ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Debts That Cannot Be Paid Will Not Be

Total global debt has increased, growth has been slowing down since the onset of the global financial crisis in 2007 and has been rapidly decelerating after 2012. This may be a sign that the world has arrived at its debt carrying capacity or has even crossed it, meaning that capitalism is probably already insolvent.

Bad Bank Proposal for India

There have been two main proposals to tackle the stressed assets problem of Indian banks since the beginning of this year. Both proposals are based implicitly on the financial intermediation theory of banking. The alternative credit creation theory of banking opens up other possibilities. One such possibility is a partial Jubilee financed by zero coupon perpetual bonds.

Is Brexit Moment a Lehman Moment?

The Lehman moment is the moment when Lehman Brothers—one of the largest investment banks in the United States (US) at the time—collapsed. The collapse happened on 15 September 2008. Almost nobody disagrees that the Lehman moment has been the most important moment in the ongoing global financial...

TINA, India and Economic Liberalisation

Although India has been "reforming" since 1991, almost nobody seems to be satisfied with either the progress or the outcome. The reformers need to put the economy's long-term interests above financial sector short-termism and reorganise the domestic financial system to keep credit productive. The debate on whether a bank should lend existing money or newly create the money it lends has major implications for monetary and fiscal policies, as well as for financial sector reforms.

Has the Crash of the Global Financial Markets Begun?

Even as some insist that the global economy is in “secular stagnation,” the facts suggest that we may be entering the “worst” depression in history. The global markets have been on a slippery slope since the summer of 2007, and things have only been getting worse in 2016. The picture looks dismal, no matter which theoretical lens one uses. (This article was written on 5 February before last week’s tumble in global and Indian markets.)

People's Quantitative Easing

The Labour Party of the United Kingdom (UK) was defeated in the 2015 general elections on 7 May. The next day, the leader of the party, Ed Miliband, resigned from his post and triggered the 2015 Labour Party leadership election. The election concluded on 10 September and the result was announced on...

Banks, Not Tanks

An explanation of the crisis in Greece, its antecedents and causes and how it is being used to take over Greek sovereignty in a coup by the imperialist powers. What now for the project of a unifi ed Europe?

OXI (NO) to the Attempted Coup in Greece

An explanation of the crisis in Greece, its antecedents and causes and what implications it has for the project of a unified Europe.

When Will the Next Financial Crisis Start?

The question is not "if" but "when" the next financial crisis will hit. The 2007 crisis has still not ended. The quantitative easing initiatives of many countries have not had the desired effect of inducing liquidity. Instead, quantitative easing has financed the mopping up of the safest financial assets--including sovereign bonds--by central banks and several banks, effectively leading to another market liquidity crisis.

Greece, Its International Creditors and the Euro

Can the Syriza government in Greece maintain an impossible triangle: (1) stay in power, (2) reverse austerity, and (3) stay in the euro? It will all depend on whether the European Union sees itself as a progressive ethical project of civilisation based on liberal market principles or as an anti-democratic imperialist project of international finance capital.

Did Argentina 'Default'?

A US court ruling has warped the otherwise precise meanings of three key words - "republic", "sovereign", and "default" - leading to absurdities like a New York district court holding the Republic of Argentina in "contempt of court"! The entire understanding of sovereign debt and its restructuring is being read through private "contract law" that cannot address the complex questions that are inherently public in nature, à la questions around restructuring Argentina's debt. It appeared that a misreading of key words could benefi t some vulture funds, but so far no one has seen as much as a penny! Maybe they never will.

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