Re: Re: Re: Re: Rentier's hoarding ?

[Christian A. Gregory]

> Doug is suggesting that the problem _might_ be solved the good old Maggie
> Thatcher or Attila the Hun way, imposing a shake-out that drives out the
> weakling  capitalists and imposing wage cuts, deunionization, etc. on the
> working class. This would raise the rate of profit and eventually
stimulate
> accumulation and recovery, if it doesn't cause underconsumption.

There are also significant risks to this strategy, if taken seriously. If
such "restructuring" were to provoke a more general banking / financial
system crisis, Japanese would dump all those dollars, bonds, and
dollar-denominated assets that it holds, which could spell the end of the
U.S. ability to act as consumer of last resort--and hence, to its "New
Economy" euphoria. (I think Taggart Murphy makes this point pretty well in
his NLR piece.)

All best
Christian


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