Doug Henwood : On May 4, 2007, at 9:46 PM, Auguste Blanqui wrote:
> In Harvey's Late Imperialism, the other DH writes: "... just as the
> hedge
> funds, armed with trillions of dollars of leveraged money, could force
> Indonesia and even Korea into bankruptcy, no matter what the
> strength of
> their underlying economies."
>
> How might this occur?
By pumping a lot of money into Korean or Indonesian assets for a long while, feeding a domestic credit boom, and then suddenly pulling out. It probably wouldn't be hedge funds alone, but also other institutional investors.
^^^^^ CB; Surely the bankrupt nations "lose" the money to the international financiers. Are the treasures thereby had counted in the statistics on foreign direct investment, returns to exported capital or imperialist booty gotten by finance capital ?