Capital in Crisis

Capital in Crisis : Causes, Implications and Proletarian Response Crises are endemic to capitalism, but each particular crisis has its distinctive features and implications. The present one has its roots in the economic slump of 1970s. To counter stagnation in the 'real' or productive economy, big capital, particularly in

Collapse of the Colossus

“For many a decade past, the history of industry and commerce is but the history of the revolt of modern productive forces against modern conditions of production, against the property relations that are the conditions for the existence of the bourgeois and of its rule. It is enough to mention

World Recession despite Bailouts

A total meltdown has been prevented – well, for now. But thanks to highly efficient networking by IT-enabled services and thorough integration of financial markets, the contagion spread at electronic speed all across the planet and soon affected the real economy too. Financial institutions, in the US and Europe in

Understanding the Credit System

Today it is no longer a story of a mere "credit lock" or problems in the “new” or “FIRE” sectors; the rot has already reached the roots of old economy. Still, since the epicentre of the tremor and its aftershocks lies in the financial sector and given the supreme importance

Beneath the Surface Froth: Marx on Crisis

Before we proceed, however, we should recall that Karl Marx had to take leave of the international proletariat before he could systematically work up a comprehensive theory of capitalist crisis. Capital Volumes II and III, Theories of Surplus Value and Grundrisse were not made ready for publication in his lifetime;

Overaccumulation and the Current Crisis

Do the theoretical expositions in Capital tally with the actual working of capitalism today? Behind the familiar crisis symptoms – we learned in our brief dialogue with Marx – lurks a complex interplay of myriad forces, the most important being the tendency of the average rate of profit to fall with

Long Term Implications and Proletarian Response

The most important message from the unprecedented financial catastrophe and its aftermath is that global capitalism’s strategic response to the crisis of 1970s has failed. That was a three-pronged strategy comprising deregulation/neoliberalism or market fundamentalism, globalisation and financialisation. Since these have been the three pillars on which post-1970s capitalism stood

Timeline of Trouble

2007 February–March: Subprime market in trouble with several subprime lenders declaring bankruptcy, announcing significant losses, or putting themselves up for sale. March 6: Ben Bernanke, quoting Alan Greenspan, warns that the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, were a source of "systemic risk" and suggest legislation to head off

Glossary

Orange County On December 6 1994, Orange County, a prosperous district in California, declared bankruptcy after suffering losses of around $1.6 billion from a wrong-way bet on interest rates in one of its principal investment pools. Robert Citron, the hitherto widely respected Orange County treasurer who controlled the $7.5 billion pool,

Looking Back

In many ways the current crisis constitutes the second -- and higher -- stage of the one that appeared with the "dot-com bubble burst". And it is not without reason that it is being compared to the GD of 1930s. To better understand the present, let us therefore