Dennis R Redmond wrote:
> Ah, yes, this explains the amazing resurgence of that British car
> industry, yes?
Dennis, your fascination with widgets blinds you to certain truths about the
contemporary set-up.
> As well as those powerhouse Brit electronics/software/
> semiconductor firms, busily clobbering Mitsubishi and Microsoft for
> market share.
I'm glad you think something is right with the US, after all. But in fact the
future lies with MS, not Mitsubishi.
> The DM is undervalued, deliberately so;
This is where I have a serious problem with your thinking.
> German
> industrialists didn't like the Bundesbank's neo-monetarist interest rate
> policy in the early Nineties, so since then German rates have been reduced
> to subzero levels.
If you mean both the Japanese and German economies have over-deflated as a
result of their generally-unsuccessful attempt to outcompete the Wall
Street-led US, and now have to loosen the screws before something goes pop,
you are right, only I know you don't mean this.
> Japan is exhibiting a similar, temporary undervaluation vis-a-vis the
> American dollar, due to superlow real interest rates as compared with the
> American Fed's relative tightness.
Funny in that case why Japan is in the shit and the US ain't.
> And I know I've said this before, but
> I'll keep saying it until people understand:
Now, now, Dennis, hectoring gets you nowhere
> we are NOT dealing with some
> WW II return of the evil Japs/Krauts scenario, we're dealing with Central
> Europe and East Asia, multinational zones of hyperaccumulation.
If you think that Central Europe is hyperaccumulating, you are wrong.
Hyperventilating, maybe.
> These
> zones are self-financing, meaning that they can get away with reducing
> interest rates to nothing and still haul in the cash from their industrial
> investments.
Meaning that their industries are so unprofitable and their banks so shaky
that even negative interest rates may not save them; what negative rates
actually means is that they are poised over a precipice of REAL price and
asset deflation of an unprecedented kind.
> The US, on the other hand, is a net international debtor,
> meaning that we are dependent on those low overseas rates for our capital
> financing, and not the other way around. Unless you've got solid evidence
> to the contrary?
>
Yes, the US is a net debtor, so what is else is new? All this means is that
you simply do not understand the power of seignorage or the the real and
colossal historical advantages which being the world hegemon endows. And you
don't.
Mark
