From June 2014 to January 2016, the price of oil tumbled by 60%, contributing to the uncertainty about energy stability and of course overall downward pressure on all commodities from cacao to natural gas effecting primarily developing nations that depend on commodity exports. As revenues of energy and commodity-producing countries fell sharply, some including Russia and Iran but smaller states like Azerbaijan among them, used revenues to diversify production and become less dependent on imports. Although the overall impact of the energy and commodities slump has entailed lower asset values, this has hardly translated into any kind of a growth stimulus, as many were speculating but now know better. http://www.weforum.org/agenda/2016/01/azerbaijan
Is it any wonder that instead of slashing defense spending after 2008 and keeping it at low levels, the US demanded that NATO spending increase to maintain an effective containment policy on Russia, policies that have diverted capital from the civilian economy in the US and all across Europe, as well as Japan, Taiwan, and South Korea. When bankrupt Greece asked permission from the EU and Germany to cut defense because it had cut just about everything else under austerity since 2010, the answer was that would defense cuts impact contracts with German and French manufacturers. In short, cut mass consumption and reduce living standards that the IMF and monetarists advocate but not defense.
Because of the US wars in Iraq and Afghanistan, the public debt rose substantially and the average homeowner paid $600 more in mortgage interest by 2008 when the recession hit. Deficit spending is one thing when resources are devoted to productive projects for the civilian economy and to the benefit of people, and entirely another when devoted to the parasitic defense industry. While the media, politicians and pundits in the US and the West defend raising defense spending, they bitterly criticize Russia for doing the same in response to NATO encirclement policy. Oddly enough, the neoliberals in the West defending defense spending argue that in Russia’s case it weakens the civilian economy! http://watson.brown.edu/costsofwar/costs/economic/economy/macroeconomic; https://news.vice.com/article/russias-economy-is-a-mess-and-its-problems-arent-going-away
It is just as important to mention that the US and UK have been manipulating their currencies to the detriment of the emerging economies. For example, India has recently decided to trade with Iran solely on their currencies and to leave out reserve currencies euro and dollar. Having to pay debt and balance of payments in dollars or in UK British pound that are highly inflated is hardly in the interest of countries trying to enjoy monetary and economic sovereignty. It only stands to reason that both trading partners derive benefits from trade transactions in their own currencies just as it stands to reason that they along with many emerging economies see the dollar and other reserve currencies as obstacles to their growth because it imposes underlying monetarism on their countries. In October 2015, the IMF predicted a global US dollar recession, as more countries abandon it and begin to consider alternatives, including the yuan that the IMF accepted as a hard currency. The decline of the dollar is the result of US policies, not the fault of Brazil and India or other emerging economies. http://www.ft.com/intl/cms/s/3/d86944c0-6d14-11e5-aca9-d87542bf8673.html#axzz3xtlGwZsK; Barry Eichengreen, Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System, 2012)
Conclusion: Solutions to the Crisis of Capitalism