Thursday, October 25, 2018
US market meltdown wipes out 2018 gains as Trump trade wars take toll on stocks - Beyond the Crisis is Beyond Capitalism
POLITICAL ECONOMY RESEARCH says were are entering the next major economic downturn since 2008 it will be long and drawn out reaching the bottom by 2020.
Interesting that JP Morgan Chase see the economic depression by 2020 but cannot see we are already entering into it now.
The options of capitalism in this crisis are very limited and we do not expect a re- run of post 2008 fixes - so the crisis will be deeper and more long lasting.
The political consequences of this crisis will be in inability of capitalism to make any democratic concessions in fact as we have pointed out capitalism and democracy can no longer co-exist and mythology of the market will be brutally exposed.
Hence fascism in its new 21st century forms will be capitalism's "last ditch". ( "last ditch" was Marx on Henry George)
It is the inability of capitalism to be managed by the liberal bourgeoisie that leads to fascism in this century and not the threat of socialism like in 20th century.
THE IMPORTANCE OF THE POLITICAL ECONOMY OF A POST CAPITALIST - SOCIALIST WORLD HAS NEVER BEEN MORE IMPORTANT AND ITS FURTHER DEVELOPMENT AN URGENT NECESSITY - IF WE ARE TO GET TO A WORLD BEYOND THIS CRISIS.
American equities faced another major selloff on Wednesday. It was one of the worst trading sessions for US stocks in years, erasing all gains seen in 2018. Analysts name President Donald Trump’s trade wars as one of the reasons.
The Dow Jones Industrial Average fell 608 points, or 2.4 percent, to 24,583.42. The S&P 500 plunged 84.59 points, or 3.1 percent, to 2,656.10, marking sixth straight losing session.
Meanwhile, the Nasdaq Composite Index dipped 329.14 points, or 4.4 percent, to 7108.4.
US economy about to collapse, taking down dollar & American standard of living – Peter Schiff
The tech-heavy index is more than 10 percent below its August 29 all-time high, entering the correction territory. Wednesday was the worst day for the Nasdaq since August 18, 2011.
“What is happening on Wall Street is hardly surprising. The US is implementing a sharp monetary policy and is waging foreign trade wars against everyone. In such conditions it becomes harder and harder to grow.
There is still room for correction in the US, so we are waiting for the development of the situation,” Roman Blinov, head of analytical department at International Financial Center said in an email to RT.
The analyst also noted corporate earnings disappointment in the US, a growing conflict over budget spending between Italy and the European Union, and growing crisis around oil power Saudi Arabia over the killing of journalist Jamal Khashoggi.
The selloff on Wall Street dragged down some global markets as well. The standout loser, Thursday, was Japan’s Nikkei index, which lost 3.72 percent.
In China, Shanghai composite traded slightly higher at 0.5 percent, while stock indices in Europe were either trading flat or showing modest gains.
SOURCE : RT
Posted by nickglais at 5:14 AM