We are witnessing a historical, civilizing moment, one of the most important in the history of humanity. We are privileged witnesses to these events. We are not referring to the first global pandemic of the Coronavirus, or the disastrous measures of capitalist governments. We mean that we are witnessing the collapse of capitalism
On July 31, the United States Federal Reserve (Fed) lowered interest rates by 0.25%, leaving the interest rate in a band between 2% and 2.25%. That measure is an official recognition that the global crisis of capitalism, which began in 2000 and has been going on for 19 years, is getting worse. When an acute peak of this crisis erupted...
She replaced former Fed president Ben Bernanke, and become first woman in charge of the more important, powerful, and determinant position in the world capitalist economy. "American workers and their families will have in Janet a leader", said president Obama.
At last years of XX century and 90's decade, global capitalist economy raises enormous contradictions. The Profit rate had a partial recovery, but there was an over accumulation of capital and development of destructive financial bubbles. The combination with political issues opened the current crisis between July and August 2007.
A difference between the capitalist crisis of '30s and current crisis, is the structure of monopolies, the companies that dominate and settle in the centre of capitalism. What are monopolies? A group of companies that get together to dominate a branch of production, distribution, services of production in a country and act in agreement on prices,...
The crisis broke out on 9th of August, (1) when the French bank BNP Paribas announced that their fund had run out of money. This announcement was preceded by serious events such as when the Mortgage New Century was withdrawn from the Exchange because of lack of solvency and an alleged accounting offense, bankruptcy of the Bear Steams hedge funds,...
Bailouts are credits. The G7 administrations make use of injections of credit into economy and this is a latent and constant tendency inasmuch as world economy cannot overcome the crisis. And they constitute the fundamental strategy of the USA and the states that dominate in capitalist world economy to palliate the crisis. At the round table of the...
Quantitative easing comes from direct and indirect taxes and by printing money. It means building a time bomb of inflation. QE3 is open ended spending programme for the banks. So far the Fed has spent £2.3 trillion in quantative easing. In early December 2012 the Fed added $45bn of monthly purchases to QE3 making $85,000bn per month in total....
Many main stream commentators have suggested Mark Carney will change the Tory government policy on public spending. But his move is because of the discredited leadership at the bank of England over such things as fiddling the international banking exchange Libor rate. They needed a pair of 'clean hands' or rather someone who they sold as having...
