Re: Chartalism as Alternative to Neo-liberalism

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

> Within the concept of Chartalism, there is no need for foreign direct or
> indirect investment (which are really long term loans, with the technical
> difference of debt being independent of equity value).

Comment:

What is the link between a Government's views on Chartalist Doctrine, on the
one hand, and its policy with respect to direct or indirect foreign
investment, on the other hand.

Gunnar



----- Original Message -----
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: "J. Barkley Rosser, Jr." <rosserjb@xxxxxxx>
Cc: <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, January 15, 2002 2:25 PM
Subject: Re: Chartalism as Alternative to Neo-liberalism


>
>
> "J. Barkley Rosser, Jr." wrote:
>
> >       When are country's forced to borrow from
> > abroad?  When they wish to receive foreign
> > investment from abroad.
>
> This is actually a circular product of neo-liberal finance globalization.
> Within the concept of Chartalism, there is no need for foreign direct or
> indirect investment (which are really long term loans, with the technical
> difference of debt being independent of equity value).  With foreign debt,
both
> soveriegn and private, an economy needs to export to earn foreign
currencies to
> service the debt.  Both export and foreign debt service are drains from
the
> local economy, each exacerbating the other.  It is financial drug
addition.  Of
> course foreign debt, like illegal drug, should only be paid with
counterfeit
> money - and the IMF's job is make sure that it does not happen to foreign
debt,
> by making the citizens of foreign debts pay through auterity programs
> (conditionalities) of unemployment, recession and bankruptcies that
requires
> more soverign debts from foreign sources.
>
> Henry C.K.Liu
>
>