Re: [Marxism] fiasco

["S. Artesian" <sartesian@xxxxxxxxxxxxx>]

In your original post you wrote:

"So in a response to the piercing of the tech bubble and 9-11, Greenspan
lowers rates, and
then since military Keynesianism via the occupation of Iraq not only fails
to stimulate economy
but weakens it as the stimulus leaks abroad, the price of oil skyrockets
and the dollar falls with the explosion of deficits, Greenspan keeps rates
low and turns a blind eye to the collapse of lending standards, as a real
estate bubble is the only simulus the economy has going for it.
And a few years later American workers are now left not only with
recession but a one trillion dollar bill to buy back the toxic debt and
three trillion dollars in war costs."



The above is just not accurate.  By any measure, profitability, being the 
most important the economy was stimulated by "military Keynesianism."  The 
price of oil did not weaken the US economy, neither did the decline of the 
dollar.  Both channeled profit and cash flow into the US.  US exports of 
manufactured goods increase markedly after 2004.  China's "savings" hardly 
played the role of super-fuel as those savings flowed in "on demand" assets 
of maximum liquidity-- US govt. and GSE debt, and not into either the 
corporate expansion in the US after 2004, or the structured investment 
vehicles that became a favortie for banks.

The fall of the dollar was the classic play in this game of beggar your 
neighbor.


----- Original Message ----- 
From: "Rakesh Bhandari" <bhandari@xxxxxxxxxxxx>
To: <sartesian@xxxxxxxxxxxxx>
Sent: Sunday, September 21, 2008 2:56 PM
Subject: Re: [Marxism] fiasco



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