[Marxism] [Pen-l] Michael Hudson: The game is over

Steve Palmer spalmer999 at yahoo.com
Sat Jun 21 12:00:32 MDT 2008

I don't have an immediate response - let me take a look at this. If I feel I
have something useful to say, I will post. I know that the Fed has (or had) a
ceiling on the reserves of foreign banks which correspondent banks could hold
on their behalf, a sore point with other imperialisms, and that would limit how
much they could borrow.

Note that one of the constituents of M3, which I referred to earlier, is
Eurodollar deposits and it has been growing rapidly.

What makes you think that as things worsen, US capitalism will strengthen its
position?  How do you expect this to happen, short of various forms of


--- "S. Artesian" <sartesian at earthlink.net> wrote:

> Steve,
> What's your take on the FT report on 6/09-6/10,  based on the BIS release 
> that European bank dollar borrowing surged dramatically in recent years; the 
> FT attributing the disparities in the LIBOR rates with the increased 
> dependency of European banks on dollar funding, dollar denominated loans 
> from US banks, to the tune of about $500 billion in the last 4 years  (equal 
> to the German, Swiss, and UK banks invested in SIVs)?
> Their explanation for the divergence in the LIBOR rates is that European 
> banks have not had, and do not have, access to US money market, while US 
> banks tripled their use of the MMFs to raise cash between 2003-207 by the 
> amount leant to the European banks, and that now the US banks have curtailed 
> there lending to the Europeans.
> I personally think that US capitalism will, as conditions worsen, actually 
> strengthen  its position in world markets.
> ----- Original Message ----- 
> From: "Steve Palmer" <spalmer999 at yahoo.com>
> To: <sartesian at earthlink.net>
> Sent: Saturday, June 21, 2008 12:40 PM
> Subject: Re: [Marxism] [Pen-l] Michael Hudson: The game is over
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