A Future That Works

A Future That Works
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Wednesday 22 January 2014

Realization Crises



According to Olivier Blanchard the chief economist at the International Monetary Fund the IMF have raised its UK growth forecast to 2.4% for this year, from 1.9% last year, in Germany growth is forecast to be 1.6% and in France's 0.9% and global economic of 2.2% up from 1.3% last year. This all falls short of the 3.0% growth considered necessary in order that capital accumulates at a rate that isn't considered to constitute a realization crises. Levels of growth in China's economy is slowing down from its high point in 2011 to 7.3% for 2013, so even in the developing world growth are starting to fall after years of expansion. If growth in China slows down the global growth level for 2014 will be lower than the 1.3% achieved in 2013, which could mean we are heading for another recession and realization crises similar to that of 2007.

14 comments:

  1. If this happens will the capitalist elite go for fiscal expansion and quantitative easing programmes as they did in 2008, would that produce productive investment in sustainable development or fuel another spree of speculation on share prices and a property boom leading to stagflation as occurred in the 1970's. Or will they choose further cuts in the social bundle and privatization of state assets as they did in the 1980's. If they resort to the latter then unemployment will rise and real wages will continue to fall as they have for the last thirty years resulting in growing poverty for the many to sustain capital accumulation for the few.

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  2. How long can this continue until the point is reached when social unrest erupts and the real possibility of a socialist revolution develops?

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  3. McDonald’s sales downturn 3.7% global for August, worst figures since 2003, and worse than July's decrease of 2.5%. Further proof of the general crises of capital and capitalism, even MCD isn't immune to the realization crises and a falling rate of profit.

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  4. Fears of global slowdown spark fall on European and US stockmarkets.

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  5. £46billion was wiped off the value of Britain’s biggest companies on Wednesday amid mounting fears about the global economy. About £169billion has been knocked off the stock market value of Britain’s biggest 100 firms since the middle of May.


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  6. More than £160billion was wiped off share prices elsewhere in Europe, which endured the biggest fall for three years. European markets are in panic mode with all major indices down sharply. It follows a widespread sell-off on both sides of the Atlantic.

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  7. Panic spread across Wall Street 1907 amid then we had the financial crash of 1929, then 1987 was followed by the crash of 2007. The Soviet economist Nikolai Kondratiev first discovered long wave cycles in capitalist development which are now know as K-waves. Are witnessing the a cyclical K-wave, or are we witnessing something much deeper?

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  8. The FTSE 100 fell nearly 3% on Thursday and dropped another 1.8% to 6101.08, dragging the benchmark index back to the levels of June 2013.

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  9. Is the current financial crisis is the worst the world has seen since the Great Depression of the 1930s?

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  10. The Bank for International Settlements has issued a new report which warns that "dangerous new asset bubbles" are forming which could potentially lead to another major financial crisis.

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  11. Economies all over Europe are either showing no growth or are shrinking.

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  12. The unemployment rate in the eurozone as a whole is 11.8% just a little bit shy of the all-time record of 12.0 %.

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  13. The World Bank is warning that "now is the time to prepare" for the next crisis.

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  14. Total Global personal debt is currently $223 trillion with approximately $700 trillion in exposure to derivatives. So the whole capitalist system is inherently a flawed Ponzi scheme that will inevitably collapse at some point.

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