Global Context: particular-Universal, micro-Macro Concrete Context 1

https://www.wsws.org/en/articles/2019/08/15/rece-a15.html

Wall Street plunges on fears of global recession

By Nick Beams
15 August 2019

US stock markets experienced their biggest fall for the year yesterday amid clear signs of a
growing financial crisis and a marked global economic slowdown, with increased prospects
of a recession.

Market indexes on Wall Street opened significantly down and continued to fall throughout
the day. The Dow ended down by 800 points, or 3 percent, the S&P 500 fell 2.9 percent
and the tech-heavy Nasdaq index dropped by more than 3 percent. (Not introducing
effective demand at the consumer level, deposits as in a bank for both types of firms:
speculative, and productive. Tech heavy is also raw materia mineral heavy)

A confluence of factors contributed to the market fall: clear signs of a global contraction
(cannot optimize rate of exploitation further even though they have M´ waiting in the
wings to be introduced into the circuitry of exploitation at the work-site. Wages
optimally down, Organic composition as it desires. All optimality, All equilibrium into
crash. Assymetry of M´ to variable capital at wages “x” cannot extend the working day
any longer, or, cheapen wage goods (increase rate of exploitation at this site) any
further. It will resides as a lack of effective demand at the investment (exploitation)
level, but our eyes will see it as the conundrum that supply is not generating its own
demand. Effective consumer demand does not exist what you have is loan sharks
lending at preventing levels of 15 to 20% a week oraburouing the distance between
themselves and the crash); the continuing fall in bond yields (deadlocked out of investing
it is structurally forced to invest in bonds forcing a lowering of their yield so it may
appear they hold onto assets. This increase in a credit line, or, futher deposits into the
treasure over time: from time T1 to time Tn will allow the gov´t to purchase back old
debt at a higher yield, and take advantage of the panic to issue debt at a lower yield, but
iff this new growth of capital in its coffers finds its way as liquidity into the banks via
purchases to increase their positive balances at the Fed); a growing recognition that
monetary stimulus by the world’s central banks is not going to bring an upturn in the
global economy (even though the preceding is true. We find ourselves with M´
accumulating and not finding an outlet in the productive or financial sector. Cannot
volatilize prices on options, derivatives, mortgage back securities, credit card loans,
consumer debt, loans for fucking gas in your car, student debt. Since employment is at
an optimal vis a vi the reserve army they find themselves fucked out of repayment at
this level sending the value of that pyramid scheme shooting downwards. Capital has
just been surrounded by an enemy force: its own logic of motion. No matter where it
looks it is surrounded by its own death); a financial crisis in Argentina (They have
ransacked the place so much, primitive accumulation, that the country cannot serve as a
Global Context: particular-Universal, micro-Macro Concrete Context 2

source of unearned income any longer. So, no flow of credit to their coffers from the
Global South) ; the ongoing US-China trade war(personification of the logic of capital
doing itself in. In capitalism the logic of competition is the inverse of the logic of
revolutionary communism. It looks forward to do itself in as a class. Competition is to
eliminate competition until monopoly capital obtains); political instability in Europe as
exemplified in the Brexit crisis and the break-up of the Italian government (So, competing
their way to dissolution? their moves to remove further rights to enhance the level of
exploitative violence is ecountering a limit? Maybe it is a Hindenburg prior to Hitler
situation, but Hitler situation seems to have been surpassed in the oligarchy assuming
direct control. But you can always permutate between options depending on how the
situation unfolds;) and the growth of social opposition in the working class, exemplified
by the 10 weeks of protests and demonstrations in Hong Kong.

The trading day opened to the news that the Germany economy had contracted by 0.1
percent in the second quarter, following a similar slowdown in Britain, putting both
economies in line for a recession, marked by two consecutive quarters of negative growth.
The decline in Germany was a sharp reversal from the first quarter when its economy
expanded by 0.4 percent. (Capital cannot return to its circuit of reproduction to expand
its value. It tried, but it retreated to be sent backs to its coffers where ownership may
more clearly be discerned. The financial circuit is exhausted so that is a no on that, and
the Global South a no-go. Politically: more deadlocks apparently. They and their money
“do not know” ,or, “do not want to know” that they are in need of a genocidal massacre
on the instalment plan. It has already taken place in the middle east, but does not
resolve the vampirization crisis)

The main reason for the decline was the contraction in exports, reflecting the
uncertainties resulting from the US-China trade war and the intensifying struggle for
markets in the auto industry on which the German economy is heavily dependent. There is
no sign of an upturn and a survey of financial analysts released on Tuesday showed that
economic sentiment had dropped to its lowest level since the euro zone financial crisis in
2011. (So, having encountering themselves surrounded by themselves the logic of the
China trade war aims to define who will be the capitalist that will throw himself, or, will
be thrown by others to the unconming grenade they will call a global recession. In doing
so they hope they may live a little while longer to continue the logic of vampirization)

The jobs market is down. Only 1,000 new jobs were created in June compared to an
average of 44,000 over the past five years as a series of major companies have started to
introduce short-time working. (Deadlock at the production of exploitation site. Opting to,
or, forced by the alienated force of their own reified structural selfs to further depend
upon the organic composition of capital, trying to chase after any possible profit (the do
Global Context: particular-Universal, micro-Macro Concrete Context 3

not know if it is there to be picked up, but they will give it a go anyways) as they run out
of time before the bomb explodes in their faces. Lower prices to see is wages (macro)
are hiding some “stolen surplus” by greedy thiefing workers. They are seeing things I
guess: The serial killers sublime object)

The impact of trade conflicts on production was also reflected in data from China which
showed that value-added industrial production grew by 4.8 percent in July, compared to
an increase of 6.3 percent in June and below market expectations of 5.9 percent growth.

One of the most significant developments in yesterday’s turmoil was the emergence of an
inverted yield curve in bond markets (as capital flows for safety to strengthen the dollar,
it leaves other short-term assets and the flow of credit that could have accumulated at
that end thereby forcing an increase on interest rates on said loans, trying to smash
themselves (as capitalists: all that hippy love between them) in the fucking face: “I will
take you the fuck down motherfucker” as they lit the fuse which will do them in later
way before they will be able to register what it is they have done. Like light years
displaying surper-novas, or, black-holes that may no longer be there) and increasing the
extent of financial fragility. Wages dragged to the fucking core of the planet so the same
issue applies). This refers to a situation in which the return on long term government debt
falls below that on shorter term bonds. This phenomenon is regarded as one of the most
accurate indicators of recession as investors seek a “safe haven” in longer term bonds,
pushing up their price and lowering their yield.

Yesterday the gap between the yield on two-year and ten-year government debt in both
the US and the UK entered negative territory. This is the first time this has happened in
the US since 2007 in the lead up to the global financial crisis and recession.

Central banks around the world are either increasing their monetary stimulus or are
getting ready to do so. The US Federal Reserve cut its rate by 0.25 percentage points last
month and is set to do so again in September, amid growing expectations in financial
markets that it may reduce rates by 0.5 percent. The European Central Bank has also
indicated that it is set to introduce more monetary stimulus next month, either by further
cutting rates or expanding its program of asset purchases.

But there is a clear recognition that the various forms of monetary stimulus practised by
the world’s central banks since the financial crisis of 2008, introduced with the claim that
they would eventually boost economic growth, have little or no effect on the real
economy and that central banks are “pushing on a string”—a term first developed in the
Great Depression of the 1930s pointing to the failure of monetary policy. (the idea would
be to see if, after they run out of every possible econ-policy, they will mobilize their
forces to the Supreme Court, Senate Terrain to legitimize their capacity to wipe people
out via the elimination of rights. They were preparing with it with Roberts, Kavannaugh
and crew. They have secure that much will towards crimes againt humanity at that end.
So, the shift may be in the House and Senate which is still susceptible to votes. Although
Global Context: particular-Universal, micro-Macro Concrete Context 4

the umpire Roberts threw an MLB-DNA fastball to the Nggers to do away with the 1965
voting rights act. Nasty little fella. Earned himself a hall-of-Jim-Crow fame plaque.
Kavannaugh is just a squinting last-man joke. Thrown in there so he may think himself
smart. The same with Kovak: ready to be irrelevant, and tonal. All that Harvard, Oxford,
Rhodes credential to shoe-shine the deeds of his barren and worthless self. It will not
work. Assymetry at play.)

“The Fed doesn’t have the cure for an economic slowdown or recession,” Kristina Hopper,
chief market strategist at Invesco, a major global investment company, told the Wall
Street Journal. “But I do think the Fed has the antidote for the stock-market sell-off,” she
continued, expressing the demand of the financial elites for still more money to be
pumped into the financial system, whatever the consequences. (She wants to look smart
– Ivy League so – as she advices for policy that will need to be shoe-shined by her
intellectual credentials)

While this may provide a short-term boost for the financial oligarchy, it increases the
instability in the global financial system, reflected in the fact that one quarter of all bonds
worldwide, some $15 trillion worth, are now trading at negative yields meaning that if an
investor held them to maturity they would make a loss.(Shoot the pensioneers first. We
have got their kids at the dock: student debt, consumer debt, gasoline car debt etc)

The consequences of such instability and the impact of political factors was demonstrated
in Argentina on Monday when there was massive market sell-off after Argentine President
Mauricio Macri, regarded as “market friendly,” was heavily defeated in primary elections
held over the weekend.

The main stock market index fell by 37 percent in peso terms and by 48 percent in US
dollar terms because of the fall in the value of the currency, making it the second-largest
one-day fall in any of the 94 markets tracked by Bloomberg since 1950. (If Macri is not
there they are afraid they will not be able to cash in on illegitimate debt – or engage and
gorge themselves in blood stained primitive accumulation – the issue of re-financing on
Argentinian terms presents itself anew. But this will be either something they will do,
or, considered an asset to be traded depending on the opportunist. Financial markets
throw the first punch so it is made known that they have a club with which to deal
blows if they are mortherfucked out of the blood-stained meal they are after.)

The Financial Times reported that, according to its calculations, bond funds run by Michael
Hasenstab at the US firm Franklin Templeton, which heavily invested in Argentine debt,
had lost nearly $1.8 billion in a single day. (depriving them of importing capacity to kill
“x” numbers of Argentinians as the price for angelic behavior. How much did it
devalued? This will tell you how much sacrifice they want to secured. How many victims
are to be pushed onto the docks of the gas chambers (not a joke) of devaluation. How
badly they want to push them out the edge of material existance
Global Context: particular-Universal, micro-Macro Concrete Context 5

Earlier this week, the Trump administration tried to halt the slide in the markets by
announcing an easing of introduction of new tariffs on an additional $300 billion worth of
Chinese goods.

US Trade Representative Robert Lighthizer, who has been widely reported as being
opposed to the imposition of the new levies, announced that the tariffs, due to come into
effect on September 1, would be delayed on some items such as cell phones, laptop
computers and video games until December 15.(You are collapsing huh? how many
trillions you insist others must trust you with?) Other items would be removed entirely
from the list on “health safety, national security and other factors.” Overall, the extension
will apply to around $156 billion worth of goods. (To pretend they have something to
offer)

The delay in the tariff measures, which came after what US President Trump called a
“productive” telephone conversation between US and Chinese trade representatives,
provided a boost to the markets with the Dow rising by 1.44 percent on Tuesday.

But it lasted barely 24 hours as the markets plunged yesterday on the back of the
worsening outlook for the global economy and the recognition that the delay did nothing
to overcome the major obstacles to any trade agreement between Washington and
Beijing. Further face-to-face negotiations have, at least tentatively, been scheduled for
next month but it is by no means certain they will go ahead.

In addition to the growing recognition that the financial measures adopted over the
decades since the eruption of the global financial crisis have exhausted themselves and
are in fact creating the conditions for a new meltdown on an even wider scale, there is a
deep fear in ruling circles of developing opposition in the working class.

The unexpected rejection of the Argentine President Macri sent a shiver through the
markets because it was based on massive opposition to the austerity program being
dictated by global finance capital. (What scares capital the most, as they cost-benefit
things, is that they will not get to kill as many people as possible. The opportunity cost
of forgoing further retroactivizing themselves as Nazis of a higher-order)

Likewise, the continuing demonstrations in Hong Kong, and the growing involvement of
the working class, fuelled by deepening opposition to social inequality, are being regarded
with increasing trepidation because. Together with the mass demonstrations in Puerto
Rico and North Africa, coupled with deepening social anger in the US, Europe and
elsewhere, the Hong Kong protests point to the emergence of a movement of the working
class against the entire framework of capitalist rule.

Trade war, falling sales take center stage at Michigan auto industry conference
Global Context: particular-Universal, micro-Macro Concrete Context 6

By Tom Hall
15 August 2019

Anxiety dominated the proceedings at last week’s Management Briefing Seminar, an

annual gathering of auto industry analysts and executives to discuss strategic challenges
and forecast the future of the industry. The meeting, held in Traverse City, Michigan, is
sponsored by the Center for Automotive Research (CAR), a leading industry think tank.

This year the event took place in the midst of contract negotiations between US auto
companies and the United Auto Workers, which are being conducted behind a veil of
silence. The conference was held far from the prying eyes of autoworkers, some 250 miles
away from Detroit at an exclusive resort. The proceedings, however, served to partially
reveal the line of attack automakers will follow as they seek to offload their crisis onto the
backs of workers with the help of their lackeys in the leadership of the United Auto
Workers.(Not very desperate given outsourcing, but they are structurally moved by the
idea, having invested themselves for so long in turning unions into what they are, into
putting into motion that machinery for exploitation in such a way so as to it may yield
results. They are pressured by their plans for Autarky: wanting to deprive Chinese labor
of the vampirization relation. So, this strengthens U.S. labor since Trumps, following
their bid, locks them out of China. Here the opportunist increase their value, as financial
assets often go through, and the issue of rank-and-file comittees arises to lower the
value of the asset the union bosses represent, but the question becomes how much
energy should go not into rank and file itself which must be a long run objective, but
rank-and-file for facing, or, trying to derive something from monopoly capital. How
much of its organizing is directed to tell capital “Hey, you have got something to offer I
am interested in. It may be used as a bait, but the idea is then how to weave such a bait
so as to make it structurally tasty to the overlords of capital. As it is woven as a bait, the
level of investment in it should be low, and clearly the level of labor directed to rank and
file much higher: how to organize labor rejected by money so it may be put into motion
to purchase capital assets sold during deflation. Capital assets also rejected by M´ as
worthless. Capital assets yet to be sold to the Global South for 5 times the original
deflated, or, at (prior to deflation) market value. The reserve army would have to cater
to their needs with said assets in the following areas: health (medicine and food),
shelter, and clothing as well as books (education). The loan sharks that surround them
maybe a source of funding (loans later to be sold to investment banks. So, care must be
made not to damnage pension funds. The selected target must be sifted through
carefully) only later to be told to go fuck themselves through bankruptcy laws. The same
for students loans.

As we move here they will have no other recorse than to use the cops, and the military.
Already at work 24/7 against an unorganized working class. So, they are not used to
(decades) battling organized groups that are peaceful in their mode or relating, and
objectives. If they gravitate (finance and cops, and the military) what is the best Szun
Tsu move that involves the less amount of energy in engaging them. They are
Global Context: particular-Universal, micro-Macro Concrete Context 7

structurally unable to avoid gravitating around them given their vampiristic immanent
style.

While the industry is still awash in cash, there is now general agreement that the decade
of record profits initiated by the Obama administration’s bailout of the Detroit
automakers in 2009 is now coming to an end, as the auto companies confront growing
recessionary headwinds, rising research and development costs (due to a falling rate of
profit, and the impotence of all that string liquidity), and geopolitical tensions.

The mood among the participants was summed up by one European auto parts executive
who declared, “There is a German saying, ‘Die fetten Jahre sind vorbei,’ which translates
to ‘The fat years are over,’” Anderson said. “Well, the fat years are indeed over in
Europe.” But the outlook was no more optimistic in any other part of the world.

The issues discussed generally fell under three categories: declining sales in industrialized
and developing countries, the massive costs associated with electric vehicle (EV) and
autonomous vehicle (AV) research (no funds for such plus no organic composition of
capital – technology – may be develop that will further vampirize) and the growing
threat of trade war, especially between the US and China.

The auto industry is entering what is expected to be a long-term slump in sales, with
developed markets in Europe, the US (U.S. as consumer of last resort removing the floor
from underneath all other surplus exports countries. Laughing like a maniac (the
oligarchs) as they do this (a lot of ivy-league lawyering and game theoretical inspired
neoclassical rumaniging went into this up-to-and including logic), and shift domestic
funds (from the inflow of capital looking for a safe heaven) for concentration camps in
which they can get to murder and rape kids to the Nazi chants of Gobbelian capital as
media: “The Winners” The madness is palpable. Throbbing to the rhythm of its own
incestual satisfaction. Throbbing in your fucking face. Pass me a fucking pristinely
minted needle please. I will let the gushing blood paint my fucking face so my pores
become the new home for the blood of the victims they had incestually lodged inside
that throbbing), Japan and Korea expected to contract over the next five to seven years,
industry analyst Jeff Schuster told Automotive News. “This leaves countries that are highly
volatile—Brazil, Russia, India, Turkey, China—to drive growth globally,” (through higher
levels of exploitation, being sources of primitive accumulation, or ask for another stupid
impossible: increase imports as we deprive you of income: no exports plus validating the
illegitimate foreign IMF debts that were draining the Global South of income. They
fucked themselves out of this option. You do see these sorts of demands by the masters
of capital are just bad dream logic at best right? They undo themselves in (as
authorities) as soon as the syntax that promises them to deliver them onto that master
i(a) object comes crashing down. Like the body of a person making a thudding trip onto
the pavement of a lamp lighten street after imbibbing himself into alcohol poisoning.
Schuster said. “But right now, many of these countries are in a decline, and that’s a risk to
the long-term global market.”
Global Context: particular-Universal, micro-Macro Concrete Context 8

China, which has been the chief driver in global sales growth and is now the largest auto
market in the world, saw its first decline new vehicle sales in two decades in 2018. In his
presentation to the conference, Schuster predicted a further 5 percent decline in sales this
year. Worldwide auto sales are expected to decline by 3 percent.

Of 13 major global auto companies, 7 saw substantial sales declines in 2018. The largest
dip came from Ford, which lost 372,000 in sales last year. Significantly, the UAW is
reportedly considering making Ford its target in this year’s contract negotiations.
(increasing their value?)

Western Europe is the only region where sales are currently expected to remain steady in
2019. But Europe is rapidly heading towards recession, and the German economy, the
largest in Europe, is already contracting. This downturn is particularly concentrated in
manufacturing, especially the auto industry, where exports have declined due to slowing
world trade and the vulnerability of Germany to growing trade frictions between the US
and China. Europe has also been threatened with auto tariffs by the Trump
administration.

More stringent European Union-wide vehicle emissions standards have the potential to
open up a “competitive gap” between US and European automakers if such standards
succeed in pushing the latter towards higher environmental performance, said German
engineering executive Uwe Grebe. However, it is far from certain whether European
automakers will actually be able to meet the new emissions standards by 2020—carbon
dioxide emissions actually rose last year – opening them up to 32 billion Euros in fines.

In order to shore up profits, automakers are seeking to reduce capacity through plant
closures and mass layoffs (vampirization comes first). Schuster estimates that the
“utilization rate,” or the ratio of actual production to total capacity, will fall to 63 percent.
(Look at the type of maniac Iam: Guess who is going to do that to serve no existing social
demand)

Auto companies have already carried out a global wave of layoffs over the past 12 months,
including tens of thousands of job losses in North America and Europe, 350,000 layoffs in
India and 220,000 in China. Earlier this week, French automaker PSA announced it would
close two of its plants in China and cut its workforce in the country by half. A pullout from
China altogether remains a possibility.

Attendees pointed to the unexpectedly high cost of investment in emerging technologies,

especially electric vehicles (EVs) and autonomous vehicles (AVs) as a major drag on profit.
Consultant Dietmar Ostermann explained that research and development in these
technologies have reduced profit margins for parts suppliers by 2.5 percentage points,
from 7 to 4.5 percentage points.(almost fifty percent)
Global Context: particular-Universal, micro-Macro Concrete Context 9

When and even whether these new technologies will become profitable is uncertain.
Electric vehicles are not expected to attain cost parity with traditional gas-powered
vehicles until 2027, and fully autonomous cars are not expected to reach the market for
another 20 years. However, their potentially revolutionary impact, as well as the huge
potential for savings in labor costs, is compelling companies to invest rather than risk
falling behind their rivals.

The US automakers, which have invested heavily in higher margin but less fuel efficient
SUVs and pickup trucks, lag far behind China and the rest of the world in EV sales,
according to Schuster. Due to more stringent government emissions regulations, China is
by far the largest EV market in the world, with more than 1 million annual sales expected
this year (a small fraction, however, of total overall vehicle sales of 30 million).(they might
be saving the option of developing of an internal domestic market twice the size of the
U.S. until the moron Trump exhausts himself in humping the dream of draggin them
down: fucking morons. Jr, Obama, Trump. Apparently they have already won. It is just a
matter of time before the low-life American oligarchs awaken from the dream of money
making ventures out of raping little kids in torture chambers. Are those negociations
with them, and the whole of the tariff violence something they let him do so they make
him believe he is got something to offer? That is why they are trying to force them to re-
rout resources towards their own militaries. To repeat the Soviet episode. So, in this
instance the Chinese, once again, are the ones with something they want as it appears
on the surface that they have “all this”, and are “going to put it to use”,and are “on the
march”)

The growing drive towards trade war and protectionism was identified as a major threat
to both supply chains and consumer demand. While this threat is centered in the United
States, other areas are potential flashpoints, especially the European Union, where
protracted Brexit negotiations have failed to produce an agreement. Analyst Jeff Schuster
warned that the increasingly likely prospect of a no-deal Brexit could shrink the light
vehicle market in Britain by 15 percent, and increase the likelihood of closure of British
plants producing for the European market.(The only answer Nazi Western Capital has is
to imitate the what they have done with the Chinese in China: Bezos, and company.
Here the Chinese have also won. They had already won in 1997 with the Lisboa Treaty in
Europe)

But the most significant concern was the developing trade war between the United States
and China. Michael Dunne, the CEO of a Hong Kong-based consulting firm, told the
audience that the growing rift between the US and China was not a passing phenomenon
but will be a permanent feature of the world economy in the near future. “It’s not a trade
war—it goes much deeper,”(You….Are….Fucking…Idiots. Spend all that energy with a
success rate of failing at 100%. A shitty, disoriented on consuming snuff, non-gambler,
because it is a sure loss. There is no possible gambling to be done) Dunne said. We are
going to be at it for 10–20 years with China.” (Get the fucking burial sites ready)
Global Context: particular-Universal, micro-Macro Concrete Context 10

The replacement of NAFTA by the US-Mexico-Canada Agreement (USMCA) is aimed at

refashioning North America into a US-dominated trading bloc positioned against China
and other American rivals. A key provision in the new trade agreement prohibits
signatories from entering into a free trade agreement with “non-market countries,” a
measure clearly aimed against China. (This prohibition that hides a demand was
something Mexico, and Canda had that they wanted. All they do is ask for shit weapon
at hand)

The auto industry views the imposition of tariffs with anxiety because it produces cars
through extensive global supply networks which could be seriously disrupted. An analysis
of US trade policies released by CAR earlier this year predicted a substantial rise in
production costs of vehicles sold in the US as a result of Trump’s trade policies,(increased
the cost of previously cheap wage goods) resulting in a contraction in annual light vehicle
sales of 1.3 million and the loss of hundreds of thousands of jobs in the United States.

However destructive such measures may be, the decline of US economic hegemony (of
which the declining market share of the Detroit automakers is one stark expression),
makes such measures necessary from the standpoint of American imperialism. In
particular, the United States cannot permit the emergence of China as a major economic
and geopolitical rival capable of challenging its dominance in Eurasia. This was summed up
by recent statements by Secretary of State Mike Pompeo that Chinese economic growth is
a national security threat, as well as by Trump’s justification of auto industry tariffs on
national security grounds.