Capital Solutions

Dennis R Redmond dredmond at SPAMOREGON.UOREGON.EDU
Sun Nov 14 03:10:05 MST 1999

On Sat, 13 Nov 1999, Patrick Bond wrote:

> deindustrialises. I read this not as a reflection that economic crisis
> has been prevented in the North and West, but rather that global
> overaccumulation (and all that it implies) has been carefully moved
> around (geographically and temporally) -- and, particularly,
> devalorisation has been displaced to the South and East. Our
> problems have been part and parcel of your solutions.

Have they, really? The 2nd/3rd Worlds owe $2 trillion in hard currency
debt; but the credit system of the US/EU/Japan is probably close to $70
trillion by now. One could argue that the underdevelopment of the planet
is actually harmful to the extended reproduction of capital; it's a
barrier on market penetration. And hasn't the collapse of 3rd world
developmental regimes had much to do with the emergence of local
capital/comprador elites, busily looting the local economy so they can
feast on global luxury commodities -- a la the privatization of that
great-grandmother of all developmental states, the Soviet Union? If so,
this has drastic consequences for strategies of global resistance to
capital. Among other things, it helps to distinguish the global bankers --
the EU and Japan -- from the global rentiers in the US; often the latter
will be more interested in long-term investment and will be willing to put
up with strong developmental states, whereas the rentiers simply want to
rape everything in sight. On the other hand, no external force can create
indigenous developmental states; correct me if I'm wrong, but isn't this
exactly the problem in South Africa, where a corrupt, hideously
rentierized financial elite is keeping interest rates high and domestic
investment low? Maybe South Korea is the model to follow here: nationalize
75% of the banking system, reregulate capital flows, and start reinvesting
in the industrial base.

-- Dennis

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