WAS THE COLLAPSE OF STOCK EXCHANGE RATES IN HONGKONG IN 1997 THE BEGINNING OF THE FINAL CRISIS OF THE WORLD CAPITALISM?
IMPERIALISM´S LEADING INTEREST ORGANIZATIONS WTO, IMF AND WORLD BANK IN SERIOUS DIFFICULTIES.
STATE OF WORLD ARTIFICIAL STOCK EXCHANGE ECONOMY RESEMBLES U.S. ECONOMY BEFORE THE DEPRESSION OF THIRTIES. SOONER OR LATER THE BUBBLE BURSTS.
PROTESTS AGAINST CAPITALISM WORK. CAPITALISTS HAVE BEEN FORCED TO TURN FROM ATTACK TO DEFENCE.
THE RUINING GLOBAL CAPITALISM TRIES TO SAVE ITSELF BY WARS.
CAPITALISM DEPLOYS PROTECTIONISM AND COMMERCIAL EMBARGOS AT THE SAME TIME WHEN IT SPEAKS OF FREEDOM OF TRADE.
SCANDALS IN THE U.S. AND IN EUROPE IN 2002/2009 A SYMPTOM OF THE ROTTEN SYSTEM.
MONETARY "GROWTH" WITHOUT REAL SURPLUS VALUE IS WORTH NOTHING AT LEAST FOR THE THIRD WORLD.
NEW SUPER CRISIS IN 2008/2009.
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General features.
The stock exchange rates falled suddenly in Hongkong in October 1997. This affected the values and assessments everywhere in the world. The Japanese Nikkei-index descended. US. dollar was stabilised violently. In spring 1998 difficulties in Japan and in other Asian capitalistic countries worsened. In summer 1998 the rates in Russia and elsewhere in Eastern Europe collapsed. The process continues. The affects of any kind of labile phenomena in world capitalism work worldwide and quickly. In the beginning of April 2000 the staggering of technology share rates showed once more the weakness and the vulnerability of the system. In April and in May 2000 many important rates collapsed. Downhill goes on in the east in 2003.
In 2000 American and European capitalisms seemed to have average uphill threatened by deflation in America and by inflation in Europe. This way upwards was crucially nothing but a bubble. Among other indicators weakening of public services show that only the flow of money to the rich increased. There is no real surplus value.
The US economy was expected to continue strong rise in 2001. Yet before shifting to the new year the views turned upside down. In spring 2001 the US economy really descends. Globally the balancing of accounts of world´s stock exchange centers in the end of 2000 was lousy. Only two of the important centers have positive results. Many others have regressed back to the level of the depression of ten years ago. The trend continues in 2003.
Nikkei closed below 11,000 for First Time in 17 Years. In the beginning of September 2001 the key Nikkei Stock Average closed below the psychologically important 11,000 line for the first time in nearly 17 years. In March 2003 the rock bottom figures appeared since 20 years.
In addition, Japanese investors feared that a second report on the closely watched U.S. gross domestic product data for 2001 April-June quarter, to be released later in the day, may be downgraded to further illustrate the delay in the recovery of the world's largest economy. Brokers said they have yet to see any signs that Tokyo stocks have hit bottom.
Central Bank of USA dropped interest several times in 2001 - 2003. These operations were emergency acts in order to correct certain monetary values. Yet in circumstances of negative surplus value it does not affect on the ruining basis of the system.
In October 2003 UN agency warned of "anxious time" for world economy.
In November 2003 the U.S. setbacks in Iraq caused still more unstability in stock exchange rates.
In December 2003 USA hailed its big economic "growth". After couple of days this "news" appeared to be an intentional bubble.
Serious problems if the Italian Parmalat-company in Italy in December 2003 created a real picture of the state of EU-capitalism.
In January 2004 big U.S. debts formed a real danger for all the global capitalist economy.
In September 2004 G7 -meeting praised the "growth" of world economy. The "growth" is - if it at all true - more or less nothing but a numerical bubble. Poverty in the third wold grows. Where is the real surplus value?
In autumn 2004 the price of oil rised quickly. This situation may be a new symptom of approaching collapse of capitalism. According to certain evaluations north America and west Europe will not have oil enough to maintain their economic systems, which are depending of the continuous "growth".
October 20th, 2004. More than 40,000 people took to the streets in Europe to protest against plans by US auto giant General Motors to axe about one-fifth of its workforce in the region. An estimated 20,000 people demonstrated in the northwestern town of Bochum, home to one of four factories in Germany belonging to GM's German unit Opel and currently the center of the wave of protests.
In the end of 2004 oil price hit new world records.
In February 2005 a new record of unemployment was reached in Germany. More than five million people were jobless.
All the year 2005. US stocks dropped as oil surged, dollar slided.
September 2005. Two big U.S. airlines were on the brink of bankruptcy.
May - June 2006. Heavy moves downwards in excange centers all over the world reflected vulnerability of world capitalism. At the same time those processes anticipated future collapse of all the system.
In the turn of 2006/2007 world capitalism seemed to continue its theoretical growth but at the same time uncertainty factors were boosted. Peoples of the world had begun strongly resist wars. Wars are necessary to maintain the capitalist system.
In January 2007 the IMF warned of slowing down of the so called global growth in 2007. This warning may be a serious symptom because the global capitalism is based on continuously accelerating growth.
In the turn of February - March 2007 the exchange rates dropped in China some ten per cent.
August 2007. The hedge funds bubble in the U.S. seemed to blow up.
November 2007 - January 2008. The subprime bubble caused fatal problems at least to CityGroup and to Bank of America.
In February 2008 the U.S. state debt was more than nine trillion dollars. At the same time there was a threat of serious economic depression.
In spring 2008 the world capitalist economy seemed to be almost in its end with more inflations and rising prices.
July 2008. A remarkable bank bankruptcy in USA.
September 2008. The U.S. monetary bubble turned still more worse and the consequences affected western Europe. Lehman Brothers´ crisis gave an idea of even the depression of thirties and crisis the early nineties.
September 2008. The U.S. was forced to give up its eternal principles and to save the monetary markets by governmental activities.
November 2008. The Summit of G-20 countries in Washington was designed to create some kind of a "new and democratic world order". After all the small talk it became obviuous that the world is governed by western-originated multinational companies and by western big money. State governments even support this absurd situation. So... nothing for the people and nothing for the world.
April 2009. The Summit of G-20 countries in Washington did not give the minkind anything but empty promises.
In 2009 the capitalist world economy was in worst shape after thirties.
In 2009 is was not possible any more to even count the numerous bankcrupties and other destructive functions.
In 2009 the U.S. and the European Union had to admit that there cannot be any sense in macroeconomics without state planning and control.
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In December 2002 the giant US financing company Conseco fell in bankruptcy. United Airlines is in bankcruptcy.
In the beginning of 2003 the expectations for consumption are on bottom in the U.S. Even attack on Iraq did not promote any economic "growth".
In 2004 world´s capitalist financing systems are in serious crisis. The bubble of the fictive capital has partially blown up already earlier. Now the restricted amount of real money in banks has come visible. There is not money any more for the "eternal growth", which is necessary to maintain the capitaist system.
The EU computation of interest in June 2003 was obviously nothing more than hopeless tinkering as the system faces huge problems.
In autumn 2003 the U.S. tried to force China for revaluation in order to improve the situation of "world economy". No success even with this trick.
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Many economists have for long seen this process as a symptom of collapse of capitalism. Media pretends to see prosperous developement in Asia in spite of for instance the south-Korean industry giant Daewoo to be obliged to be sold abroad and the Nikkei-index in Tokyo to be about to collapse several times.
In October 2001 the European air carriers Swissair ja Sabena were about to go to bankrupt. In January 2002 the Swiss government was going to save the Swiss airlines by taxpayers money and by changing the operator. Sabena went to bankrupt in November. The situation is interesting. Swissair has not for long time been in national ownership. It is owned multinationally. Hence the Swiss government transferred national taxpayers´ funds directly to international speculatice economy, to international stock exchange centers.
The Enron bankrupt in USA in the end of 2001 increased lability both in world economy and in politics. Leading US politicians are involved with this superbankrupt.
In 2002 one more giant, the US telephone operator WorldCom, was in bankruptcy. The company has for long given false information of its state. There are similiar features in the Merck-scandal.
Bankrupts of megaclass companies and messing ot the bookkeeping company Arthur Andersen in connection with both Enron, WorldCom and Merck cases show that the US economic system is fatally rotten.
The value of the US dollar has been supported by DM and Yen in fact already for decades. The bubble may now be about to burst. The value of dollar dropped significantly in June 2002. Some ecomonists speak of catastrophe and wait for still more worse news.
June 2002. Stock markets in Europe are already in free fall: The online version of the German magazine der Spiegel is reporting 'panic' in Frankfurt.
In April 2002 one of Germany´s biggest media company Kirch Gruppe was in bankruptcy.
March 2003: Embezzlement scandal at German telecom giant Mannesmann.
The U.S. Airlines was on the brink of bankcruptcy in October 2004.
November 2005. The U.S Car Giant GM informed of serious money problems. Also Ford was heading to heavy cuttings.
December 2005. The WTO meeting in Hongkong caused furious resistance both in Hongkong and all over the world. The WTO intends to free trade of agrarian products which means in practice still growing worldwide unjust.
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From 1997 the frightened unstability has been actual all the time. The headquerters of capitalism are worried and not without reason. Lability and downhill of speculative economy can not be controlled any more.
Variation of rates continues. The very center of the problems reflecting from Asia was at first South Korea. The economy of South Korea is in serious difficulties. The international centers of capitalism have supported south Korea and their currency with an enormous amount of dollars. Even that is not enough.
In the end of May 1998 the biggest car producer in south Korea expelled 8000 workers. More group notices have taken place. Workers have begun visible demonstrations with red headbands. There have been large strikes in industry. Government of the country and the huge companies use coercions against workers. The country has fallen again into dictatorship because of unlegal decisions by the government against workers´ rights in autumn 1997. Strikes and demonstrations go on in 1999. Trade unions have negotiated with representatives of Democratic People´s Republic of Korea.
No resolution seems to be in sight. In 2000 - 2004 political-type strikes and demonstrations accelerated in South Korea.
In spring 2002 they said that Asian capitalism is again rising. There might be some temporary uprisings especially in south Korea. The increased US military presence is a good business for south Koreans. Yet in the entirety of the chaotic world capitalism there are all the time tensions downwards and upwards. Usually uphill in one country means more downhill in some other country.
International Monetary Fund works as a regulation system of the world capitalism. IMF has invested enormous amounts of money in Russia in order to stabilise world capitalism. The effort has been hopeless. Russian economy has collapsed. IMF has a lot of money, but their resources are not unlimited.
The operational line of IMF is to grant loans to profitable projects. In practice this means that resources are given to private companies and to public systems which are ready to reduce salaries, wages and social expences. To be expressed in other words IMF causes directly unemployment and descending of standard of living.
Uncontrolled changes of all rates, currencies and values in capitalist Far East is actual. Far East covers about one third of world economy.
Japanese economy is in spin. From 1997 to 2003 the production decreased. The biggest banks and financing companies are in bankrupt of forced to make enormous fusions. Unemployment has reached a unique extend in Japanese circumstances. In Japan the economic problems hase caused deflation. We were told about uprising of the Japanese economy. At the same all Japanese car manufacturers informed about reducing of the amount of employees. Tens of thousands of people remain unemployed. What is that kind of an economical growth worth? A big Japanese bank fell to government´s control in May 2003.
Japan is an exception among capitalist countries by her efforts to improve the situation by growing up the public sector. In the beginning of 2003 the volume of Japanese industrial production was at lower level than in 1975.
Nikkei, TOPIX tumbled to 1980s Levels in Tokyo. Tokyo stocks tumbled in the beginning of September 2002 on broad-sector selling launched by speculative investors, sending the benchmark indexes to levels last seen in the early 1980s.
G7 -countries have kept emergency meetings since 1997 because of difficulties in Far East, in Russia and in Latin America. Obviously G7 -countries try to solve an impossible equation. A desperate loan by IMF for 10-15 billion dollars in August 1998 was directed to Russia. However, rouble collapsed. The newest problem area of world capitalism is Latin America. In November 1998 IMF informed of a big investment to Brazil. The investments to Brazil were useless. Insted of stabilization unstability in South America increases.
Later on Brazil and Argentina seem to have been the center of this process and the consequences reflect all over the world in 1998 - 2003. The economies of Guatemala, Colombia, Uruguay and Mexico were in deep difficulties.
The collapse of Argentinian economy in the end of 2001 may be seen as a serious symptom of beginning of collapse of world capitalism. IMF and WB did not have any kind of o solutions. A huge loan in order to rescue the Argentinean capitalism was granted by the IMF, but it was never paid.
In January 2003 a new loan was granted to Argentina.. If this money really comes to the Argentinean government, it will no doubt go to the four winds.
In 2003 there are strong economic and political processes going on in many countries in South America. Some of people´s movements have clearly revolutionary character.
USA gives military support to the fascist governments of these countries in order to maintain violently their capitalist systems.
Capitalism is in deadlock as a system exactly as Marxist science has predicted long ago.
Even honest capitalists agree with this vision.
In an editorial article in January 2002 Washington Post wrote about the state of contemporary capitalism. According to Washington Post capitalism is in the deepest crisis of its history.
One of the most important investors in the world is Mr. George Soros. According to his previous statement world capitalism is about to collapse. He has said: "The system collapses when markets begin to control politics and meaning of politics disappears." "Permanence of that systems is based on stability; the necessary stability cannot be reached any more."
An American economist, David C. Korten has in autumn 1998 published a book by name "The Post-Corporate World. The life After Capitalism". Bill Gates in May 2003: ...worst problems, regional unequality, desperate poverty, dying babies in the world is "failure of capitalism."
In spring 1999 imperialism led by USA arranged a war of two and half months against Yugoslavia. A war has always been a good method to push the economic depression later.
In order to concentrate and to stabilise world capitalism a new organization was established already 1995 in all secrecy. It is called MAI - Multilateral Agreement on Investment. No publicity before 1997.
There is under construction an agreement called New Transatlantic Market (NTM) in order to form free trade markets between Europe and USA.
In Asia they are creating new free-trade markets under the name of Apec-system. This kind of system accelerates transferring money from poor to rich and it also concentrates the economical and political power to still fewer hands.
OECD is a co-operational organization of industrialized countries. OECD gives economical rules and orders to nations and to states without any kind of authorization. All nations do not obey.
In spite of the fact that for instance Vietnam has problems of its own, this nation is not depending on world capitalism. There has been no economic regression in Vietnam.
People´s Republic of China has become careful in its relations to world capitalism. Chinese have their difficulties but apparently they can be handled under the leadership of the communist party. Commercial relations with capitalist countries do not mean surrending under imperialism. Might China´s obvious joining to WTO mean just the opposite? WTO has its internal rules. China´s power in world economy is great enough to have principal possibilities to change or to apply the rules like they want. China´s amount of people and China´s potential economic area is bigger than the combined potential of USA and EU. In November 2000 China proposed for new rules for the WTO.
In the beginning of December 1999 WTO meeting took place in Seattle, USA. Also Cuban foreign minister and foreign trade minister participated the meeting.
At the same time anti-capitalist powers arranged a meeting of more than one thousand non-governmental organizations in Seattle. The main target was WTO and its free markets´ policy. Large demonstrations against world capitalism occurred in Seattle. The demonstrations caused essential damage for capitalists´ meeting.
The WTO meeting was a farce. Even attempts to continue the process later failed. The internal contradictions of worldwide capitalism are insuperable.
Promises to the underdeveloped countries were fraudulent. The speeches by the WTO leaders were lies as anticipated.
The free worldwide imperialist exploitation goes on anyway. Of course, capitalism was not questioned by capitalists.
According to the power media demonstrations and riots in Seattle were arbitrary. Yet the police of Seattle and FBI have provouked riots. The basis of the demonstrations is on the organized citizens´ activities.
In April 2001 there were furious demonstrations in Canada, in Ottawa and Quebec, aganist the FTAA, the American free trade system.
Up to 2002 WTO, IMF and the MAI-plan had in last three years had severe setbacks and defeats.
The meeting of the IMF and the World Bank in Washington in April 2000 was efficiently disturbed by demonstrators. Capitalist leaders´ actual plans for further exploitation do not succeed. Their words for helping the third world consist of plain lies in circumstances of fear of collapse of capitalism.
The misery in the world increases explosively. Capitalists speak of forgiving of debts to the underdeveloped areas of the world. Unbelievable hypocrisy. It is self-evident that there is no money to pay the debts. Billions of people would not live in misery without robbery of their natural riches and without coercive import of western technoculture. The possibe new help is usually connected with political terms in order to subjucate the third world under the political control of capitalist world dictatorship. It is blackmailing. Words of democracy by capitalist countries in this connection must be ignored. Underdeveloped countries with natural riches have usually a dictatory regime supported by USA.
G8-countries had a meeting in Okinawa in July 2000. The manifesting of internal contradictions of capitalism, empty promises to the third world and the massive local demonstrations were the only results.
The summit of the IMF and the World Bank took place in Prague in September 2000. Anti-imperilaist mass demonstrations and protests were carried out in Prague according to plans and they succeeded better than expected. The power media did its best to hide all the process. Especially, the media did not want to show the anticapitalist character of the demonstrations. There was correponding demonstration in Naples in March 2001. According to wittnesses the protests against WB and IMF were temporarily like guerrilla war.
When planning for the WTO meeting for 2001 Malaysia as representative of the third word questioned arranging the meeting at all because there is no agenda to talk about.
In the beginning of 2001 the staffs of capitalism tried again to build the "New World Order" according to their interests in Davos. Yet counterforces were ready. Davos elites had reason to worry about.
Downhill of capitalism is a fact in spite of the temporary, average numerical and very artificial growth figures. Growth of socialist counterforces is also a fact. The anti-imperialist and anticapitalist powers march in South America, in Canada, in Eastern Europe, in Asia, in fact in the biggest part of the world. Yet the bourgeois media pretends not to see or hear anything.
Imperialist politics has been carried out under the shadow of neoliberalism. New Zealand was praised as a prosperous model of liberalism. The results of recent elections in New Zealand show doubtlessly that the people now want to give up the liberalism.
The capitalist world economy has turned to an enormous speculators´ stockmarketing center, very much like USA before the deep depresson of the early thirties.
In April 2001 the FTAA meeting was held in Quebec in order to form pan-American political and economic dictatorship under the name of free trade. Huge security operations cannot stop demonstrations. Violence has occurred.
The meeting of rich countries in Brussels in May 2001 did not give the poor countries anything. Neither will corresponging future capitalists´ meetings give anything.
Belief in eternal capitalist profit-based economic growth as basis of future of the world and idea of even some kind of worldwide social justice are in sharp contradiction with each other. This problem remains unsolved in capitalism.
The contradiction is that sharp that sophisticated methods and civilized discussions do not work any more. For instance, the contemporary ATTAC-movement has good aims. Yet without questioning capitalism nothing is going to happen.
In 2001 the World Bank Canceled Barcelona Summit because of expectable demonstrations and hard resistance by people all around of the world. Correspondingly, NATO cancelled its meeting in Canada.
Gothenburg, June 2001. The meeting of the staffs of capitalism and elite of the EU woke up hate all around the world. There were huge protests and riots in Gothenburg. The US president attended the meeting in order to promote the US nuclear missile program woke up people. Leaders of the EU countries did not see or hear anything.
Genoa, July 2001. Obviously the most powerful protests and demonstrations against capitalism in the near history.
IMF and WB summit in Washington in autumn 2001 were cancelled.
The Ottawa NATO top summit meeting was planned to move to desert of Canada because of fear of protests. We can assume that this kind of an act would not stop but rather inspires the activists all around the world.
There have been and there will be protests and protest movements against capitalism in the world. Yet they will remain only protests without clear theoretical goals. There is no alternative but the real path to socialism.
The attack on World Trade Center in USA in September 2001 caused weakening of capitalist values which have been in downhill anyway. Vulnerability of capitalism came in this tragedy visible.
It may be assumed that new wars planned by USA are expected to improve capitalist values and exchange rates in long run. This vision will not necessarily come true, because capitalism as an ideology and system has suffered a serious prestige defeat. People do not rely on capitalism any more.
The war against Afghanistan did obviously not rescue capitalism this time. The plan for larger war failed. Additionally, the global downhill is too fast.
At the same time worldwide resistance against war is wider and stronger than ever.
There were demonstrations and protests against capitalism and war all around the world during the WTO meeting in Qatar in the end of 2001. The meeting was carried out as usual. The rich get more, the poor get still less. Nor even the slightest effort to some type of economic justice. Under there circumstances mankind seems to have no future at all. At this very moment there is only one glimpse of hope: Is China going to change the charater of the fascist WTO?
The UN summit in Mexico in March 2002 was mostly small-talk for nothing. World´s poor areas did no get anything. The governments of rich countries defended capitalists´ selfish interests.
In spring 2002 capitalism´s internal absurdities occurred in a very visible way. At the same time when the US and the WTO emphasize freedom of trade, they settle protectional tariffs and try to continue commercial blockades and try to make them still more effective.
There were visible protests againt world capitalism by world´s citizens / NGOs during the G8-meeting in Calgary, Canada, in the end of June 2002.
Clashes took place also in Oslo June 2002 in connection of the so called World Bank´s meeting.
January 2003. Police fired tear gas and rubber bullets during clashes with hundreds of anti-globalisation protestors in the Swiss capital Bern, only hours after a planned mass demonstration outside the World Economic Forum in Davos fell apart.
Summits of the G8-countries in France in May-June 2003 anticipate wars. Their main thema is the dangerous and false concept "war against terrorism". For the U.S. world hegemony aims the G8 is obviously a better tool than the U.N.
There were in France and in Switzerland massive anti-capitalist demonstrations and violent clashes between demonstrators and police during the G8-meeting in Evian in June 2003.
The WTO meeting in Mexico in September 2003 collapsed. The rich countries have all the power.The rich countries do not even want to solve the global problem of unequality and poverty. The equation is impossible to be solved in circumstances of capitalism.
The World Economy Forum in Davos in January 2004 appeared as an attack on so called terrorists and world´s poverty areas by U.S. foreign minister´s furious speech. The Davos meeting was a milestone in the worldwide class struggle.
In 2007 - 2009 the world capitalism faced serious setbacks and problems with US-originated subprime -catastrophe, which had its impact all over he world.
KOMINFORM