The Economy

Capitalism’s $1.3 Trillion Unicorn Problem

It is said that a man standing on the edge of cliff does not reason. Today’s global economy is full of cliffs, one of the steepest being the Silicon Valley tech sector, and the men peering over it can be heard chattering nervously about . . . an impending stampede of unicorns. Those uninitiated in the Orwellian parlance of Silicon Valley and its venture capitalist circles could easily mistake such talk for the absurd ravings of a lunatic. But this term has come to describe the primary danger threatening to devastate the tech sector in a cataclysmic repetition of the 1999 dot-com bubble.

A Socialist Solution to the California Homelessness Crisis

Of the nation’s 25 most expensive neighborhoods to live in, 19 are found in California and the top 5 are in Los Angeles. These are places where a month’s rent ranges from $7,075 to $10,629. But the City of Angels also tops the nation’s charts in another way. It is the metro area with the highest and fastest-growing population of homeless people in the country, currently at 91,000—a 55% increase over the past three years.

 

Global Economy Teetering on the Brink

ChinaShippingContainersMultibillionaire investor Warren Buffett made headlines with his annual letter to his company’s shareholders. “Many Americans now believe that their children will not live as well as they themselves do,” argued Buffett. “That view is dead wrong: The babies being born in America today are the luckiest crop in history.”

However, far from genuine confidence in the direction of the economy and country, these rosy platitudes represent a growing anxiety within the capitalist political and economic establishment.

Notes on the Global Economy: Drowning in Oil and Credit

stock brokerGlobal markets gave fallen 7.1% since January 1, their worst start since 1970. George Soros, the renowned business magnate, says the situation developing in China reminds him of the period prior to the banking crisis of 2008. Former US Treasury Secretary Larry Summers has said, “The global risk to domestic performance in the US, Europe, and many emerging markets is as great as any time I can remember.”

China and the World Economy in 2016: “Sell Everything"

china-debt-crisisLess than a quarter of an hour after opening, the Chinese stock market was closed by an automatic shutdown. This was triggered twice last week by rapid falls of more than 7%. This “circuit-breaker” mechanism was imposed by the government only 5 months ago after equally dramatic losses. The government has now suspended this measure, not from new-found confidence, but as a further turn of panic.