FT seeks riots elsewhere

Chris Burford cburford at gn.apc.org
Mon Aug 31 23:43:41 PDT 1998


I do not intend to get the FT this morning but can anyone who has, check the latest editorial. According to tv newsclips it regrets discretely that middle class middle aged Japanese are culturally inhibited from going out on the streets, because if they did, this would accelerate the necessary process of economic change in Japan.

While I have enjoyed the threads on this list about the nuances of physical and sexual bonding, spare a thought for the nuances of how capitalists communicate with each other to stitch up the world. Every group has its subtle codes for dealing with conflicts. This editorial is the nearest we may get to capitalists admitting that at times they have no great objection to riots, so long as they can see the way to stabilise the situation and maximise profits again.

The assumption is thus being created that the world economic system will stabilise better if countries like Japan accept the pain, and above all restructure their overcapitalised banking sector, either by writing off large amounts of debt definitively, or by subsidising a new confidence in a reorganised banking sector from massive taxation. Either way there should be less purchasing power for the Japanese population, but that is OK, because the USA as "consumer of last resort" will happily run a large current account deficit and consume these products free for the rest of the world.

Meanwhile the European central bank is preparing public opinion for the FT's favoured solution. Ahead of its meeting, it has clearly issued a press release, noting that with events in Russia it is important that the Euro goes ahead on time, but that its management will require "delicate" handling. (no hints of riots here). Therefore [although the normal and proper action of capitalists in a monetary crisis is to panic a bit more and raise interest rates] interests rates for the Euro may actually be *lower* in the coming period than they might have been.

Very reassuring. Good news management. Not exactly the brisk neo-liberalism they dole out for Asia and Russia, but the end result will be the American and European heartlands of capitalism will be able to cruise along happily after the shake out, on lower interest rates, with an even higher proportion of global Value, being diverted to them, while the rest of the world sweats it out because of their poor credit-worthy status.

As with an unseen hand,

or sleight of hand?

Chris Burford



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