An economists summary of just how bad things are for the world economy

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An economists summary of just how bad things are for the world economy
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Comrades hopefully will find this article interesting It is a very good summary of the how the most clear sighted parts of the ruling class really see the depth of the crisis and its implications. It also provides very useful information about levels of poverty etc.

LOL at some of the comments

LOL at some of the comments to that article.

BBC headline news this

BBC headline news this morning is the report from the Institute of Fiscal Studies, which warns that,

"Falling incomes will mean the biggest drop for middle-income families since the 1970s - and will push 600,000 more children into poverty, says a report from the Institute for Fiscal Studies.

The IFS forecasts two years "dominated by a large decline" in incomes. By 2013 there will be 3.1 million children in poverty in the UK...

...There are stark warning signs of tough times for people in the so-called "squeezed middle" - with median incomes falling by 7%, after inflation has been taken into account, the sharpest drop in 35 years."

Tough times ahead...


Interesting indeed the link

Interesting indeed the link from Ernie.

Larry Elliot, the Guardian chief economist, has an article on the 6th October titled "UK economy needs more than Quantitative Easing to recover" (I'd be obliged if someone could make a direct link to this). He argues that the latest £75 billion injection of money is not a solution - nor will be the next QE that the Bank of England has already been talking about in the last couple of days. It's been argued that this doesn't affect inflation and while there are other reasons for inflation, QE is at least part of them, ie, the "taxpayer", that is the working class, pays for quantatative easing. What's the next step, give money directly to consumers like they did in the "lost decade" for Japan? The difference being that the whole world economy of no, little or slowing growth, is turning out to be very much like the Japanese "model".


The point that Beltov makes is the concretisation of the absolute pauperisation of the working class which is reflected in all the major economies.


Here is the link to the Guardian article.

The question of whether we are heading for the lost decade/decades of the world economy is something that revolutionaries will need to analysis. If one looks at the Japanesse Lost Decades one can get a good idea of what could be coming. The Lost Decades cost Japanese Capital vast somes of money, countless policy changes and desperate measures in order to simple remain stagnant. The problem for world capitalism now is that its efforts to try slow down the deepening depression be it pouring vast sums into the banks or austerity are now seen to be undermining their own efforts. Will the world economy even be able to have Lost Decades or are we heading for somethign much more profound and destablising? The bourgeoisie knows that it will be very lucky to get away with a period of stagnation, and that really they are staring into an unprecedented abbyss. This does not mean total collapse, but a process of increasingly chaotic deepening of crisis, which their increasingly desperate efforts are only worsening.

This increasing difficulty to be able to even contain and slow down the deepening crisis is politically very serious for the ruling class becasue they have to be able to maintain the idea that they can do something about the deepening crisis, because this is a fundamental part of their ideological domination.


years of attacks on US workers