[Marxism] 2020 - Sanders Takes Top Spot In Dem Quinnipiac University Connecticut
1999wildcat at gmail.com
Wed Feb 12 09:07:49 MST 2020
Daniel Lindvall wrote: "The financial markets (i.e. the ruling class) react
one way when spending goes to bailing out businesses (or buying more guns),
and in an entirely opposed way when it goes to improving the lives of the
working class and the general population."
What Daniel is implying is that the financial markets are controlled by the
political decisions of the capitalist class. Another version of this same
view is the one that claims that US and European capitalists crashed the
price of oil for political ends - possibly in order to destabilize a
then-radical Chavez regime.
I disagree. Capitalism has its own laws of motion and not even the most
powerful capitalists can override those laws.
As far as budget deficits: yes, they do matter... in almost all countries.
The laws of the market dictate that if there is an increased supply of a
currency and it does not correspond to an increase in production on which
to spend that currency, then it will require more of that currency to
exchange for products. Internationally it means that capital will tend to
leave that currency. In other words, inflation.
The US is in an exceptional position because of the role of the dollar in
international trade and finance. The fact that to this day the US economy
is still the strongest and most stable has made the dollar universally more
desirable. By floating increased amounts of dollar-based debt, what the US
is doing is making international capitalists pay for their spendthrift ways
at home. That cannot continue forever, especially as US capitalism is being
challenged by Chinese capitalism.
Yes, debt does have to be repaid. Or, put another way, the US government
does have to pay back those loans/bonds and T notes, or at least there has
to be confidence that it will do so. At some point, as the world becomes
flooded with dollars, the only way that the US government can maintain that
confidence will be to increase the interest rate paid on those instruments.
Does anybody think that won't have an affect?
*“In politics, abstract terms conceal treachery.” *from "The Black
Jacobins" by C. L. R. James
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