World Economy
Financial bubbles creating conditions for new crash
By Nick Beams, 21 May 2013
The very measures put in place to avert a crisis are creating the conditions for a new financial meltdown.
Sharp increase in US jobless benefit claims
By Andre Damon, 17 May 2013
Negative economic figures released this week point to continuing stagnation in the US amidst a worsening slump internationally.
Euro zone contracts for sixth consecutive quarter
By Andre Damon, 16 May 2013
The euro area economy contracted by 0.2 percent in the first quarter of this year, which was followed by further calls for austerity.
Capitalism and the crisis facing young people
By Andre Damon, 13 May 2013
Perhaps more than any other section of society, young people have been made to bear the brunt of the crisis that erupted in 2008.
Divisions between major powers dominate G-7 meeting
By Nick Beams, 13 May 2013
Differences within the G-7 over economic policy are fuelled by the fact that almost five years since the global financial crisis erupted, the world economy is marked by deepening recessionary trends.
The 15,000 Dow
By Barry Grey, 9 May 2013
In the midst of the worst economic crisis since the Great Depression, the Dow has gained over 8,500 points, surging nearly 130 percent since it bottomed out in March of 2009.
The failure of capitalism
By Nick Beams, 3 May 2013
The collapse of the European economy points to the bankruptcy of the capitalist economic order.
Euro zone unemployment hits record high for 23rd consecutive month
By Andre Damon and Stefan Steinberg, 2 May 2013
Unemployment in the euro zone hit another record in March, with no end in sight to the economic and social catastrophe gripping Europe.
Amid jobs collapse, French President Hollande backs austerity in Europe
By Alex Lantier, 30 April 2013
With 26 million workers unemployed in Europe, Hollande is signaling that he will keep supporting social cuts that are devastating the French and European economies.
Increased tensions at G-20, IMF meetings
By Nick Beams, 22 April 2013
The discussions were dominated by the realisation that there is no economic recovery in sight.
IMF slashes world growth outlook
By Andre Damon, 18 April 2013
The International Monetary Fund downgraded its 2013 outlook for the world economy Tuesday amid mounting signs that the global slump is intensifying.
Gold price fall points to global deflation
By Nick Beams, 17 April 2013
The downturn in the gold price decline flies in the face of market expectations that it would rise or at least remain firm.
Brazil’s economy beset by inflation, lagging production
By Bill Van Auken, 11 April 2013
The inflation spike has been driven by a sharp rise in the price of food and other consumer items, with the impact felt acutely by Brazil’s working class and poor.
European Union imposes austerity bailout on Cyprus
By Robert Stevens, 9 April 2013
The terms dictated to Cyprus by the European Union in exchange for a bailout are predicated on the destruction of the pay and conditions of the working class.
Class war in Europe
By Julie Hyland, 4 April 2013
The punitive measures imposed on Cyprus mark a qualitative deepening of the European bourgeoisie’s class war offensive.
European unemployment rises for 22nd consecutive month
By Stefan Steinberg, 4 April 2013
The latest figures from the Eurostat statistics office confirm that the continent’s economic recession is taking a rising toll on jobs and living standards.
After Cyprus, more austerity in Greece
By Robert Stevens, 30 March 2013
Fresh from its financial looting of Cyprus, the European bourgeoisie is threatening to withhold funds from Greece unless it complies with mass sackings in the public sector.
Convicted Ponzi schemer Madoff accuses US government of stonewalling on bank prosecutions
By Andre Damon, 30 March 2013
Bernard Madoff, who admitted in 2009 to running a multibillion-dollar Ponzi scheme, has charged that the government-appointed trustee for his firm’s investors is ignoring evidence of major banks’ complicity in his activities.
Cyprus banks close as bailout terms spark Europe-wide crisis
By Jordan Shilton and Chris Marsden, 19 March 2013
Terms attached to the European Union bailout for Cypriot banks triggered heavy losses on financial markets.
Japan to sign up to US-led Asia-Pacific trade pact
By Peter Symonds, 18 March 2013
While dressed up as “free trade”, the Trans-Pacific Partnership is in reality a trade war measure.
European economy contracts as stock markets soar
By Stefan Steinberg, 8 March 2013
On the same day that figures were released underlining that Europe is in deepening recession, European stock markets soared to their highest levels since August 2008.
Hypocrisy in European debate on bankers’ bonuses
By Stefan Steinberg, 6 March 2013
Those responsible for a redivision of social wealth for the benefit of the banks are seeking to portray themselves as advocates of ordinary Europeans.
Unemployment hits new record in euro zone, personal income plummets in US
By Barry Grey, 2 March 2013
The grim economic statistics coincide with new moves by the European Union and the Obama administration in the US to slash social spending and public-sector jobs and wages.
Fed chairman reassures markets on dollar-printing “quantitative easing” program
By Barry Grey, 28 February 2013
The real beneficiaries of the policy Bernanke reaffirmed was reflected in the surge of share values on global stock markets.
Share sell-off points to further instability in global financial markets
By Nick Beams, 25 February 2013
The share sell-off in reaction to concerns over the Fed’s quantitative easing program shows that markets are floating on a sea of liquidity created by central banks.
G20 issues empty declaration against currency wars
By Nick Beams, 18 February 2013
The G20 declaration will have virtually no impact on the development of a currency war.
Euro zone economy posts worst contraction since 2009
By Andre Damon, 15 February 2013
The economy of the 17-member euro zone contracted 0.6 percent in the last three months of the year, underscoring the depth of the economic slump gripping the world economy.
Currency wars hang over G20 meeting
By Nick Beams, 15 February 2013
The meeting of G20 finance ministers and central bankers in Moscow over the next two days is being held amid a deep contradiction in the global capitalist economy.
Warnings of Australian economic readjustment
9 February 2013
placeholder
Kremlin responds to slowdown in economic growth with deeper social cuts
By Clara Weiss, 7 February 2013
The budget for 2013-2015 provides for massive cuts in the spheres of culture, education and health, while the share going to military spending will rise to 6.1 percent of GDP.
Firms make billions as middlemen in government cover-up of Wall Street crimes
By Andre Damon, 7 February 2013
US financial regulators increasingly rely on “independent investigators” who, in the guise of helping regulators find wrongdoing, help financial firms cover up their fraudulent activities.
UK youth face bleak job prospects in 2013
By Joe Mount, 5 February 2013
Youth unemployment continues to rise in the UK, with a new study forecasting that 86,000 more workers under the age of 25 will be without jobs this year.
US stocks near record highs
Dismal jobs report sparks Wall Street surge
By Barry Grey, 2 February 2013
The enthusiastic response of the financial markets to the jobs report underscores the stark divergence between the fortunes of the financial elite and the broad mass of working people.
US economy contracted in fourth quarter of 2012
By Barry Grey, 31 January 2013
The Commerce Department report highlights the disconnect between the bleak economic conditions facing working people and the staggering rise in corporate profits and stock and bond prices.
IMF cuts world growth forecast
By Andre Damon, 28 January 2013
Newly released data shows that the economies of Germany, Britain and Spain contracted in the fourth quarter of 2012.
Japan’s currency war
By Peter Symonds, 26 January 2013
The new Abe government is pursuing an aggressive nationalist program on two fronts: remilitarisation and a unilateralist monetary policy.
ILO report: Global unemployment to hit record high in 2013
By Kate Randall, 23 January 2013
Five years after the outbreak of the global financial crisis, world economic growth has decelerated and the jobless rate is projected to continue to rise until at least 2017.
World Bank cuts forecast for global economic growth
By Barry Grey, 17 January 2013
More than four years after the September 2008 financial meltdown on Wall Street, there is no end in sight to the economic crisis.
US jobs report points to continuing stagnation
By Barry Grey, 5 January 2013
Fewer than one in five unemployed workers found a job last month, and the total number of jobs remained 4 million below the peak at the start of 2008.
As 2013 begins: A mood of anxiety in ruling circles
By Nick Beams, 3 January 2013
Almost six years after the first signs of financial crisis and more that four years after the crash of 2008, “recovery” in the global economy is more remote than ever.
Currency wars to intensify in 2013
By Nick Beams, 28 December 2012
The monetary policies of the world’s major central banks threaten to repeat, in another form, the conflicts of the Great Depression.
The Libor swindle
By Andre Damon, 22 December 2012
Not only has the Libor swindle exposed the criminality of the banks, it has laid bare the nexus of corruption and complicity involving governments and financial regulators the world over.
UBS Libor-rigging settlement exposes pervasive bank fraud
By Andre Damon, 20 December 2012
The Libor scandal has laid bare the rampant criminality in the operations of the world's major banks.
Sweetheart settlement for HSBC bank on drug money laundering charges
By Barry Grey, 13 December 2012
The financial mafia that bestrides the American economy and controls the political system is, in practice, above the law.
After winning FDI vote, Indian government vows to push ahead with pro-investor measures
By Deepal Jayasekera, 13 December 2012
Last week’s debate and vote on opening India to Walmart and other giant retailers has underscored the support of all sections of India’s political establishment for big business’ economic agenda.
The extortionate operations of NML Capital
By Ernst Wolff, 11 December 2012
A New York court ordered Argentina to settle debts totalling $1.33 billion with hedge fund NML Capital by December 15.
Inter-European conflicts torpedo plans for banking union
By Stefan Steinberg, 10 December 2012
Discussions between European Union finance ministers on the formation of a banking union for the euro zone broke down last Tuesday.
Citigroup to cut 11,000 jobs
By James Brewer, 6 December 2012
Citigroup’s announcement of global layoffs, the first step in the restructuring plan of its new CEO, was met with enthusiasm by investors.
OECD warns of lower growth, increased unemployment
By Bryan Dyne, 29 November 2012
In its most recent report, the Organization for Economic Cooperation and Development revised its forecast for the world economy, sharply cutting projections and warning of the possibility of a “deep recession and deflation.”
Judge orders dismissal of Toronto's right-wing populist mayor
By Keith Jones, 29 November 2012
An Ontario Superior Court judge has ordered Toronto Mayor Rob Ford to vacate the office on December 10 after finding him guilty on conflict of interest charges.
A significant report on the global economy
By Nick Beams, 23 November 2012
China and India will not be able to provide the basis for a new period of global growth
Moody’s downgrades French debt rating, presses for austerity in Europe
By Alex Lantier, 23 November 2012
On November 19, the credit rating agency Moody’s downgraded France’s sovereign debt by one notch from Aaa, the top rating, to Aa1.
Push for pro-market reform after Chinese Communist Party congress
By John Chan, 23 November 2012
International and local business elites are pressing for a new round of economic restructuring in China, especially targeting state enterprises.
Clinton outlines global US economic offensive
By Peter Symonds, 22 November 2012
Obama’s pivot to Asia is part of a comprehensive campaign to maintain US dominance in Asia on every front—diplomatic, economic and strategic.
SEC announces settlement with JPMorgan over mortgage fraud
By Andre Damon, 21 November 2012
JPMorgan Chase and Credit Suisse will pay $416.9 million to settle charges by the Securities Exchange Commission that they lied to investors about the quality of mortgage-backed bonds.
Financial elite demands deeper spending cuts in Australia
By Mike Head, 17 November 2012
Standard & Poor’s drew parallels between Australia and Spain, and warned that Australia could risk losing its AAA credit rating.
Euro zone finance ministers demand deeper cuts in Greece, Europe
By Robert Stevens and Jordan Shilton, 13 November 2012
A meeting of euro zone finance ministers on Monday delayed a further 31.5 billion euros in aid to Greece.
A major shift in the global economy
By Nick Beams, 10 November 2012
The series of measures put in place by governments and financial authorities to prevent a financial meltdown and depression are reaching the end of their limited effectiveness.
Growth forecasts slashed as Europe sinks deeper into crisis
By Andre Damon, 9 November 2012
The European Commission slashed economic forecasts for the continent, including for Germany, as governments throughout the continent enforce brutal austerity.
Poverty, hunger and inequality grow in Spain
By Alejandro López, 30 October 2012
The European recession has increased suffering among the Spanish people.
Downturn to continue for a generation, Bank of England governor warns
By Nick Beams, 24 October 2012
More than four years after the collapse of Lehman Brothers, the economic outlook is steadily worsening around the world.
DuPont cutting 1,500 jobs
By Kate Randall, 24 October 2012
DuPont announced 1,500 job cuts on Tuesday, as the chemical company slashed its annual forecast and reported a lower-than-expected quarterly profit. The news signaled that demand for the company’s paint and solar products is slipping around the world.
Australian government imposes new spending cuts
By Patrick O’Connor, 23 October 2012
The abrupt end of the mining boom has had an immediate impact on the government’s budget, demonstrating the acute sensitivity of Australian capitalism to global economic shifts.
Conflicts come to the surface at IMF-World Bank meeting
By Nick Beams, 17 October 2012
The world economy is moving deeper into recession while the central banks are creating the conditions for a new financial crisis.
Friction at IMF meeting as global economic outlook worsens
By Nick Beams, 15 October 2012
The tensions were evident when Germany objected to IMF head Christine Lagarde’s call for Greece to be given more time to pay, and Brazil branded US monetary policy “selfish”.
IMF report points to growing financial instability
By Nick Beams, 12 October 2012
According to the latest Global Financial Stability Report, “confidence in the global financial system has become very fragile.”
Growing world slump overshadows IMF-World Bank meeting
By Nick Beams, 9 October 2012
The annual meeting of the International Monetary Fund and World Bank which starts in Tokyo today comes amid growing signs of a major economic downturn.
IMF chief warns: China-Japan dispute threatens world economy
By John Chan, 8 October 2012
The conflict between the governments in the world’s second and third largest economies over disputed islands in the East China Sea could compound global economic turmoil.
Australia: Workers warned to “brace for falling living standards”
By Patrick O’Connor, 5 October 2012
Garnaut’s statements are part of a wider campaign by economic commentators and media outlets for brutal austerity measures against the working class.
Libor reforms will not stop collusion
By Nick Beams, 3 October 2012
Despite Libor reforms, the corruption at the heart of the international financial system will remain intact.
World economy slides deeper into slump
By Andre Damon, 2 October 2012
A string of negative reports has revealed a significant deterioration in the global economy, with world trade slowing, manufacturing contracting, and the number of unemployed workers in the euro zone hitting a record high.
What is behind the global stock market rally?
By Andre Damon, 29 September 2012
Despite a string of disastrous economic figures, stock markets throughout the world are surging.
As Australian mining boom ends, new push for wage cuts
By Will Morrow, 26 September 2012
The Labor government and the unions are determined to satisfy the requirements of the mining companies.
Currency war warnings follow US Fed’s “quantitative easing”
By Nick Beams, 24 September 2012
One of the consequences of the Fed’s actions is to push down the value of the US dollar, thus worsening the competitive position of other major countries.
Australia: Hundreds of Bankstown fire survivors remain locked out
By Mark Church, 14 September 2012
Hundreds of residents evacuated after a fatal fire in a Sydney apartment block have been left without homes or government support.
US Federal Reserve extends unlimited support to financial markets
By Nick Beams, 14 September 2012
Yesterday’s announcement is the most open-ended commitment given by the Fed to bolster financial markets since the crisis began four years ago.
Cuts in US jobless pay, government layoffs throw 1.5 million more people into poverty
By Andre Damon, 10 September 2012
The Center for Budget and Policy Priorities released a report last Friday showing that cuts in jobless pay and the layoff of public-sector workers threw over 1.5 million people into poverty last year.
Another dismal US jobs report
By Andre Damon, 8 September 2012
Less than 12 hours after US President Barack Obama gave his speech at the Democratic National Convention, a disastrous jobs report released Friday shattered the administration’s pretenses of an “economic recovery.”
The bankers’ dictatorship in Greece
By Stefan Steinberg, 8 September 2012
The financial elite is demanding a fundamental assault in Greece on all the gains made by the working class in the twentieth century.
Financial markets rejoice over European Central Bank plan
By Nick Beams, 7 September 2012
The ECB will increasingly act as a financial dictator over the euro zone, enforcing ever-deeper cuts in the living standards of the working class to provide funds to financial markets for their speculative activities.
EU, IMF demand lower wages, longer hours in Greece
By Stefan Steinberg, 6 September 2012
The letter leaked to the press before EU and IMF talks in Athens calls for a six-day work week, new minimum wage cuts, and other attacks.
Global manufacturing slumps as European banks seek bailouts
By Andre Damon, 4 September 2012
Signs of deepening global slump are mounting as manufacturing activity in Europe and Asia contracts and European banks request new bailouts.
Jackson Hole discussion points to deepening economic crisis
By Nick Beams, 3 September 2012
The gathering demonstrated that the central bankers do not even understand the workings of the system over which they are supposed to preside.
Fed minutes point to a bankrupt economic order
By Nick Beams, 28 August 2012
The latest FOMC meeting amounted to an acknowledgement that while the financial system continues to operate on a day-to-day basis, in a longer-term, historical sense it has completely broken down.
BHP mine delay signals end of Australian mining boom
By Mike Head, 24 August 2012
BHP Billiton shelved its $20 billion Olympic Dam mine expansion plans in South Australia, triggering considerable nervousness within the Labor government.
Indian elite hamstrung as the economy falters
By Kranti Kumara, 18 August 2012
High inflation and the sharp depreciation of the rupee have prevented India’s central bank from cutting interest rates to counter faltering economic growth.
China slowdown deepens global crisis
By Nick Beams, 16 August 2012
Data showing a marked slowdown in the Chinese economy have a global significance for they make clear that the economic breakdown is deepening and extending to all parts of the world.
A law unto themselves
By Barry Grey, 15 August 2012
Bankers can lie, steal, cheat and defraud the public without limit, causing human suffering and social ruin on a global scale, with no fear of being held accountable.
US downgrades crop outlook
By Naomi Spencer, 15 August 2012
Grain prices surged to new records after the US Department of Agriculture downgraded its harvest projections.
Widespread criminal practices by UK banks
By Jean Shaoul, 15 August 2012
Scandals emerging from the financial services industry on an almost daily basis point to the ongoing criminal practices of British banks.
Google cutting 4,000 jobs at Motorola unit
By Kate Randall, 14 August 2012
Google Inc. announced Monday that it is cutting 4,000 jobs in its Motorola Mobility cell phone business and will close or consolidate a third of the unit’s 90 locations.
Spiking grain prices raise specter of global food crisis
By Naomi Spencer, 10 August 2012
Global food prices rose 6.2 percent in July, the United Nations’ Food and Agriculture Organization reported Thursday.
China’s leaders call for “stable growth” as economy slows
By John Chan, 8 August 2012
Beijing will try to stem a six-quarter slowdown in the world’s second largest economy by boosting bank credit and further stimulus measures.
Growing signs of global slump
By Nick Beams, 6 August 2012
The impact of the continuing crisis of the euro zone is spreading outwards through the global economy, bringing signs of a gathering world slump.
US unemployment rate rises on weak jobs report
By Andre Damon, 4 August 2012
The US economy added only 163,000 jobs in July according to government figures, and the unemployment rate grew to 8.3 percent, the Labor Department said on Friday.
Israeli cabinet reveals draconian austerity budget
By Jean Shaoul, 3 August 2012
Israel’s cabinet has approved austerity measures aimed at increasing taxes by NIS13 billion ($3.25 billion) and slashing state expenditure by NIS12 billion ($3 billion).
Libor scandal goes global
By Robert Stevens, 3 August 2012
The UK Conservative/Liberal Democrat government this week announced the terms of a review into the deepening London Inter-Bank Offered Rate crisis.
Behind the mounting conflicts in the EU
By Peter Schwarz, 2 August 2012
Although most governments and parliaments are on their summer break, a fierce dispute over the future of the euro is raging between the European capitals.
Consumer spending slowdown hits US economy
By Patrick Martin, 28 July 2012
Long-term unemployment and job insecurity have undermined consumer and business confidence.
Greek government, European officials plan billions in new social cuts
By Alex Lantier and John Vassilopoulos, 27 July 2012
Greek officials met with European Commission (EC) President José Manuel Barroso and international financial officials yesterday to discuss a new round of budget cuts.
Follow us on