Capitalism still in c..c...c...crisis
From today's Guardian. (Ah, but which day! And which year?)
The mentions of '1973 oil shock' below are interesting - the crisis which that created screwed up Ted Heath's Tories - helped by a miners strike- and led to election of an old Labour government in 1974 -who ended up having to rattle a begging bowl before the International Monetary Fund in 1975... and -if you believe Jon Savage/ England's Dreaming, through economic determinism created punk... and certainly gave Bowie's Diamond Dogs (inspired by Orwell's 1984) an extra edgeNow read on...
PS - this links to 'Fetishism of Commodities and the Secrets Thereof'
The Bank of England warned last night of a "vicious circle" in which frozen credit markets dragged down the economy as stocks tumbled following Wednesday's announcement of coordinated central bank intervention in money markets.
Share prices in London fell by almost 3% as dealers judged that the £50bn extra liquidity being provided by central bankers to seized-up money markets would not mark the end of the credit crunch.
By the close, the FTSE 100 was down 195.6 points at 6,364.2 with bank shares among the biggest losers. Barclays dropped 6% to 532.5p, while HBOS was down 8% at 762.1p.
Shares and bond markets were also hit by data from the US showing the biggest rise in factory gate prices since the oil shock of 1973 and a stronger-than-expected increase in retail sales last month.
Producer price inflation surged to a 34-year high of 3.2% in November because of a record rise in petrol prices, in turn caused by a peak in crude oil prices. Back in 1973, factory prices were also being pushed up by strong oil prices, which more than quadrupled in six months.