Primakov - victory against neo-liberalism

Mark Jones Jones_M at
Sun Sep 13 11:33:45 PDT 1998

Brad de Long writes:

>Hyperinflation is not a victory for anyone...

Wrong, Brad.

Inflation always benefits someone. In the Weimar Republic it enabled the govt to wipe out its reparations debts. In 1971-74 dollar devaluation and world inflation enabled the USA to wipe out OPEC putative gains from oil price increases, because oil was nominated in dollars. It also enabled many countries and corps to wipe out their debts.Not the Third World of course; for them is uttered the mantra 'inflation never benefits anyone; pay your debts; give us your children, your tired and hungry masses, only not the actual people, just the exports they make -- as retribution... in exchange we'll bullshit you about freedom and give you these coloured bits of paper.'

In 1991, 1993 and 1994 the Yeltsin govt wiped out the savings of the population thru hyperinflation and at the same time made it possible for criminals to purchase fantastically valuable assets, nickel processors, oil reserves and the like, for peanuts in devalued currency.

Now Chubais, Chernomyrdin and Yeltsin planned a new hyperinflation to wipe out whatever pathetic savings ordinary Russians had scratched together, while once again allowing the oligarchs and their 'Central' Bank to welsh on thier debts -- meanwhile even the IMF now speaks of the 'benefits'of inflation to help Japan's greedy bankers similarly welsh out...


More information about the lbo-talk mailing list