used to describe the mood on Wall Street as the market tried to open in the morning.' But why did the market collapse when it did! And what are going to be the consequences?
day the the United States.
the for In attempted cheat this 1970s oil. The 1973, oil recession followed than world price recovery 1973, the States early But this put on recovery is insuffi- competitors balance of payments forces the -HOrate of the rate of Japanese The real beneficiary in economic growth since 1973 has been the United States. From World War until the early 1970s Western Europe grew rapidly than the But policy United States. Since 1973 Western European growth recession the has fallen behind the US any Cast The US has even reduced heading: the gap between its rate of growth and Japan. 1973 slowed But this relative of the United mand for, price of, oil.
States has not been rise in the productivity of has fallen This the both the competitiveness. has been brought about by the States using the competitive ation of the Western aad is potecical Europe The во этот every other of its proarket to its advantage.
aday the real relawas US manipulation of the system. Immediately after Reagan was Foreign consequent the pound, Gullals deficit.
effect was on the this had United became the nation ceed its that US deed.
US rected.
gap.
policy.
in against those monelary 30 per cent flood- assets, ment rate of the borrowed.
US holding of LCIS dollars.
United US stream of States cheap. consistently balance of pand their 1987 mies, $150 rapidly chief debtor US USE would exby $750 pense of economies.
the dollar This inmany i balance exchange would expensive, were of the meaning. a tax, States countries govern fall robbing billions exports econotheir of its their own Capitalism Geras of its It has been markets to West government budget deficit because it is not prepared. or more exactly is not able, the existing relation of forces, to tax its own working class enough to finance US government expenditure. The US millary build up of the last eight years has beer financed, and US politi cians have bought their popularity, at the expense of the United States trade rivals, not its own working rs, not so is the Cass. workers, not COSTSC ot the States trading partners The economic pain the US was causing them was al increasing their own domestic problems. As it is the United States which is now in debt to Japan and West Germany, economic leverage to hit back. Deficit On monthly huge deficit indicatin Iwa. sight.
Germany its which uterest which probabl ing US into recession . On day. Then Mondas with in uncontrollable The paroxysm. as the meltdown asserted itself.
next.
Socialist Action 23 Oct 1987 ON 12 October Northern Ireland secretary Tom King announced
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MONDAY 19 OCTOBER saw the greatest crash in share prices in a single day in history. The New York Stock Exchange fell by 23 percent in one day almost double the 13 per cent fall on •Black Mon- day, 28 October 1929. As the Financial Times put it: Every word in the lexicon of fear was