First, can foreign banks lend out their dollar deposits and to what extent? Are there different reserve requirements for lending in foreign currencies? I think it might be instructive vis-a-vis the Hardt-Negri hypothesis because I believe it will separate out the parts of the equation that reflect a truly globalized system of private hedging and a state-backed system of bank lending.
Basically I'm asking some knowledgeable person to contrast the relationship a foreign lender of dollars has with the US Fed. and that between the Fed. and a domestic lender of dollars. On a similar subject, what is the relationship between, say, the Bank of England and British banks which lend dollars. Does the eurodollar market act as a market-based Fed, in effect? Is it an extension of the Fed?
It seems to me that the U.S. Fed is clearly the engine of growth in the global money supply. However much cash Japan may have, few corporations feel a need to have their deposits is yen. For Hardt-Negri to be right, doesn't there have to be another center of money-supply growth?
Does the case of Italy provide a good example pro or con Hardt-Negri? What does it mean for a developed, capitalist state to adopt a central bank structure (seemingly a conservative force) while globalism is supposed to be providing the answers to the credit problem?
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