Re: [A-List] Internal contradictions of capitalism

[Hudsonmi@xxxxxxx]

Dear Sabri,
       There is no way of knowing the point at which other countries will assert their own interest at the expense of American expansion. The reason is that this will be a step function. It will occur in a quantum leap, probably triggered by some catalytic act of over-reaching by the U.S. or of economic collapse in other countries leaving them no choice but either to die outright or break away -- such as we are seeing in Argentina with respect to its foreign debt.
       One can make scenarios. I had expected Europe to assert itself, but it it knuckling under almost as much as Japan (apart from France). Perhaps an emerging group of Argentina, Brazil and Venezuela will break away -- and find a common interest with Far Eastern countries.
       At some point it will be clear that the $1 trillion of US debt will not be repaid, and Europe will see that the $-standard has rested on fiat money creation all along -- and will begin to do this itself.
       Perhaps it will use its surplus $s to buy out U.S. firms and investments in Europe, thus winding down the interpenetration.
       This is one of the areas where personal leadership is critical, and the catalytic role of ideas becomes important.
       What CAN be said is that the split will require an altogether new World Bank, IMF and other set of multinational organizations. That's why I'm sorry the A-list never got to those chapters in my book where I show how these institutions were twisted from the beginning to serve specifically U.S. national ends, masquerading under an internationalist rhetoric.
      

       Michael