Americanization of global finance (cont.)

Dennis R Redmond dredmond at OREGON.UOREGON.EDU
Thu Sep 23 12:43:22 PDT 1999


On Thu, 23 Sep 1999, Seth Ackerman wrote:


> But why does the the yen keep appreciating? The Ronald MacKinnon
> article from the Economist that I posted claimed it is due to "unresolved
> trade disputes" which struck me as being somewhat vague.

Because Japan owns our sorry American asses, that's why. Japan is the biggest single global creditor, to the tune of a trillion euros or so; the US is the single biggest debtor (minus two trillion euros). It's World Systems Econ 101: semiperipheral capital flows to metropoles, while metropolitan commodities flow to the semiperipheries. And don't even get me started on that other metropole, the EU.

-- Dennis



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