Money creation

Tom Lehman uswa12 at
Tue Apr 11 07:29:21 PDT 2000

Here's a new twist,

Doug Henwood wrote:

> D.L wrote:
> >It does every day, though, doesn't it? How much of a currency
> >devaluation has to occur before the U.S. can't service its debt? When will
> >the US government start being unable to write the checks?
> It's not the government that has a problem: the foreign capital
> inflow has effectively been financing a marginal propensity to
> consume of over 100% throughout this expansion, and, more recently,
> (corporate investment + stock retirements) > cashflow. While a
> reversal of the inflow wouldn't mean the onset of Armageddon, it
> could involve loud crunching sounds.
> Doug

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