you have of course overproduction and a decline in chip prices. but a witty colleague also noticed that intermediate products were piling up in a sort of glut and final demand for the final product e.g. computers, was not moving. here waht is interesting is not anarchy on the distribution side (consumption slide) but also a lack of coordination on the production side which exacerbated the crisis. double whammy.
but when after dislocation and the fire sale, demand picked up gain, exports doubled or to be exact the ratio of export and imports to gdp doubled. so where a rate of growth of 6 to 7 % was achieved with about a 38% investment to gdp ratio, a 9% growth rate in 1999 was achieved with a 19% ratio (i have Korea in mind).
Mark Jones <[EMAIL PROTECTED]> wrote:
At 03/11/2002 20:11, you wrote:
>Right, 'but' the other shoe that keeps the deflation from becoming a big
>black hole is US imports from the region and the $1billion + a day comin' in
>as well. If the rate of return for Asian investors is higher in the US than
>in their own region, why increase the level of investment at home for home
>markets? The Japanese, for one, would need far bigger homes to put all the
>stuff that would need to be purchased to increase AD.
>
>Ian
I don't get this. Are you saying that deflation in Asia is a result of lack
of effective demand in Asia? Is it not more the result of the lack of
effective demand in the world as a whole, the reason being that the
hegemonic capitalist state is no longer capable of capitalising the world
economy or of sustained growth itself? As with the pax ! Britannica after
1873. Deflation in Asia is an index of the weakness of the hegemon and
means that this is a transitional epoch characterised by the decline of one
hegemon and either the rise of another, or a prolonged bout of sustained
chaos, turbulence and deflationary crisis. US forward strategy is to
compensate for its economic weakness by militarising its economy and
society and by seizing control of the Middle East and Central Asia. But
this cannot solve its underlying problem and can only lead to renewed arms
races and to a politicising of crisis and a radicalising of working
classes, including but not only in Asia.
Mark
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