ECB pressed to cut rates as euro soars

Xenon Zi-Neng Yuan wenhuadageming at
Fri May 9 22:26:08 MDT 2003

   yeah, this is what i'm seeing.  we're on the verge of several imminent
crises.  dreary times ahead. indeed...

>To: <marxism at>
>Subject: RE: ECB pressed to cut rates as euro soars
>From: "bon moun" <sherrynstan at>
>Date: Fri, 9 May 2003 07:29:27 -0400
>Importance: Normal
>In-Reply-To: <3ebb06d5.62aa.0 at>
>Reply-To:       marxism at
>Sender:         owner-marxism at
>No one except the most simplistic has said that dollar hegemony is the
>sole motive for the invasion of Iraq.  It is an important component of
>the conjuncture, however, precisely because it presents so many
>insoluble dilemmas.  That is precisely why it should interest us.  No
>doubt this war was overdetermined, and we need to see all aspects of
>that overdetermination, including plain stupidity from within neocon
>ideological blinders.  But the currency issue, which is really a credit
>issue, points us at a material limit that cannot remain under the
>surface, so to speak, indefinitely.  For example, as the cascade of
>disorder progresses, what options will be available to Europe (and
>Russia!)?  When the deflationary spiral begins in the US, what can the
>holders of US Treasury Bonds do?  They already know the US will not pay
>out, because it can't.  And for how long can the US serve as the
>consumer of last resort in a world defined by dollar hegemony [that is,
>where the US makes dollars, and everyone else has to divert potential
>development capital into an export economy to get some of those dollars
>to build a firewall against speculators]?  We can not ignore the fact
>that a significant joist under this dollar hegemony is that certain key
>commodities are now denominated in dollars - and oil ain't no ordinary
>commodity.  This rivalry between Europe/Russia and the US will
>inevitably break out more and more into the open, and it will force many
>very hard decisions.  I watch with great interest, for instance, the
>notion of an independent (of NATO) EU military institution as it grows
>At bottom, this is not a currency crisis - as we know.  It is an
>accumulation crisis, and - I think - a doozie.  Dangerous as hell to
>I also apologize for my abrupt tone in the earlier post.  Working under
>deadlines and underslept, so I've been peevish.

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