rakesh bhandari wrote: >If Indonesian capital can escape the contradiction between production and >consumption through the export of consumer goods--as suggested by Jim-- why >can't US capital escape the same contradiction through the export of >investment goods to markets in Asian and Europe? In other words, hasn't the >"globalization" of investment demand allowed US capital to escape the >limits of insufficient domestic consumer demand and thus terminate the >Marxian contradictions? In 1995, Indonesian exports were 25% of GDP, US, 10% (unchanged, according to World Bank figures, from 1980). Increasing the US export share by 15% would mean that world markets would have to absorb an additional $1.05 trillion - i.e., roughly the GDP of Britain or Italy. A pretty hard task. By the way, are we sure Indonesia has escaped the contradictions? A friend of mine who used to work at a financial wire service interviewed the governor of the central bank when he was in New York selling bonds. She asked him why, given that Indonesia had a crony-dominated business sector that wasn't internationally competitive and a wreck of a domestic financial system, anyone should buy his paper. He shifted uncomfortably in his seat and his attempt at an answer failed miserably. He did sell the bonds though. Doug -- Doug Henwood Left Business Observer 250 W 85 St New York NY 10024-3217 USA +1-212-874-4020 voice +1-212-874-3137 fax email: <mailto:[EMAIL PROTECTED]> web: <http://www.panix.com/~dhenwood/LBO_home.html>
