World stocks hit by US depression fears

[Chris Burford <cburford@xxxxxxxxxx>]

BBC financial headlines reported today that world stock exchanges were hit
by fears of a depression or at least a slowing in growth in the USA.

From one point of view this should be a good thing for Europe, because
capital has been flowing from there to the USA while the USA has been
expanding faster than Europe.  It is true that if the US now slows at a
time when Europe relatively speaking may accelerate a little, this will
relatively help the European economy.

But that is in relative terms. In absolute terms a decline in US sales will
hit the entire global economy, which on aggegate will function more slowly.
Another manifestation of " the entanglement of all peoples in the net of
the world-market"

The entanglement is a democratic factor, in that it involves all people in
the process.

But the inexorable tendency for uneven accumulation of capital means that
the gravitational centre of the global economy lies in the USA.

Unfair but true.

Chris Burford

London