The bourgeoisie was stunned by the total collapse on Sunday night of
Barings Bank. By Tuesday losses amounted to stlg800 million, and the Bank
of England warned that Barings is exposed to
losses until the contracts expire or are otherwise closed out.
black hole can be traced to
rogue share deals
carried out by a 28 year old dealer named Nick Leeson in Barings'
Singapore office, who was gambling on the casino-like
derivatives. These shares speculate in changes on future market
Showing excessive entrepreneurial zeal Leeson purchased up to 20,000
packages of share contracts,prices at stlg120,000 each, which were based
on predicting movements in the Tokyo Nikkei 225 Stock Market
Index. The Tokyo stock market fell and the losses started to snowball.
This dramatically exposes the increasingly fragile nature of
international capitalism, which is becoming more and more vulnerable
domino effect. As the Guardian phrased it
matters, every bank is linked to every other in an umbilical chain and
by breaking one link you threaten every other element, however
blameless. (Feb 28).
Britain and the Bank of England are no longer the financial powers
that they once were—indeed, it could even be the end of an epoch. The
fact that the Bank of England was unable to rally the City around the
hapless Barings Bank and come to its rescue will send shock waves
throughout the ruling class. The
old boy network, so valued by our
rulers, counted for nothing when it came to the crunch.
The parasitical nature of capitlaism in this era of ever increasing
globalisation and interdependency is impossible to disguise, much to
the embarrassment of many an expert and commentator, whose job is to
extol the values of the free market and bourgeois democracy.
The potential for an absolutely catastrophic meltdown is
immense, given the increasingly irrational and anarchical nature of