On Jul 25, 2007, at 6:51 PM, bhandari at berkeley.edu wrote:
> Well yes but then the accumulation of US financial assets does not
> seem
> well characterized as the imperialist state monopoly export of
> capital. It
> seems that a mercantile state is worshipping trade surpluses at the
> expense of unequal exchange, self imposed through a political
> devaluation
> of the currency.
China is afraid of being priced out of world export markets and has to keep the currency's value down. It needs rapid growth to maintain social stability and provide employment. Changing the model to rely more on internal demand is a risk they're afraid to take.
Doug