Forwarded from Anthony (deregulation)

Louis Proyect lnp3 at SPAMpanix.com
Wed Feb 14 06:54:10 MST 2001


Hi Lou:

Please post this:

I like your investigation into deregulation. I have been working on the
issue too, but haven't written anything yet for a variety of reasons.

The most important of them is the financial market angle. Although the
effects of deregulation are felt by 'consumers' - which includes anyone and
everyone who consumes from the people down the block to Hewlett Packard
corp. - the impetus I think comes from the financial swindlers.

The really big profits that have been made by the pirate generating
companies in selling elctricty during the California crisis are peanuts
compared to the astronimcal windfalls the stock market "speculators" have
made on this crisis - both coming and going.

My take on this is that this is a combination of asset stripping and
insiders trading scandal - cooked up by some very smart thiefs.

It has all kinds of interesing angles. One of which is that it is an
economic conflict within the ruling class. One sector, based in Texas
around companies like Enron, set out to rip off another sector - based in
places like Silicon Valley - to the tune of many billions of dollars.

This kind of cannibalistic attack by one sector of capital against another,
has in the past been an indicator that an expansionary phase of capitalism
is closing - 'normal profitmaking becoming more difficult - and a
contraction is in the offing.

Another intereseting angle is that the World Bank - at its school for
Utility Regulators at the Universtiy of Florida in Gainesville - teaches
how to deregulate and privatize utilities to the economists, attorney,
statisticians, etc. who work for agencies like FERC and the California PUC.
Every six months they hold a seminar for betwee 30 and 50 people from
around the world. the models they ussuallydiscuss are Calfironia, England,
and Chile. All three of their model cases have been disasters for consumers.

And, a final interesing angle (for now) is that Colombia is involved in a
major financial scandal involving both the Samper administration and the
Pastrana administration which is centered on a swindle organized through
deregulation and privatization of the electical power industry. The chef of
this partiuclar dish was Samper's Minster of Energy who is now a proffessor
at the University of Florida, and was George W. Bush's campaign advisor on
Latin American investment during the election campaign.

All the best, Anthony


Louis Proyect
Marxism mailing list: http://www.marxmail.org






More information about the Marxism mailing list