On May 26, 2007, at 10:11 AM, Marvin Gandall wrote:
> The export of capital from the developing nations to the advanced
> capitalist
> countries was unforeseen (so far as I'm aware) by the classical
> theorists of
> imperialism, although Western finance capital still stands to
> benefit hugely
> from its management of these surpluses.
Sure, and I don't doubt the City of London made money off Britain's transition from creditor to debtor. A lot of leftists want to see growing U.S. indebtedness as a sign of strength - somehow all those Asians buy U.S. treasury bonds are paying us tribute or something, as if we weren't on the hook for interest & principal, and in constant daily need for new finance and the rolling over of old loans. Maybe it is a perverse sign of strength - that won't be clear for some time. And Washington could always default, though that would throw the world economy into a tailspin. But it looks to me worth considering that the debts are a long-term symptom of erosion of position that may take years or decades to play out, but which is underway. That seems to be how the CFR audiences I've observed take it.
Doug