[lbo-talk] "Sovereign wealth funds"

[Doug Henwood]

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