[Podcast] The world economy faces perfect storm

This week the interest rate on 10-year US government bonds hit 5.3 per cent, and borrowing costs in Britain, France, Germany and Japan are at levels not seen in decades. For ordinary people, that means higher costs at the petrol station, on their energy bills, in their rent and mortgage payments, and public services being cut to balance the books.

In this episode of Against the Stream, Victor Murray is joined by Niklas Albin Svensson of the International Secretariat of the Revolutionary Communist International to explain what is happening to the world economy, and what it means for the class struggle.

Starting off with the Iran war and the biggest oil supply shock in history they explain how emergency reserves are now running dry. With diesel prices in the US up almost 90 per cent since January, Trump is toying with a diesel export ban that would hit Latin America and Europe the hardest. Central banks are reacting by raising interest rates, but rate hikes won't end the instability in the Middle East. All it will do is squeeze workers.

Then there's the debt. US federal debt has passed $40 trillion. Nearly half of all OECD government debt has to be refinanced next year at much higher rates, just as cheap money from Japan dries up. On top of it all sits an AI boom built on borrowed money, now competing with governments for credit.

The ruling class has no painless way out. This is a finished recipe for class struggle, as workers and youth in France and Spain have shown this week.

New episodes of Against the Stream every Thursday at 6pm London time on YouTube and wherever you get your podcasts.