The following article by John Ross, setting out the economic fundamentals confronting the US, was previously published by Socialist Economic Bulletin.
This article was published in Chinese before the recent summit between Chancellor Merkel and President Trump - which strongly confirmed its analysis.
The first steps by Trump as US President confirmed that he will pursue an anti-China policy but also that he will use different tactics to Obama and Clinton.
In the later part of the 20th century Latin America suffered an economic catastrophe from neo-liberal policies. Until 1993 average per capita GDP in developing Latin American economies remained below 1981 levels. By 1998 annual average per capita GDP growth was still only 0.9% – taking a five-year average to remove cyclical fluctuations.
A great deal of highly inaccurate material is currently appearing in the Western media about the ‘crisis’ of China’s economy – an economy growing three times as fast as the US or Europe. This follows a long tradition of similarly inaccurate ‘crash’ material on China symbolised by Gordon Chang’s 2002 book ‘The Coming Collapse of China’.
By Nicky Dempsey
Turkey’s Prime Minister Recep Erdogan is reported as saying that the same forces are at work in the protests in his country as in Brazil. In a very fundamental way this is correct.
Martin Wolf, the chief economics commentator for the Financial Times, has laid out a devastating critique of current government economic policy in Britain. In a widely-reported article titled ‘Cameron is consigning UK to stagnation’ he says it is a scandal that the government has cut its own investment, especially when it can in effect borrow for free, as real interest rates are at zero.
By Jane West
As the Euro-crisis unfolds and Greece heads to new elections, the left party, Syriza is capturing the support of most of those in Greece who want to reject the austerity programme imposed by the EU.
It is striking that the impact of the world developments, and particularly the growth of the left in Latin America, has clearly interacted with this political leadership of resistance to austerity in Greece. It was recently reported in the Guardian, of Syriza's leader, Alexis Tsipras: 'one of his heroes is Venezuelan leader Hugo Chávez, with whom he shares the same birthday.'
By Nicky DempseyAll societies based on social classes tend to produce surplus value, to a greater or less extent. The character of the society may be determined by which class receives the bulk of the surplus.The economic and financial crisis that became apparent in 2007 and 2008 was located primarily in the imperialist centres, led by the United States. The crisis was engendered by a crisis of profitability, a reduction in the surplus available to the capitalist class. Economic policy since that time has been designed to restore as far as possible the greater proportion of that surplus to the capitalist class in the imperial centres.
First published: February/March 1998 The financial crises which began in east Asia and Japan in the latter half of 1997 hit what had been the most dynamic part of the world economy – cross-Pacific trade overtook trans-Atlantic trade a decade ago. Together with the gyrations they produced on world financial markets, these events showed that the world capitalist economy is nowhere near the new ‘golden age’ of prolonged economic growth predicted by some bourgeois economists in the United States. On the contrary, the chain of economic events which started in October 1997, with the greatest stock market crash since 1929, is continuing to work its way through the international capitalist economy. The crash of 1987 was followed by the 1990 collapse of the Japanese stock market, the crash of world bond markets in 1994, the Mexican crash in the same year, prolonged stagnation in the early 1990s in Japan and most of the European Union and, now, the crises of the Asian ‘tigers’, recession in Japan and consequent turbulence on world stock markets, with severe knock-on effects in Latin America, eastern Europe and Russia.
First published: October 1998 The post-1989 triumphalism of the international imperialist system suffered two shuddering blows at the end of August. First, on the economic plane, it became clear that all of the efforts to contain the 1929-scale slump which has afflicted east Asia since last summer have failed – its fall-out is progressively extending its effects to the entire world economy. Second, the chain of the international capitalist economy broke at its weakest link – Russia – and this posed the most serious political challenge to imperialism since 1989, namely, the realistic possibility that the capitalist course imposed on that country since the end of 1991 might be over-turned. The shudder of doubt which passed through the world of capital manifested itself in stock market prices, innumerable articles on the ‘backlash against the free market’, through to the farcical powerlessness of the Clinton/Yeltsin summit.The driving force of this crisis was the realisation that the east Asian economic crisis had not been confined to that region. But its political punch was delivered by the palpable risk that capitalism could yet be overturned in a country, Russia, whose nuclear weapons rule out the direct Western military intervention which would otherwise be used in such circumstances. The latter political reality was reinforced by the inevitability of rising social and political opposition to imperialism’s prescriptions for east Asia.
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