On Sun, Mar 30, 2008 at 1:31 PM, ken hanly <[EMAIL PROTECTED]> wrote: > The depreciating U.S. dollar will also make the many > imported goods that U.S. citizens buy more expensive. > This will mean that wages will not purchase as much. > As mentioned the price of oil increasing will > involve a multiplier effect that will make numerous > basic goods necessary for a decent standard of living > for the working class more expensive. > Of course there may be some increase in consumption > of U.S. produced goods and also an increase in exports > but I am not sure this will be sufficient to offset > the negative effects.
The way I see it, there is a brewing conflict between the industrial capitalists and finance capitalists. The Fed is now trying very hard to inflate and this should hurt the accumulated wealth of the industrial capitalists. But since the newly printed money is directly "injected" into the financial markets, the financiers would come out of it just fine. In a strange way, there seems to be an alignment of interests between the financiers and the working class. The coming backlash against the financiers may very well become deflected towards the working class. -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
