Decline of American Power?

Chris Beggy news at kippona.com
Thu Oct 10 22:11:38 PDT 2002


John Mage <jmage at panix.com> writes:


> There's a permanent crisis. like Hapsburg Vienna, that (in Samir Amin's
> phrase) they can manage but never resolve. Insofar as we're talking
> about crises arising from contradictions most likely inherent in
> capitalism even absent antisystemic agency (realization or eco crises),
> don't see why they couldn't manage them profitably until the last tree
> is cut down to print the last ad in the last lad magazine.

Maybe finance capital is upset because they can't trade against a US government that is run by money men with Echelon reports at their fingertips. They can't game a market where only POTUS and SECDEF will know the hour and the day of the war, and whether oil shipments will be disrupted or not. They can't figure out why this crew didn't bail out Argentina's creditors, but instead let the country become a grim example of the US power to loose and to bind the economic fortunes of nations.

They can't trade against terrorist adventurers who leverage their attacks in the futures pits. They can't make any money hedging 10 sigma events.

Despite the lowest long rates in treasury bond history, the treasury took away the 30-year bond and the generous spreads that go with them, from the primary dealers. I suppose the US treasury, with the biggest gold position in the world, keeps all the gold carry-traders like JPM and their best customers just a bid away from game-over.

The government regulatory regime is becoming strict only *after* the criminal business leaders have indulged themselves and just when it should be permissive in order to let competing firms buy and shut down sick competitors.

The fruits of the mortgage refinance boom are disproportionately picked by the government's Ginnie-Mae and Fannie-Mae, which undercut the private firms.

The current government may kill finance capital before it has a chance to mend its ways and help repair manufacturing and social capital.

Chris



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