Union Power November 2011

The three year journey of the G-20 Heads of Government Summit from Washington in 2008 to Paris this November is signified by two markers of the depth of the global capitalist crisis. First, that the crisis, as perceived in 2008, of one of private debt is unambiguously one of the state itself insofar as many advanced economies, including members of the G-20, run the risk of defaulting on sovereign debt. Second, the US dollar’s continuance as a reserve currency is an increasing improbability while the immediate emergence of another reserve currency is not on the horizon with the unpreparedness of China to take global economic leadership while the Euro lies in tatters. Unstable exchange rates and the inability of states to finance economic expansion has one unambiguous outcome and that is - continued decline in new employment opportunities and growing social and economic inequality.