04/04/2022 by socialistfight
Serious stuff here from Michael Roberts. Solutions like governments of the Global South stopping capital outflows highlights the needs for revolutionary solutions to the debt crisis. The old Bolshevik programme for world revolution anyone?
Last week, Ghana’s central bank announced its biggest ever interest-rate hike as it sought to slow rampant inflation that threatens to create a debt crisis in one of West Africa’s largest economies. The Bank of Ghana raised its main lending rate by 250 basis points to 17% as consumer inflation reached 15.7% year-on-year in February, the highest since 2016. The war in Ukraine will likely make things worse. Ghana imports nearly a quarter of its wheat from Russia and around 60% of its iron ore from Ukraine.
Ghana is just one example of the economic stress being placed on small, low-income economies around the world from food and energy inflation, rising interest rates and a strong dollar. The island nation on the south east coast of India, Sri Lanka, has begun talks with the IMF for a ‘debt relief’ package after protests over a deepening economic crisis forced Gotabaya Rajapaksa’s…
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