At 03/11/2002 20:11, you wrote:
I don't get this. Are you saying that deflation in Asia is a result of lack of effective demand in Asia? Is it not more the result of the lack of effective demand in the world as a whole, the reason being that the hegemonic capitalist state is no longer capable of capitalising the world economy or of sustained growth itself? As with the pax Britannica after 1873. Deflation in Asia is an index of the weakness of the hegemon and means that this is a transitional epoch characterised by the decline of one hegemon and either the rise of another, or a prolonged bout of sustained chaos, turbulence and deflationary crisis. US forward strategy is to compensate for its economic weakness by militarising its economy and society and by seizing control of the Middle East and Central Asia. But this cannot solve its underlying problem and can only lead to renewed arms races and to a politicising of crisis and a radicalising of working classes, including but not only in Asia.Right, 'but' the other shoe that keeps the deflation from becoming a big black hole is US imports from the region and the $1billion + a day comin' in as well. If the rate of return for Asian investors is higher in the US than in their own region, why increase the level of investment at home for home markets? The Japanese, for one, would need far bigger homes to put all the stuff that would need to be purchased to increase AD. Ian
Mark
