Finance and the Economy

Economic Growth Is Fuelling Climate Change

March 30, 2023 Timothée Parrique, Resilience. Create! Book Review, climate crisis, Communism, Degrowth, Finance and the Economy

I’m often told that degrowth, the planned downscaling of production and consumption to reduce the pressure on Earth’s ecosystems, is a tough sell. But a 36-year-old associate professor at Tokyo University has made a name for himself arguing that “degrowth communism” could halt the escalating climate emergency. Kohei Saito, the bestselling author of Capital in the Anthropocene, is back with a new book: Marx in the Anthropocene: Towards the Idea of Degrowth Communism. The book is dense, especially for those not fluent in Marxist jargon who, I suspect, care little about whether or not Karl Marx started worrying about nature in his later years.

America’s Fossil Fuel Economy Is Heading For Collapse

March 29, 2023 Nafeez Ahmed, Resilience. Strategize! Big Oil, collapse, Energy, Finance and the Economy, Oil and Gas

US oil production is about to peak, but the world is unprepared for the tremendous economic and political consequences. The only path through is energy and economic transformation. The global economy is currently teetering on the edge of a banking crisis. The IPCC has just released its final major report warning that global carbon emissions need to peak and decline immediately if we are to avoid plunging into dangerous global warming by breaching the 1.5C ‘safe limit’. And in recent weeks and months, industry leaders have announced that the US shale oil and gas revolution is over. Yet few if anyone is talking about why these things are happening at the same time, and what they really mean.

Banking Crisis 3.0: Time To Change The Rules Of The Game

March 24, 2023 Ellen Brown, Scheer Post. Create! Banking Crisis, Finance and the Economy, Nationalization, Silicon Valley Bank

So what caused this crisis, and what can be done to remedy it? In the midst of the 2008 economic crisis, former Fed Chair Alan Greenspan conceded that there was a flaw in his perception of the financial operating system. For 40 years, he had believed that banks could “self regulate” responsibly, a presumption that had proven to be flawed. In the case of SVB, however, the bank was not engaged in the sort of risky lending seen in the subprime crisis, and increased “stress testing” wouldn’t have saved it. It had put its deposits largely in federal securities, purported to be the safest assets available – so safe that they carry a “zero risk weighting” requiring no extra capital buffer.

Immigrant Women Workers Fighting To Close Disney’s Gender Pay Gap

March 24, 2023 Derek Seidman, Truthout. Organize! Disney, Finance and the Economy, Gender Disparities, Immigration, Patriarchy, Unions, Worker Rights and Jobs

Workers with the International Alliance of Theatrical Stage Employees (IATSE) Local 631 say a major pay gap exists at Disney World that leaves workers in traditionally feminized jobs, such as costume-making, earning significantly less than workers in traditionally masculinized jobs with comparable skills levels, such as stagehand labor. The union — which represents the skilled crafts people who work behind the scenes in Disney World entertainment, from costume workers to cosmetologists to stage technicians — is demanding in bargaining that Disney close this gender pay gap by raising wages in traditionally feminized jobs to bring them in alignment with comparatively skilled but traditionally male-dominated jobs.

Today’s Banking Crisis: Deep Origins And Future Directions

March 23, 2023 Jack Rasmus, LA Progressive. Educate! Banking Crisis, European Union, Finance and the Economy, Silicon Valley Bank

It’s been a week since the collapse of the Silicon Valley Bank, the 16th largest bank in the US at the time of its collapse and reportedly a source of funding for half of all the tech start ups in the US. It’s now become clear the more general banking crisis that has emerged is not due simply to a rogue, mismanaged bank that over-extended itself during the recent tech boom and then somehow mysteriously imploded in just 72 hours, March 7-9, until seized by the FDIC on the morning of March 10, 2023. Deeper, more systemic forces are at play—in the case of both the SVB collapse and the now spreading contagion to US regional banks as well as to European banks.

What Will It Take To End The Billionaire Bailout Society?

March 18, 2023 Les Leopold, Common Dreams. Educate! Banking Crisis, Capitalism, Class Struggle, Finance and the Economy

In case we need any more proof, the bailout of the Silicon Valley Bank (SVB) is yet another overt sign that we are operating within a new version of capitalism. The wealthiest among us have little fear of losing money from their most important financial investments. They know they will be bailed out, and the rest of us will pick up the tab. The crisis at SVB has made a mockery of bank deposit insurance and private banking. In the US, bank deposits are insured up to $250,000. If the bank fails, those with accounts below that amount are fully protected. But deposits over that amount are not. The reason is straightforward.

Why The US Bank Crisis Is Not Over

March 15, 2023 Michael Hudson, Geopolitical Economy. Educate! Banking Crisis, Finance and the Economy, Joe Biden, Modern Monetary Theory

President Biden has done everything that he could to confuse the public as to what is happening. His March 13 speech assured voters that the SVB “rescue” was not a bailout. But of course it was a bailout. Uninsured SVB depositors who did not qualify for safety from losing a penny were rescued without losing a penny. What Biden implied, correctly, was that it was not a taxpayer bailout. But then what was it? It was a demonstration of how powerful Modern Monetary Theory (MMT) is. The banking assets sufficient to “make depositors whole” was simply created by the banking authorities.

Why The US Banking System Is Breaking Up

March 13, 2023 Michael Hudson, Geopolitical Economy. Educate! Banking Crisis, Banks, cryptocurrency, Finance and the Economy, Inflation

The breakup of banks that is now occurring in the United States is the inevitable result of the way in which the Obama administration bailed out the banks in 2008. When real estate prices collapsed, the Federal Reserve flooded the financial system with 15 years of quantitative easing (QE) to re-inflate real estate prices – and with them, stock and bond prices. What was inflated were asset prices, above all for the packaged mortgages that banks were holding, but also for stocks and bonds across the board. That is what bank credit does. This made trillions of dollars for holders of financial assets – the One Percent and a bit more.

The Looming Quadrillion Dollar Derivatives Tsunami

March 13, 2023 Ellen Brown, Scheer Post. Educate! Banking Crisis, Derivatives, Finance and the Economy, Silicon Valley Bank

On Friday, March 10, Silicon Valley Bank (SVB) collapsed and was taken over by federal regulators. SVB was the 16th largest bank in the country and its bankruptcy was the second largest in U.S. history, following Washington Mutual in 2008. Despite its size, SVB was not a “systemically important financial institution” (SIFI) as defined in the Dodd-Frank Act, which requires insolvent SIFIs to “bail in” the money of their creditors to recapitalize themselves. Technically, the cutoff for SIFIs is $250 billion in assets. However, the reason they are called “systemically important” is not their asset size but the fact that their failure could bring down the whole financial system.

Silicon Valley Bank Fails; Deposits Of Venture-Backed Companies Frozen

March 11, 2023 Lambert Strether, Naked Capitalism. Educate! Banking Crisis, Finance and the Economy, Inflation, Silicon Valley

Silicon Valley Bank, the 16th largest in the US, was shut down and put under the control of California Department of Financial Protection and Innovation on Friday. This failure is set to send ripples across smaller technology companies. Even though there is good reason to think that uninsured depositors will eventually be made whole or nearly whole, some may have had so much of their working funds tied up at Silicon Valley Bank that it may be hard for them to find work-arounds, particularly with so many other companies in the same pickle. While is it is likely someone will cobble together financing, at what speed and on what price?

Student Loan Forgiveness Program Appears Headed For Defeat

March 6, 2023 Marjorie Cohn, Truthout. Educate! Education, Finance and the Economy, Student Debt, Supreme Court

A right-wing majority of the Supreme Court is on the verge of denying student debt relief to more than 40 million borrowers. On February 28, the high court heard oral arguments in a pair of cases challenging President Joe Biden’s student loan forgiveness program. Instituted to ameliorate the effects of the COVID pandemic, the program could provide up to $20,000 of debt relief to people with federally held loans. The first case heard by the court was Biden v. Nebraska, brought by Republican state attorneys general from Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina against Biden, his Secretary of Education Miguel Cardona and the Department of Education.

New Report: The Dollar Store Invasion

March 6, 2023 Stacy Mitchell, Kennedy Smith, and Susan Holmberg, Institute for Local Self-Reliance. Educate! Communities, Dollar Store, Finance and the Economy, Poverty

Dollar General, Dollar Tree, and Family Dollar are targeting vulnerable communities, opening stores at a breakneck pace in urban and rural areas alike. It’s tempting to assume that these chains simply fill a need in cash-strapped places. But the evidence suggests that dollar stores are not merely byproducts of economic distress; they are a cause of it. Through predatory tactics, the dollar chains are killing off grocery stores and other local businesses, leaving communities with fewer jobs, diminished access to basic goods, and dimmer prospects for overall well-being. As these losses mount, dollar stores are facing a rising tide of grassroots opposition.

We Live In A Society That Pays Men More When They Have Kids, But Women Less

March 5, 2023 Chabeli Carrazana, Scheer Post. Educate! Finance and the Economy, Human Rights, Wage, Women's Rights, Worker Rights and Jobs

While having children often leads to less pay for mothers, fatherhood leads to an increase: Men with children typically earn more than both women — with or without kids — and men without children. This parenthood paradox, at least in part, may be responsible for maintaining the gender pay gap, which has been consistent for 20 years. Gender stereotypes around parents are so deeply embedded into American work culture that they have had a significant impact in not just how mothers are treated in the workplace, but in how employers compensate fathers, according to a new study of census data by the Pew Research Center, released Wednesday.

Electric Utilities Created One Of The ‘Largest’ Propaganda Campaigns In US

February 26, 2023 Steve Horn, DeSmog. Educate! Book Review, Capitalism, Child labor, Finance and the Economy, Propaganda, Utilities

Science historians Naomi Oreskes and Erik M. Conway, authors of the classic 2010 book Merchants of Doubt: How a Handful of Scientists Obscured the Truth on Issues from Tobacco Smoke to Global Warming, have released a new book placing that doubt machine into a longer arc of U.S. business and political history. The Big Myth: How American Business Taught Us to Loathe Government and Love the Free Market explores an even more ambitious history dating from the dawn of the 20th century to the present day. The book documents how today’s prevailing anti-regulatory and anti-government postures that deride Big Government and cheer for Big Business did not arise simply from grassroots demands.

«1 2 3 4 5 6 7 8 9 10 »

Daily movement news and resources