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By the way, isn't the brouhaha about Chinese "mercantilism" just the ld "Open Door" in a new guise? Shane Mage Comment I would say yes, provided we are on in the same book and on the same page concerning mercantilism as part of the nomenclature of the bourgeoisie justifying exploitation and the wage labor form. I would not call China's export economy trade simply because what is produced is exported. I call this sector of the economy capitalist/imperial exploitation, pure and simple. Trade as mercantilism is based acquiring species - gold, as a store of value rather than currency detached from species. China's holding of $1.8 trillion in American paper means China has a problem rather than America, which can print paper at will. Without causing inflation. Nor can American dollars be invested in the Chinese economy. Hence, China's buying spree of hard goods in countries willing to accept American paper. Krugman is a liar but not a fool. China has no economic incentive to dump American paper as such, but rather a need to receive hard goods for its hard exports. What China is involved in in respects to exports to America is old fashion exploitation. China exports real things - hard goods to America, and in return get unreal credit instruments, ultimately convertible into more of the same instruments. WL. -----Original Message----- From: Shane Mage <shm...@pipeline.com> To: waistli...@aol.com Sent: Mon, Jan 4, 2010 1:16 pm Subject: Re: [Marxism] It's not capitalism, it's mercantilism... ====================================================================== ule #1: YOU MUST clip all extraneous text when replying to a message. ===================================================================== On Jan 4, 2010, at 12:49 PM, nada wrote: "Tell me again how this debt swap works between Russia and China-- China usesthe Tsy instruments as currency for payment of hard goods? OK, how does that insulate either party from the world markets? If the value of the dollar declines, then these instruments essentially lose face value upon either redemption, as the "new dollars" are less valued than the old dollars used to buy the instruments, or upon sale in the secondary markets-- same reason... That some speculators would dump dollars if they thought (rightly or rongly) that the Chinese Central Bank was going to lessen its dollar xposure in some meaningful way is totally expectable. But that asn't happened noticeably since the Russia deal was announced. So hy should the dollar fall (against the Euro and Yen) when the ussians eventually take the cash as the bonds expire? By the way, isn't the brouhaha about Chinese "mercantilism" just the ld "Open Door" in a new guise? Shane Mage > This cosmos did none of gods or men make, but it always was and is and shall be: an everlasting fire, kindling in measures and going out in measures." Herakleitos of Ephesos ________________________________________________ end list submissions to: Marxism@lists.econ.utah.edu et your options at: http://lists.econ.utah.edu/mailman/options/marxism/waistline2%40aol.com ________________________________________________ Send list submissions to: Marxism@lists.econ.utah.edu Set your options at: http://lists.econ.utah.edu/mailman/options/marxism/archive%40mail-archive.com
