The gravity of the present world economic
crisis comes in part from the spectacular imbalances and crazy capital flows
that occurred in the years of the boom that finally juddered to a halt last
year. Martin Wolf, an eminent spokesperson for big capital, warns in the
Financial Times (02.12.08), “The world has run out of willing and creditworthy
private borrowers. The spectacular collapse of the western financial system is
a symptom of this big fact… In the long run, the global economy will have to
rebalance.” If it doesn’t work out, “The open world economy may even break
down. As in the 1930s, this is now a real danger.”

He goes on, “In 2008, according to
forecasts from the International Monetary Fund, the aggregate excess of savings
over investment in surplus countries will be just over $2,000bn…In 2008 the
big deficit countries are, in order, the US, Spain, the UK, France, Italy and
Australia. The US is far and away the biggest borrower of them all. These six
countries are expected to run almost 70 per cent of the world’s deficits.”

A Message from Jerry Hicks

It is with great pleasure and pride that I am able to say that we
have secured more than enough branch and workplace reps nominations to be on
the ballot paper for the election of General Secretary Amicus
Section scheduled for February and March…

The part played by the Bolsheviks in the history of the Russian revolution of 1917 proves the importance of the role of leadership. The history of the Spanish revolution proves the same thing, but in a negative sense.  Alan Woods spoke to a Socialist Appeal Northern Weekend
School, which had as its general theme ‘The Class, the Party and the
Leadership’, on those events which took place in Spain over 75 years ago.

John reviews Boris Johnson’s presentation of
the TV series ‘After Rome’ quite favourably. He even finds hope for redemption
for Boris, as long as he gives up Tory politics. ‘Crikey’, as Boris would no
doubt say. Well, this is the season of goodwill. What do you think?

Not that long ago, the Republic of Ireland was being
heralded as a Celtic Tiger, with a booming economy, a massive house price
bubble and a rising population as people returned home to Ireland to join the
boom. But all that seems a long time ago now as the government announces a bail-out
plan that will give the Allied Irish Bank and the Bank of Ireland 2 billion
Euros ($2.8 billion dollars) each in return for preference shares. In the case
of Allied Irish this amounts to nationalisation as the government will have 75%
of the voting rights. 

John McDonnell, leading spirit among Labour MPs in the Socialist
Campaign Group, interviews Mark Serwotka about the government’s
proposals for workfare and private welfare insurance. Mark is a leading
left winger on the TUC. He is General Secretary of PCS, the union that
represents those charged with carrying out New Labour’s welfare
‘reforms.’ Their task is made all the harder by the government’s
decision to get rid of 30,000 workers at the Department of Work and
Pensions. John and Mark discuss the fightback against the government’s
plans.

In reviewing
Robert Brenner’s theories, Mick Brooks looks at the causes of capitalist crisis
and delves into such questions as the tendency for the rate of profit to fall
and overproduction. This article is to be considered as a contribution to the
debate among Marxists on the causes of capitalist crisis.