972 where 90.4% voted.