New approach to debt called for

Doug Henwood dhenwood at panix.com
Fri Sep 3 09:54:11 PDT 1999


Chris Burford wrote:


>you
>come from a position of militant cynicism and I come from a position of
>militant reformism.


>That is because of your mechanical and superficial approach to the problem.


>How unimaginative you are in your concept of the state.


>you are presenting yourself as the left face of Jessie Helms.


>But if one is a
>militant cynic there is no need to get your hands dirty with such details.


>What side are you on, for Christ's sake, Christian? Are you mainly trying
>to prove that despite your name you are not a bleeding heart liberal?

Rough night last night, Chris?


>The costs and disruptions caused by 5% shifts in the relative value of the
>yen, euro, and dollar are enormous. The major world monopoly capitalist
>companies (who are the real power holders behind Baker and Helms) have to
>offset large amounts of money themselves to deal in the international
>currencies. It is in their imperialist interests, yes imperialist, to have
>the system more stabilised. Even George Soros has just lost billions.

That capitalist class has little interest in what you're talking about - capital loves mobility and liquidity. Soros is an exception. People claim all kinds of real sector damage from "5% shifts in the relative value of the yen, euro, and dollar," but these do not seem to have hampered trade growth. Typically, capital has evolved a profitable, individualized solution to the social problem of currency volatility - forwards and futures. Liberals and social democrats frequently complain about how awful "globalization" is and how financial volatility is a cost to trade - are you really trying to encourge more trade?

Your Tobin Tax may hamper trading, but it won't do much about net capital flows. Africa will still be starved, and metropolitan capital will continue to extract wealth from subordinated regions, in partnership with local ruling classes, who can get very rich on their own. Their wealth ties their interests to metropolitan capital. This whole system requires capital mobility. This is the heart of the capitalist process, as Schumpeter said. You want to drive a "reformist" stake through it. I don't get the mechanism. It require a massive revolutionary upsurge to attack capital mobility right now. How do you think it could be mobilized? Will people risk their lives for a Tobin Tax?

Doug



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