[lbo-talk] capitalism and collapse

[Patrick Bond]

----- Original Message ----- 
From: "Marvin Gandall" <marvgandall at videotron.ca>
> Of course, it's the Western central banks which have been pushing this
> "rebalancing" hardest in the interest of their exporters, but Western
> retailers and manufacturers with subsidiaries and suppliers in China and
> other low-cost countries have been resisting these pressures because cheap
> Asian currencies and prices boost their profits. The Chinese understand 
> the
> need for more balanced growth, but are worry a sharp upward revaluation
> would cause too drastic a falloff in exports and a social crisis.

Marvin,
A) is the balance of forces associated with these contradictions well 
documented by anyone?
B) are the Chinese worried about the asset deflation implicit in their own 
US holding?


> I think it would require a profound economic crisis and a loss of 
> confidence
> by global capital in the dollar as the reserve currency to trigger a more
> abrupt realignment of the currencies.

Around these parts (South Africa), people lick their lips at the thought. 
Last time was 1973-79, and gold went up to $850/oz.

Patrick