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[Via Communist Internet... http://www.egroups.com/group/Communist-Internet ] [Subscribe: [EMAIL PROTECTED] ] . . ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Tuesday, December 25, 2001 3:23 AM Subject: U.S. Economy Continues to Weaken Even as Stock Markets Rise ---------- From: "soil ride" <[EMAIL PROTECTED]> Subject: [L-I] U.S. Economy Continues to Weaken Even as Stock Markets Rise http://www.cpcml.ca/tmld/TMLD232.htm#8 December 24, 2001 - No. 232 U.S. Economy Continues to Weaken Even as Stock Markets Rise The US experienced a record 3.7 percent decline in retail sales for November. This figure was worse than analysts had expected. Maury Harris, an economist at UBS Warburg in New York, said the U.S. economy probably was shrinking at a 2 percent annual rate in the current quarter, /after a 1.1 percent decline in the third quarter. Unemployment has risen from a low in early 2001 of 3.9 percent to 5.7 percent in November. Economists at J.P. Morgan predict that it could go up by a further 2 full percentage points. Initial jobless claims averaged 462,000 weekly in November. U.S. corporate rates of profit have fallen to their lowest level since the 1930s depression. Certain monopolies like Enron have gone bankrupt or are on the verge of bankruptcy. Lucent technologies said that its first-quarter sales in 2002 might drop 35 percent from the fourth-quarter level and that its loss would exceed expectations. The giant producer of telecommunications equipment has cut more than half of its work force this year. Another big provider of network equipment, Ciena, said it would eliminate up to 7,000 jobs as it reduces costs because of declining sales and earnings. The company said it expected to lose money in the next quarter, after posting a $1.8 billion loss in the three months that ended October 31. The insurance company Aetna said it would lay off 6,000 workers. Unlike other insurers, it is hurting not because of claims related to September 11 but because of an unprofitable expansion into health-care markets. The weakness in the U.S. economy has helped to drag down other regions, including Europe. The European Central Bank, which manages monetary policy for the 12-nation single currency zone, downgraded its economic outlook December 13, predicting that the region's economies would grow by a range of only 0.7 percent to 1.7 percent next year. Capital Still Pouring Into the US Regardless of the bad economic reports and its shrinking economy, international investors and wealthy Americans continue to pour money into some sections of the US economy, especially the stock markets. The US stock markets have regained most of the ground lost earlier in the year. The Dow Jones industrial average recently surpassed 10,000 and the NASDAQ composite index broached 2000 for the first time since early in the year. Demand for US dollars remains extremely strong around the world where almost all countries are in the grip of recession. Anti-national, self-centred sections of the wealthy (including those in Canada) seek places abroad to invest that promise a good return and are relatively safe in spite of the harm this does to their own economies. Also, imperialist companies (from Japan, the US and Europe mostly) own large amounts of social capital produced in the poor countries. These companies often move that capital out of the country into the US stock markets or other foreign investments especially in Europe and more recently to China. Enormous pressure is exerted on all countries to allow capital in and out of the country freely in spite of the immense damage this causes, in particular to the smaller weak economies. Any country that dares to impose capital controls, risks being labelled a "rogue state" by US imperialism and the WTO or accused of being a "failed state" and charged with harbouring terrorists. This may result in an international boycott by the imperialist countries or worse. The US imperialists have even dared to accuse the very sophisticated capitalist country of Malaysia as being friendly to terrorism because it has attempted to impose a mild form of control over capital coming into and leaving the country. Joshua Minchen In its struggle for power the proletariat has no other weapon but organization. -Lenin,1904 _________________________________________________________________ Chat with friends online, try MSN Messenger: http://messenger.msn.com ==^================================================================ This email was sent to: archive@jab.org EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.a9WB2D Or send an email to: [EMAIL PROTECTED] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
