Workers Solidarity Movement

Over all the forms of oppression and exploitation we face today, debt is cast like a shadow. In “Capital’s Shadow”, Paul Bowman analyses left wing theorisations of debt and concludes that there is a lack in their understanding of “the real nature of money” and poses the need for a “new research project that analyses not only value, but value at risk over time, and through that the role of credit, risk and the world market in the current global regime of accumulation.”

Paul Bowman gives a 40 minute presentation on the Euro as a moment of the internationalisation of capital and looks for a way of dealing with the crisis that goes beyond the alternative models of capital being argued for by the left. If the height of a crisis is not the moment to raise a discussion of an anti-capitalist alternative then when is? Beyond this he also warns against the stagest approach much of the left has adopted where the economic crisis is to be addressed first by a demand for growth and the environmental crisis ignored till later.

In 'Financial Weapons of Mass Destruction', Paul Bowman examined the derivatives market and promised that the succeeding article would cover the 'story of the historical development of successive regimes of global financial orders' and would explain the role of the Eurodollars market 'in undermining the Keynesian Bretton Woods system'.

However, in the interests of space and relevance, I will only tell the story of the historical development of the regime of global financial order under US hegemony. I will begin by examining how the centre of capital accumulation shifted from Europe to the US in the first half of the twentieth century, and how following World War II the global financial order became centred around the US through the Bretton Woods system.

I will then look at how the Bretton Woods System was undermined, concentrating as much on the role of workers’ militancy as on the role of the Eurodollars market. After considering the response to the crisis of Bretton Woods, I'll look at the Clinton boom bringing us up to the current situation of the US’s current heavy dependence on foreign borrowing.

Written months before the banking crash of the Autumn of 2008 this is the first part of a series of articles investigating the capitalist financial markets from a critical perspective.  It explains in some detail what the various financial instruments are that were to be blamed for the crash and what implication they have for class struggle. (Image: Just around the corner)