[[capitalism]] [[political economy]] [[marxism]] [[covid-19]]
the COVID-19 crisis has allowed banks and companies to borrow money at zero or negative interest rates
central banking has become the name of the game in the 20th century, so to speak, which has propped up the capitalism of the 20th and (so far) the 21st century
Between 1992 and 2007, central bank monetary injections (âpower moneyâ) doubled as a share of global GDP from 3.7% of total âliquidityâ (money and credit) to 7.2% in 2007. At the same time, bank loans and debt nearly tripled as a share of GDP. From 2007 to 2019, power money doubled again as a share of the âliquidity pyramidâ. Central banks have been driving the stocks and bond market boom.
itâs these monetary injections from central banks that have kept markets float
the market (or its apologists) believe that a âV-shapedâ recovery is in the works: that the COVID-19 pandemic was temporary, and now that the economy can return to normal, things will be fine in a few years
Roberts argues here that the economy wasnât doing very well in the first place
The profitability of capital was slowing, and was indeed at its lowest in years
The Congressional Budget Office expects a V-shaped recovery but doesnât expect the economy to recover until 2030
Third world countries will have the last decade essentially wiped out
If the world economy can return to normal, it will be decided in the next few months.