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Your quoted statements are indeed echoed in the middle part of Super Imperialism -- there are other texts, of course, which have gone over this material as well...
"Imagine all the people/ Sharing all the world" -- John Lennon
by Cassiodorus on Wed Nov 14, 2007 at 01:47:02 PM PDT
[ Parent ]
I hadn't heard about Super Imperialism- thanks for the heads-up!
To your earlier point, I agree that it's astonishing how little our monetary policies enter into our political dialog - as if the monetary system we have in place is somehow natural. The only two congressmen who I've heard talk about this in any sort of reasonable way are Ron Paul and Dennis Kucinich, and I disagree with Paul's prescription for the gold standard.
Mike Whitney, in his excellent article The Great Dollar Crash of 07, writes about the same point which you articulate - namely that we cannot possibly hope to pay off our debts by growth alone or increasing exports:
Just look at Bush’s budget for 2007-2008; $700 billion for foreign wars?!? There’s no way the US can pay off that debt through the normal means of increasing exports. In fact, Bush has already said that he plans to preserve his unfunded tax cuts whether they produce massive deficits or not. What Bush plans to do is force the foreign central banks to hold more dollar-based assets, thus, thrusting our gigantic debt onto our trading partners. According to Bob Chapman of The International Forecaster, "US debt was up 10.1% to $4.085 trillion and accounts for 58.8% OF ALL THE CREDIT ISSUED GLOBALLY LAST YEAR. The US is producing more debt than the rest of the world combined. As long as foreign lenders are willing to take our paper, Bush will keep expanding our debt. As Chalmers Johnson opined, "We are dependent on ‘the kindness of strangers’". (The Blanche Dubois economy) Of course, if the central banks grow tired of this pyramid-scheme and dump the dollar; the world can get on with the business of addressing global warming, poverty, AIDs, Peak Oil, nuclear proliferation etc. That won’t happen as long as the dollar reigns supreme and a small cadre of unelected racketeers at the Fed continue Gerry-rig the system.
Just look at Bush’s budget for 2007-2008; $700 billion for foreign wars?!? There’s no way the US can pay off that debt through the normal means of increasing exports. In fact, Bush has already said that he plans to preserve his unfunded tax cuts whether they produce massive deficits or not.
What Bush plans to do is force the foreign central banks to hold more dollar-based assets, thus, thrusting our gigantic debt onto our trading partners. According to Bob Chapman of The International Forecaster, "US debt was up 10.1% to $4.085 trillion and accounts for 58.8% OF ALL THE CREDIT ISSUED GLOBALLY LAST YEAR. The US is producing more debt than the rest of the world combined.
As long as foreign lenders are willing to take our paper, Bush will keep expanding our debt. As Chalmers Johnson opined, "We are dependent on ‘the kindness of strangers’". (The Blanche Dubois economy)
Of course, if the central banks grow tired of this pyramid-scheme and dump the dollar; the world can get on with the business of addressing global warming, poverty, AIDs, Peak Oil, nuclear proliferation etc. That won’t happen as long as the dollar reigns supreme and a small cadre of unelected racketeers at the Fed continue Gerry-rig the system.
by dantyrant on Wed Nov 14, 2007 at 02:11:55 PM PDT
If the banks were to tire of dollar-based assets, their current dollar-based assets would suffer major losses in value, that and the world economy would tank... at some point, however, the world economy could tank (and their assets would depreciate) anyway, making bank allegiance to dollar hegemony less relevant...
by Cassiodorus on Wed Nov 14, 2007 at 02:14:53 PM PDT
Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. "These numbers are absolutely stunning," said Marc Ostwald, an economist at Insinger de Beaufort. Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries. Mr Ostwald warned that US bond yields could start to rise again unless the outflows reverse quickly. "Woe betide US Treasuries if inflation does not remain benign," he said. (link)
Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields.
Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. "These numbers are absolutely stunning," said Marc Ostwald, an economist at Insinger de Beaufort.
Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries. Mr Ostwald warned that US bond yields could start to rise again unless the outflows reverse quickly. "Woe betide US Treasuries if inflation does not remain benign," he said. (link)
And of course, there was last Wednesday's announcement which caused the dollar to drop two full cents relative to the CAD.
I don't think anyone wants to create a global financial crisis, but these countries holding dollars are seeing the value of those holdings plummet in real times. And, the weakness in American financial markets has prompted lower interest rates, creating an additional downward pressure on the dollar. I don't think the dollar can survive much more of this abuse.
by dantyrant on Wed Nov 14, 2007 at 02:54:14 PM PDT
wide narrow
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