The year 2020 marked parity between the total GDP of the G7 (the U.S. plus allies) and the total GDP of the BRICS group (China plus allies). Since then, the BRICS economies grew faster than the G7 economies. Now a third of total world output comes from the BRICS countries while the G7 accounts for below 30 percent. Beyond the[Read More…]
Future historians will likely look back at the debt ceiling rituals being reenacted these days with a frustrated shaking of their heads. That otherwise reasonable people would be so readily deceived raises the question that will provoke those historians: How could this happen? The U.S. Congress has imposed successive ceilings on the national debt, each one higher than the last.[Read More…]
The world economy will slide into a recession in 2023 as a number of economies will contract due to surging borrowing costs introduced to combat inflation, the UK-based Centre for Economics and Business Research (CEBR) has predicted in its latest report. The world economy surpassed $100 trillion for the first time ever in 2022 but will stall in 2023 as[Read More…]
France’s economy, the euro zone’s second-biggest economy, growth unexpectedly ground to a halt in the first quarter while Germany, Europe’s largest economy, faces possibility of tipping into recession. The war in Ukraine is the major cause of this situation. A Reuters report said: France’s economy growth unexpectedly ground to a halt in the first quarter as consumer spending dropped in[Read More…]
European Commissioner for Economy Paolo Gentiloni has admitted that the European Union’s economy is facing stagnation. “The situation in Ukraine presents an uncertainty and unpredictability factor for Europe, economic growth will obviously slow down with a stagnation risk,” he was quoted as saying during the Confcommercio-Ambrosetti forum on Thursday by the ANSA news agency. Much depends on “the duration of[Read More…]
In an interview of Joseph Stiglitz that appeared in Investopedia on 23 April 2020 he said “Covid 19 reminds us that when we have a crisis we turn to collective action and to government.” What became very crucial in countering the pandemic are the collective actions in which civil societies were forced to keep aloof from its internal decay like[Read More…]
The International Monetary Fund (IMF) on Tuesday downgraded its 2021 economic growth forecast for Asia after the Covid-19 delta variant caused a spike in cases in parts of the region. The IMF said it expects Asia’s economy to grow by 6.5% in 2021, compared with its April forecast for a 7.6% expansion. “The global COVID-19 pandemic is still ravaging the region,”[Read More…]
The global debt has jumped to a new high of $226 trillion, said the International Monetary Fund (IMF) on October 13, 2021. As reason of this leap in global debt, the IMF has cited the Covid-19 and policies put in place to respond to it. Global debt in 2020, including public and private borrowing, “jumped by 14 percent to a record high $226 trillion,”[Read More…]
The rapid rise of Covid-19 has spawned a renaissance in socio-economic thinking about the best way to face the future, as mayors of cities throughout the world search for answers in the face of declining revenues while society demands more urgent help. Eureka! Amsterdam, the Venice of the North, discovers doughnut economics. With a click of fingers, it abandons the[Read More…]
The senior official rose from his seat to welcome the visiting consultant from New York. This consultant had just submitted a report on stepping up GNP growth. After exchanging a few pleasantries the official came to the point . –We sent the consultancy fee cheque of 30000 dollars promptly. Did you receive this ? –Yes, Yes, no problem about that,[Read More…]
Co-Written by Emily Kawano and Julie Matthaei The COVID-19 pandemic has upended our world. It has laid bare the inequity, the limits, and the failures of capitalism. The door to a better future beyond capitalism, already cracked open by the Great Recession, has been pushed open a little wider. Things that seemed impossible a few months ago now seem both[Read More…]
Nothing could have brought the global economy to a grinding halt like the COVID-19 pandemic in recent history. Barring essential goods, the production, sale, and consumption of all goods and services have been affected. This article offers a low-down on the stalled economy, and also makes projections for India’s post-pandemic economy. At the time of writing this article, the Government[Read More…]
The world economy can appear to be operating quite well but can be hiding a major problem that causes it to be fragile. My presentation The World’s Fragile Economic Condition (PDF) explains why we should expect financial problems if energy consumption stops growing sufficiently rapidly. In fact, a global sell off in the equity markets, such as we have started to see[Read More…]
Where is the world economy heading? In my opinion, a large portion of the story that we usually hear about how the world economy operates and the role energy plays is not really correct. In this post (to be continued in Part 2 in the near future), I explain how some of the major elements of the world economy seem to[Read More…]
There is a ‘new normal’ in cyclical recessions, namely, that the recovery cycle is itself recessionary for the vast majority of the population, not just in periphery countries that invariably suffer much more during contracting economic cycles, but in core countries as well. One of the biggest myths about the contracting cycles is the underlying assumption that they have an[Read More…]
Neoliberal Totalitarianism and the Social Contract Abstract Analyzing aspects of the rightwing populist tide arising largely in reaction to the pluralistic-diversity model of neoliberalism, this essay examines the evolving social contract that normalizes systemic exploitation and repression in the name of capitalist growth. Amid incessant indoctrination by the media representing big capital, people try to make sense of whether their[Read More…]
“Our society has become so unequal. The wealthy need to be taxed more” -Rohini Nilekani In an information saturated age such as ours corporate spin is sine qua non of business reporting where the narrative is controlled by the few to the detriment of the many. None is more evident than in the dominant narrative leading to the resignation of[Read More…]
Once upon a time, we worried about oil and other energy. Now, a song from 1930 seems to be appropriate: Today, we have a surplus of oil, which we are trying to use up. That never happened before, or did it? Well, actually, it did, back around 1930. As most of us remember, that was not a pleasant time. It[Read More…]
The inaugural World Inequality Report published on Thursday by economists Thomas Piketty, Emmanuel Saez, Gabriel Zucman, Facundo Alvaredo and Lucas Chancel documents the rise in global income and wealth inequality since 1980. The report covers up to 2016, leaving out the last year, in which the stock market has soared on the expectation that the US will enact massive tax[Read More…]
According to the official scenario, the world economy is enjoying its best period of growth since the global financial crisis of 2008-2009, which ushered in the worst recession since the Great Depression of the 1930s. According to a report issued by the Organisation for Economic Cooperation and Development last month: “The global economy is now growing at its fastest pace[Read More…]
20 years ago this month, a run on the Thai currency triggered a financial crisis that quickly devastated the economy of the entire region, sinking the currencies of Thailand, Indonesia and South Korea and ultimately spreading as far as Russia and Brazil. Far from ‘lessons being learned’, however, history looks worryingly set to repeat itself. On 2nd July 1997, Thailand’s[Read More…]
An excellent review of global debt in the Economic and Political Weekly last month concludes that capitalism is probably insolvent. The article by T Sabri Öncü is entitled Debts That Cannot Be Paid Will Not Be. The author makes the excellent observation that whilst total global debt has increased to USD 217 trillion or about 327% of global GDP,[Read More…]
The BJP’s new Bankruptcy and Insolvency Rules 2016 in India bluntly provide that individuals with debts over Rupees one thousand will lose their assets to a resolution professional if declared bankrupt or insolvent. The only excluded assets under fresh start rules are tools, books, vehicles and other equipment as are necessary to the debtor or bankrupt for his personal[Read More…]
Resistance to the Trump administration’s attacks on immigrants, climate change policy, and economic fairness has been fierce. But alongside these efforts—from flooding representatives’ phone lines to packing town hall meetings to marching in protest—it’s also important to begin the work of building alternatives to the systems that underlie the exploitation of people and planet. The understandable focus on Trump—with his[Read More…]
Recently, a Spanish group called “Ecologist in Action” asked me to give them a presentation on what kind of financial crisis we should expect. They wanted to know when it would be and how it would take place. The answer I had for the group is that we should expect financial collapse quite soon–perhaps as soon as the next few[Read More…]
Introduction In an article in The Hindu of 14.5.2016, C. Rangarajan, former Governor, Reserve Bank of India had said: “The “potential” to grow at 8 to 9 per cent at least for a decade exists. We have to make it happen.” The successive governments in the country have been focusing on such a high GDP growth rate,[Read More…]
Here is my suggestion for a Single Point Anti-Incumbency Manifesto for 2019 against the BJP for the Grand Coalition of Socialist and Communist Parties. 95% of Indians are agricultural labourers, cultivators and other landless labourers in the informal economy, and outside of the tax regime in India. We depend above all for our survival with dignity on the availability[Read More…]
Every day in the papers we are reading about the impacts of the starvation politics of demonetisation by the BJP on agricultual labourers, cultivators and other agricultural workers. During my years long study of the social, political and economic implications of man-made climate change, I found obviously that economists looked into the economic implications, politicians study the political implications,[Read More…]
Economic, Ecological and Agricultural Science Illiteracy of Elites Having already been investigated by the Income Tax Department and the Enforcement Directorate, we now get news that NDTV, one of the most viewed nation-wide news channels of India, is again being investigated, this time by the Central Bureau of Investigation. A First Information Report has been filed by or on[Read More…]
Most working people think of the buck as the way they pay their bills. But its use goes far beyond the USA’s borders. The greenback is the major world currency for trade and finance. This international role bestows vast power on the U.S. government and the rich. But its status doesn’t help ordinary people much. Fundamentally, the exchange[Read More…]
I see a lot of books presuming to explain what’s wrong with the economy and what to do about it. Rarely do I come across one with the consistent new paradigm frame, historical depth, practical sensibility, systemic analysis, and readability of Doughnut Economics by Kate Raworth. Especially unique and valuable is her carefully reasoned, illustrated, and documented debunking of the[Read More…]
At the stroke of midnight November 9, 2016, Prime Minister of India, Narendra Modi imposed an undeclared economic emergency on India. With a stroke of pen he wiped out Rs 15 lakh crores in cash from the system. What prompted this drastic step? What will be the fall out of the action for Indian economy is a billion dollar question.
“History shows that the United States has benefited politically and economically from wars in Europe. The huge outflow of capital from Europe following the First and Second World Wars, transformed the U.S. into a superpower … Today, faced with economic decline, the US is trying to precipitate another European war to achieve the same objective.”… Sergey Glazyev, Russian politician and[Read More…]
For a long time, a common assumption has been that the world will eventually “run out” of oil and other non-renewable resources. Instead, we seem to be running into surpluses and low prices. What is going on that was missed by M. King Hubbert, Harold Hotelling, and by the popular understanding of supply and demand? The underlying assumption in these[Read More…]
I approach the subject of the physics of energy and the economy with some trepidation. An economy seems to be a dissipative system, but what does this really mean? There are not many people who understand dissipative systems, and very few who understand how an economy operates. The combination leads to an awfully lot of false beliefs about the energy[Read More…]
The traditional understanding of supply and demand works in some limited cases–will a manufacturer make red dresses or blue dresses? The manufacturer’s choice doesn’t make much difference to the economic system as a whole, except perhaps in the amount of red and blue dye sold, so it is easy to accommodate. Figure 1. From Wikipedia: The price P of a[Read More…]
Usually, we don’t stop to think about how the whole economy works together. A major reason is that we have been lacking data to see long-term relationships. In this post, I show some longer-term time series relating to energy growth, GDP growth, and debt growth–going back to 1820 in some cases–that help us understand our situation better. When examining these[Read More…]
Deadly wildfire smoke spreads across much of northeast US 
Book Review: The Story of a People’s Movement 
Recession In Eurozone While UK Faces Highest Inflation In Developed World 
Patriotic Criminals and Anti-National Criminals 
Remembering NTR the politician in his centenary Year 
The US Shouldn’t Stand in the Way of an Ambitious Global Plastics Treaty 
France’s Global Warming Predicament 
The Spark 
Vanishing of Many Stretches of Aravalli Hills Will Prove Very Costly 
The End of Title 42 and the Triumph of the Border-Industrial Complex 
A New Direction for the World Bank? 
Conspiracy! Whose Conspiracy? 
Wrestlers’ struggle for justice : Will it endure? 
‘Digital India Bill’: Some things to worry about 
Electricity wasted in Mumbai as energy supply is cut off for hours in towns 
Samalkha Nestle Workers Union stage protest against preventing formation of Union 
Odisha rail accident- BSNL’s commendable performance- Should India diminish its public sector, allow private oligarchs to profiteer? 
Wildfire Smoke Chokes Canada and Eastern US 
Terracidal But Ignored Carbon Debt From Gas Exploitation By The World & Climate Criminal Australia 
China and Palestine: No To ‘Piecemeal Crisis Management’ 
Can China and the United States Establish Mutual Respect to Lessen Tensions? 
How Empire Fabricates Atrocities 
For Balanced Progress, Indian Railways Must Get Their Priorities Right 
Determining Scheduled Area: An Update 
The new Parliament house may be dangerously undemocratic 
Ranajit Guha: A duality of literature and history 
DIPAM’s hasty moves to disinvest the government’s residual share in HZL highly imprudent and against the public interest 
A Climate of Betrayal 
Deserving Each Other: The PGA Tour-LIV Golf Merger 
The World Economy Is Changing—the People Know, but Their Leaders Don’t 
Tribute to Chris Hani on 30th martyrdom Anniversary 
Proper Treatment of Rail Accident Victims Demands Long-term Commitment and Support 
What the Kailasa Con Job Reveals About the Hindu Swayamsevak Sangh Release activists incarcerated in Bhima Koregaon Case 
The writing is on the wall: Farmers warn Parliamentarians 
The End Stage of American Empire 
End the culture of impunity and arrest accused Brij Bhushan Sharan Singh now 
Brasilia summit: Lula and Maduro reboot regional integration 
Steaming Ahead: Sikkim’s First Rail Project to Boost Connectivity by 2024 
Five years behind bars for five activists 
Our beloved K.P.Sasi is no more. Filmmaker, cartoonist, writer, mentor, friend and above all tireless activist championing the cause of every underdog, Sasi breathed his last, mid-afternoon this Christmas day – after battling a medical condition for months. I remember the last time I met him, almost exactly a month before he passed away, at the ayurvedic healing center in[Read More…]
