Subjects Archives: Financialization

Al Jazeera: Earlier, I spoke with progressive American economist James Galbraith, and I asked him to explain why some banks still need more capital after receiving billions in government bailouts. James Galbraith: I think this is expected.  If the test did not show that they needed capital, nobody would believe them.  At the same time, […]

  5 May 2009 — It has finally happened right here in the United States.  Citizens who believe healthcare is a human right have been arrested and are being processed like criminals through the Southeast District of Columbia police station.  Their crime? Asking for single payer healthcare reform — publicly funded, privately delivered healthcare — […]

Introduction The stimulus bill that President Obama pushed through Congress in the first month of his presidency was an important first step in counteracting the economic downturn.  However, as many analysts have noted, it is not likely to be sufficient to turn around the economy.  Economic and fiscal data only available after the passage of […]

A talk given at a Left Forum panel, April 2009. It’s spring and I’ve been thinking a lot lately about reincarnation.  If I’m a good adjunct can I come back as a tenured professor?  If I stay a loyal Cub fan, can I come back as a Yankee fan?  Actually, it’s political reincarnation that I’ve […]

Kate’s is a local bar in a far northeast corner of the Bronx.  During the day, elderly patrons wash away their remaining years in a sea of booze-inspired camaraderie.  I peek in sometimes as much from curiosity as to remind myself of a future I hope to avoid.  A few years back someone changed the […]

A group of economists from across Canada are concerned about the federal government’s response to the auto crisis that blames the CAW for a crisis it didn’t create.  They’ve signed the following open letter outlining their concern that government pressure to cut wages will increase the risk of deflation and calling for new and focused […]

Lenin in Imperialism had talked about a financial oligarchy presiding over vast amounts of money capital through its control over banks and using this capital for diverse purposes, such as industry; speculation; real estate business; and buying bonds, including of foreign governments.  The finance capital that Lenin was talking about belonged to particular powerful nations; […]

Any recession by definition is associated with an excessive liquidity preference.  An ex ante excess supply of goods and services, i.e. the demand for goods and services falling short of the base output at the base prices corresponding to that output, which is what a recession is, must be associated with an ex ante excess […]

  Default: The Student Loan Documentary is a feature-length documentary chronicling the stories of borrowers from different backgrounds affected by the student lending industry and their struggles to change the system. No matter when their loans were taken, many borrowers now find themselves in a paralyzing predicament of repaying two, three, or multiple times the […]

  The text below is composed of short excerpts from Kevin P. Gallagher and Roberto Porzecanski’s “China and the Latin America Commodities Boom: A Critical Assessment” (Political Economy Research Institute, 10 February 2009).  The full text of “China and the Latin America Commodities Boom” is available (in PDF) at <www.peri.umass.edu/fileadmin/pdf/working_papers/ working_papers_151-200/WP192.pdf>. — Ed. INTRODUCTION: China […]

Abstract Following the 2000-01 crisis, Turkey implemented an orthodox strategy of raising interest rates and maintaining an overvalued exchange rate.  But, contrary to the traditional stabilization packages that aim to increase interest rates to constrain domestic demand, the new orthodoxy aimed at maintaining high interest rates to attract speculative foreign capital.  The end result was […]

If we take a look at the recent self-described progressive US presidents (Jimmy Carter and Bill Clinton), we will notice that their progressiveness invariably fades away, not even intentionally.  That is because the beast compels them to align themselves with its own reality.  Carter, who campaigned against the wage stagnation of the Nixon-Ford years, collapsed […]

  2008 — Annus Horribilis for the world economy — produced successive food, energy, and financial crises, initially devastating particularly the global poor, but quickly extending to the commanding heights of the US and core economies and ushering in the sharpest downturn since the 1930s depression. As all nations strive to respond to the financial […]

  A group of seven highly indebted rich countries (HIRC) of the world have organized a meeting of twenty nations in London in order to discuss the future of the world’s finances.  They have invited some creditors among developing countries such as Brazil, Argentina, Mexico, some Arab countries, China, and India, leaving aside all the […]

I think that what we’re going through now — which is really just starting, we’re nowhere in the middle of it yet either, I think — is much bigger and more extensive than the Great Depression.  There are particular difficulties of fixing it because of the fact that it is bigger, it is more global, […]

The government estimates the growth rate will be 2% at the maximum this year.

“The strategy is to create a public instrument in which the banks place certain percentages of their targeted portfolios.”

  The Venezuelan minimum wage, including the value of food vouchers, will reach $636 in September this year, when the process of raising it by 20% gets completed; the second highest minimum wage in South America is Argentina’s $310 per month. The anti-crisis measures announced by the Bolivarian government last Saturday, although affecting Venezuelans negatively […]

  2009 started off badly.  The international economic crisis is the top priority of governments, companies, international organizations, and individuals preoccupied with having a roof to sleep under and food on the table. The situation has surprised almost everybody, albeit Cuba to a lesser degree.  Almost a decade ago, Comandante Fidel Castro warned that the […]

  It is a story that could make The Return of the Living Dead 6.  A group of good people huddle on a roof, with a limited supply of raw meat.  A crowd of zombies surrounds the house: hungry, mad, aggressive.  Fear spreads and bodies collapse; the odour is terrible.  The zombies smell blood and […]

The essence of Keynes’s contribution was the demolition of Say’s law of markets. Say’s Law argued that supply created its own demand, so that there could never be an actual glut of production. Marx had rejected Say’s Law from the beginning, calling it “the childish babbling of a Say, but unworthy of Ricardo.” But neoclassical economics was built on it.