This article seems quite good for the conventional corporate media.  I mentioned a couple days ago that I thought that the biggest risk for the Bush economy comes from the international sector.

 

A couple of days ago, Jeff Madrick had a nice piece in the New York Times emphasizing the importance of cooperation in maintaining international economic health.  He probably goes too far in making the pre-Bush era seem like a time of great international cooperation.  Surely the US through its way around quite a bit before Bush, but the gung ho cowboy politics of today certainly represent a threat to any hope of international cooperation.  Maybe the US can successfully act as a coercive hegemon, but I doubt it.

 

The dollar dilemma seems crucial in reminding us that the capitalist system is full of contradictions.  If you push too hard in one direction, you can bite you in the butt from the other side.  Cheap dollar help manufacturing, but rapidly cheapening dollars threaten US finance.

 

Michael Perelman

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