Doug wrote: > (...) Lots of international capital flows are just hot money > moving in and out. They inject and withdraw liquidity, but don't > necessarily get deeply involved in the local scene. Direct investment > is another matter. >
- But what about the resultant of capital flows? If this resultant is null or randomizing, you are right. But the resultant of direct investments and returns to the main financial places is strictly directed from the periphery to the centers of the net. That means that Africa, for example, returns more capital than it receives as investments and aids. That is the reason why Argentina's internal market is dying. The world is more or less governed by the negative trade balance of the USA and by the one of Western Europe with respect to the rest of the world minus the USA. And the strictly directed resulting balance of capital is the reverse of this systematic distribution of the sign of trade balances . The integration is not yet complete. But it is on the way, and such is the so-called "Globalization". Is it not the proof that Rosa Luxemburg was right against Lenin? Regards RK
