Jim writes that one motive for Iraq was the strategic help it gives Israel.
I am not a big fan of the overall motive debates for Iraq (it mostly
distracts from the work at hand), but I think this angle sheds light on how
sweeping are the changes implied by the Bush agenda in a one superpower
Paul wrote:
Jim writes that one motive for Iraq was the strategic help it gives
Israel.
I am not a big fan of the overall motive debates for Iraq (it mostly
distracts from the work at hand),
- - - -
I've engated in the same spectator sport myself, but I would agree with
Paul that the effort is
Jim Devine sez:
to the extent that the rich folks in other places are paying for the war,
most of it is buying US Treasury issues, which means that we in the US pay
them interest. As long as they get that, won't they be happy?
John Gulick sez:
Yeah, the US makes interest payments to its
Sez me: to the extent that the rich folks in other places are paying for the war,
most of it is buying US Treasury issues, which means that we in the US pay them
interest. As long as they get that, won't they be happy?
Sez you: Yeah, the US makes interest payments to its creditors, but US
sez you: This is way too complex for me to figure out, but a key question is can
internal demand drive the expansion of the Chinese economy ? China is already saddled
with a pretty bad overcapacity problem and inflated landed property market.
I wrote: both of those would be helped by, say,
[Financial Times]
Asian debt withdrawal threat to US deficit
By Jenny Wiggins in New York
Published: September 7 2003 19:01 | Last Updated: September 7 2003 19:01
Economists fear that Asian investors, who are the largest foreign owners
of US Treasuries, may cut their holdings of US government
Eublides posted:
Asian debt withdrawal threat to US deficit
An important passage contained within: ...if China and other Asian
countries were to allow their currencies to strengthen against the US
dollar, they would have less need to own US assets.
Exactly. All points bulletin to foolish
- Original Message -
From: John Gulick [EMAIL PROTECTED]
Eublides posted:
Asian debt withdrawal threat to US deficit
An important passage contained within: ...if China and other Asian
countries were to allow their currencies to strengthen against the US
dollar, they would have
Ian posted the following:
[obviously a minority view, even from a mainstreamer like Roach]
My own epiphany came from a chat with a Chinese economics professor a few
weeks ago. When I brought up the issue of ending the RMB peg, he
astonished me by saying that ending the peg would cause a massive
PROTECTED]
Sent: Monday, September 08, 2003 10:47 AM
To: [EMAIL PROTECTED]
Subject: Re: [PEN-L] debt, again
Eublides posted:
Asian debt withdrawal threat to US deficit
An important passage contained within: ...if China and other Asian
countries were to allow their currencies to strengthen
Jim Devine,
You wrote:
a rising yuan (relative to the US$) would eventually cut China's trade
surplus with the US. By lowering the US trade deficit, it would reduce the
US demand for funds (supply of US bonds) at the same time it lowered
China's supply of funds (demand for US bonds). It's hard
John wrote:
I don't think a yuan-dollar readjustment would bring about such equilibrating
results. Why not?
If the yuan is revalued, China and perhaps even Japan will progressively bail on
their dollar-denominated asset holdings. There will probably be some kind of
cascading effect:
Jim Devine wrote:
* in the short run, the US seignorage privileges are based on the fact that
the US$ is used as a means of payment all around the world. Neither Japan
nor Europe have run large enough trade deficits to broadcast their
currencies into world circulation enough that they can be used
John Gulick wrote:
Most of us
here on pen-l agree to a greater
or lesser degree that the US' little misadventure in Iraq was and is at
least partly about rescuing dollar primacy by means of gaining additional
leverage over erstwhile allies/would-be rivals in the global system.
Everyone says that,
Doug Henwood asked:
How, exactly, would running Iraq strengthen the USD? Maybe some oil rents
might flow to
Big Oil, but otherwise - what's the material payoff?
John Gulick replies:
I probably can't lay out a line of argument you haven't heard before, so I'm
not very motivated to respond, but in
consequences -economic and not- matters only for
ordinary ppl.
ciao
lumpenpro
- Original Message -
From: Doug Henwood [EMAIL PROTECTED]
To: [EMAIL PROTECTED]
Sent: Monday, September 08, 2003 11:51 PM
Subject: Re: debt, again
John Gulick wrote:
Most of us
here on pen-l agree to a greater
John Gulick writes:I agree that US military supremacy undergirds dollar primacy. Most
of us
here on pen-l agree to a greater or lesser degree that the US' little misadventure in
Iraq was and is at
least partly about rescuing dollar primacy ...
like Doug, it seems, I disagree with this alleged
9/8/2003 4:18 PM
To: [EMAIL PROTECTED]
Cc:
Subject: Re: [PEN-L] debt, again
Just a guess:
1. USD has been up to now what oil is paid for on the global market, and
that has given a much greater freedom of management of US economic
Devine, James wrote:
I know that dollar seigneurage is a big thing, but what is this
income as a percentage of US GDP?
Tiny. I saw some estimates by a Fed staffer once - can't remember the
exact number but it was on the order of $13 billion. The real bonus
for the U.S. is borrowing madly in our
Finally, I know where you're going with this, and I do agree to some
extent
that a renegade cabal of highly ideological neo-cons seized control
over the
foreign policy apparatus, and they are true believers in their inane
concoctions -- that US virtue and US power are one and the same, that US
[ New York Times ]
September 7, 2003
ECONOMIC VIEW
Debt Trouble Could Be Piling Up Overseas
By EDMUND L. ANDREWS
WASHINGTON
FOR the world's poorer countries, this year has been remarkably free from
financial meltdowns.
Argentina, having had one-fifth of its economy evaporate in 2001, is
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