[Marxism] [pen-l] There's a New Crash Coming - FPIF

Michael Meeropol mameerop at gmail.com
Sat Sep 22 07:51:45 MDT 2018


The article from Foreign Policy In Focus is economically illiterate --

First clue -- all the references to the AMOUNT of debt are in total dollar
figures.  They tell us nothing --- we need to see those numbers as a
percentage of GDP ---

(or to see the cost of servicing that debt --- annual interest charges --
as a percentage of government spending -- or of GDP (if we include private
debt)).

Government debt growth can ALWAYS be financed by the central bank buying up
new debt -- "monetizing" the debt ---

Greece couldnt do that because they didn't have their own currency -- we do
--

The increase in inequality is a serious long run problem but unless there
is a really bad bubble (like the housing bubble) we are not heading towards
anything LIKE the financial meltdown of 2008.

Look I know it's enticing -- I spent my entire "youth" waiting for the next
depression to bring back the rise of the old left as in the 1930s --- it
never happened because capitalism had changed ---

Even the crash of 2008 didn't produce a re-run of the 1930s though it has
been pretty awful for most of the population ---

This article is not useful ...

OH -- and China selling off US debt -- not gonna happen -- that would cause
a FALL in the value of the US dollar making Chinese exports to the us LESS
competitive ---


On Sat, Sep 22, 2018 at 8:19 AM Louis Proyect <lnp3 at panix.com> wrote:

> Skyrocketing debt, Wall Street deregulation, a fraying social safety
> net, and a diminished dollar could soon leave the United States looking
> like Greece.
>
> https://fpif.org/theres-a-new-crash-coming/
>
> -.
>



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