----- Original Message ----- From: "Mark Jones" <[EMAIL PROTECTED]>
> >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 > I don't get this. Are you saying that deflation in Asia is a result of lack > of effective demand in Asia? ================= No. Although who would deny there is a lack of ED in Asia? My point was that Asia has a better chance at continuing the current regional focus because if the dollar is devalued then they can't export -to the US- their way out of the current pickle they're in. >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? ================ My tea leaf readings aren't that powerful. Nobody's denying the lack of ED on the world market right now. The US grew at 3.1% last quarter. Not great, but it's not like 1979-1982 by any means........Nor is the world market like 1873 as far as I can tell. >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. > > Mark =============== Crises are always already politicized. Yes the hegemon is currently engaging in some insidious chest puffing and bullying but it hasn't gotten it's way in the current end game as of yet and may not. We'll see. China Proposes Free Trade Zone With Japan, South Korea Mon Nov 4, 1:57 AM ET PHNOM PENH (AP)--China on Monday proposed establishing a free trade zone with Japan and South Korea (news - web sites), a Japanese official said. Chinese Premier Zhu Rongji raised the suggestion in a meeting with Japanese Prime Minister Junichiro Koizumi and South Korean Prime Minister Kim Suk-soo, said the official who briefed reporters on condition of anonymity. They agreed to let private-sector experts study the feasibility of the deal to strengthen ties between the world's biggest nation and the two highly industrialized economies, the official said A free trade deal would presumably facilitate commerce and investment by bringing down tariffs and other barriers. No timetable was set for reaching an agreement, according to the Japanese official. The leaders met during a summit of the 10 members of the Association of Southeast Asian Nations that also was being attended by China, Japan, South Korea, India and South Africa. China was expected later in the day to sign a draft framework agreement setting the timetable for a free trade pact with the Asean nations, to be established within a decade. Japan has also been courting the Southeast Asian countries Ian
