ECB pressed to cut rates as euro soars

Tom O'Lincoln suarsos at
Thu May 8 19:15:06 MDT 2003

>>This is not the 'theory' afoot.  No wonder you don't believe it.  You
don't understand it. The issue is not the relative value but the position
and stability of the currency to challenge the dollar as a reserve currency
and erode dollar hegemony.<<

I heard all of these. It sounds like the same general idea to me. Having
your currency "hegemonic" allows you to engage in some mercantilist
manipulation of markets, just as devaluation or upward re-valuation does.
But always at a price. The rigid post-war version of dollar hegemony (which
delivered currency stability) cost the United States dearly in the sixties,
as European and Japanese goods began to flood into US markets. So Nixon
finally moved away from it -- to the complaints of the Europeans.

But again, sections of the US ruling class may *see* this as important.
That means it actually does assume a certain importance, as part of the
ideological background to the war.

More information about the Marxism mailing list