The specter of "Krach" market

Henri Wilno 

south wind fall on Wall Street and global stock markets earlier this week. Began in the United States, the decline has spread quickly to European and Asian markets. At the time of writing, the situation is still uncertain but it seems, however, that a true Krach is still the order of the day. These developments are, however, the sign of the uncertainty gnaws world capitalism, despite limited growth recovery in the United States and Europe.








Beyond the shocks of the stock market influences in effect on the functioning of capitalism, the perpetuation of a phenomenon that does not match the waste of investment in new technologies: the weakness of productivity gains. The latter raises many questions, but there is no doubt and it is a sign of lack of effectiveness of capital. Lack of effective risk means the return on invested capital. Hence the continuing offensive against wages and work intensification, which limits the markets but has allowed a limited recovery of the profit rate in recent years, also supported by tax giveaways.

The decline in the US stock market was triggered after the publication on Friday, February 2, statistics on US wages, showing an increase of 2.9% in one year, the fastest pace since 2009. These increases salary They threaten to come to gouge the profits of listed companies and could lead to price increases. Now, when prices rise, the Federal Reserve (central bank) US raises traditionally their interest rates: such a rise was scheduled, but has spread the fear that was faster than expected. A stock market speculators like stagnant wages, low taxes, low interest rates and easy credit have begun to fear that this combination of stars is a little questioning.

Fundamentally, it is vital for capitalism keep wage increases below productivity gains. The mini-krach this week is certainly not herald a collapse but it is significant of what the system is today: a race without limits gain at the expense of and salaried as well as and stops and retired, whose assignments must be cut to finance tax reforms for rich people, among whom are Trump and Macron. 416 L'Anticapitaliste Hebdo Translation: Faustino Eguberri for wind south Source: http://vientosur.info/spip.php?article13459