Global overproduction! - Soros

Dennis R Redmond dredmond at OREGON.UOREGON.EDU
Fri Jun 12 15:43:58 PDT 1998

On Fri, 12 Jun 1998, Chris Burford wrote:

> George Soros who made billions speculating on the fall of the pound in
> 1993, is on record today lamenting the crisis of "global overproduction" -
> clear - and of "global inflation".
> I do not get the latter. What is he on about, and why?

He probably means the Wall Street bubble. Equity values have gone up 30% a year for most of the Nineties, while the real economy has crawled along at 3% growth. It's an interesting contradiction of rentier ideology, that while punters regularly foam at the mouth at inflation in consumer goods and services, they have nothing at all to say about inflation in financial assets, i.e. stock, bond or property bubbles. But sooner or later, all that rises must converge, as the increasingly rickety-looking Dow attests. Falling corporate earnings, high inventories, bubble-mad financiering, the entire Asian economy collapsing into a very deep hole, Russia at the brink, IG Metall and the German unions unsheathing the claws of class struggle... 1998 just keeps getting more and more interesting!

-- Dennis

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