Economy

Deutsche Bank crisis: Germany and US accuse each other of economic warfare

By Stefan Steinberg, 4 October 2016

While the latest outbreak of transatlantic hostilities revolves around the perilous state of Deutsche Bank, it is not the only bank facing collapse.

Deutsche Bank and the global financial crisis

By Nick Beams, 1 October 2016

The contradiction between booming financial markets and intractable slump in the underlying economy is assuming an ever more explosive form.

Crisis at Germany’s Deutsche Bank intensifies

By Ulrich Rippert, 30 September 2016

Following the plunge in Deutsche Bank’s share price to its lowest level since 1983, Germany’s second largest bank, Commerzbank, has announced a major restructuring.

Slowdown in growth of trade highlights global economic stagnation

By Nick Beams, 29 September 2016

Both the World Trade Organisation and the International Monetary Fund warned of an increase in protectionist measures alongside a fall in the rate of world trade growth.

Walmart to cut 7,000 back-office jobs in the US

By Jessica Goldstein, 29 September 2016

The announcement of mass layoffs at the largest employer in the US comes amid a wave of cuts in the retail industry.

040 WTO report on world trade

28 September 2016

Economist magazine warns of revolutionary consequences of unprecedented corporate power

By Gabriel Black, 28 September 2016

A special report in the Economist magazine warns of a return to the type of economic and political conditions that produced the 1917 Russian Revolution.

Deutsche Bank plunge sparks talk of “Lehman moment”

By Nick Beams, 27 September 2016

The turmoil surrounding Deutsche Bank is only the sharpest expression of a crisis gripping the whole of the European banking system.

Pennsylvania workers’ wages decline while rich become richer

By Douglas Lyons, 26 September 2016

A recent report underscores the economic decline workers have experienced over the past half century while the super-rich carried out a “radical redistribution” of wealth.

210 A deepening crisis for the central banks

23 September 2016

NASDAQ hits record after US and Japanese central banks signal continued stimulus

By Nick Beams, 22 September 2016

Global stocks rallied as the Organisation for Economic Co-operation and Development revised down its global growth estimate, citing weak trade growth and lower productivity.

Markets too dependent on central banks, BIS warns

By Nick Beams, 20 September 2016

Amid signs of increased volatility, the Bank for International Settlements issued another warning that financial markets rely too much on central banks.

Wells Fargo executive overseeing fraud receives $124.6 million retirement

By Gabriel Black, 17 September 2016

Carrie Tolstedt has made tens of millions overseeing massive consumer fraud as Wells Fargo’s Vice President for community banking.

225 Text of a leaflet for anti TTIP demo Saturday

17 September 2016

Further considerations on the household income report: Poverty and inequality in America

By Patrick Martin, 15 September 2016

The Obama administration and the Democratic Party have seized on the latest Census Bureau report as support for their bogus claims of a genuine economic recovery.

The 2008 crisis and the lessons of history

By Nick Beams, 15 September 2016

The ensuing eight years have shown that the financial crisis of 2008 was not a conjunctural downturn but a breakdown in the very foundations of the global capitalist economy.

Turbulence returns to financial markets

By Nick Beams, 13 September 2016

There are warnings that the rise in bond prices could turn into a rout with significant losses for investors.

Drone Valley: The University of California and the business of high-tech slaughter

By Toby Reese, 12 September 2016

The appointment of a number of new academics and scientists to the University of California, San Diego’s (UCSD) Contextual Robotics Institute is bound up with the US drive to war.

ECB keeps monetary policy on hold as tensions grow

By Nick Beams, 9 September 2016

The European Central Bank has kept its monetary policy on hold but there are growing concerns about what it can do as deflationary pressures continue.

Wells Fargo bank fined for account and credit card fraud

By Nick Beams, 9 September 2016

Questions are sure to asked as to how a bank, supposedly with tight internal controls and reviews, did not know about the creation of two million fake accounts.

South Korea’s Hanjin Shipping bankruptcy has global impact

By Ben McGrath, 9 September 2016

The company’s financial problems are a further indication of the economic instability facing the world economy.

Deteriorating Australian economy adds to pressure on Turnbull

By Mike Head, 7 September 2016

The corporate discontent with the prime minister’s performance is mounting amid falling business investment and stagnant retail sales.

Fears of rising social opposition hung over G20 summit

By Nick Beams, 6 September 2016

At the conclusion of the summit, IMF managing director Christine Lagarde also addressed these issues warning that economic growth had been “too low for too long for too few.”

Rising global tensions surface at G20 summit

By Nick Beams, 5 September 2016

It is a sure sign of the deepening malaise of the global capitalist economy, afflicted by lower growth and falling trade, that “overcapacity” in steel was at the very centre of the G20 economic agenda.

Mass layoff at Harley-Davidson in York, Pennsylvania

By Douglas Lyons, 5 September 2016

Harley-Davidson has recently announced approximately 200 workers will be laid off due to declining profits.

US lost 14,000 manufacturing jobs in August

By Shelley Connor, 3 September 2016

The publication of a lackluster jobs report by the Labor Department followed the announcement by Wal-Mart that it plans to slash 7,000 jobs.

IMF issues warning on global growth to G20 summit

By Nick Beams, 2 September 2016

International Monetary Fund managing director Christine Lagarde has said the world economy could suffer from “disappointing growth for a long time to come.”

“The union is letting the company do what it wants”

Fiat Chrysler CEO issues threat to Detroit jeep workers

By Shannon Jones, 1 September 2016

In a not so veiled warning, Fiat Chrysler CEO Sergio Marchione told Jefferson North workers last week that the status of their facility is up in the air.

France demands end to trade talks with US amid rising US-EU tensions

By V. Gnana and Alex Lantier, 31 August 2016

As France demanded an end to talks on the TTIP trade deal, the EU said it would levy a €13 billion fine on Apple, a move the US Treasury said could damage US-EU ties.

Obama success story: Third biggest stock market boom since 1900

By E.P. Bannon, 31 August 2016

The Obama bull market is the product of years of pro-corporate, anti-working class policies, including the bailout of the banks and attacks on wages and benefits.

Growing perplexity as central bankers confront permanent stagnation

By Nick Beams, 30 August 2016

With the business cycle set to enter a “dangerous” phase, central bankers are concerned that interest rates are already so low they will not be able to counter any economic downturn.

ILO report: Global youth unemployment to rise for first time in three years

By Niles Niemuth, 27 August 2016

According to an International Labor Organization report, the number of unemployed young people ages 15 to 24 will rise to 71 million this year.

No end to central bank subsidies for financial markets

Fed chair lays out long-term scenario of economic stagnation

By Barry Grey, 27 August 2016

Yellen all but acknowledged that low levels of economic growth and extreme financial instability were permanent features of the US and world capitalist economy.

Air of crisis overhangs central bankers’ meeting

By Nick Beams, 26 August 2016

The central bankers and financial authorities gathered at Jackson Hole have no economic answer to the crisis of the profit system over which they preside.

Deutsche Bank whistleblower rejects reward, cites collusion between bank and regulators

By Gabriel Black, 25 August 2016

The former vice-president accused the SEC of not prosecuting leading bank officials because of the incestuous relationship between the bank and the ostensible watchdog.

Fed divided on policy amid warnings over state of global bond markets

By Nick Beams, 19 August 2016

Underlying the divisions in the Federal Reserve is the lack of any clear understanding of where the US economy is heading.

Cisco to cut 5,500 jobs, adding to wave of US tech layoffs

By Barry Grey, 19 August 2016

So far this year, American technology companies have eliminated 63,000 jobs.

Pacific island economies hit by global slump

By John Braddock, 17 August 2016

Led by falling commodity prices and sharp declines in the Pacific’s largest economies, growth across the region will fall sharply in 2016.

As growth prospects fall, US markets hit record high

By Nick Beams, 16 August 2016

The rise in the markets and the underlying weakening of the real economy are interconnected phenomena as finance seeks to accumulate profits through parasitism.

International bond markets turn “surreal” as speculation grows

By Nick Beams, 15 August 2016

The move by the Bank of England to undertake further “quantitative easing” has led to even more speculation in financial markets, as the underlying economy worsens.

The impact of financial parasitism

Record US share prices amid economic slump and social decay

By Barry Grey, 13 August 2016

The surge in stock and bond prices has come amid mounting indications of stagnation in the real economy and a worsening social crisis.

Signs of slowdown in US auto industry

By Shannon Jones, 13 August 2016

Ford, General Motors and Toyota recorded sales declines in July.

Sri Lankan government imposes IMF privatisation demands

By Saman Gunadasa, 13 August 2016

The IMF regards Sri Lanka’s state-owned enterprises as a burden on the economy as well as a potential source of profit for investors.

Wall Street celebrates mass layoffs by Macy’s

By Patrick Martin, 12 August 2016

The largest US department store chain announced it would close 100 stores, which will likely eliminate more than 12,000 jobs.

The slump in US productivity: Another symptom of capitalist crisis

By Andre Damon, 11 August 2016

Behind the continuing slump in productivity and business investment is an immense growth of financial speculation.

Trump speech in Detroit: Tax cuts for the wealthy combined with nationalist demagogy

By Patrick Martin, 10 August 2016

Both Clinton and Trump are fully committed to increasing the wealth of the corporate and financial elite at the expense of working people.

The United Steelworkers, economic nationalism and the US drive to war

By Evan Winters and Jerry White, 10 August 2016

The USW's calls for tariffs against “foreign steel” and its nationalist agitation against China are aimed at dragooning workers into supporting US imperialism’s preparations for war.

220 Steel, economic nationalism and war

9 August 2016

Global economic stagnation fuels financial instability

By Nick Beams, 8 August 2016

The decision by the Bank of England to take “exceptional” financial measures reflects the worsening outlook for the global economy.

Clinton, Obama tout tepid US jobs report

By Shannon Jones, 6 August 2016

A closer look at the employment numbers for July reveals many indications of continuing economic stagnation and deepening hardship for wide layers of the population.

Bank of England announces record rate cut in windfall for financial markets

By Barry Grey, 5 August 2016

The rate cut, together with other measures announced by the bank, will pump 170 billion pounds ($223 billion) into the UK’s financial markets.

215 Crisis in steel, economic nationalism and the drive to war

4 August 2016

US homeownership rate falls to lowest level in 51 years

By Gabriel Black, 3 August 2016

Declining household income and rising rent prices are preventing workers and young people from owning homes.

Manufacturing slows in Europe and Japan

By our reporter, 2 August 2016

The continued slump in the real economy is in marked contrast to the ongoing and ultimately unsustainable speculative frenzy on international share markets.

Slowdown in US, global economy

By Tom Eley, 1 August 2016

Second-quarter gross domestic product figures for the US and Europe show a further slowing in economic growth and business investment.

Farm equipment giant John Deere lays off 120 workers as sales plummet

By George Gallanis, 1 August 2016

The third round of layoffs in 2016 raises the total number of workers cut by Deere in the US to 2,000 over the last two years.

072 Japan stimulus / Fed meeting

29 July 2016

US government investigates allegations Fiat-Chrysler falsified sales figures

By Shannon Jones, 23 July 2016

The auto company confirmed that it is under investigation by both the SEC and the FBI for an alleged scheme to pad its monthly sales totals.

Jobs losses continue in Australia as slump deepens

By Terry Cook, 23 July 2016

The job cuts further highlight the impact of falling commodity prices and declining demand in China and throughout Asia.

Study shows funding down, tuition up at US public universities and colleges

By Buster Haycook, 22 July 2016

Years of cuts in state funding for public colleges and universities have driven up tuition and have led to faculty reductions, fewer course offerings and campus closings.

IMF cuts growth forecast in the wake of Brexit

By Nick Beams, 21 July 2016

The IMF has warned of the possibility of a “severe scenario” for Europe if financial conditions tighten and consumer confidence falls.

Incomes declining or stagnant for the vast majority in “rich” countries

By Gabriel Black, 16 July 2016

A new report from McKinsey Global Institute finds that for most people in the advanced capitalist countries there has been no recovery from the 2008 Wall Street crash.

Global trade stagnates amid wave of protectionism

By Nick Beams, 15 July 2016

Members of the G20 were responsible for more than 80 percent of protectionist measures in 2015.

US Justice Department blocked prosecution of HSBC bank for drug cartel money laundering

By Gabriel Black, 15 July 2016

The House Financial Services Committee report makes clear that the Obama administration’s failure to hold criminally liable a single leading Wall Street figure is the result of a highly conscious and systematic policy.

A dangerous turn to economic nationalism

By Nick Beams, 12 July 2016

With all efforts to return global economic growth to pre-2008 levels having failed, the ruling class’s economic theorists have turned to the promotion of protectionism and nationalism.

US unemployment rate rises despite rebound in new jobs

By Tom Hall, 9 July 2016

The number of people counted as unemployed actually increased by 347,000, a higher figure than the number of jobs added.

IMF chief points to war danger

By Nick Beams, 8 July 2016

International Monetary Fund head Christine Lagarde warned against the dangers posed by the prospect of a “wave of protectionism.”

Signs of post-Brexit financial crisis mount

By Nick Beams, 7 July 2016

The suspension of cash redemptions by six property investment firms in Britain could set off a crisis extending to the banking system.

Brexit to intensify Sri Lankan economic crisis

By Saman Gunadasa, 6 July 2016

The British vote threatens to exacerbate Sri Lanka’s balance of payments crisis and deepen the widespread discontent over the government’s austerity measures.

Brexit financial fallout widens

By Nick Beams, 4 July 2016

Bank of England Governor Mark Carney has warned of “economic post-traumatic stress” hitting financial markets, businesses and households.

Economic inequality soars in US

By Patrick Martin, 2 July 2016

Average incomes of the top 1 percent rose twice as fast as the incomes of the remaining 99 percent of Americans in 2015.

Brexit vote highlights deepening crisis in global economy

By Nick Beams, 30 June 2016

The Brexit outcome has revealed acute problems in the “quantitative easing” program that the world’s major central banks have used to sustain the global financial system over the past eight years.

Dow Chemical slashes 2,500 jobs ahead of DuPont merger

By our reporter, 30 June 2016

The layoffs, which will hit workers in Michigan, North Carolina and Japan, are just the beginning of the bloodletting being prepared by the merging chemical giants.

Illinois public sector devastated as budget impasse approaches one-year mark

By Alexander Fangmann, 29 June 2016

Many parts of state and local government will soon run out of money as the Democratic-controlled state legislature and the Republican governor continue wrangling over how to slash public services.

Financial market turmoil continues in wake of Brexit vote

By Nick Beams, 28 June 2016

British government leaders have issued statements claiming they have the situation under control, but to no avail as financial markets continue to plummet.

After Brexit, mounting warnings of global slump and financial panic

By Andre Damon, 27 June 2016

The ongoing sell-off in global financial markets comes amid a chorus of warnings by international institutions that the world economy faces a deepening crisis.

UK “leave” vote batters financial markets

By Andre Damon, 25 June 2016

The British pound plunged to a 31-year low, European stock markets crashed and US markets erased their gains for the year following the Brexit vote.

Reports document social crisis

US wages and jobs decline, inequality rises

By Patrick Martin, 23 June 2016

Two reports issued over the past week shed light on the deepening social crisis in the United States and the deteriorating economic position of the working class.

IMF cuts estimates for US economic growth and points to worsening long-term trends

By Nick Beams, 23 June 2016

The IMF’s latest report on the US economy highlights “pernicious” tendencies that will impact heavily on growth and economic well-being.

On eve of Brexit referendum, mounting warnings of global trade war

By Andre Damon, 22 June 2016

The World Trade Organization warned that protectionist measures by leading economies has hit the highest level on records dating back to 2009.

The return of “secular stagnation”

By Nick Beams, 17 June 2016

Fed chairwoman Janet Yellen’s comments on Wednesday pointed to the emergence of “secular stagnation” in the global economy, a term first developed in the 1930s.

Fed holds interest rates amid mounting global turmoil

By Nick Beams, 16 June 2016

The Fed decision to keep interest rates on hold is an expression of the fact that what were once considered “normal” operations of the capitalist economy are breaking down.

IMF issues warning over growing Chinese debt problems

By Nick Beams, 14 June 2016

The IMF has described rising corporate debt in China as the key “faultline” in its economy, amid concerns it could have major “spillover” effects internationally.

Markets applaud speech by Fed Chair Yellen signaling delay in rate hikes

By Barry Grey, 8 June 2016

The response of markets to signs of economic distress and signals that the Fed will keep cheap credit flowing was typical of the period since the financial crash—relief and exultation.

US economy adds fewest jobs in five years

By Evan Blake, 4 June 2016

The US economy added only 38,000 jobs in May, the fewest since 2010, in another indication of the persistent slump gripping the US economy.

Economic nationalism and the growing danger of war

By Nick Beams, 4 June 2016

The global economy is increasingly marked by the return of the types of economic nationalism that had such devastating consequences in the 1930s.

Economic conflicts threaten global trade war

By Nick Beams, 3 June 2016

The decision by the US International Trade Commission to launch an investigation into 40 Chinese steel producers has far-reaching implications.

US death rate rose in 2015

By Niles Niemuth, 2 June 2016

The mortality rate in the United States increased across the board last year, reflecting the impact of mass unemployment, austerity, stagnating wages and benefit cuts.

085 Sri Lanka president at G7

2 June 2016

Financial parasitism and the global housing crisis

By Gabriel Black, 31 May 2016

Rent and housing costs in major cities have skyrocketed since the financial crisis, cutting into workers’ living standards and prompting concerns about a global housing bubble.

Warnings of slump in US economy

By Nick Beams, 28 May 2016

Falling investment and declining productivity threaten to trap the US economy in what commentators are calling a “low-growth mode.”

Deepening national antagonisms dominate G7 summit

By Nick Beams, 27 May 2016

The G7 nations are seeking to ramp up military pressure against China, amid a deepening economic slump and divisions within their own ranks.

International finance capital and the strikes in France

By Nick Beams, 25 May 2016

The aim of the “structural reforms” demanded by the IMF and the financial elites is the destruction of all the social gains of the European working class won in the past seven decades.

Currency conflicts surface at G-7 meeting

By Nick Beams, 23 May 2016

As with other major economic summits in the recent period, the weekend meeting of the G-7 could reach no agreement on co-ordinated measures to halt the stagnation of the global economy.

Sports Authority to close all stores, lay off 16,000

By George Gallanis, 21 May 2016

The announcement by Sports Authority (SA) follows a wave of recent closures from other retail companies.

Growing warnings over Chinese debt

By Nick Beams, 18 May 2016

The IMF has reported that one sixth of Chinese business loans are on the books of companies earning less revenue than their interest payments.

US department store sales plunge, jobless claims rise

By Barry Grey, 17 May 2016

The slump in major chain store sales reflects the impact of a vast reordering of class relations in the US with devastating consequences for the working class.

East Cleveland, Ohio seeks bankruptcy protection

By Samuel Davidson, 16 May 2016

East Cleveland, a suburb of Cleveland, Ohio, is seeking permission to file for bankruptcy.

Highest-earning US hedge fund managers raked in $13 billion last year

By Niles Niemuth, 11 May 2016

The top hedge fund managers made more in a year than the cost of replacing all lead pipes in Flint, Michigan and fixing the city’s poisoned public water system.

Slowest US job growth in seven months

By Barry Grey, 7 May 2016

In typical fashion, President Obama and others in his administration attempted to present the April jobs report as a positive vindication of their economic policies.